Redfin's Free Home Buying Class - Bothell, WA

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  • To be updated with information from neighborhood pages on the website.
  • To be updated with information from neighborhood pages on the website.
  • To be updated with information from neighborhood pages on the website.
  • [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.
  • To be updated with information from neighborhood pages on the website.
  • Doug: Courtney and I update this slide to reflect the agent who is presenting and their team.
  • [REQUIRED – Update with local lender]
  • We’ll stick around…
  • Redfin's Free Home Buying Class - Bothell, WA

    1. 1. Redfin Home Buying Class Tammi Escalle Redfin North End Team October 22, 2013 Bothell, WA @Redfin Facebook.com/Redfin Slide 1 of 45
    2. 2. Agenda ● ● ● ● ● ● ● ● Buying process overview Getting ready to buy Searching for homes Mortgages Making an offer Acceptance to closing Short sales & REO Q&A Slide 2 of 45
    3. 3. 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 Slide 3 of 45
    4. 4. Buying Process Overview Slide 4 of 45
    5. 5. Steps in Buying a Home Research Search Offer Closing Neighborhoods Define Preferences Comparables Earnest Money Real Estate Agents Saved Search Draft Offer Docs Inspection Mortgage Options Home Tours Negotiate Loan application Preapproval Open Houses Mutual Acceptance Title Review Consider your needs Appraisal Financing Approval Closing Slide 5 of 45
    6. 6. Understanding the Market Slide 6 of 45
    7. 7. Story of 2013: Low Inventory Slide 7 of 45
    8. 8. Story of 2013: Rising Prices Slide 8 of 45
    9. 9. Story of 2013: Trends & Insights Slide 9 of 45
    10. 10. Case-Shiller: Seattle Area v. 20-City 250.00 200.00 150.00 100.00 Seattle 20-City Composite 50.00 0.00 Slide 10 of 55
    11. 11. Case-Shiller – By the Numbers Seattle Area Up 11.8% year-over-year Peak was July 2007 Down 18.6% from peak Currently at August 2005 & January 2009 prices 20-City Composite Up 12.1% year-over-year Peak was July 2006 Down 22.7% from peak Currently at and April 2004 & October 2008 prices Slide 11 of 45
    12. 12. Seattle Market Trends - September ● ● ● ● ● Prices up 14.0% YoY, 1.6% MoM # homes sold up 14.0% YoY, down 19.6% MoM # homes for sale down 15.6% YoY, down 5.0% MoM 49.2% homes faced competition, 12.5% sold over asking 33.3% of homes went pending in 2 weeks Slide 12 of 45
    13. 13. Story of 2013: Find it on Redfin Slide 13 of 45
    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 stabilizing, though likely 2-3 years before significant appreciation. ● Rate increases - biggest potential issue for buyers Slide 14 of 45
    15. 15. Choosing the Right Agent Slide 15 of 45
    16. 16. Traditional vs. Redfin Slide 16 of 45
    17. 17. Redfin Agent Reviews Slide 17 of 45
    18. 18. How Our Team Works AGENT Responsible for your success Writes your offer Handles negotiations YOU ASSOCIATE AGENT Takes you to see homes See 50+ homes a week Slide 18 of 45 COORDINATOR Schedules tours Prepares paperwork Works with escrow
    19. 19. Your Redfin Credit Slide 19 of 45
    20. 20. Redfin’s Partner Program Partner agents are employed by other brokerages, but have teamed up with us to provide Redfin-certified service to a wider range of customers. We’ll refer you to a partner agent when: ► A home is outside of our direct service area ► If it’s in your financial advantage to work with a partner ► We’re experiencing an 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 Slide 20 of 45
    21. 21. Mortgages Slide 21 of 45
    22. 22. 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 typically 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 ● Determine source of funds ● Current employment status Slide 22 of 45
    23. 23. 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 ● Maintaining a pre-approval has a negligible impact on your credit score ● Don’t allow lots of lenders to pull your credit score repeatedly Slide 23 of 45
    24. 24. Start Shopping for Lenders Compile a list of 3-4 lenders & brokers Good sources include: ● Redfin's partner lenders ● Referrals from friends, family & co-workers ● Online review sites, such as Yelp ● Local chains and offices Slide 24 of 45
    25. 25. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders! Slide 25 of 45
    26. 26. Getting Pre-Approved A pre-approval proves that you have the basic qualifications to obtain a mortgage. You’ll need it to make an offer. ● ● ● ● ● ● ● Establishes what you can afford Pre-Approval vs. Pre-Qualification Good for 90 days, depending on lender Ask for a few different amounts Get pre-approved before your third tour Are gift funds involved? How much do you have for a down payment? Information needed: ● W-2, two pay-stubs, tax returns, bank statements Slide 26 of 45
    27. 27. Learn more about mortgages http://www.redfin.com/buy-a-home/classes-and-events Slide 27 of 45
    28. 28. Finding Your Home Slide 28 of 45
    29. 29. Benefits of a MLS-Powered Site ● ● ● ● ● See all the homes for sale: 20+% more than national portals See newly listed homes faster by 7-9 days Over 1/3 of the homes on a portal site are no longer for sale You see what the agent sees plus data from other sources Real-time market data: photos, details of just-sold homes Slide 29 of 45
    30. 30. Redfin Highlights ● Search by zip code, neighborhood, school district ● Instant alerts – save your search to get a jump on new listings ● Tour Insights – get the scoop before you see a home ● Download results – crunch your own spreadsheets ● Price your home – look at sold listings and ask for help ● Forums – get advice from the Redfin community ● Resources – Home buying guide & home inspection guide Any questions about the site? Slide 30 of 45
    31. 31. Touring Slide 31 of 45
    32. 32. How Touring with Redfin Works ● ● ● ● Up to six homes per tour in two hour blocks See as many homes as you need One home tours are okay Led by a member of your team – Agent or Associate Agent ● No obligation Tip: Consider starting off with fewer homes per tour so you don’t feel rushed. Slide 32 of 55
    33. 33. Making the Most of Your Tour The Redfin agent for your tour will help you evaluate homes – pointing out both positive and negative features. Considering bringing a camera, notebook and tape measure. Wear shoes that are easy to take off/put on. Slide 33 of 45
    34. 34. Making an Offer Slide 34 of 45
    35. 35. 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 Slide 35 of 45
    36. 36. Multiple Offer Situations Tips for Winning in 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. Slide 36 of 45
    37. 37. Dig Into the Details Redfin holds classes several classes where you can learn more: ● What Happens Next? ● Multiple Offer ● Inspection ● Mortgage ● Short Sale http://www.redfin.com/events Slide 37 of 45
    38. 38. Acceptance to Closing Slide 38 of 45
    39. 39. Steps After Mutual Acceptance ● ● ● ● ● ● ● ● ● ● ● Earnest money deposit – usually 1-3%+ Inspection – approximately $500 Other inspections – sewer scope, septic, etc. Loan application – 5 days or less Title review Appraisal Loan approval Document signing Walk through Closing Receive your keys! Slide 39 of 45
    40. 40. 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 Slide 40 of 45
    41. 41. 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. Slide 41 of 45
    42. 42. Short Sales and Bank Owned Slide 42 of 45
    43. 43. 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 Slide 43 of 45
    44. 44. 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 ► Contract often requires early release of earnest money Slide 44 of 45
    45. 45. So… Where’s the Best Deal? ● ● ● ● Sellers who own their home outright Sellers who are relocating Estate Sales REO & Short Sales if “Best Deal” means lowest price Slide 45 of 45
    46. 46. Key Takeaways Slide 46 of 45
    47. 47. So What Now? ● ● ● ● ● ● ● Make sure it’s the right time for you Start browsing online Check out our Home Buying Guide and Events page Find the right agent Look for a lender and get pre-approved Start seeing homes Make an offer & close the deal Slide 47 of 45
    48. 48. Thanks for Coming! Questions? Get in touch: Tammi Escalle tammi.escalle@redfin.com Check out our upcoming classes: http://www.redfin.com/events Slide 48 of 45

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