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Redfin's Free Home Buying Class - Tacoma, WA


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Redfin's Free Home Buying Class - Tacoma, WA

  1. 1. Redfin Home Buying Class Holland Cohen & Lindsay Weingart Tacoma Team January 30th, Tacoma, WA @Redfin
  2. 2. Tacoma Team ● Specialize in: First Time Home Buyers, Condos, town houses, Single Family, REO’s, Short Sales. ● Services: Tacoma up to Federal Way, Gig Harbor, Puyallup ● Holland, Lindsay, and Michelle - Lives in Tacoma and Gig Harbor
  3. 3. Agenda ● ● ● ● ● ● ● ● ● ● Overview of the process Are you ready to buy? Understanding the market Never miss a home Choosing an agent Touring Mortgages Short sales & foreclosures Making an offer Acceptance to closing
  4. 4. 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
  5. 5. Save $4,000 on Average
  6. 6. Understanding the Buying Process
  7. 7. 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%
  8. 8. Overview of a Purchase Research Search Offer Closing Neighborhoods Define Preferences Comparables Earnest Money Real Estate Agents Saved Search Draft Offer Docs Inspection Mortgage Options Home Tours Negotiate Loan application Preapproval Open Houses Mutual Acceptance Title Review Consider your needs Appraisal Financing Approval Closing
  9. 9. Understanding the Market
  10. 10. Story of 2013: Find It On Redfin
  11. 11. Tacoma Area Overview
  12. 12. Tacoma Jan. 2014 Stats for Houses
  13. 13. Tacoma Inventory
  14. 14. Story of 2013: Rising Prices
  15. 15. Where Is the Market Headed? ● Supply of homes was at a five-year low during 2013. ● Foreclosures have been driving price declines, and years of inventory remain. Investment groups might have impact ● Rents have been rising, making buying more attractive ● Market stabilized – price increases in many areas ● Rate increases - biggest potential issue for buyers
  16. 16. Never Miss A Home
  17. 17. 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
  18. 18. Never Miss a Home
  19. 19. Choosing the Right Agent
  20. 20. 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?
  21. 21. Traditional vs. Redfin
  22. 22. Redfin Agent Reviews
  23. 23. 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
  24. 24. Seeing Homes in Person
  25. 25. Making the Most of Your Tour 1. 2. 3. 4. 5. 6. 7. 8. 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 Check for hardwood floors 9. 10. 11. 12. 13. 14. 15. Wear shoes that can easily be taken off 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 Compare the property’s tax records to the listing details
  26. 26. 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 Slide 26 of 55
  27. 27. Mortgages
  28. 28. Preparing For a Great Mortgage ● Ask yourself the most important financial questions ● Write down pre-purchase goals - Down payment target Post closing reserves Debt to pay off ● Revisit your budget and determine your ideal payment ● Gather Your Documentation ● Income: Paystubs, Tax Returns, W-2’s ● Assets: Bank Statements, Investment, Retirement ● Talk to an Expert - Get a GREAT referral Institutional vs. Individual Trust Shop the RIGHT way
  29. 29. 3 Stages of Approval… ● Pre-Qualification - Quick & Easy review of your scenario Over the phone or online ● Pre Approval - Thorough review of all documentation Full “Pre-Underwrite” of your application More accurate, improves your offer ● Full Credit Approval (TBD Approval) - Fully Underwritten & all non-property conditions met Extremely accurate and powerful The next best thing to a CASH offer!
  30. 30. FAQ? ● ● ● ● ● ● ● ● ● Does it hurt your credit to have it pulled? What things should be avoided when getting a loan? What First Time Buyer programs are available? My mother in law says __________. Is that true? Is it better to pay down debt or save more money? Should I close a credit card account after paying it off? In my past I had a BK/Foreclosure/Short Sale… What’s your rate? Do I really need a real estate agent?
  31. 31. Here to Help You… Kyle Rohrbaugh MLO-263508 Eric Engelland MLO-72324 - Our team: Top 1% of Mortgage Originators Nationally - Cobalt Mortgage: Largest Independent Mortgage Bank in WA and Top Mortgage Company for purchase transactions in Pierce County - Kyle: 10 yrs exp, Pepperdine Univ Accounting Degree, wife and 2 daughters - Eric: 20 yrs exp, UW Finance Degree, wife and 3 daughters Call us for no obligation qualification/approval! 253.858.2640
  32. 32. Short Sales and Bank Owned
  33. 33. What is a Short Sale? The owner owes more on the mortgage than the home is worth ● Usually a last-ditch effort to prevent a foreclosure ● Requires homeowner and bank approval ● May have other liens (taxes, utilities, HOA) We Can Help With a Short Sale! ● See short sales with a Redfin Agent ● Get a 15% commission refund
  34. 34. Buying a Short Sale Home ● ● ● ● ● ● ● Talk to your agent Not always input as a short sale, define search criteria Get your finances ready Make your offer, and wait…..and wait some more Do your homework-inspections and contingencies Be ready for failure Be ready to succeed-bank timeline is typically shorter than a traditional sale.
  35. 35. What is a Bank-Owned Property? ● A foreclosed home owned by a bank or lender ● Standard sale but: ► Verbal negotiations ► Response times are relatively quick ► Repairs unlikely – sold as-is ► 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
  36. 36. Making an Offer
  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
  38. 38. 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 5. If you sleep on it, you won’t sleep in it!
  39. 39. Acceptance to Closing
  40. 40. Steps After Mutual Acceptance ● ● ● ● ● ● ● ● ● ● Earnest money deposit – usually 1-3%+ Inspection Loan application – 5 days or less Title review Appraisal Loan approval Walk through Document signing Closing Receive your keys!
  41. 41. 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: ● Types of inspections – sewer scope, septic, well, termite, any specialized inspections (electrician, plumber, HVAC, etc)
  42. 42. 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. - Contingencies protect the buyer. Other types: ● Appraisal – Performed in conjunction with financing ● Financing ● Inspection ● Title
  43. 43. 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
  44. 44. Title Companies ● ● ● ● 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
  45. 45. Closing: HUD–1 Settlement
  46. 46. Signing and Closing A few days before closing you will have a final walk-through of the property and sign your closing documents. On closing day, you’ll probably get your keys at about 5pm.
  47. 47. Selling Your Home with Redfin
  48. 48. 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
  49. 49. 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
  50. 50. Future Events!
  51. 51. Thanks for Coming! Questions? Get in touch! Holland Cohen 206.245.5277 Check out our upcoming classes: