Redfin's Home Buying Class - Rockville, MD - Nick Chaconas

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  • Redfin refunds 50% of the buyer’s agent commissionApplied to closing costsRemainder paid as a check within 10 days of closingRefund is tax-freeMinimum Redfin fee: $6,000
  • Will receive a confirmation email!
  • Point out reviewsUpdating this page: This should be updated based on your Local Rec. Lender. Just go to the page click “Print Screen.” Come back to this page, click on the large image, click delete, and then right click and paste. Size the images so it fits the page. The right click again and click “Send to back.”
  • Address in here how your agent fights for you in negotiations
  • 1. Important milestone tracker – click on these for more in depth infoDeal room provides you with step by step updates on where you are at in the process after you have made an offer 2. Get updates from your agent when they have made changes to your Deal Room
  • You should not be reading all of these. Pick you top three and chat about those.
  • You should add your own key take aways for this and every class
  • Redfin's Home Buying Class - Rockville, MD - Nick Chaconas

    1. 1. Redfin’s Home Buying Class<br />January 11th, 2010Rockville, MD<br />
    2. 2. Agenda<br />Considering… <br />To Buy or Not to Buy<br />Market Conditions<br />How to Search for a Home<br />Looking…<br />Working with Redfin<br />Finding a Redfin Agent<br />Pre-approval<br />Break!<br />Buying…<br />Mortgages<br />Short Sales and Bank Owned<br />The Offer and the Deal<br />Considering… <br />Looking…<br />Buying…<br />
    3. 3. To Buy or Not to Buy<br />
    4. 4. Why You Should Buy a Home<br />You’ve got a family, and need room to grow<br />You want deep roots<br />You want a type of property that is difficult to rent<br />You’re handy, and ready to invest your time in your home<br />You’ve saved up a down payment<br />Considering… <br />Looking…<br />Buying…<br />
    5. 5. Why You Shouldn’t Buy a Home<br />You don’t have a good reason like family or schools<br />You can’t afford a 10% - 20% down payment<br />You can rent for much less<br />You plan on moving soon<br />You’re worried about job security<br />Considering… <br />Looking…<br />Buying…<br />
    6. 6. Market Conditions<br />
    7. 7. Case-Shiller: DC v. 20-City <br />Case-Shiller: DC AreaUp 3.7% year-over-yearPeak was May 2006Down 25.7% from peakCurrently at May 2004 prices<br />Case-Shiller: 20-City CompositeUp 2% year-over-yearPeak was July 2006Down 30% from peakCurrently at August 2003 prices<br />Considering… <br />Looking…<br />Buying…<br />
    8. 8. Rockville December Stats for Homes: <br />Considering… <br />Looking…<br />Buying…<br />
    9. 9. Rockville December Stats for Condos:<br />Considering… <br />Looking…<br />Buying…<br />
    10. 10. DC-Area Foreclosures<br />Considering… <br />Looking…<br />Buying…<br />
    11. 11. How to Search for a Home <br />
    12. 12. Why Redfin’s Search is Better<br />All the homes for sale: 30% more listings<br />You see what the agent sees: 4x the data<br />Real-time market data: photos, details of just-sold homes<br />Considering… <br />Looking…<br />Buying…<br />
    13. 13. Searching on Redfin<br />Get email updates<br />Find open houses<br />Redfin’s Forums<br />See more trends & details<br />Exclude short sales<br />Search recent sales<br />Download to Excel<br />Considering… <br />Looking…<br />Buying…<br />
    14. 14. Home Details Page <br />Go see the home<br />Home info<br />Different map views<br />Local school info<br />History of the property<br />Add to Favorites<br />Neighborhood area pricing<br />Agent write up<br />Mortgage Calculator<br />
    15. 15. Add Homes to Your Favorites List<br />Order by price, listing date, etc<br />See your notes<br />Considering… <br />Looking…<br />Buying…<br />
    16. 16. Working with Redfin<br />Working with Redfin<br />
    17. 17. Working With Redfin is Different<br />Service<br />Advocates: client-satisfaction bonuses, not commissions<br />Transparency: informed decisions<br />Best Agents: The right home for the right price <br />No obligation<br />Switch Redfin agents<br />Pause and re-start your search any time<br />Refund<br />You get up to 50% the commission<br />The Best Results<br />Service: 97% would recommend us to a friend<br />Considering… <br />Looking…<br />Buying…<br />
    18. 18. How Commissions Work<br />
    19. 19. How Our Team Works<br />Agent<br /><ul><li>Responsible for your success
    20. 20. Writes your offer
    21. 21. Handles inspection
    22. 22. Handles negotiations</li></ul>Field Agents<br /><ul><li>Takes you on home tours
    23. 23. Attends inspections</li></ul>You<br />Coordinator<br /><ul><li>Schedules tours
    24. 24. Works on escrow
    25. 25. Prepares paperwork</li></ul>Considering… <br />Looking…<br />Buying…<br />
    26. 26. Find a Home to Tour<br />Considering… <br />Looking…<br />Buying…<br />
    27. 27. Schedule a Tour or Add More Homes<br />Considering… <br />Looking…<br />Buying…<br />
    28. 28. Fill Out Time and Notes<br />Considering… <br />Looking…<br />Buying…<br />
    29. 29. Coordinator Will Call to Schedule<br />Considering… <br />Looking…<br />Buying…<br />
    30. 30. Now You are Ready to Tour<br />Up to six homes per tour in two hour blocks<br />Go on as many tours as you would like<br />Led by field agent<br />No commitment<br />Considering… <br />Looking…<br />Buying…<br />
    31. 31. Finding a Redfin Agent<br />
    32. 32. How to Find Our Agents<br />Considering… <br />Looking…<br />Buying…<br />
    33. 33. Pick Your Area to Find Local Redfin Agents<br />Considering… <br />Looking…<br />Buying…<br />
    34. 34. Select an Agent<br />Considering… <br />Looking…<br />Buying…<br />
    35. 35. Make Sure He’s a Good Fit<br />Click here when you decide<br />See all deals & reviews<br />Team members & roles<br />Considering… <br />Looking…<br />Buying…<br />
    36. 36. What to Ask Any Agent<br />Is this your full-time job?<br />Familiar with foreclosures or short-sales?<br />Where were your last five deals?<br />Who else will be working with me?<br />Will you show me all properties for sale?<br />When am I committed to working with you?<br />Has a client ever filed a complaint? <br />How are you paid?<br />Considering… <br />Looking…<br />Buying…<br />
    37. 37. Get Pre-Approved<br />A pre-approval letter is a letter from a bank or a lender estimating how much they'll lend a borrower<br />Help you establish how much you can afford and makes offer process go faster<br />Information needed:<br />W-2, two pay-stubs, tax returns (get them ready), bank statements<br />The process only takes a few days while banks get everything verified<br />The approval is good for 90 days, depending on lender<br />Ask for a few different amounts<br />Redfin asks that you get pre-approved before your third tour<br />Considering… <br />Looking…<br />Buying…<br />
    38. 38. Break!<br />
    39. 39. Mortgages <br />
    40. 40. Organize Your Assets <br />Get ready for the down payment<br />Cash accounts (liquid funds)<br />401(k), stocks, other investments<br />Gift funds? (Max. allowed varies)<br />Move funds around before you start shopping<br />Considering… <br />Looking…<br />Buying…<br />
    41. 41. Review Your Debt<br />Pull credit report, look for errors<br />Figure out how much monthly income goes towards paying off debt: 28 – 33% healthy<br />Pay down balances to 1/3rd of credit available<br />Don’t open any new lines of credit<br />Don’t buy any big ticket items<br />Co-borrower will need to do the same<br />Considering… <br />Looking…<br />Buying…<br />
    42. 42. Start Shopping for Lenders<br />Compile a list of 4-6 lenders & brokers <br />Good sources include:<br />Redfin's partner lenders <br />Referrals from friends, family & co-workers<br />Banks or credit unions you have accounts with <br />A large, national bank with an advertised rate<br />Your real estate agent<br />Online review sites, such as Yelp<br />Considering… <br />Looking…<br />Buying…<br />
    43. 43. Local Recommended Lenders<br />*In no way does Redfin benefit financially from recommending <br />lenders – we just think they are great lenders!<br />Considering… <br />Looking…<br />Buying…<br />
    44. 44. Current Average Rates <br />Considering… <br />Looking…<br />Buying…<br />
    45. 45. Comparing GFE Results <br />Gather Good Faith Estimates (loan quotes)<br />A minimum of three, more is better<br />Compare similar loans<br />Program (FHA, conventional)<br />Timeframe (same day)<br />Compare costs side-by-side<br />Discount & origination points<br />Interest rates<br />Insurance premiums (FHA, PMI)<br />APR (interest rates + fees + points + PMI)<br />Considering… <br />Looking…<br />Buying…<br />
    46. 46. Make Your Decision <br />When possible, get a loan commitment<br />Lock your interest rate (30 - 60 days)<br />Make alternative funds liquid (401k, stock)<br />Good news! Loan payments are made in arrears, so your first loan payment won’t be for two months. You’ll have one month of no payments.<br />Considering… <br />Looking…<br />Buying…<br />
    47. 47. Short-Sales & Bank Owned<br />
    48. 48. What is a Short Sale?<br />The owner owes more on the mortgage than the home is worth<br />Usually pre-foreclosure, but not always<br />Listed for less than what’s owed to the bank<br />Requires 1 - 2 banks’ approval (usually 2)<br />May have other liens (taxes, utilities, HOA)<br />Considering… <br />Looking…<br />Buying…<br />
    49. 49. We Can Help With A Short Sale<br />Tour short sales with Redfin<br />If you want to buy, Redfin refers you to a short sale partner agent <br />Redfin partner agents work for other brokerages but share Redfin’s commitment to customer service<br />Get a 15% commission refund<br />Considering… <br />Looking…<br />Buying…<br />
    50. 50. What is a Bank-Owned Property? <br />A foreclosed home owned by a bank or lender<br />Standard sale but:<br />Verbal negotiations<br />Long response times<br />Repairs unlikely<br />Legal addenda may require an attorney<br />Limited or no disclosures<br />Banks demand use of their own contracts<br />Bank can back out any time until they’ve signed<br />Contract often requires early release of earnest money<br />Considering… <br />Looking…<br />Buying…<br />
    51. 51. So…Where’s the Best Deal? <br />Bank-owned & short-sales myths – <br />Always the best deal?<br />Banks are stingy<br />Not a fire sale<br />Your best bet for a good deal:<br />Sellers who own their home outright<br />Sellers who are relocating<br />Estate Sales<br />Short Sales with hardship packages<br />Considering… <br />Looking…<br />Buying…<br />
    52. 52. The Offer & The Deal<br />
    53. 53. Tour homes<br />Get pre-approved<br />Find dream home<br />Consult with agent, write offer<br />Submit offer to listing agent<br />Negotiations<br />Success! Mutual Acceptance<br />Earnest money <br />Overview of a <br />Purchase<br />Inspection contingency [7-14 days] <br />Appraisal [5 days]<br />Financing contingency [20-25 days]<br />Waiting for loan approval<br />Final Walkthrough<br />Closing!<br />Receive Redfin refund <br />Complete Redfin survey <br />
    54. 54. Deal Room<br />Important milestone tracker<br />Your to do list<br />Your team of agents<br />
    55. 55. Your Agent Negotiates Deal<br />Researches seller<br />Reviews agent-only comments<br />Contacts listing agent<br />Studies listing agent negotiating patterns<br />Studies sellers situation and motivations<br />Discusses with you<br />Do you want a comparative market analysis?<br />Where do you want to start?<br />Where do you want to end up?<br />Crafts Offer to Purchase<br />Inspection contingency<br />Financing contingency<br />Submits offer<br />Negotiates terms<br />Considering… <br />Looking…<br />Buying…<br />
    56. 56. Home Inspection Hints<br />Watch out for:<br />Look for and Check:<br /><ul><li>Chimney sweep fireplace </li></ul> inspection<br /><ul><li>Double-paned windows
    57. 57. Galvanized steel pipes
    58. 58. Well ventilated attic
    59. 59. Knob and tube wiring
    60. 60. Check all included </li></ul> appliances<br /><ul><li>Stairs have handrails
    61. 61. Cracks in foundation
    62. 62. Mold, mildew or signs of leaking near walls or floors
    63. 63. Check water pressure</li></ul>Considering… <br />Looking…<br />Buying…<br />
    64. 64. So What Now? <br />Make sure it’s the right time for you<br />Get pre-approved & look for a lender<br />Search for homes & start touring<br />Find the right agent<br />Make an offer & close the deal<br />Considering… <br />Looking…<br />Buying…<br />
    65. 65. After Class…<br />Please fill out the survey we’ll send this week along with this slide deck. We’d love to get your feedback on how the class could improve.<br />To get even more info on the home buying process, check out our home buying guide:<br />http://redfin.com/home-buying-guide<br />Considering… <br />Looking…<br />Buying…<br />
    66. 66. Appendix: <br /><ul><li>Important forms/contracts
    67. 67. Favorite Real Estate Resources</li></li></ul><li>NWMLS Purchase & Sale Agreement<br />
    68. 68. HUD Settlement Statement<br />
    69. 69. Favorite Real Estate Links<br />Property Information<br />PropertyShark: Zoning data, title history, permits, neighborhood data; navigation is clunky<br />Neighborhood Information<br />WalkScore: Proximity to points of interest<br />Trulia Heat Maps: Median prices across a county<br />
    70. 70. Favorite Real Estate Links: Listings<br />Redfin: MLS + FSBO + REO, updated every 15 minutes, with DOM, price history, Zestimate<br />craigslist: Major FSBO source that Redfin can't crawl<br />HotPads: Foreclosure heat maps<br />Brokerage site of listing agents: more photos of the listing<br />RealtyTrac: Foreclosure market detail, subscription required for full reports<br />
    71. 71. Favorite Real Estate Links: Pricing Data<br />Case-Schiller Indices: Pricing trends by metropolitan area<br />HouseMath: Compares a housing investment to a stock market investment <br />Altos Research: Median price trends and days on market by city, but some complain data is unreliable<br />MSN Home Affordability Calculator: Based on your income & credit score<br />SmartMoney's Home Buying Worksheet: Similar to the MSN calculator, but requires more info<br />
    72. 72. Favorite Real Estate Links: Mortgage<br />Bankrate: Many ads, but is great for comparing local lenders<br />Zillow's Mortgage Marketplace Help Center: Articles mortgage rates, types of mortgages, credit reports, and a series of mortgage calculators<br />The Mortgage Professor: Bare bones information on mortgages, definitions of common terms, myriad of mortgage calculators <br />HUD FHA page: Most reliable explanation of FHA loans, good site for first-time buyers<br />
    73. 73. Favorite Links<br />Loans for First-Time Home-Buyers<br />Federal Housing Administration (FHA)<br />Fannie Mae and Freddy Mac<br />CalHFA: California State agency that helps certain buyers<br />Government Sites<br />Federal Trade Commission: Articles & alerts for home-buyers.<br />Dept. of Justice: Role of competition in real estate<br />
    74. 74. Favorite Links Cont. <br />Remodeling & Renovations<br />DoItYourself.com: A few ads, but a useful clearinghouse of information on remodeling<br />National Association of Home Builders (NAHB): Articles on remodeling your home, most are good<br />What to Look for in an Inspection<br />American Society of Home Inspectors (ASHI): Good consumer FAQ & virtual home inspection<br />

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