Home Buying Webinar - April 10, 2012

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Transcript of Home Buying Webinar - April 10, 2012

  • 1. Home Buying 101 WebinarSlide 1 of 29
  • 2. A Little Bit About What We Do Redfin is a brokerage thats using technology and a customer-service focus to change the real estate game in the consumers favor. What: a brokerage How we are different: Technology Customer-service Why: we want to change the gameSlide 2 of 29
  • 3. To Buy or Not to BuySlide 3 of 29
  • 4. Why You Should Buy a Home You have a family and need room to grow You expect to stay put for 5 or more years You want a home that is difficult to rent Youre handy & and ready to invest Youve saved up a down paymentSlide 4 of 29
  • 5. Why You Shouldnt Buy a Home You dont have a good reason like family or schools You cant afford the down payment You can rent for much less You plan on moving soon Youre worried about job securitySlide 5 of 29
  • 6. Market ConditionsSlide 6 of 29
  • 7. Case-Shiller: San Francisco Area v. 20-City 250.00 San Francisco 20-City Composite 200.00 150.00 100.00 50.00 0.00
  • 8. Case-Shiller By the Numbers San Francisco Area Down 5.4% year-over-year Peak was May 2006 Down 41% from peak Currently at March 2002 prices 20-City Composite Down 4.0% year-over-year Peak was July 2006 Down 33.8% from peak Currently at February 2003 pricesSlide 8 of 29
  • 9. Oakland Feb. Stats for HomesSlide 9 of 29
  • 10. Oakland Feb. Stats for HomesSlide 10 of 29
  • 11. Where to find dataSlide 11 of 29
  • 12. Where is the Market Headed? Supply of homes is at a five-year low and wont increase the rest of the year Foreclosures have been driving price declines, likely years of inventory remain Rents have been rising, making buying more attractive) Market stabilizing, though likely 2-3 years before significant appreciation Rate increases - biggest issue for buyersSlide 12 of 29
  • 13. National Market Trends New construction inventory low, sales rising and confidence rising too. Pending home sales hit a 19-month high. Actual closed home sales increased 4%. The number of homes on the market declined 18% over the past year. Foreclosure sales fell to a four-year low. Prices will remain stable in 2012.Slide 13 of 29
  • 14. Is it a good time to buy? Maybe. Unemployment continues to drop/stabilize (7.3% for Sept.) Stock Market stabilizes/rises consistently (Europe?) Rates will be low (Fed says thru 2013) in winter FHA loan limits just rose/Conventional to follow? Elections will bring market instability Inventories are historically high going into the winter freeze Rents are high and rental inventory is low Consider buying more home than you need and grow into it. Monitor the rental prices for your areas. It is all about your time frame! 5 years plus please Consider a fixer upper in winter monthsSlide 14 of 29
  • 15. Working With Redfin is Different Service Advocates: client-satisfaction bonuses, not commissions Transparency: informed decisions Best Agents: The right home for the right price No obligation Switch Redfin agents Pause and re-start your search any time Tour on your schedule and pace Refund You get up to 33% the commission The Best Results Service: 97% would recommend us to a friendSlide 15 of 29
  • 16. We Share Our Commission With You We refund a part of our commission to you subject to the approval of your lender and the home seller Applied to closing costs Refund is tax-free
  • 17. How Our Team Works AGENT COORDINATOR Responsible for your success Schedules tours Writes your offer Prepares paperwork Handles negotiations Works with escrow COORDINATOR FIELD AGENT Schedules tours Takes you to see homes Prepares paperwork See 50+ homes a week Works with escrowSlide 17 of 29
  • 18. Make Sure Hes a Good Fit Click here when you decide See all deals & reviewsSlide 18 of 29
  • 19. MortgagesSlide 19 of 29
  • 20. Getting Pre-Approved A pre-approval letter is a letter from a bank or a lender estimating how much theyll lend you Establishes what you can afford & makes offer process go faster Good for 90 days, depending on lender Ask for a few different amounts Redfin asks that you get pre-approved before your third tour Similar, yet different from pre-qualification Information needed: W-2, two pay-stubs, tax returns, bank statementsSlide 20 of 29
  • 21. Organize Your Assets Get ready for the down payment Cash accounts (liquid funds) 401k, stocks, other investments Gift funds? (max. allowed varies) Move funds around earlySlide 21 of 29
  • 22. Review Your Debt Pull credit report, look for errors 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 Co-borrower will need to do the sameSlide 22 of 29
  • 23. Start Shopping for Lenders Compile a list of 3-4 lenders & brokers Good sources include: Redfins partner lenders Referrals from friends, family & co-workers Banks or credit unions you have accounts at A large, national bank with an advertised rate Your real estate agent Online review sites, such as YelpSlide 23 of 29
  • 24. Local Recommended Lenders *In no way does Redfin benefit financially from recommending lenders we just think theyre great lenders!Slide 24 of 29
  • 25. Current Average RatesType of Loan April 5, 2012 March 29, 201230-Year Fixed 3.98% 3.99%15-Year Fixed 3.21% 3.23%5/1 ARM 2.86% 2.90%1-Year ARM 2.78% 2.78%
  • 26. Where Are Rates Headed?Slide 26 o