Feb. 27, 2021

Bluma at Vista Canyon by KB Home in Santa Clarita CA

IMPORTANT:

If you have bought a new home before even you may not know this. 

In both cases, whether you have bought a new home in Santa Clarita or not, the home builder pays me to be your Legal Realtor and new home representative.

This is advantageous because I get to negotiate for you. I get to be toe to toe with the new home builders agent and negotiate in front of you on your behalf.

I can negotiate fees, costs, improvements, items from the new home center, lot premium fees on new construction, and other "add on's" that the new home builders implement.

Real Quick:

In order for this to be able to take place, You cannot have visited the new home center or builder community without me. I'm required to be with you on your first visit.

They will know that you went without me when I didn't register you when we did our first walk-through of the model homes.

How this is discovered is when they find your name in their system. It happens when you go to the new home center, innocently and they get your name as a way of introduction. 

Now they have your name, to seal your fate, your name will be entered into their system as you have visited the new home center without your realtor.

Sometimes, they will hand you an iPad or other tablet-type device and ask innocently for your name.

Bluma Vista Canyon by KB homes is the same. KB Homes has been fantastic to new home buyers throughout the years, building in payment, at no cost to their clients, so they can have the best of the best represent them.

It always surprises me that some choose, maybe unbeknownst to them, to work with the same person representing the home builder.

In re-sale real estate, this act is known as dual agency. Agency is the relationship between parties - in the case the agent has "dual agency". The same agent is representing the home seller and the home buyer on the same home.

In California law, this is allowed. I know this because we have a disclosure stating so. I am not a lawyer.

In Canada and approximately 8 states, it is not allowed. It is forbidden to have the same agent represent the home seller who is representing the home buyer.

Hence, maybe it should be everywhere?

I have to tell you that most will say it's no problem. But can a single person truly provide the best representation to two opposing sides?

While both want to buy the home, the home seller does not want to pay to have things repaired they don't have to and the home buyer does not want to buy a home without the home seller contributing to things they should have done in the way of maintenance over the years.

When the single agent is working on both sides, who do they play "tough" with?

Who is going to be the party who is going to be pressed into having to perform, or give up?  

And - one final thought, how is that going to look to the party who lost the battle?

I know one thing, more relationships in real state between agents and their clients have been lost for less. Let alone having one agent represent both sides in the same transaction - both walk away with the agent in their "yelp" crosshairs.

New Santa Clarita homes cannot be built fast enough

Most have a September 2021 move-in as of the date of this post about the Bluma Vista Canyon KB community. 02/26/2021(the date of me writing this information posting).

What do most homebuyers do at times like these in the real estate market? If they have a home to sell, they typically have us set it up so the home buyers are going to allow them to stay in place while their new home is built.

This is something that happens in particular real estate markets. If the home market, as we see now in the Santa Clarita Valley, it's a home seller's market, then the home buyers are happy to help.

However, if the real estate market is a buyers market, this would not be possible except in a very special case.

I want to be your first phone call

Put my cell on your auto-dial 661-400-1720, typically pick most of the time. If I'm in between sets at the gym, when I'm awake and when I'm not with clients - I pick up my phone.

If you get VM - I call back quickly. Just leave me your name and number. I'll make the connection happen post-haste.

Considering real estate, anything in real estate, even refinancing which I don't do, I will give you the intel you need to know to keep you safe and arm you with the right questions.

I'm Connor MacIvor and I'll be here when you are ready.

Feb. 27, 2021

How about a Golden Nugget - Refinance advice for Santa Clarita home owners and a update 02272021

Santa Clarita home experts real estate market update 02-27-2021

Original PDF of transcription from this episode of Santa Clarita home experts real estate update

How is this for a transcription? LOL - not very good, but it gets google juice. Listen to the broadcast of the longest-running real estate radio show and podcast for the Santa Clarita Valley pertaining to real estate and only real estate.

This is What I do - I'm a Realtor in the Santa Clarita Valley and I want to be your Realtor. When you are ready so we can have a discussion between you and me. I will answer all your questions and give you some you should consider before embarking on your personal real estate journey with me.

Santa Clarita home experts real estate realtor (00:00):

Buying a Santa Clarita home with the expertsJust about 180 units for sale, all residential real estate, including single-family residences, including condos, townhomes, altogether Santa Clarita Valley act and Oakwood Alzay Castaic, Katie of country, new hall, sagas Stevenson, ranch, and Valencia. That's it. 180 active listings. And about 22 to 25 of those 22 to 25 are coming soon listings. So there's not much out there on the market for sale. However, we have 450 odd units in the process. That means in escrow, good to everybody. I am Connor MacGyver, Santa Clarita, home experts.com did a real estate show yesterday on YouTube talking about some of the more non-market strategies and things that we don't see come up too often. Back in the day, when you would buy real estate, a lot of people were under the presumption that it's best to go to that listing agent to be able to buy that house.

Santa Clarita home experts real estate realtor (01:05):

So by default, you would almost be told by your powers that be by your sphere of influence. The best thing to do would be you to go to that listing agent and approach them and say, Hey, listen, we want to buy the house on the corner of the walk. And don't walk that we saw your real estate sign in the yard stating it was for sale. That's the way things used to be done fast forward to today. That's not the way things are done at all. In fact, if it's a regular seller, they're going to want complete market exposure, and 99% of the time or better, it's not going to be their agent that has the strongest, most capable real estate buyer. And this is done how this is done via the counter process. So if you're using the same age in which some States actually call it illegal and unlawful, they don't allow it including Canada, which is a whole nother country, right?

Santa Clarita home experts real estate realtor (02:09):

So they're not allowing dual agency in those States. And then Canada, California, that is still legal. So it is legal for the agent that represents the seller on their home to represent buyers on that same Southern home. So it is legal out here. Nobody's breaking any rules by doing it, but there are a lot of disclosures that go along with that kind of representation. There's a lot of information that has to change hands because there's going to come to a point where that agent working for that seller, having that buyer for that seller's residence, 're going to have to confront that buyer and proceed to counter their terms, trying to squeeze that buyer for as much money possible, trying to squeeze that buyer for the best terms for that seller and coming from the same agent, the buyer's hired kind of seems strange. And then later on in the, you have other things that need to be negotiated.

Santa Clarita home experts real estate realtor (03:02):

Let's say the buyer's inspector found something wrong with the seller's residence. Maybe it was during the inspection. They found out that the garage door from inside the house, outside in the garage, didn't have a self-closing self-closing hinge, let's say, or the water heater wasn't strapped correctly, or some other health and safety issue that really should be remedied before the buyer purchases the house. Now, of course, the way it works in real estate, at least now everything's up to negotiation. There are some items that an appraiser could call out that might not be up for negotiation that is going to have to be fixed at somebody's expense before the close of escrow, whether it's legal to have the buyer pay for it before it closes or even smart. These are things that definitely need to be explored by all parties, because at the end of the day if a buyer pays for something to be done because the appraiser called it out and the seller refuses, but the buyer really wants the house and the buyer goes against what their agents are telling them not to do it because something could happen. The transaction could fall apart. They pay several thousands of dollars to have this issue remedied because it's a hot

market. There's not much inventory on the market for sale. And because they've been around the merry-go-round trying to buy a house. So they're desperate, right? So they say they're going to pay it. So they pay for it. And then the seller dies.

Santa Clarita home experts real estate realtor (04:39):

Now they're out, that's a problem. And of course, I hope nobody's seller dies and nobody buyer dies. I hope nobody dies ever again, but at the end of the day, it could happen. So having that good advocate, that person that's on your side 100% of the time, not on the other side as well. Well, that creates a problem. That was what the blog post was about. Basically, the way listings were being scheduled. So watch out for that. And then some people are still kind of have that old school grade where they believe that they can still con and trick the system and play the games out there. And agents aren't excluded from that dynamic, just watch out. And when you're hiring somebody, make sure that you're there on your side 100%. Now let's talk about the low listing inventory and why that is. This started to occur last year in 2020, around March or so, February, March, everything looked really good.

Santa Clarita home experts real estate realtor (05:34):

And the market looks like we were going to start to get stellar numbers of inventory. We're reporting 250 units for sale. Then 300, then three 70. We were looking really good seeing these a typical seasonal increase in a normal real estate market, which would, if it would have actually continued to go through whatever it turned, the Santa Creta market here in 2021, uh, it would have made it more of a normal market. But we did have that virus that comes out of China. We had that effect, the world population. We have lockdowns put in place. We had all sorts of other issues come up because of COVID. And then the real estate was put back on its heels yet again, and there was now another reason to cause the market to stagnate and people, and you can't blame them. People that had houses to sailor have houses, they want to sell not being able to sell those houses or even asking themselves, should we sell right now or not?

Santa Clarita home experts real estate realtor (06:32):

You have that coupled with super-low interest rates. So pretty much everybody in the world is somewhere around 2%. If you're not, I would definitely recommend you give us a call or your trusted lender or somebody, but on that front, make sure you get a couple of opinions and a couple of net sheets or price estimates, knowing exactly what you're going to be paying and judging those services against one another. Because realistically, if you are going to be financing in some cases, in most cases, it's not a super big deal. Moving from entity to entity from mainline bank to me and my bank investor to investor hedge fund a hedge fund, whatever it may be, wherever you're going to get your house refiled through. It's not that big of a job for the people that are going to be doing it, especially if you bought your house and you have that equity setting there, usually that refinance is a no-brainer.

Santa Clarita home experts real estate realtor (07:26):

One of the things to consider before you start embarking on it is looking at your own lender. The people that holds your mortgage note now and see what kind of deal they can do. And then looking elsewhere at some offsite, maybe a local lender, some of the people on TV, they're going to tease you into a fancy interest rate. They're going to say, if you're not at 1.7%, then you're spinning your wheels, wasting your money. That 1.7% interest rate folks don't fit for everybody. That's not a guarantee. They'll tell you that just to get you to call and then the wine and dine you and romanticize you into some other deal and you'll accept it is their deal going to be the best it might be at the end of the day, though,

if you're not looking at the documents, you're not looking at a couple of different cost estimates from different lenders based on the same thing, a specific interest rate, as long as all those variables are the same, then you'll be able to look and see, well, this one over here seems to be less expensive.

Santa Clarita home experts real estate realtor (08:32):

And if everything seems to work out, this is going to be their interest rate. Then as you get a little bit closer, they'll have run all your numbers. They'll have locked you in at a particular rate. And then at that time, you'll be able to see, yeah, I feel confident with who we're using. And if we're talking a 10th of a point, you're splitting hairs. But if the main interest rates going to be very similar to being the same and the charges are going to be zero, if not very low, these are going to be things that you're going to want to look for. And it's going to actually help you out. So refinancing if you haven't done it yet, and you can save at least half a point, that's kind of the rule of thumb. Some lenders are going to talk you into it. If you can save a third of a point, if you've had your mortgage for less than three years, a third of a point is still going to make sense for you to refi.

Santa Clarita home experts real estate realtor (09:21):

You're going to have to pencil it out. You're gonna have to look at the cost. You're gonna have to look at how many payments you made already. What that's cost you, how much principal you've paid towards up to this point, if it is interest only, and then don't forget whenever you're doing a refinance, you're extending the term of your mortgage. So if you had 25 years left, but now you want to refi, you're going to now have a new 30-year mortgage, unless you're cutting those numbers. And you're shaving those down, getting your mortgage down to let's see a 10 or a 15 year. And that's a whole different animal, still, a refinance, maybe something to look into. But again, most, if you're going from a mortgage to a refinance mortgage unless you do something differently, it's usually a 30-year note. So you're starting that all over something to consider looking at those payments.

Santa Clarita home experts real estate realtor (10:12):

Seeing if it's worth it, just sit down very simply with a pencil and a piece of paper or a computer in a wand, whatever it may be a stimulus, but you know, put something down and figure out if it's gonna make sense for you. I'm Connor MacGyver. Thank you for tuning in Santa. Create a home experts.com. One of the things I will say, as I said a lot today, one of the things I will say is this. We have a lot of new construction going on in Santa Clarita Valley. Most of it doesn't seem to be ready till September all the new home bills out here allow the new home buyers to use their own real estate agent. Again, kind of along with the dual agency thing that I spoke about earlier, it's nice having your own representative on your side during the process, as long as it's not costing you as a buyer, anything.

Santa Clarita home experts real estate realtor (11:05):

So if it doesn't cost you anything, why wouldn't you bring somebody that understands the process that gets to be your voice that does that's. That's able to say what they feel and doesn't have any skin in the game to best protect you. That doesn't care whose feathers they ruffle. And they're only there to get you the best deal possible. The most in discounts, the most in incentives, the most in new credits, new housing credits over there at the new construction factory where they're selling the upgrades the most in credits for closing costs. Why wouldn't you take somebody like that with you? And I'll tell you the only reason why people don't is because they don't realize it's a thing. They don't realize that once they walk into a new housing center to look at those model homes, the first moment they record their actual name, then that prevents them at the builders cost.

Santa Clarita home experts real estate realtor (12:02):

Now at the builders cost 100%. The builder will pay your agent to represent you at no cost or harm or detriment to your position, purchasing a new house. It's not going to cost you a dime or hurt you in any way period. They offer this. But once you go in there and you give up your name, I'm John Smith, it's all done. It's all finished. You've just given up your right. Once you put your name on some, in some computer programs, showing that you were there without your agent, having it provable, it then cuts your agent out of the process of being able to be your representative of the new home builder, new housing site, period. That's it. So they don't put it up in big bold letters because they believe that you should be able to have your own representative. And do they really want to pay your agent now?

Santa Clarita home experts real estate realtor (12:56):

Probably not. So that's why they kind of build it in this way. You walk in, you're excited to see new housing. You're excited to be there. They hand you an iPad, say, Hey, Mr. You mind, would you put your name down here? Just so you know, we can send you updates. And when we're releasing, releasing new phases, things like that. So I had a cough there. I was able to hit pause almost all the way, but that's what you need to look for. So when you do go into new housing, I'd say, no, thank you. I said I'm just here to look at the models. Well, our, our, our, our, our business requires you, uh, fill it, fill out this form. Oh. And if I don't fill out the form, I can't look at the new houses. It's okay to say, it's not going to hurt.

Santa Clarita home experts real estate realtor (13:48):

Nobody's going to beat you up. I promise. And when I was younger, I probably wouldn't have been so standing up for my own rights, kind of a thing. But as I get older, I, uh, I'll ask, I'll ask the questions. And if they insist, I'm now John Smith, not Connor MacGyver. Anyway, it works. I hope everybody has a fantastic week. We're starting out here on Saturday. We're closing out in February. Uh, today's the 27th. We have March 1st coming up here on Monday, please. Any information you need, let me know. You want to check out those new houses. Let me know about real estate resale. Really. It's tough to go wrong. When you're looking at the real estate websites online. If it's a local system like Santa Clara, home experts.com or Paris nine one, one.com. We have both of those systems. They're all IDX-driven. So you're going to see the multiple listings, uh, the coming soon stuff, as well as the active stuff.

Santa Clarita home experts real estate realtor (14:47):

If you're looking online that the best way to get those coming soon listings, isn't going to be through any particular website. It's going to be by contacting Connor, MacGyver me directly and giving me your parameters. And I'll send those to you or have the system generate those coming soon listings to you. At the very moment, they hit the market for sale. That way you're guaranteed to see the coming soon listings before I even see them, you're going to get that notification right away. I've caught her. Let me know what areas you're looking for, what your parameters are, and what's your minimum housing required payments would be, and I'll be there and get you all set up on the coming soon listing email. You'll be safe. Connor MacGyver Connor with honor over and out.

Feb. 24, 2021

Santa Clarita home sellers are still in a quandary whether to list their homes or not

Santa Clarita real estate agentThere are a total of 180 residences that are currently for sale in all of the Santa Clarita Valley as of today's Santa Clarita real estate update 2/22/2021 (next year on this update will be all two's - so excited.

Back to it. Home sellers that I have interviewed over the past several months all have the same concern. "Where am I going to go and will there be a home there for me to buy?"

Some of the sellers are doing 1031 exchanges, to protect themselves from taxation by the government. That is a smart move because without that mechanism their profits would not be able to be invested into a new home purchase, but will go the way of taxes.

There are companies that we can advise you about if you have a complex profile regarding 10-31 exchanges. But with all services, you will want to see those trained, educated, and knowledgeable professionals. As for questions pertaining to the legal questions that come up with real estate, real estate attorney. When it comes to taxes and 1031 exchanges, a CPA or tax attorney. Real Estate - Well, that would be me.

There are time limits when doing a 10/31 exchange, so hence the original question that is keeping sellers on the fence and not placing their Santa Clarita homes onto the market for sale.

One of the big driving forces, it seems that people are leaving the state of California. Wanting to relocate elsewhere. Idaho and Tennessee are very popular with our retiring police officer clients.

The same areas apply to our civilian clients, but We have been working with many who love Arizona and Nevada.

To sell or not, is it up to you just taking a chance?

If you are downsizing and staying local or upsizing and staying local - Placing your home onto the market with a contingency of you being able to find your home of choice will serve you well. That way, any home buyer will have to had agreed to our/your counteroffer or original terms to allow you the time, whatever amount was agreed upon, to find your home of choice and to close both, your home for sale and the one you are buying at the same time.

Believe it or not, it works out, and in a home seller's market, it works out well. 

When the market is in a buyers orientation - or otherwise known as a home buyer's market, sellers may be left out in the cold if they attempt to implement this type of contingency. That is because in a buyer's market there are plenty of other homes the buyers will be able to make offers on that are the same or similar to yours without the "home of choice" contingency.

The best advice is going to be real estate market dependent. Now, during February of 2021, it's not a good time to be a home buyer due to the lacking inventory and restricted choices. Most of those experiences are nothing you are going to want to recall in the future as being "good" experiences.

However, as a Santa Clarita home seller in the present market, those are going to be stories of legend. You will be reminiscing years from now after your move on how your agent was able to secure dozens of offers for your home and how you were able to get the buyer to agree and pay $50,000.00 over the appraised value.

Having to sell versus wanting to sell

Most home sellers are not up against a wall in the current market, having to sell. They often tell their agents, apparently reminding them, "I don't have to sell - if the buyer is not going to agree with our terms, I can take the home off of the market and no one will get paid."

This kind of easy speak does not make for a smooth transaction and involves therapy at times.

I will tell you this, if you hire the right agent, they are going to want to sell your home as-is and they will covey that fact to the home buyer in writing. They will provide emphasis to the home buyer through their agent more than already stated in the prewritten contract related to the "As Is" nature of the home sale.

But, in any situation, the home buyer has a right to ask. You, as a home seller, don't have to agree with them. 

You can say no. "NO!" Just do it in writing and at the end of the day, the home buyer and home seller's bluff at times, just don't knee-jerk yourself out of a transaction, unless you want out.

If as a home seller, if you do want to get out of a transaction, you will need to make sure you aren't infringing on a home buyer's rights, equal housing, and other items that can get a home seller into trouble.

When you want to cancel, make sure you get the blessing in writing from those whom you have hired as your real estate professionals. Without this, you may be hanging yourself out to dry in a bad way.

Don't panic over the typical - it's "The strange" that always happens.

There are a lot of ways to have a real estate transaction not finish. And some of those ways are not covered in the original "agent selection" meeting.

Which, BTW, you should conduct yourself in person with the agent. The Face to Face, even with COVID is a very important step in the home selling process.

The same applies to you if you happen to be a home buyer, meet with the agent you are hiring. You may not be paying their fee directly, but if you were to use someone else, they would not get paid.

Hence, the respect should not only be about the money, it should come from a human level and extend as a quality customer-oriented approach to homes and real estate.

I can prepare a home seller as to what can happen during the start to close of their home. I can explain the sales process, I can covey all my experiences had since 1998, and still, something strange can and will come up to cause conflict within the home sales process.

Something like the home buyer dying during the sale. The same thing can happen to the home buyer - what if the home seller dies.

In those cases, it is very likely that the transaction will be halted and canceled. Other entities have to become involved now.

Maybe Probate? Possibly an executor? But if the buyer passes, then the resurrection of that transaction is probably not going to happen.

Something that can also impact a real estate transaction in the process comes the way of something called the "god factor" (lower case g). Earthquakes, fires, floods, those things put all real estate transactions on hold, and even if they don't directly impact the properties that are in the process (for sale), they will impact another critical entity.

The Insurance Companies. A property, for it to be able to close escrow, must have active insurance. This is demanded by the lending entity. They want their asset to be insured. If the insurance companies put their writing of policies on hold, then the real estate transaction is put on hold.

Transactional knowledge

There was so much not known by me in 1998 when I started in real estate. It did not take me long to catch on, but to gain the knowledge I have now? That was a day-by-day process and is still in process.

Home sellers have choices and it's not always the best solution to run toward the shiny object. Such as a real estate company or "non-company" that advertise they are going to buy your home.

This came up recently and I have an agent friend of mine who went up against Zillow to compete for a real estate listing.

There is a lot of information that people don't know when it comes to using one of Zillow's vendors or Zillow themselves to sell a home. This agent was able to circle the wagons, meeting with her clients in person to discuss these nuisances.

I'm Connor MacIvor with REMAX Gateway. I have been selling Santa Clarita real estate since 1998 and have a local real estate radio show where I talk about the housing market and what to watch out for on the seller's and buyer's side.

I am not a fan of dual agency, that is where the same real estate agent represents both the buyer and seller on the same home sale.

Dual Agency, typically baked into the process when you buy a new home. Most people don't know that the new home builders pay real estate agents to represent their clients when it comes to buying new housing / new construction.

There is no fee, nor detriment to you as a home buyer when you want to have your own representation when buying a new Santa Clarita home. The builder has their agent, you should have yours.

In the re-sale world, this dual agency ship has almost completely sailed. There are just under two handfuls of states that 

  • Alaska
  • Colorado
  • Florida
  • Maryland
  • Kansas
  • Oklahoma
  • Texas
  • Vermont

During the past few years, Canada has also made dual agency not allowed.

Like I said. I have my own script, code, and way in which I operate in real estate. I'm Connor with HONOR MacIvor and I'll be of great service to you when you are ready to have your Santa Clarita real estate won.

Feb. 8, 2021

Watch out for real estates unknown variable 02082021 by the Santa Clarita home experts

Top Santa Clarita real estate market update video (best intel)

PDF for Santa Clarita real estate update show episode 2082021-039

Santa Clarita home expert connor macivorTranscription - automated and not great, but it gives you an idea of placeholders. Santa Clarita home expert Connor MacIvor radio (00:00):

Good to everybody. Connor, I ever sent a crew to home experts.com. This is going to be your update on February 8th, 2021 year of our Lord, of course, Santa Clarita, home experts.com forward slash blog to get all the real estate information regarding the market. And what else is going on in the news now today, I wanted to bring you something a little bit, a little special having to do with predictions and forecasts of the real estate market. If you look at any of the information that's being conveyed out there by the different trade groups, the association realtors, the basic websites that are really dependent on real estate doing well. You're going to see that everything's green lights ahead, and we have predictions all the way through 2022. Well, I make my livelihood off of representing buyers and sellers. And I want to know if these things are really going to be true, or if there are some unknown variables out there that aren't being talked about.

Santa Clarita home expert Connor MacIvor radio (00:58):

So I'm going to talk about that unknown variable that I believe should give us a little pause with regard to real estate, but no matter what I do believe that we're going to still continue on a pretty solid course over the next couple of years in real estate, meaning that there might be a few dips here and there, but overall, it's not going to be so overbearing that it's going to create a flux in the market. Like we saw back in Oh six and Oh seven when we had the foreclosure market upon us and an entire economic downturn. Now looking at what NARS talking about and their quote-unquote experts in the fields of finance, they are predicting that we're going to still have substantial increases, with regard to real estate throughout this year. And also 2022. They're also predicting what would appear to be interest rates going up a little bit there around three-ish in the twos.

Santa Clarita home expert Connor MacIvor radio (01:54):

Now going up to three and maybe three and a quarter in 2022, that's understandable, but something to also be watched because that variable, that changes a lot, uh, daily actually it does fluctuate a little bit here and there. So just pay it, pay strict attention to that. But again, even at three and a quarter three and a half or four, money's still very, very cheap and artificially. So a lot of people would say, just watch out and get very good advice before you start embarking on that journey. The other thing that people are looking about looking at, or being investors in real estate, so they found out that you can actually pick up smaller single-family residences. I'm here in Los Angeles, California. So you won't find anything for a hundred thousand, but you go into other States, you'll be able to find properties for a hundred thousand dollars or less that you can actually rent those out and cashflow.

Santa Clarita home expert Connor MacIvor radio (02:46):

And a lot of people are starting to get into that more than was in the past. The things to look for though are going to be cities that have a large, uh, economic footprint, some kind of infrastructure there. That's going to mandate people needed to find rentals, maybe a company they're like a large company that needs to have people relocate to the area that is going to need a rental for while. And again, if properties are really that cheap what's to prohibit them from actually purchasing real estate, maybe there's a lot of temp jobs available in these cities. Maybe have an air force base army base, some kind of military installation that's causing people to be there. Maybe it's a factory type of infrastructure, but you want to look at these dynamics to figure out whether or not these are good areas for you to pretend to potentially invest in.

Santa Clarita home expert Connor MacIvor radio (03:33):

Also right now, the way that the market is and the way that the data drive is it's not difficult for you to see whether or not properties are actually leased or rented out. Everything pretty much is above board, even in the smaller cities, across the United States. So you're going to see data points for different things with regard to, for example, rentals. So if you're going to go buy your first investment property in another state, other than California, again, the price point being the issue. You go to some other state and for a hundred thousand dollars property, you have to put down 20%, typically as an investor. If you're going to be renting it out, there might be some rehab costs, but let's just say there isn't, it's turnkey. You're able to buy it for a hundred thousand dollars and that's going to require 20% down.

Santa Clarita home expert Connor MacIvor radio (04:16):

So you have $20,000, let's say for fun, let's say that particular seller is going to be willing to pick up your closing costs on that property, which probably be three to $5,000 bat being the case. You're actually able to buy it for the $20,000 down payment and you're financing $80,000 that payment's going to be relatively low. And then with that, you're able to let's say at the end of it after everything's said that you've included a home warranty, you've included potentially, uh, paying a management company to monitor the property and keep tabs with the tenant and take care of all their needs. So let's say after everything's done taxes and all whatever fees there might be associated with that, let's say you're a $500 a month positive on this particular investment. Let's say property prices start to move a little bit. Well then you might be able to leverage that house, that particular rental against itself, drought, some money, maybe add a little bit of money that you've been saving, and then you can buy your second one.

Santa Clarita home expert Connor MacIvor radio (05:18):

And here we have the beginning of a very nice investment portfolio. That's usually how these things start now. In some cases, it is true that potentially you could walk into a situation, maybe some type of probate or another type of distress property sale. Maybe there was a tax lien sale that the sheriff of a small-town state and care of you'll want to call up and get that information. But maybe you can purchase properties even less, maybe pennies on the dollar. If you're the only one bidding on a particular piece of real estate in a small town, you might be able to pick it up for very, very little money. Just don't be tricked into these different entities online telling you that these situations are a dime, a dozen it's easy to do. And unfortunately, in some circumstances, they're looking for you to pay for the course that they're putting on and that's how they make their money.

Santa Clarita home expert Connor MacIvor radio (06:16):

Just watch out for that. If you need good advice, reach out to a local agent in that local market and find out if they were investing in real estate, hopefully, they are. So you'll be able to follow what they're doing and hopefully, they'll share it because they're going to be the agent involved. That's kind of the nice thing because you know, having all the money in the world is great, but when you can help other people it's even better because that definitely comes back a lot more than just having money in an account, just sitting there giving part of you. And part of that knowledge really does pay off. All right. So let's talk about the unknown, the unknown variable that we're seeing. And this isn't just in Santa Clarita Valley, but all across the United States is the term forbearance. And I talked about this last time and a lot of the people that are speaking about this, and maybe it's, maybe it's nothing. Maybe it's not a big deal. Maybe whenever the banks kick up again and they decide to, Hey, let's go ahead and, uh, let everybody out of forbearance because COVID is over. Everybody's, uh, there are no issues anymore. The vaccines aren't causing people to become zombies and that sort of thing. Then the next step is what's going to happen with the properties that are in have their mortgage just placed in forbearance, which is a lot. In fact, let's see what I can find online here.

Santa Clarita home expert Connor MacIvor radio (07:45):

Let's see if, uh, let's see if too, um, so this last week, this is beginning of December via housing wire and the MBA estimates, the number of homeowners and some form of mortgage forbearance increased from 2.7 million to 2.8 million, uh, this past week. And that was reported on December 1st. Today's February 8th, you know, hard to say, uh, the share of mortgages and forbearance dropped 6.93% as of September 13th. Uh, that's according to data from the mortgage bankers association trade group, estimates that roughly 3.5 million homeowners and forbearance, uh, plans that allow them to skip or may through reduce monthly loan payments. So that's kind of where we are. That was September 13th of last year. But apparently, that to December did go up to 3.5 million.

Santa Clarita home expert Connor MacIvor radio (08:50):

Now it says 4 billion, 4 million homes are in. So, this is the problem that could potentially rear its head. What's going to happen when the banks say, okay, appreciate everybody. Uh, let we're very thankful that we were able to help. We're thankful that you were able to have your property put into forbearance. Uh, now we need to start your mortgage again. How many people are going to pre beep your pair to start paying their mortgage again? So there's a lot of factors out there, unemployment COVID whole nine yards. So that's gotta be one step, a second step. How many folks have been using, saving whatever they could and not putting that money into something that maybe they shouldn't have, and they should have continued to save? That's another question out there who went out and bought the BMW when they should have been using that money, holding it for their mortgage payment.

Santa Clarita home expert Connor MacIvor radio (09:46):

What if the banks come back and say, you've, haven't made a payment for a year. We're going to expect you to make this up over time. So not giving us all this balloon amount now for the last year of payments that you've missed at $3,000 a month, which would be $36,000 for the year, but we're going to go ahead and start an escrow account for that. We're going to hold that money. And then every month, in addition to your normal payment, you're going to pay us $200 or $300 more or $400 more. What, what that's, what is that going to do that homeowner? And then let's say they say this, I guess, for the homeowners out there, this would be the best-case scenario. The best-case scenario would be if the bank said, listen, Jack, it's okay. We're glad that we were able to help. We're going to take the 12 months, that $36,000 that you didn't pay us, that you should have been over the last year because of your issues and problems and the impact COVID has on you had on you. And we're going to extend that and put it on the very end of your mortgage. So instead of your maturity date on your mortgage being, so-and-so, it's going to be a year later. Now,

Speaker 2 (11:00):
Here's the problem

Santa Clarita home expert Connor MacIvor radio (11:02):
That's called a loan modification because the banks are modifying the loan.

Speaker 2 (11:09):
Was there language builts

Santa Clarita home expert Connor MacIvor radio (11:12):

Inside of the original lender's contract that said in the event of some kind of an act of God, worldwide pandemic, maybe not act of God, but the bottom line, some kind of pandemic that allows for the terms of a loan to be modified without actually having to be modified with the court and them giving Kevin, uh, needed to be given notice, I guess that could save the fees. But what I'm saying is there's going to be fees involved. If they're going to do this and who's going to pay those fees and how are they going to get paid? This is something that individual homeowner to be able to continue, their mortgage is going to have to pay at this point, or maybe they'll make those modifications necessary at some point in the future. And they'll basically say, if you refinance or sell your residence, then this escrow account that we started that has the five, six, $7,000 in it, whatever it's going to cost to modify that loan if even there has to be that part of the process, that that's the question, is it necessary, but they could save that and say, listen, if you sell it or refinance it, then this particular fee gets taken care of via escrow.

Santa Clarita home expert Connor MacIvor radio (12:31):

Well, in some cases, there might not be enough equity to be able to do that. So then that money has to come out of somebody's pocket. And if they can't sell their house, but have to, and can't cover that seven or eight or nine or $10,000, whatever that fee may be, then will they go for closure because they have to sell it anyway. And they don't have $10,000 to come up with to make that payment. So you see the point, there are some things out there that aren't being talked about now, do I believe that if all of this comes true in the worst case possible, is that going to kill the real estate market? Probably not because there is a lot of equity in this market. There are no a hundred percent loans out there. We had a stated income, a hundred percent loans being offered back before the crash of the last cycle.

Santa Clarita home expert Connor MacIvor radio (13:19):

Also this time we're seeing appraisers being a lot more conservative. So I don't see that causing an issue in the market. The only thing that's causing this market to go up are buyers and the buyers are willing and putting on paper and their original offer. I mean, in the original offer, they're putting in the paper, they're stating, Hey, Mr. Seller, Mrs. Seller, we're willing to pay the difference between what your home is priced for and the amount we offered, no matter what the appraiser says, we're going to inject cash into it, making a bad difference. They're doing this right away. So those are a lot of the offers that are looked at when it comes to people making offers on real estate. So that's the, so that's what we see. Let's look at one more thing as far as local real estate data here in Santa Clarita Valley and all across The United States of America.

Santa Clarita home expert Connor MacIvor radio (14:13):

And especially here in Southern California real estate, uh, excuse me, real estate inventory has been incredibly low. So we're going to look at this real quick, just so we can get an idea and find out where we are today. Monday, February 8th, 2021 at eight 42, an M my saved searches page to daily inventory. All right. So we're looking at all the cities of Santa creative Valley act and through Oakwood, I'll say up to 194, I think last week we were one 81. So now we have 194 listings that are currently, uh, on the market for the sale of those 23 of them. And I think we maybe had 26 last week, 23 are coming soon. Uh, you're not seeing those. If you're on some of the different syndication sites out there.

Speaker 2 (15:09):
Also, if you are searching

Santa Clarita home expert Connor MacIvor radio (15:11):

Those systems, please be careful because there's a lot of information that gets sold that belongs to you. So don't give up your personal information. I wouldn't register to view any real estate news. I wouldn't give up your name. You know, if you trust the website, if it's Santa Clarita, home experts.com, hopefully, I've proven that I am trustworthy. I don't harass people or add you to a list or sell any of your personal private information. Anybody. I keep it it's my information. I don't give that up. And I keep it within my encrypted sites and nobody else has access to it. And my site is SSL. So, uh, you're not going to see a habitual, the being able to basically track your information. You're not going to have that problem at Santa Cruz, home experts.com, but there you'll be able to at least register for a search.

Santa Clarita home expert Connor MacIvor radio (16:03):

And if you want those coming soon listings, you can communicate to me through that system and I'll be able to get those. So you see them before they hit the market for sale. Like I said, 23. So we have very low inventory, same thing, multiple offers on properties between the striation points of half a million bucks to 800, $810,000. Usually multiple offers on those properties. And it depends on the price point. Somebody takes a $900,000 house, puts it on the market for seven 50, stands back, and stands by because there's going to be an overwhelming amount of offers and showings on that particular real estate. I've caught a MacGyver with re max I'm here@santacretahomeexperts.com. When you're ready, please give me a call. Thank you for joining me on this wonderful Monday, about to get a cup of coffee finally, and we'll talk to you soon.

Santa Clarita home expert Connor MacIvor radio (16:56):

Any questions you want to see any future so's done about a particular topic, please let me know if you haven't subscribed yet. You want notifications. There's, there's a little bell below me and also subscribe a subscribe button here on YouTube. So please feel free to push that. And if you haven't seen our YouTube channel, if you're listening to this on some other podcast network, somewhere where I've stripped out the audio and upload it as a radio short podcast, you're not seeing the real video. You're probably lucky, but I do have a face for radio, but if you do want to, uh, subscribe, just get to our YouTube channel search for Santa Clara, home experts, radio, and you'll find me on the Baldwin. I'm Connor MacGyver. Thanks so much for tuning in. We'll

Speaker 2 (17:37):
Talk to you soon over and out.

Feb. 5, 2021

Expect the unexpected in this real estate market

Can the home seller just accept an offer without responding to all of them?

Is the real estate market in danger of failing?

Is a foreclosure market coming to real estate?

Did the coronavirus impact the real estate market?

What is real estate mortgage forbearance and will that cause issues?

View More
Feb. 4, 2021

15 real estate questions and answers that solve problems

IT's that time - Santa Clarita real estate update plus...

Connor MacIvor Santa Clarita Home Expert (00:00):

PDF transcription for the Santa Clarita real estate radio show

New Speaker (00:00):

Good to everybody. Connor Mac, I ever hear Santa Creta home experts.com. This is your podcast via lots of different platforms. I do also upload this to YouTube. We're going to talk about real estate today, February 4th, 2021. So let's get into it. I have been surfing the world wide web looking for some questions that are very commonly asked by both real estate buyers, real estate sellers. So I thought for today's show, I would pull information from Ruby home.com a real estate website that I'm pressed with because they are hitting very high up in the search engines. And they're giving Zillow, Trulia, realtor.com, Redfin, and those syndication websites a run for their money. So it makes me very happy to announce. So I'm going to go ahead and pull these questions from here and I'll give you my answers. And of course, uh, I'll be putting these together later via our blog, which is Santa Clarita, home experts.com forward slash blog.

 

Hiring a Santa Clarita real estate agentConnor MacIvor Santa Clarita Home Expert (00:54):

Now, prior to getting into these top 15 questions, I did want to look at inventory because that is all the buzz right now. Anybody interested in real estate, they're looking at the real estate inventory here in Santa Clarita Valley. And they are very concerned because there is very, there are very few residences for sale. This is going to include condominiums townhomes, single-family residences as being very few and far between as far as being on the market for sale and the ones that do enter the market, they do move rather quickly. In fact, three or four days, typically those single-family residences or condos or downloads depending are swamps with offers. And after that particular point, usually, the sellers are then tasked with responding to those encounter offer format. But it depends in some cases, just so you know, and people panic about this, but your offer doesn't have to be responded to.

 

Connor MacIvor Santa Clarita Home Expert (01:50):

Of course, you know, you'd want to know that it did get received, but at the end of the day, if there are 20 offers on a particular property and maybe yours wasn't anywhere near where those others are, it could be that the seller just says, you know what? We don't want to respond to all of the offers. We just want to respond to the top five or the top six or the top two are the top ones. And that is the seller's prerogative. Of course, you could reach out to the agent just to make sure that the seller saw your offer and get some kind of, formal rejection on that particular document or your offer. So you can know that your offer was actually seen and digested by the seller. But at the end of the day, what I always explain to my clients is we definitely want to go in strong depending on the property, depending on the comparable value, just to make sure that we're not overshooting on any particular piece of real estate.

 

Connor MacIvor Santa Clarita Home Expert (02:43):

And also what, uh, currently is keeping the prices very high isn't as was thought by a few phone calls I've gotten over the last week that the appraisers are keeping those numbers high in the market. It's not the appraisers. It though. It's the home buyers that have money in an account that are willing to pay the difference between what they offered on the property and what the appraiser says it's worth. So there are people who may [inaudible] offers on residential real estate and they are starting saying to the seller, listen, I'm going to offer you $800,000. I know that your house is on the market for seven 50, but I'm an offer you eight. And no matter what the appraised value comes in, I will pay the difference in cash to reflect, or basically say that my offer at 800,000 is going to be where that price will go out on that property for you as the seller watch out for that kind of competition, that's a big-league ball.

 

Connor MacIvor Santa Clarita Home Expert (03:46):

And in some cases, it really does put buyers in the hurt locker, but it's very difficult to compete with somebody that's willing to basically, no matter what, no matter what they're going to buy that house at no matter what the cost. So that's difficult. I do have a, uh, quite a big dissertation in my office. What I am speaking with people about making offers on real estate. And I do have my opinion, uh, whether or not that's a good idea. So we can talk about that when we get there. All right. So we're going to look at some, uh, saved search that I did put together. This is going to give us the latest inventory here in Santa Clarita Valley. We're going to jump over to page two. We're going to look at active inventory and we're going to cover act through Valencia. So act in Agua Dulce, and we're going to cover Canyon country cast stack new, huh?

 

Connor MacIvor Santa Clarita Home Expert (04:39):

Y'all sagas Stevenson, ranch, and Valencia. And that's going to be everything thing currently on the market, whether it's it's a single-family, residences, condominiums, townhomes, duplex, triplex, or quadruplex. So, yeah, as of right now, 8:56 AM, February 4th, that specific standard time, February 4th, 2021, 181 units for sale. These are going to be like I said, condos, town homes, single single-family residences, all through Santa Clarita Valley, acting through Valencia. That's 181 units. Uh, right now we are seeing properties, a lot of properties being listed for sale, and they're utilizing the coming soon category. So 25 of these 181 listings, you're not even seeing reflected online as of this point. So this is my suggestion to the people that are looking to see what's on the market, trying to get tap into the market, trying to find out the best ways, best practices for them to approach real estate.

 

Connor MacIvor Santa Clarita Home Expert (05:43):

I'll tell you this, you definitely want to find your local real estate agent, and you definitely want to have them set you up on a matrix search. A matrix search is going to be from the multiple listing service. So when properties do come on the market and they're being pre marketed or pre advertised as being for sale, but not actually active, you'll still see those listings. You're going to miss out. If you're relying on some of the syndication systems out there to give you real estate information, plus a lot of the syndication websites, they make their money by selling your personal and private information to real estate agents, real estate lenders, moving companies, box stores, uh, grocery stores, all of these different entities are paying for your personal private information. Once you enter it saying, gee, I'm interested in looking at real estate, then what do you see where you're going to see your Facebook feed?

 

Connor MacIvor Santa Clarita Home Expert (06:40):

You're going to see Instagram, whatever other systems are out there you have that you tune into for your social media. You're going to see those ads popping up and they're going to be telling you, Hey, real estate here, real estate there real estate everywhere. So watch out for that. So we have 181, uh, units we have, as I said, 25 of those are actually coming soon. Not even on the market yet. You can very simply. If you don't have an agent out here, I would love to have the opportunity to set something up where we'd be able to have a sit-down. We'll be able to explain to you the entire real estate process and be a real estate representative, but you can reach out to me by telephone, or by going to Santa, create a home experts.com and then reach out to me that way I am Connor MacGyver.

 

Connor MacIvor Santa Clarita Home Expert (07:27):

I'll be happy to start searching for you and show you those coming soon listings, as soon as they get publicized and they do have 21 days from the time they enter the market and coming soon phase till they activate. So that's quite a bit of time to get you prepared. So you at least get a glimpse of the market and maybe you'll see that one that you really like and go after it. All right, so houses are selling quickly within hours. In a lot of cases, there are multiple offers on properties. Let's go ahead and jump over here and talk about these 15 top 15 common real estate questions. So people ask and they asked this on our blog, on our different forums, and stuff out there. They want to know the first, the first step in the real estate process. And the first step is always after you talk to your local agent, you're going to definitely want to find out if you're going to need to borrow money to buy this piece of real estate, you're going to want to talk to a lender.

 

Connor MacIvor Santa Clarita Home Expert (08:27):

Not all lenders are created equal. So talking to a good local resource, a local lender is going to Trump. A lot of the national lenders for the simple reason that they do have their hand on the pulse of the local market. In addition, agents on a local level are going to trust them a lot more than a national lender because of the accountability. Uh, both of them can perform a national lender, somebody advertising at Oh, dark 30 TV. When you happen to be up and, you know, suffer from insomnia. And you're watching those infomercials telling you, Oh my gosh, we can loan you money all day long. And we're going to give you the best in the world of interest rates at the end of the day, getting them to perform when they're 2000 miles away when it's coming down to zero hours and the transaction is about to finish, making them do what they need to do is very difficult.

 

Connor MacIvor Santa Clarita Home Expert (09:22):

But when you're dealing with a local lender, you could go to the door, knock on that local lender. You go to that local lender's house. You could do all sorts of things to get that local lender to continue or finish or communicate. And I will tell you this from my experiences, local lenders, aren't the type that is going to go dark on you. When you need answers to questions pertaining to your loan, your mortgage, your refinance, or whatever it may be. That's where the local lenders are still winning out. And that's why they haven't been taken over by the likes of these national lending companies, these mega mortgage companies. So that's very important. So that's number one. You're going to want to talk to a lender after you speak with your agent, number two, how long does it take to buy a home? It's going to depend on the market here in the article.

 

Connor MacIvor Santa Clarita Home Expert (10:12):

It says 10 to 12 weeks. It's actually gonna depend on when you identify that residence. And once you decide what you want. So if you're looking for three-bedroom houses and you want that to be in Valencia, and you know, you like Bridgeport area or you like North bridge or North park area, then that pretty much whittles down that search. So whenever that house comes on the market, depending on how much competition you might be able to get the property, or you might not be able to get it depending on how much you willing to offer or the other terms of the way that you had your agents structure, your offer. A lot of sellers out there are looking for the best offer, not only in amount like cash Ola but also in the way that the terms are being put together within the contract itself.

 

Connor MacIvor Santa Clarita Home Expert (11:02):

Remember before where we first started, today's real estate broadcast, I did discuss some buyers are going into properties and they're automatically waiving the right to have an appraisal basically stating we're going to still have an appraisal on this particular property, but I'm going to pay the difference no matter what that happens to be between what the appraised value is if it is different and what I offered on the home. Remember I talked about that. That's where the best scenario comes into play for these real estate sellers. Some buyers are approaching real estate, starting with them, doing their own negotiation, not relying on a seller's agent to come back and want to change, uh, these different fields within the offer. So 10 to 12 weeks, not too bad as far as an estimate goes, but again, you could find something day one working with me and 30 days later own it.

 

Connor MacIvor Santa Clarita Home Expert (11:55):

So it could go that quick. What's a seller's market. Sellers' market is definitely where we are currently as of February 4th, 2021. And we've been in a seller's market for the last few years. Seller's market means there's not much inventory. There's a high buyer drive. So there's a lot of competition out there between buyers, not between sellers. If there are 10 houses that fit your criteria in your price range, more than likely that type of market's not just not going to be a seller's market, that's going to be more of a buyers market. But again, it depends on buyer drive, but a seller's market is when usually there's lacking inventory and a high buyer demand sellers are able to call their shot. So when buyers go in and they get through the escrow process and they want to ask for things to be repaired or fixed a lot of times the sellers shake it off and say no, because they know that they had 15 people that wrote offers on the same property that was willing to waive those requirements or willing not to ask for anything being repaired.

 

Connor MacIvor Santa Clarita Home Expert (13:01):

So the sellers are pretty confident that buyers are going to continue to perform. Even if the sellers turn around and say, no credits, no discounts, no nothing. You're going to buy my house as-is. So we do see that a lot in this market, but that's definitely a seller's market, a buyer's market on the other hand is when a buyer has a lot to choose from. And in fact, back in the day, the last buyer's market we encountered, we were able to actually have sellers pay a lot of the buyer's closing costs. So whatever you're purchasing residential real estate in the house is $300,000. It's actually gonna cost you somewhere around 312 to $315,000 that extra 12 or $15,000. Those are closing costs. But what that includes as a real estate buyer, it's going to include your part of escrow. You're part of the escrow fee.

 

Connor MacIvor Santa Clarita Home Expert (13:53):

You're part of the title insurance fee, and then your lender fee. Now, what is escrow? Escrow is a third party. The entity takes care of the documentation of paperwork, supposed to be a neutral party that handles all of the documents and makes people perform and adheres to particular timelines in a real estate transaction, basically an escrow. Officer's going to take the original deposit check and going to start the process, ordering different things, especially in California, lots of things have to be ordered to make sure there's full disclosure and make sure you as a real estate buyer, no everything possible. There is to know about a particular piece of real estate before moving on or purchasing it. So they fulfill all of those things and make sure everybody is doing what they need to do when they need to do it. So that's escrow and the seller has their escrow fees.

 

Connor MacIvor Santa Clarita Home Expert (14:50):

Buyers have theirs on the other part of the fee structure there, you're going to have title insurance, title insurance. This kind of started coming out recently. Maybe you've heard more about title insurance and the news and on, on the radio. And it's interesting to me because this never used to be a thing. Title insurance is now starting to be talked about because there are bad people out there in the world that want to do your harm. So you have a house, they go out and they change the title on your residence to a different name, and then they pull money out. So this is something that they say happens a lot. I don't know if it does or doesn't, but title insurance is supposed to protect that from happening because they know, for example, Connor, Iver owns a house in Valencia. And now all of a sudden Connor MCI were owns a million dollars on his house.

 

Connor MacIvor Santa Clarita Home Expert (15:49):

And then that was his original loan amount. But now Connor MacGyver owns 1.5 million. So they should be able to say, you know what? This Catholic went in there trying to change the name on the house. That's not Connor or the person that tried to refinance the house. That's not Connor. This is all a title insurance thing. The other thing that they do, let's say I buy a piece of real estate and this does happen from time to time. And somebody comes in the door, knocks me and says, Hey, listen, I put this garage door on your house and I'm going to Sue you. I said, well, I just moved into the house. I just bought it. But I didn't have that deal with you as the previous owner of the residence, they said, well, we're going to Sue you. Anyway, title insurance usually is something that's going to try to fix that as well.

 

Connor MacIvor Santa Clarita Home Expert (16:33):

So that's 1%, usually all sort of one point. And then finally, as a buyer, closing costs are going to be your lender's fee, whatever they're charging. So in round numbers, that looks about to be one percentage, 1% for title 1% for escrow, 1% for your lender, about 3%. So that's usual. So, you know, a $300,000, you're looking at 3% of that's what nine grand or so. So that's kind of where the numbers are. I said three 15 and, uh, three 12 to three 15, but it's actually about $9,000. It's going to depend on the higher, the price. The more closing costs might be, but in a back in a buyer's market, you get the seller to pick up those costs instead of the buyer, having to pay that out of pocket, or by trying to include that into the loan. And sometimes you can get the sellers to do that depending on the market.

 

Connor MacIvor Santa Clarita Home Expert (17:27):

And depending on how the competition is, if everybody buying residential real estate, we're asking for sellers to contribute to their closing costs, give them discounts to allow the closing cost to be financed, or whatever. Then at the end of the day, that would probably be a very accepted practice. The problem is, is that's not where we are in the current market, but if we ever back to a buyer's market at some point in the future, which we will, once that happens, then you will start to see that dynamic change. And more buyers are going to be asking for closing costs instead of needing to come out of pocket because they're already going to be doing their down payment out of pocket. They're going to need that reserve. They're going to have to do their inspections out of pocket. They're going to need that reserve. So you need to pay for an appraisal home inspection, maybe a roof inspection, those sorts of things.

 

Connor MacIvor Santa Clarita Home Expert (18:15):

These are all out of pocket fees. That the, a point that those services are conducted at the property, then, of course, the closing costs. So that's it, that's a buyer's market. What's a stratified market. So a stratified market, for example, Santa Clarita Valley Holly, right now, you're looking for that hot, the hot button properties, anything between 450,000 to about 780 to $800,000 is going to be in that hot pocket. In that super hot zone, those properties aren't lasting long single-family rentals. It says three-plus bedroom located in Valencia (913) 559-1354. Zip code also Stevenson ranch, nine one three eight one also sagas, California. It's not lasting very long at all, but when you get above 850 $900,000, those properties are taking longer to sell. So that's where the market becomes somewhat satisfied. Then you go below this particular figure and it's going to depend on the location of the property.

 

Connor MacIvor Santa Clarita Home Expert (19:19):

But if you're looking at a condo, the townhome depends on the condo townhome unit, but that could take a little bit longer to sell. So it's not where you have an entire market. That's moving at the same pace. You basically have different pieces of the market, different price ranges, different real estate types, selling, uh, different timeframes, not as fast as some cases, faster than other cases. So that's basically a simple, a simple explanation of what stratified means. How much do I have to pay? An agent helped me buy a house, nothing a buyer's agent like myself. Uh, I don't cost you anything as a real estate buyer. My expertise, knowledge, and experience since 1998 free for you. Uh, I get compensated by the seller, whoever that is, whether it's my seller's listing or a thousand other different sellers out there, they pay me to bring my buyer to the house and negotiate for my buyer.

 

Connor MacIvor Santa Clarita Home Expert (20:16):

That includes representing my buyers at new housing as well. The new home builder pays me to be there for my client, representing you and fighting for your rights and negotiating with you to get that best price, best benefits, best everything. So I don't cost you anything at all. Moving into this. What kind of credit score do I need to buy a home? That's going to depend on a FICO score. That's going to be your credit score. It's going to correspond to three bureaus. They're going to take averages usually and going to look at your credit and find out why the number is where it is. I've heard people as low as 580 getting loans, uh, six 20 getting loans, and so on. That's definitely a lender question because credit score, isn't the only, the only piece of the puzzle. You're going to need financial documents, profit-loss statements.

 

Connor MacIvor Santa Clarita Home Expert (21:08):

If you're self-employed, you're going to need W2's and so on to be able to establish income paycheck, stubs, tax returns, all of those items. And they're going to look at them pretty carefully to make sure you are in fact qualified. So having a good credit score, of course, that's part of it, but there are other factors that are important as well. How much do you need for a down payment? It's going to depend on the type of loan, a minimum, if you're a military veteran, nothing, that's zero. So if you were in the military and you have an honorable discharge, DD, two 14, all that fancy stuff, or currently in the military, you can purchase a house with nothing down. So that still is in existence. And it's called a VA or veterans loan program, VA loan. And then the other part of that depends on the loan program.

 

Connor MacIvor Santa Clarita Home Expert (21:54):

You're going to be using the least expensive. Next step. If you're not a veteran, it's going to be an FHA loan, a loan that's produced by the federal housing administration. FHA. You can get into that one for three and a half percent down. So you do the math and, uh, realistically not much required as far as down payment, but earlier I talked about closing costs. So it's a pretty good chunk of change to jump into the real estate world, real estate market. Something definitely consider. And then if you need those closing costs, there are ways to strategize and try to get the, so that to pay those. It's tough though, when everybody else is asking and you happen to be the only one, but there is a method in which I help my clients get those paid by the seller. Give me a call. We'll talk about that.

 

Connor MacIvor Santa Clarita Home Expert (22:41):

All right. So we did the down payment thing. Uh, should I sell my current home before buying a new one? The great question. You know, what's nice about that. About actually selling your residents before you buy something else, you can kind of relax a little bit, but the thing is, is where you're going to stay. So these are questions you want to ask yourself. If you are going to be selling your house before buying another one. Great, but again, where are you going to be living? If you have that taken care of, if you have an RV, let's say your RV people, you love RV, and you're going to be staying there. That's perfect. So that you can take your time. By the other side of that coin. If you don't have anywhere to go, you don't have relatives or friends or whatever. You're not wealthy enough or have enough money to be able to go stay extended, stay in America, or not comfortable with that then.

 

Connor MacIvor Santa Clarita Home Expert (23:32):

Yeah, probably not. You're probably going to want to try to sell your home and close on something else at the same time. And that does happen, especially now being a seller's market. The problem is going to be their side. When you go to purchase that house after your house is earning an escrow. Now on the other side, you're going to go buy a piece of real estate. What's your competition look like? Are there other people that you're going to be competing with that are actually going to not have a contingency as you have in the sale of your home? So that's something to consider. If we're looking at offers on your residence and thereby people that have houses to sell yet, we have maybe half a dozen in the mix that have nothing to sell, not contingent on anything. I would probably, it would be my instruction that we need to start looking more towards the people that don't have a contingency in place. There's a lot that can happen in each container part of the process, and it can go deep folks. It can go many, many links. Each of these links back and forth, back and forth, and a transaction is only, yeah, as good as its weakest link. So you have all these links together. You have buyers that are buying different homes. Each of those buyers has a house to sell. You could have a transaction that's five, six, seven, okay. There's deep.

 

Connor MacIvor Santa Clarita Home Expert (25:09):

Excuse me. It would create a big potential problem. If one of those links happens to break and one of the other buyers is unable to perform. Maybe they weren't checked out w you know, all the way by the lender. Maybe they had some problem death in the family or whatever it may be that they had to stop the transaction that could mess everything up from beginning to end. So it's something to watch out for earnest money deposit. That's a good question. That's your deposit money. It used to be back in the day. At the time a person would make an offer that earnest money was taken in the form of a check made out to escrow. And I would then deposit that into the company's trust account. And then that 5,000 or whatever the deposit amount was that was gone. And it goes to escrow. If in fact our offer was accepted.

 

Connor MacIvor Santa Clarita Home Expert (26:00):

Now no money changes hands. The first money that changes hands, which is the deposit you basically are putting on contract. What are your deposits going to be? You provide proof of not only your down payment but your deposit and the paperwork that is submitted with the offer via me. So I submit all that proof of documentation, proof of funds, documentation to the seller. And then if the seller does choose us, or we counter back and forth, and we are the ones chosen to buy the residence. And if I go back to you and you still want to move forward with a great, then what happens is you'll have a certain amount of time to be able to get that deposit into the escrow company and usually done with a wire. But, uh, you have to be careful these days. Cause there are a lot of very smart people out there defrauding a lot of other good people.

 

Connor MacIvor Santa Clarita Home Expert (26:52):

So you have to be careful with that. Uh, what we always do is we definitely want you to coordinate with escrow directly, talk to somebody on the phone, verify the numbers are correct before you go wiring money because that might be the only money you have. And we definitely don't want it to end up getting lost or wire to somebody that isn't part of the transaction. So the story goes, is this some lady, I believe it was Kansas, maybe Nebraska buying a house and it was cash. Her life savings, $35,000. She was finally going to be a homeowner and the $35,000. She gets instruction from Asgrow about the time that she was supposed to that says, Hey, we need you to wire this money to this account. So she goes down to the bank, tells the teller off. So excited about being a homeowner for the first time.

 

Connor MacIvor Santa Clarita Home Expert (27:45):

An older lady, really excited, saved hard, had a hard life. And she wires this money. Escrow calls her later this afternoon, finding out if she'd wire the money. She said, yes, escrow. So we don't have it. So they started doing some research and the escrows email was hacked. It was picked up by some hacker, stripped out the document with the wiring instructions and substituted other information. So this lady's life savings ended up not going to escrow at all but to some criminal's bank account. So be very weary. And that's why there are disclosures for wire fraud and funds fraud. When you're moving money, especially large amounts, you got to make sure that they're going where they're supposed to go. So definitely want to please be careful. And I'll remind you of that. If you're working with me, how long can the seller take to respond to my offer?

 

Connor MacIvor Santa Clarita Home Expert (28:45):

If there's a lot of offers to respond to quite a while, uh, we've gone five, six, 10 days not getting a response back from the seller. Now in the offer, you're going to put the seller to respond by a particular time and date usually given in that here in Southern California, two to three days, but it's also gonna depend on how busy the seller is. Uh, no money has changed hands. So the positives and actually really at this point, so everything's done on paper at that point. Are there legal consequences for the seller not responded by the time you wrote on the contract? I don't know, not an attorney. That would be a good question to maybe ask to have I ever seen that followed up on by a home buyer, getting upset that the seller took longer to respond and the home buyer turning up, paying that fee to go after the seller, never seen that.

 

Connor MacIvor Santa Clarita Home Expert (29:36):

Uh, usually it's just time and depends on how many offers if you have. We had 22 offers on a property. We listed for sale, not too long ago. Uh, mid-January ish and of those 22 offers. We went ahead and counted all of them. It took six days to write all of those counters. See it's not just simple, as simple as taking and countering all of them the same because each offer was different, maybe a different price. And you can clean that up by highest and best, but maybe somebody wanted the stove or refrigerator or washer and dryer, something that wasn't going to come with the property. Maybe somebody wanted the backyard lawn furniture. Maybe somebody wanted the safe in the garage. Maybe somebody wanted certain things that don't necessarily come with the property. Well, all of those items have to be addressed on the counter besides asking those buyers to give their highest and best offer.

 

Connor MacIvor Santa Clarita Home Expert (30:40):

So that's FYI that stuff that happens. So it can take them a while. So sit down and relax and enjoy the ride. What if my offer is rejected, um, they don't have to respond. They could, you know, out of the kindness of their heart, they could put rejected. But in essence, a seller doesn't have to respond to a real estate buyer. The agent working for you should of course have a good track history just in case you get upset or want to go after somebody, they should be able to prove that they were, uh, they, that the seller's agent was in possession of your offer, that they did receive it beyond that, who knows. But at the end of the day, it used to be, I see that a lot. I gotta get rid of that. Back in the day, it used to be that a lot of agents would try to double-dip and represent their buyers on residential real estate.

 

Connor MacIvor Santa Clarita Home Expert (31:31):

Even with other offers, they would actually get rid of offers that they had received in order to bring to their seller, the offer that they have their buyer on. So they could double-dip on commission. That doesn't happen anymore a lot of the time because, uh, there's a lot of straw buyers, and the banks kind of got rid of that process where the banks would call up act like they were a buyer interested in a property to see if their agents were doing the right thing or not. And in some cases, agents got caught and got in a lot of trouble, including criminal prosecution. So that stuff isn't a joke anymore. And a lot of agents are of my mindset. I would rather not represent a buyer on one of my seller's listings on that same residence it's getting too complicated. And now basically I'm trying to fight for my seller and also fight for my buyer on the same property.

 

Connor MacIvor Santa Clarita Home Expert (32:31):

It's tough. So I would rather side with the dual agency not being allowed as it is in about six States. I believe Canada does. And a lot of dual agency. So an agent cannot, or it's actually against the rules for an agent, represent the same buyer on the same listing that they're representing the seller as well. So I kind of liked that school of thought, but that's it. So they could, they could reject it. What I always tell my buyers to let's make our offer strong going in. I like to have really good approval letters. I like to have really good local lenders vouching for people. I like my lender to call up that agent, representing the seller, and have a conversation with them. So not just seeing that approval. Now the agent goes to the seller and says, you know, Connor MacGyver's buyers. Their lender actually called me and pitched me the buyer stating that he went through all of this run.

 

Connor MacIvor Santa Clarita Home Expert (33:28):

All these records have all this documentation. So it's not just a run in the middle of the garden, variety approval. This is something a lot more substantial. I like that. And that does help my clients. Should I order a home inspection? Absolutely. Every time every residence definitely. You're going to get that home inspector out there. We have a list of people we recommend. If you have somebody that can produce a written document, that's bonded, insured, educated members of the proper groups. Great. Bring them on board. We'll let them do it. But at the end of the day, yes, every house including new, I like to do home inspections that new as well. Some clients don't because there is a warranty usually by the builder for a particular amount of time, kind of a bumper to bumper type. That's going to take these particular residences two, three, five, 10 years, maybe into the future.

 

Connor MacIvor Santa Clarita Home Expert (34:21):

You can always have stuff fixed by the builder, but you know, some things are missed even in new housing. And then finally, do I need to do a final walkthrough? Absolutely. Yes. Final walkthroughs are part of the process that is done just before the property funds and records, which is towards the end and the reason why you want to do it, just to make sure that the seller did make good on the things that they said they were going to repair. And also to make sure that it looks like the sellers moving out because you definitely if it's especially tenant occupied, you don't want everybody to be sitting down watching television real comfortable as you're doing your walkthrough, you would hope that they would be moving. So you want to make sure that they're starting to do, uh, to make those movements, to get out of the property, and so on.

 

Connor MacIvor Santa Clarita Home Expert (35:08):

And also they didn't take things they weren't supposed to take. And, uh, the houses as you expected it to be as it's going to be delivered in the next two or three days after the final walkthrough. Everybody. Thank you so much for tuning in. I am Connor MacGyver. I appreciate you putting up with the coughing and Santa Clarita home experts.com at Remax, uh, February 4th, nine 27 hours in the morning. Please let me know if I can help you. And we will talk to you very soon. I am Connor McIver, Santa Clarita home experts.com over and out.

 

Jan. 31, 2021

73% of the Single Family homes in Saugus and Valencia sold for more than their listing prices

Big numbers are being recorded in the Santa Clarita real estate venue. Sellers could not be happier, and even though home buyers are paying more than prices have ever sold for in the SCV, they too are happy to be paying, in some cases, sub 2 percent interest rates for a 30 year fixed mortgage with a 3.5% down payment.

Back in 2006 and 2007, there were homes that were increasing in value from month to month, some increased an obscene amount.

Since those days a different system of checks and balances was developed related to appraisers and their methods.

Today, the way the Santa Clarita real estate market is performing and the homes selling for these larger than listing price amounts is not coming from the appraisers approving those amounts. At least not all of them. 

If you track back to 2007, the case was very different. The market was largely a subprime loan market with loan programs requiring zero down. The interest rates were not close to where they were today, but they were low enough to keep the home buyers seeing the advantage of owning real estate.

Much of the real estate in the Santa Clarita Valley is being sold above listing price with an appraisal report validating the listing price or a lower amount.

Today, the appraisers aren't to blame and there have been many arguments as to whether they were back in 2007.

In the current market, many homes are having offers written on them stating that the home buyer will pay the difference between their offering price and the appraised value. This "payment" has to come in the form of funds that are injected into escrow during the sale process.

So, as you can see, if an appraiser states the home is at fair market value, and if that fair market value is lower than the offering price of the buyer, in some cases (a majority of cases) the buyer has already agreed to buy the home at their offering price anyway.

Santa Clarita home expertsSome of these "promises to pay" come via a suggestion from the real estate agent that is representing the home buyer. While this is not uncommon, I believe it to be a travesty to even mention before the buyer being "fully informed" of the consequences.

In other cases, the home buyers are dealing with a listing agent(seller's agent) who is writing something to this effect within the counteroffer that is being sent to one or all buyers.

Then, as a home buyer, you have a choice on whether to accept that counter or respond removing that requirement. 

The jargon typically is stated in this say, "Buyer to pay their offering price, even if that amount is higher than the appraised value."

Are there other reasons why a home buyer can cancel a transaction, retain their deposit, and walk away from the transaction? Sure, if the other contingencies are in place and if they have not been removed as part of the negotiation.

However, it is really important for you to be careful and to have expert advice when embarking on your personal real estate journey.

I explain to my clients that ask if the home comes back at higher than the appraised value, is there some 'other' reason they can cancel and still retain their deposit.

I tell them of course, there is a multitude of reasons, but after you have had the home appraisal report surrendered, and after the seller knows the appraisal came in lower than your offering price, will they believe there was another reason you wanted to cancel?

And if they don't believe you, what can they do if you want to cancel after the appraisal comes back lower than you agreed to pay, and you cancel for another reason, wanting to offer a different contingency?

Good lawyer question and a good time to seek legal counsel.

However, the deposit you made on the home is in escrow, it has been deposited and is in the escrow's bank account.

For it to be released it has to be agreed to by all parties, even the seller.

What if the seller does not agree because they think you are actually canceling for the appraisal coming in lower than you agreed to pay?

Things can get held up. The seller's sale goes to pause. You're getting your deposit back is paused. Now the slow steps to working this out start. In some cases brokerages can work it out, in other cases, it has to go to the Board of Realtors, or seek legal routes.

No matter how you cut it, it's a mess and totally stress-inducing by all parties.

Hence, you really need to get good advice before you buy a home or sell one for that matter.

The current Santa Clarita real estate market, February 1, 2021, has a high volume of home buyers looking for anything that is classified as a Single Family Residence between the high 400's - which would be $485,000 and up to $850,000.00. Of course, the other factor that is keeping this market-moving within hours for every listing that is put up for sale is the fact our inventory has not been lower, ever!

When you are ready contact me directly at 661.400.1720 and I will take great care of you and yours. I'll be your realtor,

 

Jan. 26, 2021

2021 real estate's emotional roller coaster, all aboard!

Santa Clarita real estate radio episode #2021-026!

 

Does it ever stop? So much pressure, it's surprising that anything gets done at all. I remember one of my first bosses speaking in this tone, well, always.

Maybe it was how he was wired. Maybe it was his "Niche phrase". Maybe he did not know how good he had it?

Real Estate is full of fast-talking types. So many who personally seems to be on a mission to score one more deal, to sell one more home, or to do that one more thing.

There are hard-chargers who are there for their clients at an "industrial heightened" level, and there are those who don't have their client's best interest at heart.

I'm Connor MacIvor with REMAX Gateway HQ'd in the Santa Clarita Valley CA. I'm here for you when you are ready. 

Here is the weak transcription that I include with my videos and Santa Clarita real estate radio shows. 

PDF for Santa Clarita real estate radio show Episode 2021-026

Connor MacIvor Santa Clarita home experts radio (00:01):

Good to everybody. I am Connor MacGyver. Today's January 26, 2021. I want to talk to you about real estate and some of the emotional problems that people are running into. Of course, all real estate transactions. If at all possible should be dealt with like a business transaction, one professional to another you're a home buyer. You want to deal with the home seller on a professional basis, not to let your emotions get involved. Same thing with home sellers. You want to try to deal with buyers from a professional point of view, professional standpoint because once you start to tie emotions and feelings to the transactions, I think people start to make mistakes and it could equate to the buyer may be walking. Not that they're trying to blackmail you into fixing or repairing or giving them a credit, but they could potentially walk. Or on the other side, the buyer, you might not be able to get what you really want from the seller or need from the seller in the way of credits or repairs or those sorts of things.

Connor MacIvor Santa Clarita home experts radio (01:02):

So it's important that you have a good representative. That's able to talk you off the ledge if you happen to get tied up. But what I find is this first and foremost, the biggest problem that both buyers and sellers have, isn't really their fault. It's the fault of the people that they've chosen to represent them. The people that they've chosen, the real estate agent or Zillow or Redfin or whatever, aren't informing them about the entire process. They're not explaining the a to Z of the real estate. What potentially could happen, what problems could arise, what things that we're going to be looking out for to best protect the sellers and buyers. One of the things that are most misunderstood on both behalf of both parties happens to be when a buyer can back out of the transaction, being able to retain his entirety posit and have that return to them.

Connor MacIvor Santa Clarita home experts radio (01:55):

Sellers are misinformed about that. Part of the process. Buyers are also misinformed. Unfortunately, some of these reasons are selfish in nature. At the end of the day, of course, nobody wants to have a transaction fall apart, but when there's something wrong or a miss, or if the purchase is deemed by another professional, not to maybe be a good idea. I think that a professional step forward should step forward and say something. If it does come down to a disclosure issue, I E something discovered about the seller's house, which happens from time to time, unbeknownst to the seller, the seller might've lived there 30 years, but didn't, wasn't aware that there was a leak inside of one of the walls that caused this mold that the buyer's home inspector discovered so on and so forth. Again, those things have to be remedied. So what happens is a lot of times the associate, well, that's just a little, or I've been living with that for 30 years and that's fine.

Connor MacIvor Santa Clarita home experts radio (02:50):

You have, but now you're selling your house. Is the buyer okay with it or not? If the buyer's not okay with it, that's fine. Do you have to fix it? No, you really don't have to do anything. Your house is being sold as-is unless you've great and contract to fix these items. If they do happen to come up, but if not have to talk to an attorney, but really at the end of the day, more than likely you really don't have to do anything you don't want as a seller. The problem is now it has to be disclosed. So now this has been brought forward by this buyer. Let's say you're going to get emotionally involved in angry and tied up and say, you know what? I'm going to go ahead and cancel this with this buyer. Or I'm not going to give the buyer what they want.

Connor MacIvor Santa Clarita home experts radio (03:33):

Therefore, that buyer potentially is going to cancel the walk away. I had plenty of offers on my property. I'm sure they're all, y'all still waiting in the wings to buy it because it's a great house. The problem is now you have to disclose that there was mold or some substance that looks like mold discovered in your property. What if that buyer's not okay with it? What if that buyer wants it? Remediated tested, remediated, taken care of what if they want a credit to do so, those sorts of things, there's a lot to look at. Also, it could be that it's not the buyer's decision. What if the appraiser catches on or finds out or learns or discovers things in the property where his lender, the bank that the buyer's getting the loan from? What if they're not willing to purchase a property that's missing flooring or maybe has holes in the walls or is missing a dishwasher that was removed at one time in the history, but they're leaving an open space there.

Connor MacIvor Santa Clarita home experts radio (04:36):

These things do come up and depending on the loan, the appraiser, their guidelines could depend on whether or not they're going to approve. It may be the seller did a beautiful garage conversion, but in the appraisal guidelines for that particular loan, the house can't have a garage conversion. What now? Well, it's going to probably cut out all of the people in the future that might come to the house and say, we have that same type of loan, or we have this loan. You look and say, well, that's the same type of loan.Santa Clarita home expert radio show by Connor MacIvor The last buyer hat, for example, VA and FHA, there are certain required garments and rules with those loans, those appraisers come to amount to a property. And if memory serves those properties, get a tag that keeps that appraisal alive and active on this particular piece of real estate for six months. So let's say you, as a seller is in contract with a veteran buyer and FHA buyer, something falls apart in the transaction.

Connor MacIvor Santa Clarita home experts radio (05:35):

The buyer decides not to move forward. You decide to remarket your property and put it back. The next FHA buyer that comes and writes an offer, they're going to be tied to that same appraisal. So if it wasn't an appraisal thing that had you have that transaction not go through, be it your choice buyer's choice. Couldn't agree. Couldn't come up with, uh, something that was a win-win for both parties. At the end of the day, you're going to be tied to that appraisal for a few months, same with VA. So these are all things that a good agent is going to explain to you. And as a real estate buyer, a lot of buyers are concerned. Well, what if I find something I don't like in the property, then we'll approach the seller. We'll say, Hey, Mr. And Mrs. Seller, I know you want to sell your house.

Connor MacIvor Santa Clarita home experts radio (06:21):

This is what the buyer's inspector discovered. The buyer has issues with it because of small children, old children, elderly people, them, themselves, bad dreams, whatever it may be. But again, you go to the seller and you ask if the end of the day of all parties are treating this as a business proposition and not emotional in nature. I believe that everybody's going to survive the process and actually be a lot better off because once people start looking at things from an emotional standpoint, big mistakes are made and I will throw myself and my colleagues and real estate under the bus as well. A lot of agents make the mistake of getting emotionally involved also. So to have a representative, somebody you trust somebody that you've put your faith in representing you. And all they're doing is constantly stirring the pot or engaging you in nonsense banter, Guinea, you angry on angrier, who does that

Speaker 2 (07:20):
Help? Didn't help anybody.

Connor MacIvor Santa Clarita home experts radio (07:22):

So it's a massive mistake that does occur from time to time. So if you're working with that kind of real estate agent, cut it off, I'd go somewhere else. Because what you want is you want that calm in the storm. You want that person, that's going to talk you down off that ledge. You want that person. That's going to tell you if you happen to be a real estate buyer in this particular type of market like I said,
we're January 26, 2021. So we have very little inventory and each property, if it's priced in between this particular price range in Santa Clarita is going out with multiple offers in the twenties for the most part. And in some cases, those properties are selling for 50, 60, and $70,000 higher than the list price. And the list price was based on good, fair comparable properties. What happens in that regard?

Connor MacIvor Santa Clarita home experts radio (08:15):

Well, right now, most everybody is being countered. At least the best of the officer being countered. So if you have one of the best that was submitted by your agent, you're probably going to get a counter back that says what's your best and highest offer. Well, that's again, not emotional it's business. If you were selling the house, your house and you had all these offers coming in, you would want to go through the same scenario. I would think because it's business at the end of the day, you want the most qualified buyer that has established the best terms for you as a seller, especially when you have all this competition who's to offer you the most amount for your property. That's at the end of the day, I believe what a seller in this market's looking for. If there are 50 properties now in competition with your house, then that's going to change the buyer's going to be able to call those shots.

Connor MacIvor Santa Clarita home experts radio (09:10):

The buyer is going to be able to ask for things that a buyer in this current market wouldn't be able to ask for and get away with. So the thing is this, no, the market has your agent. Explain it to you. You as buyers out there, don't panic. There's a game to be played. Unfortunately on all sides, the seller wants to get the most amount of money for their property. And you, as the buyer want to get the best deal possible. The thing that is causing this market to continue to increase in value. Isn't now the appraisal or the appraiser standard or the appraisal standards out there, or the appraisers themselves. What most people are doing in this market today is the buyers within the contract. When they're making that offer, excuse me, prior to getting into a contract, when they're making the offer, they're more than willing to waive their appraisal contingency.

Connor MacIvor Santa Clarita home experts radio (10:03):

And they're more than willing to offer up. We will pay the difference between what the appraised value is and what we offered on the property. That happens a lot. And for a lot of buyers, that's a tough pill to swallow because there's not a lot of people. It's not a hundred percent of buyers out there who are willing to say, I don't care what it costs. I want to buy this house. It's important to know that's how the market is. I do foresee this loosening up here over the next couple of months, two, three months. Remember it looks like from what I've seen, the governor of the state of California, it looks like we're going to start opening things up and it looks like COVID might be something that's about to go away. I'm not sure how all of that changed. We'll see how that, where that gets us in the next couple of months.

Connor MacIvor Santa Clarita home experts radio (10:53):

But if that is true, and if that is the case, there are a ton of people out there that are waiting to put their homes on the market. And this all goes back to 2020. We look at the first quarter of 2020 as we got into March, we were on record to set some records that we hadn't seen in the listing of real estate over the

last previous four years. From that point, once COVID happened though, as the seller said, Oh my gosh, can't sell right now. We have to figure out what's going on in the market. And then of course we had the pandemic. We had the lockdowns, we had all these other things. So properties really became restrictive, not a lot out there for sale. Now we move into 2021 where we have the politicians telling us that it's all going to be calmed down.

Connor MacIvor Santa Clarita home experts radio (11:43):

A lot of those people that wanted to sell last year, that didn't, they're going to start putting those homes on the market. And I believe that's going to start potentially leveling the playing field from where properties are currently priced. And with the lack of, I believe we're going to start seeing more coming onto the market here in the last, next few months, those properties didn't last year. The question is, is that going to be enough real estate, enough listings, and price ranges out there to be able to give buyers more choice six seven. And if that is the case, are there still enough buyers out there to absorb that inventory quickly within two, three, four days as there is now? And if not, then what's going to happen. Is the needle's going to go from being a full seller's market and start to creep back maybe a little bit more evenly between a seller and a buyer's market.

Connor MacIvor Santa Clarita home experts radio (12:34):

I believe we're going to have to get 10 times the inventory over a thousand or 1500 units for sale before it actually flipped that needle all the way back into the buyer's market, where it starts to take three, four, five months to sell a piece of real estate. Now interest rates are incredibly low and the twos and to go any lower, I don't think could happen. And right now we're seeing that there are multiple offers on properties and very, very little inventory. I'm Connor MacGyver. That's a little bit of talking you off the ledge as a real estate buyer seller again, get what you want. Don't get tied up emotionally, but go in with a professional so they can explain to you what to expect, because the worst thing to happen is to be blindsided by something you didn't think was going to happen or didn't have any idea about.

Connor MacIvor Santa Clarita home experts radio (13:30):

So when I talked to my clients, I explained to them in the story, had a client a couple of weeks ago that did this, had a client this week that this happened to, I had another agent and I was talking, he had a buyer that experienced this. So you take, I've been at since 98, you take those 20 plus years of experience and you add that with today's market. That's what you need is somebody that'll explain that process. Then you can make your decision. And if you still want to be emotional, then you can be emotional. Hopefully, your agent has the wherewithal to be able to be that calm in the storm that the agent needs to be. And that's what working with a true professional is all about, about I'm Connor MacGyver. Thank you so much. You can visit us online, Santa Clarita, home experts.com. It's always a pleasure. And I don't think I'm on a diet. I think I'm just, just going to leave it and we'll see where we go. It's been about a week so far, so we'll check it out and let me know what you think. If you want other topics talked about, please reach out to me. Connor MacGyver. Yeah. gmail.com. You'll be able to find it on set Saturday. Great home experts. I'm here. Give me a call. Connor MacGyver over and out.

Jan. 22, 2021

San Fernando Valley homeowner moving to Ventura (aka the beach)

Relocation thoughts - SFV to Ventura

Top Santa Clarita realtor relocation expertYou have decided that you want to move, not too far, but let's say from SFV / Santa Clarita Valley to Ventura. You just want to get closer to the beach because of your peace-seeking mission.

I get that more than you know.

Here are some considerations by a real estate expert, a title I have achieved since representing home buyers, sellers, and relocatees since 1998. 

There are certain "adjustments" that I have heard from my clients that they tell me they wish they would have investigated.

Location of infrastructure - shopping, groceries, the 7-11 or mini market that is open past 2 am, etc.. I know covid is something that has shut down a lot of eateries, but knowing what is available where you are going would be a plus when things open up again. Hopefully, by the time you are reading this Santa Clarita home experts article, all is back to normal!

If you need a refill on a prescription or to get something to calm a fever, you may want to find out the closest 24-hour pharmacy - those are harder to find than most things, but I'd give it a shot.

Besides getting educated in the local real estate market and then finding out the market where you are going to be buying, I am covering some of the "necessary" self-education that most relo folks miss.

How about the cops? Who is the local law enforcement and who is the EMS provided by? 

In some jurisdictions, the fire department sticks with fire and hazardous spills alone. They do very little in the way of ambulance, emergency medical service(EMS), service. In fact, in some cities there was a big push to only allow privatization of the EMS, so you will see different ambulance services, etc - it may be good to know going in what the city you are interested has as its the default.

Personally, being I was a cop for so long, I love it when the Fire Department runs the EMS. It makes me happy to have them show up when my family calls 911 after I have broken my ribs after falling off a ladder while hanging Christmas decorations at the top of a 15' Christmas tree. (never again folks :) )

Once they found out I was a retired cop, one of the FireFighters brought me a Christmas ornament while I was getting x-rayed and just smiled. (love the humor and miss it greatly).

They even had one of the emergency room doctors in on it and while he was showing me the ribs that were fractured, one of the x-rays had a shadow of an ornament, the doctor stating he sees the problem... So funny.

Hence, finding out who is going to respond to your emergency is critical.

Now, to the police services. Does the city where you are relocating hire the county sheriff and their people to be the local law enforcement? Or does the city have its own police department? 

Most sheriff's do a great job - especially in So. California. Here in the Santa Clarita Valley, we have the Los Angeles County Sheriff's department. They are hard-chargers and make the Santa Clarita Valley the 13th safest big city in the United States.

Unfortunately, I have heard a lot more bad stories about "the local sheriff", being an elected official with very little oversight, not helping the folks that need it most. Make sure you do your research

If they have an actual police department, those seem to work best, with few exceptions.

Something else the local law enforcement will help with, as far as your move, will be where you are moving to.

Your real estate agent, even me as a retired cop, is unable to talk crime and demographics if you are interested. That is something that a local "beat" cop or their detective squad can help with.

You call the police station and telling them you are moving from Santa Clarita CA to Ventura CA and you want to know how the neighborhood nearby ________________ and _________________ is.

You will find the expert and they won't sugar coat it. They will give it to you real. There may be a methadone clinic around the corner from the home you are buying. Not that people getting help and recovering from heroin are bad, they are not all. But, it would be nice to know.

They will be able to give you more information, besides what you will find out by searching google and some of the "crime statistics" apps.  

Be sure to ask about Megan's Law - registered sex offenders, sometimes having a home where one lived can create issues for the new owner.

Also, If you have a registered sex offender living in close proximity, it may make it harder to sell your home in the future. And of course, there are your personal feelings, concerns, etc about that, just please consider these things.

As we get closer to the beach, there are varying city codes and ordinances that will differ from where you are moving from.

For example in Los Angeles County, there are particular retrofit standards your home, which the one that I'm going to sell will need to be updated with. This will require a "retrofit" certification by a company that does that sort of thing.

In the city where you are moving, they will have their own standards and may require those owners to bring some system in their home up to a particular level before you take possession of their home.

In some cases, these are missed by the powers that be and the cost can then become a court issue, you suing someone else or visa versa. 

Knowing the requirements is what separates those Realtors who just want an easy paycheck, not being concerned with who they hurt in the process, versus those who do their homework daily and learn by doing.

Now that you have been brought up to speed about some of the infrastructure concerns about relocating, you will want to see what the differences are between the locality where you are having me sell your home and the home you will have me represent you in buying.

I do my best to write green articles, and in some cases, I nail it. But when I speak about market trends, those change from day to day in some cases. For example, if the interest rates jumped two points in a single day, that would send shock waves in any current market. The same goes for those rates if they reduced by the same 2% in a single day.

Moving from Santa Clarita Valley is different from moving from the San Fernando Valley. For example, in Santa Clarita, we don't have the same retrofit standards as we encounter when selling San Fernando or Los Angeles City properties.

Also, you will want your real estate professional to give you the down-low on the market. Both where you are moving from and where you are moving to.

It will most likely be that the Los Angeles Market is going to be hottest - this should be of no surprise to you. LA is always hot, even in the foreclosure market back in 2007 - it was hot.

Hence, most moves from Los Angeles are going to have your home being sold faster than what will be reflected by the days on the market time frame of the city you are moving to.

In most cases, where you are going to be moving will be "less active" than Los Angeles. It will potentially take longer to sell homes, the seller's maybe more obliged to help with repairs and credits where you are going and you may find that the price will be more negotiable.

Another item of concern for you is exploring how you will sell your home through us? Are you going to sell, get free and then rent or stay at a friend's home while we are looking for the "right home" for you to buy?

Maybe you are going to take advantage of a market, if Los Angeles is HOT, then selling and waiting may be appropriate if possible. It may be that the current market is at the top of a cycle with local factors holding back inventory that will spring out making the market be less competitive, causing a correction or dip in home prices.

Getting your home ready for sale and what will be required will most always depend on the competition. There are few things that you will get back dollar for dollar if you modify your current residence to sell for the most.

The current inventory and current buyer drive will determine what will be required for you to get top dollar for your home.

These tips and recommendations, education if you will, are only the top 1/2 of the iceberg. There are other things that I discuss with my clients who are relocating or selling/buying or moving in any way.

I'm Connor MacIvor and please check out my real estate radio show. You can find me on YouTube, just search for Santa Clarita home experts radio.

When you are ready I will be here for you. I'm as transparent as they come - if it weren't for those five vanity pounds I put on last Christmas, I'd be even more transparent :) 

Posted in Selling Your Home
Jan. 21, 2021

The smackdown real estate interrogators and better real estate options

In real estate, some of the most interesting responses come from the other agents. This happens more frequently when a property has obtained a ton of offers and can come from the listing side of the buyer's side.

One of these priceless nuggets come in the way of a statement, "My buyer really loves the home and will do anything to make that happen..." - That works when the buyer is not tapped out at $20,000 below the listings price, which happens to already be lower than fair market value.

"Can you tell me about the other offers you received?" - This is a great question, especially when over 20 offers had been received and only after 36 hours on the market. 

"Just tell me where we need to write to get the property!" - Another gem, to do this would ruin my reputation and make the offering process tainted. 

"My clients are contingent on selling their home, a home that we have not listed for sale yet." - More of a statement or excuse when I'm reviewing offers. There is a contingency I see, but I don't see any paperwork stating that the buyer's home is in escrow, or even listed for sale. There are many reasons why the buyers may have been reluctant to get their home listed and in escrow, before making an offer on a home they really want to buy. Unfortunately, when in a high competition market, this will place their offer out of the field of competition.

"My buyers really love the seller's home, all we need is how much to offer." I know some people have no issues with this question. I do and to keep the field level and fair, it must go unanswered.

"Ok, I understand that you cannot tell me, specifically, but are the offers 10k above? 20k above? maybe 30k above?..." Again, I have no information to relay regarding this, except to say that yes, we have exceeded the listing price, as I'm sure you are aware of the number of offers we have received.

The agents who are representing home buyers, as am I, are merely doing their job and attempting to get everything they can for their buyers. I do the same and in some cases, I do run into the agent who will give up the farm and answer all of the questions I can ask on my buyer's behalf.

What can an agent do?  I handle this type of market by telling my home buyers they are only able to do their best and their best needs to correspond with logic and leave emotions checked with the coats.

Real estate has to be viewed as a business transaction or opportunity. Not an emotional rollercoaster as I see day in and day out.

Try to do this. Sit back and imagine yourself as if you were the seller of the home you had an interest in. The same goes for the seller, imagine yourself as the buyer of the home.

When you do the "shoe on the other foot" exploration, you are able to relax more and not take everything so, well, emotionally.

Sellers want to get the amount of money that they believe their home is worth, they want to pay nothing to get it sold and they want home buyers that will take their word for how great their home is. Heck, they have lived there for 30 years without needing to do anything major, so the house great and worth every penny right?

Buyers want to buy a foreclosure that slipped under the radar and fell off of the truck which has been undiscovered by other buyers in the market. A truly great buy and bargain. Something that can be bought for pennies on the dollar and moved into without any repairs - a Turn-Key Home,

How often does this happen? Both scenarios are mostly impossibilities. I will not tell you that either one does not happen. They do, but they are as rare as finding a Kobe steak at 7-11. (Imagine being the inventory clerk that made that mistake...)

Santa Clarita home buyers and home sellersLooking at buying and selling real estate as a business proposition helps. Also, having prepared yourself for the specific market and what to expect helps more.

Your real estate professional should sit down with you in person, or not in person (depending on what you feel most comfortable with) and give you their crash course on the current state of the real estate market.

Zillow is going to tell you one thing, Redfin something else, and Realtor.com another point of view. You need boots on the ground real estate professional who has built their business by referrals and by treating their clients in a protective way.

More like an impenetrable steel box than like a latex sleeve.

Someone who is going to cover the market and the best ways to approach it. By using current examples of errors and mistakes on both the seller and buyer side of transactions. 

We hear enough from other agents about where they failed for their clients, we don't have to have that happen to our clients via our hand, we can relay those stories to keep our clients safe.

Then we have many stores of other parties in the real estate transaction, opposite of our clients, that make mistakes, historically. Those stories are brought up to our clients so they can not make the same errors.

Successes are also spoken about, the best practices and premium movements that both buyers and sellers can employ as their real estate strategy to get what they want.

The bottom line is having your line in the sand and not budging. You will make it the long run in real estate without a smaller amount of stress versus the person who hops from line to line in the supermarket.

I'm Connor MacIvor and I'm here for you when you are ready. My Crash Course on real estate is very comfortable. I have a relaxed approach to representing real estate buyers and sellers. When you are ready, call me - yes, the old fashioned phone call, I answer when I'm not with clients. If I am, shoot me a text at 661,400.1720 and I'll take great care of you.