[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 – Updated every time]
[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/
[OPTIONAL – cut or skip this slide if not relevant for your market or class]
OPTIONALThis is different by market so we should have different slides for each.
We’ll stick around…
Roseville Home Buying Class 1.27
Redfin’s Home Buying Event
January 27th ~ Roseville, CA
Host: Nikki Lawrence & Chris Medina
Slide 1 of 28
To buy or not to buy
Overview of purchase process
Understanding the Market
Choosing the right agent
Making an Offer
What to know about closing
Slide 2 of 28
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
Slide 3 of 28
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%
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
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
● Deadlines are being set to accept & review offers
► Sellers usually review offers after about 7-14 days on
► To give property exposure and create buzz amongst
● Some buyers are waiving their contingencies in order to
make their offers more attractive to the seller
Slide 14 of 28
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
● Expect to be up against multiple offers (5-10+), some cash
● Get pre approval early on
Slide 15 of 28
Where Are Rates Headed?
Type of Loan
January 23, 2014
January 16, 2014
Slide 17 of 28
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
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
Slide 19 of 28
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
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
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
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
Slide 26 of 28
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
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
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
Slide 29 of 28
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
● Issues title insurance to the lender and the buyer
Slide 30 of 28
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
The Closing Process
Overview of a
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]
Title review [5 days]
Loan & Appraisal Contingency [17 days]
Waiting for loan approval
Escrow signing appointment
Get keys and take possession!
Receive Redfin refund
Complete Redfin survey
Slide 33 of 28
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
Thanks for Coming!
Questions? Get in touch:
Check out our upcoming classes:
Slide 37 of 28