Redfin Free Home Buying Class

483 views

Published on

NA

Published in: Real Estate
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
483
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Redfin Free Home Buying Class

  1. 1. Slide 1 of 28 Redfin’s Home Buying Class San Francisco Team – July 23rd , 2014 Host: Davis Pemstein & Derrick Lee @Redfin http://www.facebook.com/Redfin
  2. 2. Slide 2 of 28 Meet Redfin’s San Francisco Team
  3. 3. Slide 3 of 28 Agenda ● To buy or not to buy ● Overview of purchase process ● Understanding the Market ● Mortgages ● Multiple offers ● What to know about closing ● Thank you!
  4. 4. Slide 4 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  No obligation  Commission credit
  5. 5. Slide 5 of 28 Understanding the Buying Process
  6. 6. Slide 6 of 28 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?
  7. 7. Slide 7 of 28 Overview of a Purchase Research Neighborhoods Real Estate Agents Mortgage Options Preapproval Consider your needs Search Define Preferences Saved Search Home Tours Open Houses Offer Comparables Draft Offer Docs Negotiate Mutual Acceptance Closing Earnest Money Inspection Loan application Title Review Appraisal Financing Approval Closing
  8. 8. Slide 8 of 28 Market Conditions
  9. 9. Slide 9 of 28 Current Market: Low Inventory
  10. 10. Slide 10 of 28 Current Market: Rising Prices
  11. 11. Slide 11 of 28 San Francisco Area Overview
  12. 12. Slide 12 of 28 ● 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 What Other Trends are We Noticing?
  13. 13. Slide 13 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 days. ● Expect to be up against multiple offers (5-10+), some cash offers ● Get pre approval early on
  14. 14. Slide 14 of 28 Mortgages
  15. 15. Slide 15 of 28 Where Are Rates Headed? Type of Loan July 17, 2013 July 10, 2013 30-Year Fixed 4.13% 4.15% 15-Year Fixed 3.24% 3.24% 5/1 ARM 2.97% 2.99% 1-Year ARM 2.39% 2.40%
  16. 16. Slide 16 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
  17. 17. Slide 17 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 Info needed: ● W-2, two pay-stubs, tax returns, bank statements
  18. 18. Slide 18 of 28 Pre-approval Scenario oEarns $13,000/month oHas a monthly car payment $300 oWants to buy a home for $1,000,000 oHas 20% down payment o $13,000 x 43% = $5,590 o $5,590 – 300 (other debt) = Allowed $5,290/Month! $800,000 Loan o30/Yr Fixed, 4% = $3,819 oProperty Taxes o1.2% on purchase price = $1000 ($12,000/yr) oHomeowners Insurance = $117 ($1,400/yr) oTotal: $3,819+1,000+117 = Qualified $4,936/Month!
  19. 19. 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
  20. 20. Slide 20 of 28 5 Tips for Winning a Bidding War 1. Make the competition eat your dust – sign up a Redfin listing alert! 2. Get pre-approved with a local lender & get underwriter approval 3. Start the conversation early 4. Write a letter & appeal to the seller 5. Know your limits
  21. 21. Slide 21 of 28 Overview
  22. 22. Slide 22 of 28 The Closing Process 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] Loan & Appraisal Contingency [17 days] Title review [5 days] Waiting for loan approval Escrow signing appointment Get keys and take possession! Closing! Overview of a Purchase Receive Redfin refund Complete Redfin survey Get pre-approved
  23. 23. Slide 23 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
  24. 24. Slide 24 of 28 All Done!
  25. 25. Slide 25 of 28 Future Events!
  26. 26. Slide 26 of 28 Thanks for Coming! Questions? Get in touch: Davis Pemstein davis.pemstein@redfin.com Derrick Lee derrick.lee@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events

×