[REQUIRED – to be updated by the presenter to suit their strong points]
[REQUIRED]Add Lender’s name if he/she’s presenting
[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!
The visual of the HUD would be great and could eliminate some of the verbiage here. REQUIREDA HUD is divided into two parts:Lender charges Includes origination fee, appraisal fee, credit report, insurance and tax escrowsTitle chargesIncludes settlement fee, and owner’s and lender’s title insuranceGovernment chargesIncludes recording fees, recordation taxes and property taxes
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…
Redfin's Free Home Buying Class - Seattle, WA
Redfin Home Buying Class
Presented by: Redfin’s Central Seattle Team
March 4, 2014
Host: Collin Horn
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.
Overview of the process
Never miss a home
Choosing an agent
Short sales & foreclosures
Making an offer
Acceptance to closing
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
Partners in the Process
Responsible for your success
Writes your offer
Works with escrow
Takes you to see homes
Sees 50+ homes a week
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?
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
● As Many Home Tours as you Need
● No obligation and No pressure!
Making the Most of Your Tour
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
Take stock of storage space
Turn off any music playing in house
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
Local Recommended Lenders
In no way does
lenders – we just
think they’re great
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
● W-2, two pay-stubs, tax returns, bank statements
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
Redfin’s Central Seattle Team
Let’s Get Started!
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
● 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
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
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
► HOA Review
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.
● Appraisal – Performed in conjunction with Financing
● HOA Review Period
● Other Clauses (22D, 22J)
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
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
Document signing –a couple days before closing
Walk through –a couple days before closing
Receive your keys!
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
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
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!
● Sent to you After Closing
● Our Agent Compensation is Based on Results
● You Also Survey Your:
► Title and Escrow
● We Only Work with the Best
All Survey Results
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
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