[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.
[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
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: Would need to adjust by market. Not all markets use the term Escrow in this way.
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
Redfin Home Buying Class
South Coastal OC Team
February 6, Aliso Viejo, CA
Host: Jennifer Elia & Team
Working with Redfin
Building Your Team
Short Sales & Bank Owned
New Home Construction
Writing a Winning Offer
Selling Your Home
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
An Entire Team On Your Side
Responsible for your success
Writes your offer
Works with escrow
Takes you to see homes
Sees 50+ homes a week
The Redfin Refund
The Listing Agent
gets 3% commission.
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.
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
Building Your Team:
Choosing Your Agent and
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?
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
Building Your Team: Choosing a Lender
Goal: Determine the Best Candidate and Obtain a Preapproval Letter
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
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
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
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
● W-2, two pay-stubs, tax returns, bank statements
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
● Maintaining a pre-approval
has a negligible impact on
your credit score
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
South Coastal Orange County
South Coastal Orange County
● Feel free to come ask us questions!
Let’s Get Started!
What is a Short Sale?
The owner owes more on the mortgage than the home is
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
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
● IMPORTANT! Be sure to go in to any New
Home Office with your agent
● Verify Options and upgrade pricing
● Changes to home
● Property Inspection
● Check builders reputation
Slide 36 of 55
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
● Decide on price & strategy with your agent
● Common contingencies & terms:
► Earnest Money
► HOA docs/Title Report
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
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
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
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,
• 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…
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!
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!
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
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
Thanks for Coming!
Questions? Get in touch:
Check out our upcoming classes: