[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
[REQUIRED – Updated every time]
[REQUIRED]Add Lender’s name if he/she’s presenting
[REQUIRED – Update each time with latest rate information]http://www.freddiemac.com/pmms/
[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!
OPTIONAL: Would need to adjust by market. Not all markets use the term Escrow in this way.
We’ll stick around…
Redfin's Marin Home Buying Class 3.19.14
Redfin’s Home Buying Event
Redfin’s Marin County Team
March 19, 2014 ~ Corte Madera, CA
Host: Mark Biggins
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
Overview of Buying a Home
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
Making the Most of Your Tour
1. Bring a camera, notebook & tape measure
2. See how much sunlight the place gets
3. Check the bathrooms for rot & mold
4. Look for wavy or discolored wood siding
5. Make sure water spouts drain away from
6. Take stock of storage space
7. Turn off any music playing in house
8. Check for hardwood floors
9. Peek into the attic
10. Bring a marble or two
11. When sharing a wall, make sure it’s thick
12. Ignore the appliances and carpets
13. Check the closets
14. Get the disclosure packet
15. Compare the property’s tax records to the
Slide 15 of 55
How Touring with Redfin Works
● Led by agent or associate
● Up to six homes per tour in
two hour blocks
● Go on as many tours
as you need
● No obligation, no
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 complaint?
● How are you paid?
● Can I see some reviews of your work?
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
● Good for 90 days, depending on lender
● W-2, two pay-stubs, tax returns, bank statements
oSalary—Past 30 days
oHourly—Consistency and history
oSelf-employed—Two year average
o Down Payment
o Closing Costs
o Cash Reserves
o640 for FHA
o680 for Conventional
o720 for Rate Improvement
Review Your Financial Situation
● Pull credit report, look for errors
● Establish comfort level for monthly payment
● Pay down credit balances
● Don’t open any new lines of credit
● Don’t buy any big ticket items
● Source of money
● Current employment status
oHas car payment $300
oWants to buy a home for
oHas 20% down payment
o $6,500 x 45% = $2,925
o $2,925 – 300 (other
= Allowed $2,625/Month!
o30/Yr Fixed, 3.75%
o1.41% on purchase price
= $588 ($7,050/yr)
= $100 ($1,200/yr)
= Qualified $2,540/Month!
Where Are Rates Headed?
Type of Loan March13, 2014 March 6, 2014
30-Year Fixed 4.37% 4.28%
15-Year Fixed 3.38% 3.32%
5/1 ARM 3.09% 3.03%
1-Year ARM 2.48% 2.52%
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
Local Recommended Lenders
In no way
g lenders – we
10 mins 5 mins End
Let’s Get Started!
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
► Title Review
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
● Appraisal – Performed in conjunction with financing
● Preliminary Title Report
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
Steps After Mutual Acceptance
● Loan application
● Earnest money deposit – usually 3%+
● Inspection – approximately $500
● Other inspections – plumbing, structural, roof etc.
● Title review
● Loan approval
● Document signing
● Walk through
● Receive your keys!
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,
• Coordinate the signing appointments for all parties
• Receive and disburse funds for closing
• Arrange to notify county offices to change ownership
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
The Closing Process
Find dream home
Consult with agent, write offer
Submit offer to listing agent
Success! Mutual Acceptance
Earnest money [Within 3 days]
Inspection contingency [10-17 days]
Loan & Appraisal Contingency [17 days]
Title review [5 days]
Waiting for loan approval
Escrow signing appointment
Get keys and take possession!
Overview of a
Receive Redfin refund
Complete Redfin survey
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