austin contract class 11.27.12

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Redfin’s Contract Class

November 27, 2012 Austin, TX

Follow: @RedfinAustinLike: http://www.facebook.com/RedfinAustin

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A Little Bit About Who We AreRedfin is a real estate brokerage that has helped over 20,000 people buy or sell a home; 97% would refer us to a friend.

● Customers, not commissions● Informed decisions● The right home for the right price

No obligationGet back a portion of our commission

Benefits of a MLS Powered Site

All the homes for sale: 30% more listingsYou see what the agent sees: 4x the dataReal-time market data: photos, details of just-sold homes

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To Buy or Not to Buy

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● You’re handy & and ready to invest● You’ve saved up a down payment

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Why You Shouldn’t Buy a HomeYou don’t have a good reason like family or schoolsYou can’t afford the down paymentYou can rent for much lessYou plan on moving soonYou’re worried about job security

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Making an Offer

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Completing the Offer Wizard

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Offer Documentation

To submit an offer we need to include several documents:

Pre-approval LetterProof of Down Payment FundsCopy of an Earnest Money Deposit CheckOptional: FICO (credit) ScoresOther forms: RELO Addendum; REO Addm. etc.

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Offer Forms

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Offer Forms

Disclaimer: The scope of this class is to discuss the process for drafting an offer to purchase a home, the documents involved and the strategies for getting an offer accepted.The presenter is not a real estate attorney. Questions pertaining to the legal ramifications of the following contracts should be directed to a real estate attorney.

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Offer Forms

Redfin Buyer Representation Agreement (RBRA)

Establishes the representation relationship between you (Buyer) and Redfin

Documents expectations of Redfin and you, the Buyer

Protects Redfin’s claim to a commissionEstablishes the buyer’s Redfin refund policy

Who signs this document:Buyer and Buyer’s Agent (Selling Agent)

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Offer Forms

Disclosure And Consent For Representation Of More Than One Buyer Or Seller (C.A.R. From DA)

Discloses that the Broker (Redfin) may represent both the Buyer and Seller in a transaction.

An individual Redfin Orange County agent will NOT represent both the Buyer and the Seller in any one transaction.Who signs this document:

Buyer and Buyer’s Agent (Selling Agent)

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Offer Forms

Market Conditions Advisory (C.A.R. Form MCA)

Advises Buyer about determining the price to offerWarns Buyer about the importance of contingenciesWarns Buyer about the risk of writing multiple offers

Who signs this document:Buyer and Buyer’s Agent (Selling Agent)

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Offer Forms

Disclosure Regarding Real Estate Agency Relationship (C.A.R. Form AD)

Defines agency representation and relationshipsDescribes the fiduciary duty expected of real estate

agents

Who signs this document:Buyer and Buyer’s Agent (Selling Agent)Seller

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Offer Forms

Residential Purchase Agreement (C.A.R. Form RPA)

Main offer form that contains terms including:Offer price and termsClosing cost splitsContingency periodsEtc…

Who signs this document:Buyer and Buyer’s Agent (Selling Agent)Seller and Seller’s Agent (Listing Agent)

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Offer Forms

Buyer’s Inspection Advisory (C.A.R. Form BIA)

Advises Buyer to conduct thorough home inspections

Outlines the importance of proper inspection of many different parts of the home and it’s surroundings

Who signs this document:BuyerSeller

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Offer Forms

Wood Destroying Pet Inspection And Allocation Of Cost Addendum (C.A.R. Form WPA)

Outlines who is responsible for procuring and paying for a Wood Pest Report

Establishes who is responsible for correcting conditions discovered by Wood Pest Report

Section 1 & Section 2 conditionsWho signs this document:

BuyerSeller

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Short-Sales & Bank Owned

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Offer Forms

REO Advisory (C.A.R. Form REO)

Informs Buyer of Seller exemptions in a bank owned transaction

Establishes what is still required of the SellerRecommends Buyer have any addendums or

amendments provided by Seller be reviewed by legal counselWho signs this document:

BuyerSeller

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Offer Forms

Short Sale Addendum (C.A.R. Form SSA)

Establishes timelines regarding short sale approval and contingencies

Outlines expectations of Buyer and Seller regarding short sale approval period

Who signs this document:BuyerSeller

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Offer Forms

Short Sale Information And Advisory (C.A.R. Form SSIA)

Defines short saleInforms Buyer and Seller of the alternatives to a short

saleDiscloses the difficulties that may arise during a short

sale transactionWho signs this document:

Buyer and Buyer’s Agent (Selling Agent)Seller and Seller’s Agent (Listing Agent)

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Offer Forms

Bank Addendums / Amendments / Counter Offers

Often added to bank owned (REO) transactionsModify terms of the RPA and may limit the bank’s

liabilityOften add daily per diem if Buyer closes lateRedfin can’t provide guidance or opinion on bank

addendums, attorney review is strongly encouraged

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Other Forms

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Other Forms

Request For Repair (C.A.R. Form RR)

Used to ask the Seller to fix or credit Buyer for conditions discovered during the inspection period

Seller is NOT obligated to fix items other than as required by local law

RPA states property is sold in ‘As-Is’ condition

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Other Forms

Contingency Removal (C.A.R. Form CR)

Removes some or all of Buyer’s contingencies and commits Buyer to the purchase

If Buyer cancels transaction after removing contingencies deposit may be at risk

Should not be signed until Buyer is confident in their ability to close and satisfied with any terms agreed upon during negotiations

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Questions? Writing Class

March 27, 2012 – Irvine, CA

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Thank You!

[email protected]

austin contract class 11.27.12

Documents

wood pest

real estate

offer wizard

offer wizard

bank owned

buyers agent

listing agent

sellers agent