Published on March 14, 2014
Redfin Home Buying Class Holland Cohen & Lindsay Weingart Tacoma Team March 13th, Tacoma, WA @Redfin facebook.com/Redfin
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
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
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
Save $4,000 on Average
Understanding the Buying Process
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%
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
Understanding the Market
Story of 2013: Find It On Redfin
Tacoma Area Overview
Tacoma Feb. 2014 Stats for Houses
Story of 2013/2014: Rising Prices
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
Never Miss A Home
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
Never Miss a Home
Choosing the Right Agent
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?
Traditional vs. Redfin
Redfin Agent Reviews
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
Seeing Homes in Person
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. Wear shoes that can easily be taken off 10. Bring a marble or two 11. When sharing a wall, make sure it’s thick 12. Ignore the appliances and carpets 13. Check the closets 14. Get the disclosure packet 15. Compare the property’s tax records to the listing details
Slide 26 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
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
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!
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?
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 3 daughters - Eric: 20 yrs exp, UW Finance Degree, wife and 3 daughters Call us for no obligation qualification/approval! 253.858.2640 firstname.lastname@example.org
Short Sales and Bank Owned
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
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.
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
Making an Offer
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
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!
Acceptance to Closing
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!
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)
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
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
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
Closing: HUD–1 Settlement
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.
Selling Your Home with Redfin
● 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 Better Service, Lower Fees
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
Thanks for Coming! Questions? Get in touch! Holland Cohen email@example.com 206.245.5277 Lindsay Weingart 253.678.1095 firstname.lastname@example.org Check out our upcoming classes: http://www.redfin.com/events
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