Home Buying Class - Chula Vista, CA


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  • [REQUIRED – please add the main presenter’s photos]
  • [REQUIRED – to be updated by the presenter to suit their strong points]
  • [REQUIRED – to be updated by the presenter to suit their strong points]
  • [REQUIRED – to be updated by the presenter to suit their strong points]
  • [REQUIRED – Update with local home in the $400-$500 range, ideally listed by Redfin]Talking points:- Refund is based on your list price not offer 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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  • 1 in 80 people in CA has their RE license!!Add visual
  • Min 199k
  • Don’t elaborate on this too much. A first tour should be just to get a general idea of the house.
  • [REQUIRED]Add Lender’s name if he/she’s presenting
  • [REQUIRED – Update with local lender]
  • [REQUIRED – Update each time with latest rate information]http://www.freddiemac.com/pmms/
  • 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!
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  • OPTIONAL: Would need to adjust by market. Not all markets use the term Escrow in this way.
  • OPTIONALThis is different by market so we should have different slides for each.
  • 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…
  • Home Buying Class - Chula Vista, CA

    1. 1. Redfin Home Buying Class The Redfin San Diego City Team April 15, Chula Vista, CA @Redfin facebook.com/Redfin
    2. 2. Lisa Padilla – Agent ● Agent for 14 years ● Closed 58 with homes with Redfin and 500+ career ● Specialize in: First Time Home Buyers, Condos/Urban, High End, Single Family, Short Sales. ● Services: San Diego City ● Lives in North Park
    3. 3. Tamara Markey– Agent ● Agent for 11 years ● Specialize in: First time home buyers, VA, high end homes, short sales and foreclosures ● Services: San Diego, South Bay ● Lives in: Rancho del Rey, Chula Vista
    4. 4. Chris Priola– Agent ● Agent for 10 years ● Specialize in: New Construction, First Time Homebuyers ● Services: San Diego City, La Mesa ● Lives in Pacific Beach
    5. 5. Agenda ● Overview of the process ● Are you ready to buy? ● Understanding the market ● Never miss a home ● Choosing an agent ● Touring ● Mortgages ● Break! ● Short sales & foreclosures ● Making an offer ● Acceptance to closing
    6. 6. 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 ● Technology: sellers get more traffic; buyers tour homes first ● Value: a full-service brokerage that saves you thousands  No obligation  Video
    7. 7. Save $4,000 on Average
    8. 8. Understanding the Buying Process
    9. 9. Overview of a Buying a Home Research Your needs The market Neighborhoods Agents Mortgages Preapproval Search Define Preferences Instant Alerts Open houses Home tours Offer Comparables Draft offer Negotiate Mutual acceptance Closing Earnest money Inspection Loan application Title review Appraisal Financing approval Closing
    10. 10. Are You Ready to Buy?
    11. 11. 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?
    12. 12. Understanding the Market
    13. 13. Chula Vista Home Prices
    14. 14. Chula Vista Inventory
    15. 15. Chula Vista Area Overview
    16. 16. Where Is the Market Headed? ● Supply of homes is at a five-year low and won’t increase much more this year ● Rents have been rising, making buying more attractive ● Market stabilized – price increases in many areas ● Rate increases – biggest potential issue for buyers
    17. 17. Never Miss A Home
    18. 18. 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
    19. 19. Never Miss a Home
    20. 20. New Home Construction
    21. 21. Slide 21 of 55 New Construction ● IMPORTANT! Be sure to go in to any New Home Office with your agent ● Lenders ● Deposit ● Verify Options and upgrade pricing ● Changes to home ● Contingencies ● Property Inspection ● Check builders reputation
    22. 22. Choosing the Right Agent
    23. 23. 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?
    24. 24. Redfin Agent Reviews
    25. 25. 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
    26. 26. Seeing Homes in Person
    27. 27. Slide 27 of 55 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
    28. 28. Making the Most of Your Tour 1. Bring a camera, notebook & tape measure 2. See how much sunlight the place gets 3. Look for wavy or discolored wood siding 4. Make sure water spouts drain away from house 5. Take stock of storage space 6. Turn off any music playing in house 7. Check for hardwood floors 8. Ignore the appliances and carpets 9. Check the closets 10. Compare the property’s tax records to the listing details
    29. 29. Mortgages
    30. 30. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
    31. 31. 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: 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 ● Source of money ● Current employment status
    32. 32. 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 ● Redfin asks that you get pre-approved before your third tour ● Good for 90 days, depending on lender Info needed: ● W-2, two pay-stubs, tax returns, bank statements
    33. 33. Where Are Rates Headed? Type of Loan April 10, 2014 February 20, 2014 30-Year Fixed 4.34% 4.37% 15-Year Fixed 3.38% 3.39% 5/1 ARM 3.09% 3.05% 1-Year ARM 2.41% 2.52%
    34. 34. Types of Loans ● Conventional: ► As low as 5% down ► Fixed or adjustable rates, conforming or non-conforming ● Federal Housing Administration Loan (FHA): ► Always have mortgage insurance ► Buyers need only a 3.5% down payment ● VA Guaranteed Loan: ► Veterans, active duty personnel, reservists/national guard, surviving spouses ► No down payment ● Ask your lender if they have special loan programs ► Example: BB&T Chips Program
    35. 35. 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
    36. 36. 10-Minute Break 10 mins 5 mins End Let’s Get Started!
    37. 37. Short Sales and Bank Owned
    38. 38. 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)
    39. 39. What is a Bank-Owned Property? ● A foreclosed home owned by a bank or lender ● Standard sale but: ► Longer response times to offer ► Sold as-is, no repairs made ► Bank required addendums ► Limited or no disclosures ► Some banks require use of their own contracts ► Time is of the essence, contingencies automatically removed on the specified date. Very hard to get extensions.
    40. 40. Making an Offer
    41. 41. 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
    42. 42. Tips for Winning a Bidding War 1. Just win, baby! Simply have the best offer. ► Cash is King ► Escalate your price? ► Tighten your timelines 2. Get pre-approved with a local lender 3. What’s important to the seller? 4. Write a letter & appeal to the seller
    43. 43. Acceptance to Closing
    44. 44. 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!
    45. 45. 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
    46. 46. 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
    47. 47. 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 What is title? ● 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
    48. 48. Customer Deal Room
    49. 49. 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.
    50. 50. Selling Your Home with Redfin
    51. 51. ● 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 We’ve helped over 50 people sell their homes in the last six months. Better Service, Lower Fees
    52. 52. All Done!
    53. 53. 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
    54. 54. Thanks for Coming! Questions? Get in touch: Lisa Padilla – lisa.padilla@redfin.com Tamara Markey – tamara.markey@redfin.com Christ Priola – chris.priola@redfin.com Check out our upcoming classes: http://www.redfin.com/events