Redfin's Free Home Buying Class - Culver City, 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 – Updated every time]Agents should use this slide to talk about what they’re seeing on the streetTell some stories!
  • [REQUIRED – Updated every time]Agents should use this slide to talk about what they’re seeing on the streetTell some stories!
  • [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 – 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 – Update with local lender]
  • 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!
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  • OPTIONAL: Would need to adjust by market. Not all markets use the term Escrow in this way.
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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
  • 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 Free Home Buying Class - Culver City, CA

    1. 1. Redfin Home Buying Class Presented by West LA Team at Redfin December 18, Culver City, CA @Redfin facebook.com/Redfin
    2. 2. Jenn Harrison – West LA • • • • Agent since 2005 Closed 50+ homes since 2011 Specialize in: Multiple Offers, First-Time Buyers Born & raised in Southern California Meet our team… Matt Jones and Johnathan Case
    3. 3. Agenda ● ● ● ● ● ● ● ● ● ● ● Overview of the process Are you ready to buy? Understanding the market Choosing an agent Never miss a home Touring Mortgages Break! Short sales & foreclosures Making an offer Acceptance to closing
    4. 4. 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
    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. 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? 3.5% to 20+% Have you saved up for closing costs? Typically 1.5% - 2% Can you rent for less?
    11. 11. Understanding the Market
    12. 12. West LA Inventory
    13. 13. West LA List vs. Sold Prices
    14. 14. West LA Area Overview
    15. 15. Los Angeles Area Overview
    16. 16. October Market Trends – Los Angeles ● ● ● ● ● Prices up 23.4% YoY, down 0.5% MoM # homes sold down 11.4% YoY, up 3.4% MoM # homes for sale up 2.5% YoY, down 5.5% MoM 72.1% homes faced competition, 35% sold over asking 29.9% of homes went pending in two weeks ● Winning offers: ► 6.3% were all cash ► 3.1% waived financing ► 34.4% included a cover letter
    17. 17. Where Is the Market Headed? ● Supply of homes is at a 5 year low and won’t increase much more this year ● Rents have been rising, making buying more attractive ● Market stabilized — price increases in many areas ● Rate increases — biggest potential issue for buyers
    18. 18. Where Are Rates Headed? Type of Loan December 5, 2013 November 27, 2013 30-Year Fixed 4.46% 4.29% 15-Year Fixed 3.47% 3.30% 5/1 ARM 2.99% 2.94% 1-Year ARM 2.59% 2.60%
    19. 19. Choosing the Right Agent
    20. 20. 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?
    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 ► 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
    23. 23. Never Miss A Home
    24. 24. 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
    25. 25. Instant Updates
    26. 26. Touring Homes in Person
    27. 27. How Touring with Redfin Works ● Scheduled online ● 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
    28. 28. Mortgages
    29. 29. 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
    30. 30. 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 recommends that you get pre-approved before your third tour so if you find a home you like, you can move quickly ● Good for 90 days, depending on lender Info needed: ● W-2, two pay-stubs, tax returns, bank statements
    31. 31. 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
    32. 32. 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, Redfin’s Open Book, Yelp ● Local chains and offices *Know your lender
    33. 33. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    34. 34. Break! Jenn Harrison, Redfin Agent Culver City, Mar Vista, Santa Monica, Venice & Marina Del Rey Matt Jones, Redfin Agent West Hollywood, West LA Beverly Hills & Downtown Johnathon Case, Redfin Agent West LA, Glendale, Burbank, Hollywood & Los Feliz
    35. 35. 10-Minute Break ● Feel free to come ask us questions! 10 mins 5 mins Let’s Get Started! End
    36. 36. Short Sales and Bank-Owned
    37. 37. 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
    38. 38. 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 ► Earnest money deposit usually held by listing agent
    39. 39. Making an Offer
    40. 40. 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 ► Appraisal ► Financing
    41. 41. Tips for Winning a Bidding War 1. Just win, baby! Simply have the best offer. ► Cash is King ► Tighten your timelines ► Remove or shorten contingencies 2. Get pre-approved with a local lender 3. What’s important to the seller? 4. Write a letter & appeal to the seller
    42. 42. Acceptance to Closing
    43. 43. Steps After Mutual Acceptance ● ● ● ● ● ● ● ● ● ● ● Earnest money deposit – usually 3%+ Inspection – approximately $500 Other inspections – Sewer scope, Foundation, etc. Loan application – 5 days or less Title review Appraisal Loan approval Document signing Walk through Closing Receive your keys!
    44. 44. 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
    45. 45. 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: ● Inspection ● Appraisal – Performed in conjunction with financing ● Financing ● Termite ● Other
    46. 46. 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 deposit • 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
    47. 47. 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
    48. 48. Closing: HUD–1 Settlement
    49. 49. 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.
    50. 50. Selling Your Home with Redfin
    51. 51. 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
    52. 52. All Done!
    53. 53. 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
    54. 54. Thanks for Coming! Questions? Get in touch: Jenn Harrison jenn.harrison@redfin.com Matt Jones matt.jones@redfin.com Johnathon Case johnathon.case@redfin.com Check out our upcoming classes: www.redfin.com/events

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