San Diego Home Buying Class - San Diego, CA

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  • 1. Redfins Home Buying Class Redfin Inland San Diego Team June 17, Mira Mesa, CA @Redfin facebook.com/Redfin

2. Agenda Overview of the process Are you ready to buy? Understanding the market Never miss a home Choosing an agent Touring Mortgages Break! Short sales & foreclosures Making an offer Acceptance to closing 3. Jeremy Paul Agent Lives in XX Services: XX Feel free to add whatever youd like! Sorry I couldnt find your slide! 4. Anthony Palomarez Agent Lives in North Escondido Services: Escondido, Fallbrook, Poway, Valley Center, San Marcos, Ramona, Rancho Bernardo 5. 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 6. Save $4,000 on Average 7. Understanding the Buying Process 8. Overview of a Buying a Home Research Your needs The market Neighborhoods Agents Mortgages Preapproval Search Define Preferences Instant Alerts Open houses Home tours Offer Comparables Draft offer Negotiate Mutual acceptance Closing Earnest money Inspection Loan application Title review Appraisal Financing approval Closing 9. Are You Ready to Buy? 10. 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% Can you rent for less? 11. Understanding the Market 12. Story of 2013: Rising Prices 13. Story of 2013: Low Inventory 14. Mira Mesa Area Overview 15. Where Is the Market Headed? Supply of homes is at a five-year low and may not increase much more this year Rents have been rising, making buying more attractive Market stabilized price increases in many areas Rate increases biggest potential issue for buyers 16. Never Miss A Home 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. Never Miss a Home 19. New Home Construction 20. Slide 20 of 55 New Construction IMPORTANT! Be sure to go in to any New Home Office with your agent Lenders Deposit Verify Options and upgrade pricing Changes to home Contingencies Property Inspection Check builders reputation 21. Choosing the Right Agent 22. 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? 23. Redfin Agent Reviews 24. 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 25. Seeing Homes in Person 26. 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 27. Slide 27 of 55 San Diego Inland Teams Associate Agents Laura Byrne Joni Philips 28. Making the Most of Your Tour 1. Bring a camera, notebook & tape measure 2. See how much sunlight the place gets 3. Take stock of storage space 4. Turn off any music playing in house 5. Check for hardwood floors 6. Ignore the appliances and carpets 7. Check the closets 29. Mortgages 30. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders we just think theyre great lenders! 31. Review Your Financial Situation Pull credit report, look for errors Establish comfort level for monthly payment Figure out how much monthly income goes towards debt: 28 33% healthy Pay down credit balances to 1/3rd Dont open any new lines of credit Dont buy any big ticket items Source of money Current employment status 32. 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 33. Where Are Rates Headed? Type of Loan June 12, 2014 May 8, 2014 30-Year Fixed 4.20% 4.37% 15-Year Fixed 3.31% 3.39% 5/1 ARM 3.05% 3.05% 1-Year ARM 2.40% 2.52% 34. Types of Loans Conventional: As low as 5% down Fixed or adjustable rates, conforming or non-conforming Federal Housing Administration Loan (FHA): Always have mortgage insurance Buyers need only a 3.5% down payment VA Guaranteed Loan: Veterans, active duty personnel, reservists/national guard, surviving spouses No down payment Ask your lender if they have special loan programs Example: BB&T Chips Program 35. 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 36. 10-Minute Break 10 mins 5 mins End Lets Get Started! 37. Short Sales and Bank Owned 38. 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 39. What is a Bank-Owned Property? A foreclosed home owned by a bank or lender Standard sale but: 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 40. Making an Offer 41. Crafting Your Offer Evaluate your agent will provide you with information about market conditions and recent sales in the area Consider the situation the sellers preferences, days on the market, and other interest will influence the process. Decide on price & strategy with your agent Common contingencies & terms: Inspection Financing Appraisal 42. Tips for Winning a Bidding War 1. Just win, baby! Simply have the best offer. Cash is King (deposit, down payment) Tighten your timelines 2. Get pre-approved with a local lender 3. Whats important to the seller? 4. Write a letter & appeal to the seller 43. Acceptance to Closing 44. Steps After Mutual Acceptance Earnest money deposit usually 1-3%+ Inspection approximately $500 Other inspections sewer scope, septic, etc. Title review Appraisal Loan approval Document signing Walk through Closing Receive your keys! 45. 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 46. 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 Inspection 47. 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 What is title? 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 48. Customer Deal Room 49. 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. 50. Selling Your Home with Redfin 51. 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 52. All Done! 53. 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 54. Thanks for Coming! Questions? Get in touch: Anthony Palomarez anthony.palomarez@redfin.com Jeremy Paul jeremy.paul@redfin.com Check out our upcoming classes: http://www.redfin.com/events