Slide 1 of 36
Redfin’s Home Buying Event
June 18, 2014 - Folsom, CA
Host: Lindsay Martin & Melanie Cortez Franklin
Slide 2 of 36
Meet Redfin’s Roseville - Folsom Team
Slide 3 of 36
● To buy or not to buy
● Overview of purchase process
● Understanding the Market
● Multiple offers
● Choosing the right agent
● Making an Offer
● What to know about closing
● Thank you!
Slide 4 of 36
A Little Bit About Who We Are
Redfin is a real estate brokerage that has helped over 20,000
people buy or sell a home; 97% would refer us to a friend.
● Customers, not commissions
● Informed decisions
● Right home for the right price
Slide 13 of 36
● Homes are being listed at strategically low prices
►So properties are selling above list price
►Base your offer price on comps & trends – NOT on list
● Deadlines are being set to accept & review offers
►Sellers usually review offers after about 7-14 days on
►To give property exposure and create buzz amongst
● Some buyers are waiving their contingencies in order to
make their offers more attractive to the seller
What Other Trends are We Noticing?
Slide 14 of 36
What to do?
● Go see the home as soon as you can!
►First couple days on market
● Homes that are priced well, and move-in ready, may sell in
● Expect to be up against multiple offers (5-10+), some cash
● Get pre approval early on
Slide 16 of 36
Where Are Rates Headed?
Type of Loan June 12, 2014 June 5, 2014
30-Year Fixed 4.20% 4.14%
15-Year Fixed 3.31% 3.23%
5/1 ARM 3.05% 2.93%
1-Year ARM 2.40% 2.40%
Slide 17 of 36
Review Your Financial Situation
● Pull credit report, look for errors
● Establish comfort level for monthly payment
● Pay down credit balances
● Don’t open any new lines of credit
● Don’t buy any big ticket items
● Source of money
● Current employment status
Slide 18 of 36
Get Pre-Approved Early
A pre-approval letter is a letter from a bank or a lender estimating
how much they'll lend you
● Establishes what you can afford & makes offer process go faster
● Good for 90 days, depending on lender
● W-2, two pay-stubs, tax returns, bank statements
Slide 20 of 36
Start Shopping for Lenders
Compile a list of 3-4 local lenders
Good sources include:
● Redfin's partner lenders
● Referrals from friends, family & co-workers
● Online review sites, such as Yelp
● Local chains and offices
*Know your lender
Slide 21 of 36
What to Ask Any Agent
● Is this your full-time job?
● Where were your last five deals?
● Who else will be working with me?
● When am I committed to working with you?
● Has a client ever filed a complaint?
● How are you paid?
● Can I see some reviews of your work?
Slide 23 of 36
Redfin’s Partner Program
Partner agents are employed by other brokerages, and have
teamed up with us to provide Redfin-certified service
We’ll refer you to a Partner Agent when:
►A home is below Redfin’s minimum price
►A home is outside of our service area
►If it’s in your financial advantage to work with a partner
►We’re experiencing unusually high customer demand
We survey all partner agent clients
►All surveys are published on their Redfin page
►97% of customers would recommend Redfin Partners
Slide 25 of 36
Crafting Your Offer
● Evaluate – your agent will provide you with information
about market conditions and recent sales in the area
● Consider the situation – the seller’s preferences, days on
the market, and other interest will influence the process.
● Decide on price & strategy with your agent
● Common contingencies & terms:
Slide 26 of 36
Tips for Winning a Bidding War
1. Just win, baby! Simply have the best offer.
► Cash is King
► Escalate your price?
► Tighten your timelines
► Remove some contingencies?
2. Get pre-approved with a local lender
3. What’s important to the seller?
4. Write a letter & appeal to the seller
Slide 27 of 36
We recommend that you have a home inspection
● Cost runs $350 to $1200 depending upon the home’s size
● Your agent will accompany you
● Your time to evaluate the property
Let’s talk about:
● What an inspection contingency covers and doesn’t cover
● Types of inspections
Slide 28 of 36
What are Contingencies?
This means the seller has accepted an offer on the property,
but success may still depend on passing a home inspection or
● Appraisal – Performed in conjunction with financing
Slide 29 of 36
● Prepares the final documents, including the HUD-1
● Conducts the closing
● Examines and clears the title to the property
● Records the deed, mortgage and any other recordable
● Issues title insurance to the lender and the buyer
Slide 30 of 36
Signing and Closing
A few days before closing you will sign your closing documents
and have a walk through.
On closing day, you’ll probably get your keys at about 5pm.
Slide 32 of 36
The Closing Process
Find dream home
Consult with agent, write offer
Submit offer to listing agent
Success! Mutual Acceptance
Earnest money [Within 3 days]
Inspection contingency [10-17 days]
Loan & Appraisal Contingency [17 days]
Title review [5 days]
Waiting for loan approval
Escrow signing appointment
Get keys and take possession!
Overview of a
Receive Redfin refund
Complete Redfin survey
Slide 33 of 36
So What Now?
● Make sure it’s the right time for you
● Start browsing online
● Check out our Home Buying Guide
● Find the right agent
● Look for a local lender and get pre-approved
● Start seeing homes in person
● Make an offer & close the deal
Slide 36 of 36
Thanks for Coming!
Questions? Get in touch:
Lindsay Martin firstname.lastname@example.org
Melanie Cortez Franklin email@example.com
Check out our upcoming classes: