Redfin Home Buying Class
Presented by: Redfin’s Central Seattle Team
Seattle, WA
March 4, 2014

Host: Collin Horn
@Redfin
...
Collin Horn, Senior Agent
● I have been a real estate agent since 2008
● I have helped 80 clients buy or a sell a home in ...
Agenda
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Overview of the process
Never miss a home
Choosing an agent
Touring
Mortgages
Break!
Short sales...
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%...
Partners in the Process
AGENT
Responsible for your success
Writes your offer
Handles negotiations

TRANSACTION
COORDINATOR...
Understanding the Buying
Process
Overview of a Purchase
Research

Search

Offer

Closing

Real Estate Agents

Define Preferences

Comparables

Earnest Mone...
Understanding the
Market
Seattle Inventory
Seattle Jan. 2014 Stats for Houses
Seattle Jan. 2014 Stats for Condos
Seattle Area Overview
Never Miss A Home
Real Estate Sites: What to Look For
●
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Has all the homes for sale
Updated every 15 minutes
Real-time sales data
In...
Never Miss a Home
Choosing the Right Agent
What to Ask Any Agent
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Is this your full-time job?
Where were your last five deals?
Who else will be working...
Redfin Agent Reviews
Seeing Homes in Person
Scheduling a Home Tour
Schedule a Home Tour
Schedule a Home Tour
Schedule a Home Tour
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Up to Six Homes/Two Hours
Tour Coordinator Calls Within Three Hours
Scheduled with Agent...
Making the Most of Your Tour
1.
2.
3.
4.
5.
6.
7.

Bring a camera, notebook & tape measure
See how much sunlight the place...
Mortgages
Local Recommended Lenders

In no way does
Redfin benefit
financially from
recommending
lenders – we just
think they’re gre...
Get Pre-Approved Early
A pre-approval letter is a letter from a bank or a lender estimating
how much they'll lend you
● Es...
Review Your Financial Situation
● Pull credit report, look for errors
● Establish comfort level for monthly payment
● Figu...
Break!
Collin Horn
collin.horn@redfin.com
Redfin’s Central Seattle Team
10-Minute Break

10 mins

5 mins

Let’s Get Started!

End
Short Sales and Bank Owned
(Otherwise known as the waiting game)
What is a Short Sale?
The owner owes more on the mortgage than the home is
worth
● Often pre-foreclosure, but not always
●...
What is a Bank-Owned Property?
● A foreclosed home owned by a bank or lender
● Standard sale but:
► Verbal negotiations
► ...
Making an Offer
Completing the Offer Wizard
Completing the Offer Wizard
Crafting Your Offer
● Evaluate – your agent will provide you with information
about market conditions and recent sales in ...
What are Contingencies?
This means if the seller accepts your offer, it’s success may
still depend on passing a home inspe...
Tips for Winning a Bidding War
1. Just win, baby! Simply have the best offer.
► Cash is King
► Escalate your price?
► Tigh...
Acceptance to Closing
Steps After Mutual Acceptance
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MA is day 0 of all time lines
Earnest money deposit – usually 3% du...
Redfin Deal Room
Choosing An Inspector
• Redfin Open Book
Home Inspection
We recommend that you have a home inspection
● Cost runs $300 to $500 depending upon the home’s size
● You...
Title/Escrow Companies
●
●
●
●
●

Holds the earnest money deposit
Prepares the final documents, including the HUD-1
Conduc...
Closing: HUD–1 Settlement
Walkthrough & Closing
A day or two prior to closing you will do a walkthrough to make
sure the property is in the agreed u...
Redfin Survey
● Sent to you After Closing
● Our Agent Compensation is Based on Results
● You Also Survey Your:
► Inspector...
Redfin Survey
All Survey Results
Published on
Redfin.com
Selling Your Home
with Redfin
Better Service, Lower Fees
● We’re on your side
► Agents paid on your satisfaction
● Double your exposure
► Premium placem...
So What Now?
●
●
●
●
●
●
●

Make sure it’s the right time for you
Start browsing online
Check out our Home Buying Guide
Fi...
Future Events!
Thanks for Coming!
Questions? Get in touch:
Collin Horn
collin.horn@redfin.com

Check out our upcoming classes:
http://www...
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Redfin's Free Home Buying Class - Seattle, WA

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Redfin's Free Home Buying Class - Seattle, WA

  1. 1. Redfin Home Buying Class Presented by: Redfin’s Central Seattle Team Seattle, WA March 4, 2014 Host: Collin Horn @Redfin facebook.com/Redfin
  2. 2. Collin Horn, Senior Agent ● I have been a real estate agent since 2008 ● I have helped 80 clients buy or a sell a home in Seattle since working for Redfin ● I came to Redfin because I don’t have to be a cheesy salesman, customers don’t feel sales pressure, and Redfin has more training and standards.
  3. 3. Agenda ● ● ● ● ● ● ● ● ● Overview of the process Never miss a home Choosing an agent Touring Mortgages Break! Short sales & foreclosures Making an offer Acceptance to closing
  4. 4. 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
  5. 5. Partners in the Process AGENT Responsible for your success Writes your offer Handles negotiations TRANSACTION COORDINATOR Prepares paperwork Works with escrow TOUR COORDINATOR Schedules tours Prepares paperwork ASSOCIATE AGENT Takes you to see homes Sees 50+ homes a week
  6. 6. Understanding the Buying Process
  7. 7. Overview of a Purchase Research Search Offer Closing Real Estate Agents Define Preferences Comparables Earnest Money Mortgage Options Saved Search Draft Offer Docs Inspection Preapproval Home Tours Negotiate Loan application Consider your needs Open Houses Mutual Acceptance Title Review Appraisal Financing Approval Closing
  8. 8. Understanding the Market
  9. 9. Seattle Inventory
  10. 10. Seattle Jan. 2014 Stats for Houses
  11. 11. Seattle Jan. 2014 Stats for Condos
  12. 12. Seattle Area Overview
  13. 13. Never Miss A Home
  14. 14. Real Estate Sites: What to Look For ● ● ● ● ● Has all the homes for sale Updated every 15 minutes Real-time sales data Insights from agents Mobile apps
  15. 15. Never Miss a Home
  16. 16. Choosing the Right Agent
  17. 17. 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?
  18. 18. Redfin Agent Reviews
  19. 19. Seeing Homes in Person
  20. 20. Scheduling a Home Tour
  21. 21. Schedule a Home Tour
  22. 22. Schedule a Home Tour
  23. 23. Schedule a Home Tour ● ● ● ● ● ● Up to Six Homes/Two Hours Tour Coordinator Calls Within Three Hours Scheduled with Agent or Associate Agent Showing Appointments Scheduled and Confirmation Notification if any Homes Become Pending or Cancelled Agent Meets you at Your Preferred Home Home Choice ● As Many Home Tours as you Need ● No obligation and No pressure!
  24. 24. Making the Most of Your Tour 1. 2. 3. 4. 5. 6. 7. Bring a camera, notebook & tape measure See how much sunlight the place gets Check the bathrooms for rot & mold Look for wavy or discolored wood siding Make sure water spouts drain away from house Take stock of storage space Turn off any music playing in house 8. 9. 10. 11. 12. 13. 14. Check for hardwood floors under carpet Peek into the attic Bring a marble or two When sharing a wall, make sure it’s thick Ignore the appliances and carpets Check the closets Get the disclosure packet
  25. 25. Mortgages
  26. 26. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
  27. 27. 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 ● Underwriting approval is best Info needed: ● W-2, two pay-stubs, tax returns, bank statements
  28. 28. 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
  29. 29. Break! Collin Horn collin.horn@redfin.com Redfin’s Central Seattle Team
  30. 30. 10-Minute Break 10 mins 5 mins Let’s Get Started! End
  31. 31. Short Sales and Bank Owned (Otherwise known as the waiting game)
  32. 32. What is a Short Sale? The owner owes more on the mortgage than the home is worth ● Often pre-foreclosure, but not always ● Listed for less than what’s owed to the bank ● Requires one - or more banks’ approval ● May have other liens (taxes, utilities, HOA) We Can Help With a Short Sale! ● If you want to buy, you can 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
  33. 33. 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
  34. 34. Making an Offer
  35. 35. Completing the Offer Wizard
  36. 36. Completing the Offer Wizard
  37. 37. 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 ► HOA Review
  38. 38. What are Contingencies? This means if the seller accepts your offer, it’s success may still depend on passing a home inspection or getting financing. Other types: ● Appraisal – Performed in conjunction with Financing ● Financing ● Inspection ● HOA Review Period ● Other Clauses (22D, 22J)
  39. 39. 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
  40. 40. Acceptance to Closing
  41. 41. Steps After Mutual Acceptance ● ● ● ● ● ● ● ● ● ● ● ● MA is day 0 of all time lines Earnest money deposit – usually 3% due in 3 business days Inspection – approximately <$500 Other inspections – radon, lead, sewer scope, etc. Loan application – 7 days or less Title review Appraisal Loan approval Document signing –a couple days before closing Walk through –a couple days before closing Closing Receive your keys!
  42. 42. Redfin Deal Room
  43. 43. Choosing An Inspector • Redfin Open Book
  44. 44. Home Inspection We recommend that you have a home inspection ● Cost runs $300 to $500 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
  45. 45. Title/Escrow Companies ● ● ● ● ● Holds the earnest money deposit Prepares the final documents, including the HUD-1 Conducts the closing Receive and disburse funds for closing Arrange for pay off of any liens (sellers’ mortgage, taxes, etc) ● Examines and clears the title to the property ● Records the deed ● Issues title insurance to the lender and the buyer
  46. 46. Closing: HUD–1 Settlement
  47. 47. Walkthrough & Closing A day or two prior to closing you will do a walkthrough to make sure the property is in the agreed upon condition. At closing you will sign all necessary mortgage and closing documents and get your keys!
  48. 48. Redfin Survey ● Sent to you After Closing ● Our Agent Compensation is Based on Results ● You Also Survey Your: ► Inspector ► Lender ► Title and Escrow ● We Only Work with the Best
  49. 49. Redfin Survey All Survey Results Published on Redfin.com
  50. 50. Selling Your Home with Redfin
  51. 51. Better Service, Lower Fees ● 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
  52. 52. 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
  53. 53. Future Events!
  54. 54. Thanks for Coming! Questions? Get in touch: Collin Horn collin.horn@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events

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