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Redfin's Free Home Buying Class - Burbank, CA


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Redfin's Free Home Buying Class - Burbank, CA

  1. 1. Redfin Home Buying Class Presented by Jacki Tenerelli Asplund Glendale-Burbank Team November 21st, Burbank, CA @Redfin
  2. 2. Jacki Tenerelli Asplund – La Canada, La Crescenta, Glendale & Burbank ● Agent since 1999 ● Closed 126+ homes ● Specialize in: First Time Home Buyers, Multiple Offers, MultiFamily (up to 4 units) ● Services: North Los Angeles ● Lives in La Canada Meet our team…
  3. 3. Glendale-Burbank Team Earnest Watts Silver Lake, Echo Park & Hollywood Sam Tenerelli Glendale & Burbank, La Canada, La Crescenta
  4. 4. 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
  5. 5. A Little Bit About Redfin Redfin is a real estate brokerage on a mission to make buying and selling a home better for you. ● Accountability: We’re on your side, giving you honest advice ● Technology: Sellers get more traffic; buyers tour homes first ● Value: A full-service brokerage that saves you thousands  No obligation
  6. 6. Save $4,000 on Average
  7. 7. Understanding the Buying Process
  8. 8. 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
  9. 9. Are You Ready to Buy?
  10. 10. 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 for a down payment? 20+% Have you saved up for closing costs? Typically 2% Can you rent for less?
  11. 11. Understanding the Market
  12. 12. Burbank Area Overview
  13. 13. Story of 2013: Lower Inventory
  14. 14. Story of 2013: Rising Prices
  15. 15. Where Are Rates Headed? Type of Loan November 14, 2013 November 7, 2013 30-Year Fixed 4.35% 4.16% 15-Year Fixed 3.35% 3.27% 5/1 ARM 3.01% 2.96% 1-Year ARM 2.61% 2.61%
  16. 16. October Market Trends – Los Angeles ● ● ● ● ● ● Prices up 23.4% YoY, down 1.1% MoM # homes sold down 1.8% YoY, down 17.0% MoM # homes for sale decreased 11.8% YoY and 4.0% MoM 72.2% homes faced competition, 34.5% sold over asking 30.4% of homes went pending in two weeks Winning offers: ► 3.4% were all cash ► 10.3% waived financing ► 24.1% included a cover letter
  17. 17. Where Is the Market Headed? ● Supply of homes is at a five-year low and won’t increase much more this year ● Foreclosures have been driving price declines, and years of inventory remain. Investment groups might have impact ● Rents have been rising, making buying more attractive ● Market stabilized – price increases in many areas ● Rate increases – biggest potential issue for buyers
  18. 18. Never Miss A Home
  19. 19. Real Estate Sites: What to Look For ● ALL the homes on MLS ● Updated every 15 minutes ● Real-time sales data ● Insights from Redfin Agents ● Lots of data ● Mobile apps
  20. 20. Never Miss a Home
  21. 21. Choosing the Right Agent
  22. 22. 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 compliant? How are you paid? Do you have reviews from recent clients?
  23. 23. Redfin Agent Reviews
  24. 24. 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 ► 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
  25. 25. Seeing Homes in Person
  26. 26. How Touring with Redfin Works ● Led by Agent or Associate Agent ● Up to 6 homes per tour in 2 hour blocks ● Go on as many tours as you need ● No obligation, no pressure
  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 (Openbook Directory) ● 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. Break! Jacki Tenerelli Asplund Redfin Agent, La Canada, La Crescenta, Glendale & Burbank
  34. 34. Short Sales and Bank-Owned
  35. 35. 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 banks’ approval (usually 2) ● May have other liens (taxes, utilities, HOA) We Can Help With a Short Sale! ● See short sales with a Redfin Agent ● If you want to buy, work with a Redfin Agent or a short sale partner agent ● Redfin partner agents work for other brokerages but share Redfin’s commitment to customer service ● Get a 15% commission refund
  36. 36. What is a Bank-Owned Property? ● A foreclosed home owned by a bank or lender (REO) ● 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 ► Earnest money deposit usually held by listing agent
  37. 37. Making an Offer
  38. 38. 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
  39. 39. 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
  40. 40. Acceptance to Closing
  41. 41. Steps After Mutual Acceptance ● ● ● ● ● ● ● ● ● ● ● Earnest money deposit – usually 3%+ Inspection – approximately $350 Other inspections – Sewer scope, Chimney, etc. Loan application – 3 days or less Title review – 7 days Appraisal – 17 days Loan approval 17 days Document signing -25 days Walk through – 25 days Closing – 30 to 45 days Receive your keys! – 30 – 45 days
  42. 42. 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
  43. 43. 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 Report / Disclosures ● Other
  44. 44. 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
  45. 45. 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.
  46. 46. Selling Your Home with Redfin
  47. 47. 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 (4% total) ► Professional photos ► Beautiful flyers
  48. 48. 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
  49. 49. All Done!
  50. 50. Thanks for Coming! Questions? Get in touch: Jacki Tenerelli Asplund Check out our upcoming classes: