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Redfin Roseville Home Buying Class

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Redfin Roseville Home Buying Class

  1. 1. Redfin’s Home Buying Event August 19th, 2014 - Roseville, CA Host: Nikki Lawrence & Melanie Cortez Franklin @Redfin http://www.facebook.com/Redfin Slide 1 of 36
  2. 2. Meet Redfin’s Roseville - Folsom Team Slide 2 of 36
  3. 3. Agenda ● To buy or not to buy ● Overview of purchase process ● Understanding the Market ● Mortgages ● Multiple offers ● Choosing the right agent ● Making an Offer ● What to know about closing ● Thank you! Slide 3 of 36
  4. 4. 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  No obligation  Commission credit Slide 4 of 36
  5. 5. Save $4,000 on Average Slide 5 of 36
  6. 6. Understanding the Buying Process Slide 6 of 36
  7. 7. Are You Ready to Buy? ● Do you have a family and need room to grow? ● Do you expect to stay put for 5 or more years? ● Have you saved up a down payment? ● Can you rent for less? Slide 7 of 36
  8. 8. Overview of a Purchase Research Neighborhoods Real Estate Agents Mortgage Options Preapproval Consider your needs Slide 8 of 36 Search Define Preferences Saved Search Home Tours Open Houses Offer Comparables Draft Offer Docs Negotiate Mutual Acceptance Closing Earnest Money Inspection Loan application Title Review Appraisal Financing Approval Closing
  9. 9. Market Conditions Slide 9 of 36
  10. 10. Current Market Slide 10 of 36
  11. 11. Current Market: Rising Prices Slide 11 of 36
  12. 12. Roseville Area Overview Slide 12 of 36
  13. 13. What Other Trends are We Noticing? ● 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 price ● Deadlines are being set to accept & review offers ►Sellers usually review offers after about 7-14 days on market ►To give property exposure and create buzz amongst buyers ● Some buyers are waiving their contingencies in order to make their offers more attractive to the seller Slide 13 of 36
  14. 14. 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 days. ● Expect to be up against multiple offers (5-10+), some cash offers ● Get pre approval early on Slide 14 of 36
  15. 15. Mortgages Slide 15 of 36
  16. 16. Where Are Rates Headed? Type of Loan August 15, 2014 August 5, 2014 30-Year Fixed 4.14% 4.12% 15-Year Fixed 3.27% 3.22% 5/1 ARM 3.00% 3.01% 1-Year ARM 2.35% 2.38% Slide 16 of 36
  17. 17. 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 17 of 36
  18. 18. 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 Info needed: ● W-2, two pay-stubs, tax returns, bank statements Slide 18 of 36
  19. 19. Choosing the Right Agent Slide 19 of 36
  20. 20. 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 20 of 36
  21. 21. 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 21 of 36
  22. 22. Redfin Agent Reviews Slide 22 of 36
  23. 23. 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 23 of 36
  24. 24. Making an Offer Slide 24 of 36
  25. 25. 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: ►Earnest Money ►Inspection ►Financing ►Appraisal ►Title Review Slide 25 of 36
  26. 26. 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 26 of 36
  27. 27. Home Inspection 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 27 of 36
  28. 28. 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 getting financing. Other types: ● Appraisal – Performed in conjunction with financing ● Financing ● Termite ● Other Slide 28 of 36
  29. 29. Title Companies ● 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 instruments ● Issues title insurance to the lender and the buyer Slide 29 of 36
  30. 30. 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 30 of 36
  31. 31. Overview Slide 31 of 36
  32. 32. The Closing Process Slide 32 of 36 Get pre-approved Tour homes Find dream home Consult with agent, write offer Submit offer to listing agent Negotiations Success! Mutual Acceptance Earnest money [Within 3 days] Inspection contingency [10-17 days] Title review [5 days] Loan & Appraisal Contingency [17 days] Waiting for loan approval Escrow signing appointment Closing! Get keys and take possession! Overview of a Purchase Receive Redfin refund Complete Redfin survey
  33. 33. 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 33 of 36
  34. 34. All Done! Slide 34 of 36
  35. 35. Future Events! Slide 35 of 36
  36. 36. Thanks for Coming! Questions? Get in touch: Melanie Cortez Franklin melanie.franklin@redfin.com Nikki Lawrence nikki.lawrence@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events Slide 36 of 36

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