Redfin's Free Home Buying Class- Skokie

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  • [REQUIRED – please add the main presenter’s photos]
  • [REQUIRED – Update with local home in the $400-$500 range, ideally listed by Redfin]Talking points:- Refund is based on your offer price not the sales 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 – 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]
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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!
  • [REQUIRED]Add Lender’s name if he/she’s presenting
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  • [REQUIRED – Update with local lender]
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  • [Required]Add visual
  • Nate
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  • 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- Skokie

    1. 1. Redfin’s Home Buying Class Redfin North Shore Team January 7, 2013 Skokie David Yocum Follow: @Redfin Like: facebook.com/Redfin
    2. 2. Redfin’s North Shore Team Dave, Agent Steve, Agent Ken, Agent Nate, Agent Carrie, Associate Agent Glenn, Agent Cindy, Coordinator
    3. 3. Agenda ● ● ● ● ● ● ● ● ● ● ● Overview of the process Are you ready to buy? Understanding the market Never miss a home Choosing an agent Touring Break! Mortgages 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 We are Advocates for our Clients ● Technology: Sellers get more traffic; buyers tour homes first ● Value: A full-service brokerage that saves you thousands  No obligation
    5. 5. Save $4,000 on Average
    6. 6. Understanding the Buying Process
    7. 7. 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
    8. 8. 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 0-2% Can you rent for less?
    9. 9. Understanding the Market
    10. 10. Story of 2013: Low Inventory
    11. 11. Story of 2013: Rising Prices
    12. 12. Skokie Area Overview
    13. 13. Current Average Rates Type of Loan January 2, 2014 December 26, 2013 30-Year Fixed 4.53% 4.48% 15-Year Fixed 3.55% 3.52% 5/1 ARM 3.05% 3.00% 1-Year ARM 2.56% 2.56%
    14. 14. 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
    15. 15. 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. Never Miss a Home
    18. 18. Choosing the Right Agent
    19. 19. 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?
    20. 20. Redfin Agent Reviews
    21. 21. 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
    22. 22. Seeing Homes in Person
    23. 23. Making the Most of Your Tour 1. 2. 3. 4. 5. 6. 7. Bring a camera, notebook & tape measure See how much sunlight the place gets Check the bathrooms for mold Look for wavy or discolored wood siding Make sure water spouts drain away from house Take stock of storage space Turn off any music playing in house 8. 9. 10. 11. 12. 13. 14. Check for hardwood floors Peek into the attic Bring a marble or two When sharing a wall, make sure it’s thick Ignore the appliances and carpets Check the closets Get the disclosure packet
    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 Slide 24 of 55
    25. 25. 10-Minute Break 10 mins 5 mins Let’s Get Started! End
    26. 26. Mortgages
    27. 27. 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 ● Employer Credit Union *Know your lender
    28. 28. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    29. 29. Get Pre-Approved ● A pre-approval letter is a letter from a bank or a lender letting the seller know your financing is in order ● It takes about 15-20 minutes and can be done in person, over the phone, or on-line and in most cases the letter will be issued the same day ● The process helps you establish how much you can afford and allows you to make an offer with confidence ● There is no cost or obligation ● Multiple credit checks will not harm your score
    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. Review Your Situation Time to call the Lenders ● The Lenders will gather some basic information to: ● Determine qualified income ● Identify eligible assets ● Pull credit report, look for errors ● The purpose is to: ● Establish a comfort level for the monthly payment ● Identify and explore financing options ● Ensure that when the time is right the financing is ready
    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 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
    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 ► Earnest money deposit usually held by listing agent
    35. 35. Making an Offer
    36. 36. 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
    37. 37. 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
    38. 38. Acceptance to Closing
    39. 39. Steps After Mutual Acceptance ● ● ● ● ● ● ● ● ● ● ● Earnest money deposit – usually 3% to 5% Inspection Contingency – approximately $350 to $600 Other inspections – radon, sewer scope, etc. Attorney Review Contingency Financing Contingency Loan application and appraisal Loan approval Walk through Closing Receive your keys! …and Redfin rebate…
    40. 40. Buying a Home Contingency Periods Talk to Lender Attorney Review – 5 bus. days Negotiate Offer to Contract Search Homes Appraisal Inspection – 5 bus. days Loan Commitment – ~30 days - - - - - - - - - - - - - - - Home-Sale/Close contingency Other inspection contingencies Final Walkthrough Closing Redfin Rebate…
    41. 41. Home Inspection ● We recommend that you have a home inspection ● About $350 to $600 ● Ask Potential Inspectors; Are you Licensed?  idfpr.gov ► Are you Insured? ► Do you use Thermal Imaging? ► Will you Walk the Roof? ► Will your Inspection Report include Pictures? ► What do you charge for the Inspection?
    42. 42. Home Inspection Hints Watch out for: •Plumbing System •Electrical system •Mold, mildew or signs of leaking near walls or floors Look for and Check: •Fireplace inspection •Check all included appliances •Check water pressure •Double-paned windows •Well ventilated attic •Safety Items •Check for Radon
    43. 43. 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
    44. 44. Signing and Closing ● ● You’ll have a final walk-through on closing ● day or just before What to bring: ● ► Government issued photo ID ● ► Certified check or wired funds Closing typically takes 1.5 to 3 hours, but can run longer Get keys and take possession! Receive Redfin Rebate in about a week
    45. 45. Selling Your Home with Redfin
    46. 46. 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
    47. 47. 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 ● Complete the Survey
    48. 48. All Done!
    49. 49. Thanks for Coming! Questions? Get in touch: David Yocum david.yocum@redfin.com Steve Campbell steve.campbell@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events

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