Redfin's South Coastal OC Home Buying Class 2.6.14

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  • [REQUIRED – please add the main presenter’s photos]
  • [REQUIRED – Updated every time]
  • [REQUIRED – Updated every time]Agents should use this slide to talk about what they’re seeing on the streetTell some stories!
  • Chart:http://www.mortgagenewsdaily.com/mortgage_rates/charts.aspPrediction:http://www.bankrate.com/finance/mortgages/mortgage-rate-trend-index.aspx
  • [REQUIRED – Should be updated once a month]The info on this slide is great. Lets add a visual so its more interesting after all the data slides.
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  • [REQUIRED]Add visual
  • [OPTIONAL – cut or skip this slide if not relevant for your market or class]
  • [REQUIRED – Update with local lender]
  • [REQUIRED]Add Lender’s name if he/she’s presenting
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  • 5 minute break timer.To begin the timer, when in presentation view on the slide, click advance once and you will see the red appear from left to right. When the entire bar is red your break is up!
  • [OPTIONAL]
  • [REQUIRED]
  • OPTIONAL: Would need to adjust by market. Not all markets use the term Escrow in this way.
  • [Required]Add visual
  • OPTIONALThis is different by market so we should have different slides for each.
  • Notes from Matt:- Update this slide so it is easier to read
  • We’ll stick around…
  • Redfin's South Coastal OC Home Buying Class 2.6.14

    1. 1. Redfin Home Buying Class South Coastal OC Team February 6, Aliso Viejo, CA Host: Jennifer Elia & Team @Redfin facebook.com/Redfin
    2. 2. Agenda  Working with Redfin  Understanding The          Buying Process Understanding The Market Getting Started Building Your Team Mortgages Short Sales & Bank Owned New Home Construction Writing a Winning Offer Escrow Selling Your Home
    3. 3. Working with Redfin
    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
    5. 5. An Entire Team On Your Side AGENT Responsible for your success Writes your offer Handles negotiations TRANSACTION COORDINATOR Prepares paperwork Works with escrow TOUR COORDINATOR Schedules tours ASSOCIATE AGENT Takes you to see homes Sees 50+ homes a week
    6. 6. The Redfin Refund The Listing Agent gets 3% commission. You save with Redfin. You buy and pay for your dream home. The 6% sales commission is split. Your Buyers’ Agent gets 3% commission. Redfin keeps a portion as our fee.
    7. 7. Understanding the Buying Process
    8. 8. Are You Ready to Buy? ● ● ● ● Do you have a family and need room to grow? Do you expect to own the home for 5 or more years? Have you saved up a down payment? Can you rent for less?
    9. 9. Overview of a Purchase Research Search Offer Closing Neighborhoods Define Preferences Comparables Earnest Money Real Estate Agents Saved Search Draft Offer Docs Inspection Mortgage Options Home Tours Negotiate Reports/Disclosures Preapproval Open Houses Mutual Acceptance Loan underwriting Consider your needs Appraisal Financing Approval Closing
    10. 10. Understanding the Market
    11. 11. Orange County Inventory
    12. 12. Orange County Overview
    13. 13. Where Are Rates Headed?
    14. 14. December Market Trends – LA/OC ● ● ● ● ● Prices up 21.1% YoY, up 1.3% MoM # homes sold down 18% YoY, up 6.7% MoM # homes for sale up 3.9% YoY, down 19.1% MoM 72.2% homes faced competition, 35% sold over asking 29.6% of homes went pending in two weeks ● Winning offers: ► 4% were all cash ► 16% waived financing ► 48% included a cover letter
    15. 15. Getting Started: Never Miss A Home
    16. 16. Real Estate Sites: What to Look For ● ● ● ● ● ● Has all the homes for sale Updated every 15 minutes Real-time sales data Insights from agents Lots of data Mobile apps
    17. 17. Start Your Search
    18. 18. Never Miss a Home
    19. 19. Building Your Team: Choosing Your Agent and Lender
    20. 20. 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 compliant? How are you paid? Can I see some reviews of your work?
    21. 21. Redfin Agent Reviews
    22. 22. Redfin 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
    23. 23. Building Your Team: Choosing a Lender Goal: Determine the Best Candidate and Obtain a Preapproval Letter First:  Use a lender with local expertise - in a competitive situation it can be the difference between winning and losing  Ask your loan officer how they can help you in a competitive situation (shorter loan approval period, quick closing?) Are they available on nights and weekends? What is their typical response time?  Request that your LO be available to speak with the listing agent Next:  Get a preapproval letter with your maximum approval amount, you can customize later if necessary  Get full underwriter approval --No pre-qualification letters please  Show FICO scores if possible
    24. 24. Local Recommended Lenders
    25. 25. Mortgages
    26. 26. Review Your Financial Situation ● Pull credit report, look for errors ● Establish comfort level for monthly payment ● Figure out how much monthly income goes towards debt: 28 – 33% healthy ● Pay down credit balances to 1/3rd ● Don’t open any new lines of credit ● Don’t buy any big ticket items ● Source of money ● Current employment status
    27. 27. Get Preapproved 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 ● Redfin asks that you get pre-approved before your third tour ● Good for 90 days, depending on lender Info needed: ● W-2, two pay-stubs, tax returns, bank statements
    28. 28. Pulling Credit: Is It Harmful? ● Your credit report must be reviewed by a lender before you can obtain a pre-approval ● If you know your score, a lender should be able to give you ballpark pricing for their loan products ● Better to know sooner rather than later about credit problems ● Maintaining a pre-approval has a negligible impact on your credit score
    29. 29. 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
    30. 30. Break! Jennifer Elia South Coastal Orange County Minni MacFarlane South Coastal Orange County
    31. 31. 10-Minute Break ● Feel free to come ask us questions! 10 mins 5 mins End Let’s Get Started!
    32. 32. Short Sales and Bank Owned
    33. 33. What is a Short Sale? The owner owes more on the mortgage than the home is worth ● ● ● ● Usually pre-foreclosure, but not always Listed for less than what’s owed to the bank Requires 1 - 2 bank approvals (usually 2) May have other liens (taxes, utilities, HOA, judgments) that buyer must pay off in addition to the purchase price We Can Help With a Short Sale! ● See short sale homes with a Redfin Agent ● If you want to buy, work with a Redfin Agent or a short sale partner agent
    34. 34. What is a Bank-Owned Property? ● A foreclosed home owned by a bank or lender ● Standard sale but: ► Verbal negotiations ► Long response times ► Repairs unlikely ► Legal addenda may require an attorney ► Limited or no disclosures ► Banks demand use of their own contracts ► Bank can back out any time until they’ve signed
    35. 35. New Home Construction
    36. 36. New Construction ● IMPORTANT! Be sure to go in to any New Home Office with your agent ● Lenders ● Deposit ● Verify Options and upgrade pricing ● Changes to home ● Contingencies ● Property Inspection ● Check builders reputation Slide 36 of 55
    37. 37. Writing a Winning Offer
    38. 38. Crafting Your Offer ● Evaluate – your agent will provide you with information about market conditions and recent sales in the area (CMA) ● Consider the situation – the seller’s preferences, days on the market, and other interest/offers will influence the process. ● Decide on price & strategy with your agent ● Common contingencies & terms: ► Earnest Money ► Inspection ► Financing ► Appraisal ► Reports/Disclosures ► HOA docs/Title Report
    39. 39. Highest & Best In a multiple offer situation you may have only one shot at offering and no opportunity to further negotiate  Blind betting – you don’t know what the other offers are  What is the maximum price you are willing to pay for this property?  How much do you really want this property?  Determine your walk away price  Go in with your Highest Price and Best Terms right from the start
    40. 40. Personal Touch Including a short letter to the seller and a picture may help the seller connect and consider your offer.  Include a bit about you, your family, your profession.  Comment on the things you liked about the seller’s home.  Send your agent a family photo to include.  Won’t help with a bank owned properties or investor sellers
    41. 41. ESCROW
    42. 42. What is Escrow? Escrow is a third party intermediary that represents neither the buyer nor the seller. What do they do? • Hold the earnest money • Arrange for payoff of any liens (seller’s mortgage, utilities, etc.) • Coordinate the signing appointments for all parties • Receive and disburse funds for closing • Arrange to notify county offices to change ownership • Escrow is opened when…
    43. 43. Your Offer has been Accepted! ● Timelines begin – contingency removal typically in 10-17 days, close of escrow in 30 days ● Earnest money deposit – within 3 business days ● Order Inspection – approximately $400-$500 ● Loan Application – submit within 1 day after Acceptance ● Order Appraisal – lender orders- approximately $400-$600 ● Perform Inspection ● Order and perform follow up inspections if needed ● Review Title Report, Disclosures, HOA docs, Reports ● Loan Approval – “Conditional” Approval ● Day 10-17 - remove contingencies! ● Then…
    44. 44. Walk Through to Closing ● Schedule Walk through - 5 days prior to close date ● Escrow - sign loan documents, transfer funds for your down payment and closing costs ● Lender - Reviews your documents, sets up loan to fund ● Title - Title records the same day as funding in most cases ● Possession/Keys: Upon confirmation of recording!
    45. 45. Selling Your Home with Redfin
    46. 46. Better Service, Lower Fees ● Our listing agents offer you Full Service ● They’re on your side ► Agents paid on your satisfaction ● Double your exposure ► Premium placement on Redfin ► Zillow, Trulia, Craigslist and Realtor ● 1.5% listing fee ► Professional photos ► Beautiful flyers
    47. 47. All Done!
    48. 48. So What Now? ● ● ● ● ● ● Make sure it’s the right time for you 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
    49. 49. Thanks for Coming! Questions? Get in touch: Jennifer Elia jennifer.elia@redfin.com Minni MacFarlane minni.macfarlane@redfin.com Check out our upcoming classes: http://www.redfin.com/events
    50. 50. Future Events!

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