Redfin's Home Buying Class10.10.13

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  • 1.Redfins Home Buying Class Redfins San Jose Team October 10, San Jose, CA Host: Angelica Robles @Redfinbayarea facebook.com/bayarea

2. 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: were 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 3. 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 4. Understanding the Market 5. Where Is the Market Headed? Supply of homes is at a five-year low and wont increase much more this year 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 6. Santa Clara Area Overview 7. Short Sales and Bank Owned 8. What is a Short Sale? The owner owes more on the mortgage than the home is worth Usually pre-foreclosure, but not always Listed for less than whats owed to the bank Requires 1 - 2 banks approval (usually 2) May have other liens (taxes, utilities, HOA) We Can Help With a Short Sale! See short sales with a Redfin Agent If you want to buy, work with a Redfin Agent or a short sale partner agent Redfin partner agents work for other brokerages but share Redfins commitment to customer service Get a 15% commission refund 9. 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 theyve signed Earnest money deposit usually held by listing agent 10. Choosing the Right Agent 11. 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? 12. Redfins Partner Program Partner agents are employed by other brokerages, and have teamed up with us to provide Redfin-certified service Well refer you to a Partner Agent when: A home is below Redfins minimum price A home is outside of our service area If its in your financial advantage to work with a partner Were 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 13. Mortgages 14. 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 Info needed: W-2, two pay-stubs, tax returns, bank statements 15. Where Are Rates Headed? Type of Loan October 3, 2013 September 26, 2013 30-Year Fixed 4.22% 4.32% 15-Year Fixed 3.29% 3.37% 5/1 ARM 3.03% 3.07% 1-Year ARM 2.63% 2.63% 16. Seeing Homes in Person 17. Making the Most of Your Tour 1. Bring a camera, notebook & tape measure 2. See how much sunlight the place gets 3. Check the bathrooms for rot & mold 4. Look for wavy or discolored wood siding 5. Make sure water spouts drain away from house 6. Take stock of storage space 7. Turn off any music playing in house 8. Check for hardwood floors 9. Peek into the attic 10. Bring a marble or two 11. When sharing a wall, make sure its thick 12. Ignore the appliances and carpets 13. Check the closets 14. Get the disclosure packet 15. Compare the propertys tax records to the listing details 18. Slide 18 of 55 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 19. Home Inspection We recommend that you have a home inspection Cost runs $350 to $1200 depending upon the homes size Your agent will accompany you Your time to evaluate the property Lets talk about: What an inspection contingency covers and doesnt cover Types of inspections 20. 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. Other types: Appraisal Performed in conjunction with financing Financing Termite Other 21. 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 (sellers mortgage, utilities, etc.) Coordinate the signing appointments for all parties Receive and disburse funds for closing Arrange to notify county offices to change ownership 22. 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 23. Signing and Closing A few days before closing you will sign your closing documents and have a walk through. On closing day, youll probably get your keys at about 5pm. 24. Selling Your Home with Redfin 25. Were 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 Weve helped over 50 people sell their homes in the last six months. Better Service, Lower Fees 26. All Done! 27. So What Now? Make sure its 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 28. Thanks for Coming! Questions? Get in touch: Presenter1 angelica.robles@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events