Roseville Home Buying Class 1.27

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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 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 – Update each time with latest rate information]http://www.freddiemac.com/pmms/
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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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  • OPTIONALThis is different by market so we should have different slides for each.
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  • Roseville Home Buying Class 1.27

    1. 1. Redfin’s Home Buying Event January 27th ~ Roseville, CA Host: Nikki Lawrence & Chris Medina @Redfin http://www.facebook.com/Redfin Slide 1 of 28
    2. 2. Agenda ● ● ● ● ● ● ● ● ● To buy or not to buy Overview of purchase process Understanding the Market Mortgages Multiple offers Choosing the right agent Making an Offer What to know about closing Thank you! Slide 2 of 28
    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 28
    4. 4. Save $4,000 on Average Slide 4 of 28
    5. 5. Understanding the Buying Process Slide 5 of 28
    6. 6. 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 a down payment? Can you rent for less? Slide 6 of 28
    7. 7. Overview of a Purchase 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 7 of 28
    8. 8. Market Conditions Slide 8 of 28
    9. 9. Current Market: Low Inventory Slide 9 of 28
    10. 10. Current Market: Rising Prices Slide 10 of 28
    11. 11. Roseville Area Overview Slide 11 of 28
    12. 12. Local Market Trends November 2013: Bidding Wars ● 74.2% homes faced competition   Down from 81.7% Month-Over-Month Down from 79.3 Year-Over-Year ● Features of Winning Offers:     Slide 12 of 28 All Cash: 6.5% Waived Financing: 26.1% Waived Inspection: 17.4% Had cover letter: 60.9%
    13. 13. Local Market Trends November 2013: Price Tracker ● $610,000 – Median Sale Price ► Down .8% Month-Over-Month ► Up 10.9% Year-Over-Year ● 3,257 – Homes Sold ► Down 14.6% Month-Over-Month ► Up 5.1% Year-Over-Year ● 3,868– Homes for Sale ► Down 26.5% Month-Over-Month ► Down 7.7% Year-Over-Year Slide 13 of 28
    14. 14. What Other Trends are We Noticing? ● Homes are being listed at strategically low prices ► So properties are selling above list price ► Base your offer price on comps & trends – NOT on list price ● Deadlines are being set to accept & review offers ► Sellers usually review offers after about 7-14 days on market ► To give property exposure and create buzz amongst buyers ● Some buyers are waiving their contingencies in order to make their offers more attractive to the seller Slide 14 of 28
    15. 15. What to do? ● Go see the home as soon as you can! ► First couple days on market ● Homes that are priced well, and move-in ready, may sell in days. ● Expect to be up against multiple offers (5-10+), some cash offers ● Get pre approval early on Slide 15 of 28
    16. 16. Mortgages Slide 16 of 28
    17. 17. Where Are Rates Headed? Type of Loan January 23, 2014 January 16, 2014 30-Year Fixed 4.39% 4.41% 15-Year Fixed 3.44% 3.45% 5/1 ARM 3.15% 3.10% 1-Year ARM 2.54% 2.56% Slide 17 of 28
    18. 18. 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 Slide 18 of 28
    19. 19. 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 Info needed: ● W-2, two pay-stubs, tax returns, bank statements Slide 19 of 28
    20. 20. Choosing the Right Agent Slide 20 of 28
    21. 21. 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 Slide 21 of 28
    22. 22. 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? Slide 22 of 28
    23. 23. Redfin Agent Reviews Slide 23 of 28
    24. 24. 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 Slide 24 of 28
    25. 25. Making an Offer Slide 25 of 28
    26. 26. 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 26 of 28
    27. 27. 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 Slide 27 of 28
    28. 28. 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 Slide 28 of 28
    29. 29. 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 ● Other Slide 29 of 28
    30. 30. 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 Slide 30 of 28
    31. 31. 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 31 of 28
    32. 32. Overview Slide 32 of 28
    33. 33. The Closing Process Get pre-approved Overview of a Purchase Tour homes Find dream home Consult with agent, write offer Submit offer to listing agent Negotiations Success! Mutual Acceptance Earnest money [Within 3 days] Inspection contingency [10-17 days] Title review [5 days] Loan & Appraisal Contingency [17 days] Waiting for loan approval Escrow signing appointment Closing! Get keys and take possession! Receive Redfin refund Complete Redfin survey Slide 33 of 28
    34. 34. 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 Slide 34 of 28
    35. 35. All Done! Slide 35 of 28
    36. 36. Future Events! Slide 36 of 28
    37. 37. Thanks for Coming! Questions? Get in touch: Nikki Lawrence nikki.lawrence@redfin.com Chris Medina chris.madina@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events Slide 37 of 28

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