Redfin's Free Home Buying Class - Beverly Hills, CA

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  • [REQUIRED – please add the main presenter’s photos]
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  • [REQUIRED – Update with local home in the $400-$500 range, ideally listed by Redfin]Talking points:- Refund is based on your list price not offer price.- You’ll get it as a closing credit or check after close, depending on your lender
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  • [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.
  • [REQUIRED – Update each time with latest rate information]http://www.freddiemac.com/pmms/
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  • [REQUIRED]Add Lender’s name if he/she’s presenting
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  • The visual of the HUD would be great and could eliminate some of the verbiage here. REQUIREDA HUD is divided into two parts:Lender charges Includes origination fee, appraisal fee, credit report, insurance and tax escrowsTitle chargesIncludes settlement fee, and owner’s and lender’s title insuranceGovernment chargesIncludes recording fees, recordation taxes and property taxes
  • Notes from Matt:- Update this slide so it is easier to read
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  • Redfin's Free Home Buying Class - Beverly Hills, CA

    1. 1. Redfin Home Buying Class Presented by West LA Team at Redfin January 28, Beverly Hills, CA @Redfin facebook.com/Redfin
    2. 2. Matt Jones – West LA • • • • Agent since 2005 Closed 50+ homes since 2011 Specialize in: Multiple Offers, First-Time Buyers Born & raised in Southern California
    3. 3. Agenda ● ● ● ● ● ● ● ● ● ● ● Overview of the process Are you ready to buy? Understanding the market Never miss a home Choosing an agent Touring Mortgages Break! Short sales & foreclosures Making an offer Acceptance to closing
    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. Partners in the Process AGENT Responsible for your success Writes your offer Handles negotiations TRANSACTION COORDINATOR Prepares paperwork Works with escrow TOUR COORDINATOR Schedules tours Prepares paperwork ASSOCIATE AGENT Takes you to see homes Sees 50+ homes a week
    6. 6. Save $4,000 on Average
    7. 7. Are You Ready to Buy?
    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. Understanding the Market
    10. 10. Beverly Hills Stats for Houses
    11. 11. Beverly Hills Inventory
    12. 12. Los Angeles Area Overview
    13. 13. December Market Trends – Los Angeles ● ● ● ● ● 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
    14. 14. Redfin Price Tracker
    15. 15. Where Are Rates Headed? Type of Loan January 23, 2013 January 16, 2013 30-Year Fixed 4.39% 4.41% 15-Year Fixed 3.44% 3.45% 5/1 ARM 3.15% 3.10% 1-Year ARM 2.54% 2.56%
    16. 16. Choosing the Right Agent
    17. 17. What to Ask Any Agent ● ● ● ● ● ● Where were your last 5 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?
    18. 18. Redfin Agent Reviews
    19. 19. 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
    20. 20. Never Miss A Home
    21. 21. 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
    22. 22. Never Miss a Home
    23. 23. Seeing Homes in Person
    24. 24. How Touring with Redfin Works ● Led by agent or associate agent ● Up to six homes per tour in two hour blocks ● Go on as many tours as you need ● No obligation, no pressure
    25. 25. Understanding the Buying Process
    26. 26. Overview of a Buying a Home Research Search Offer Closing Your needs Define Preferences Comparables Earnest money The market Instant Alerts Draft offer Inspection Neighborhoods Open houses Negotiate Loan application Agents Home tours Mutual acceptance Title review Mortgages Appraisal Preapproval Financing approval Closing
    27. 27. Mortgages
    28. 28. 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
    29. 29. 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 ● 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
    30. 30. 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
    31. 31. 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
    32. 32. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    33. 33. 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
    34. 34. 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
    35. 35. Ratification to Closing
    36. 36. Steps After Contract Ratification ● ● ● ● ● ● ● ● ● ● ● Earnest money deposit – usually 1-3%+ Inspection – approximately $500 Other inspections – roof, sewer, foundation, etc. Loan application – 7days or less Title review Appraisal Loan approval Document signing Walk through Closing Receive your keys!
    37. 37. 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
    38. 38. 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
    39. 39. Title Companies ● ● ● ● ● Holds the earnest money deposit Prepares the final documents, including the HUD-1 Conducts the closing Receive and disburse funds for closing Arrange for pay off of any liens (sellers’ mortgage, taxes, etc) ● 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
    40. 40. Closing: HUD–1 Settlement
    41. 41. Selling Your Home with Redfin
    42. 42. Better Service, Lower Fees ● We’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 We’ve helped over 50 people sell their homes in the last six months.
    43. 43. All Done!
    44. 44. 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
    45. 45. Future Events!
    46. 46. Thanks for Coming! Questions? Get in touch: Matt Jones matt.jones@redfin.com Check out our upcoming classes: www.redfin.com/events

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