May 4, 2021

Is Santa Clarita Valley heading for larger inventory numbers in the re-sale market?

Santa Clarita real estate market update by the expertsThere are a few factors on the horizon that may increase the local re-sale inventory.

  • Lumber Prices and New Home Construction.
  • Forbearance ending June 30, 2021.
  • Rising interest rates on mortgages.

How is that for three tasty snippets?

Let me unpack this below - first I'll speak of the current real estate inventory in the Santa Clarita Valley cities.

As of 5/4/2021, we have 190 total residences in some form of active status.

  • Castaic
  • Canyon Country
  • Newhall
  • Saugus
  • Stevenson ranch
  • Valencia

Housing types included in the most current Santa Clarita inventory are:

Coming soon is a modification to the multiple listing service rules that were implemented last May 2020. I'd venture to say it was changed to being something the agents could use due to the fact they were competing with Zillow and their "coming soon" or pocket listings portal. Well, lol - as in technology - that did nothing to change much.

Zillow still has the coming soon listings as they are posted in the MLS, the MLS owned and operated by the local Board of Realtors in the Santa Clarita Valley. And Me, little old me? I cannot display them on our Santa Clarita home experts website.

Go figure.

The only way I can have a client see the coming soon listings is to set them up on a search. It's easy, painless, and only takes a few minutes, I know - maybe I'm missing the point. Or on 2nd thought - I'm sure I'm not. 

Let me get off of my soapbox and back to the listings and those numbers you have all been waiting for pertaining to the Santa Clarita Valley cities.

  • Total listings - active statuses - including coming soon and showing active are 190 in all of the Santa Clarita Valley cities.
  • Coming soon listings are sitting at 43 out of the 190.
  • Real Estate listings that are in escrow - 184
  • Real Estate estate listings that have been removed from displaying as "active under contract", which are still in escrow "pending" are 340.
  • During the past 7 days, 108 residences in Santa Clarita have sold - recorded in a new owner's name.
  • 8 residences did not sell and went the way of being "expired" listings. (this is a tough one to swallow at this time when the real estate market is at an all-time high and when inventory has been so epically low.

Further research into the 8 homes that did not sell tells a story.

The maximum number of days on market time frames was 45 days. I have no idea how long the contractual date was. I take 180-day listings as my minimum. The rest of those listings showed a strange variation of days on market time:

  • 4 - Susan Beth - condo
  • 6 - Bouquet Canyon Rd - Single-family home
  • 2 - Babington Street - Single-family home
  • 13 - Heartwood Court - Single-family home
  • 45 - Barrington Way - Townhouse
  • 37 - Macmillan Ranch Road - Single Family Home
  • 15 - Player Drive - Townhouse
  • 13 - View Pointe Lane - Single-family home

I added the street names and housing types to paint a more clear picture. Three of these listings offered a less than market commission. I know that would not have been a reason due to how hungry real estate agents are these days with the lack of inventory - they take what they can get. (which should always be the standard when it comes to dealing with people wanting to buy real estate - no steering ever!)

Why did these properties in Santa Clarita Valley fail to sell? That's easy - Price.

There are three reasons why a home does not sell and it always comes down to these:

  • Price
  • Price
  • Price

At the end of the day, it's easy to blame the market, but this market is high and hot. Blame the reputation of the agent, but in a Hot market, I'm positive who you hired would not stop other agents from showing it to their home buyers. Maybe it was a "change of mind" thing on the seller's behalf. With the short time frames as it pertains to these properties being on the market, that would be my first honest choice.

Most of these listings entered escrow, albeit for a very short time. In some cases, the commission for the agent representing the buyer was dropped as well.

There is a lot to comment on here - pertaining to the properties entering escrow, maybe the sellers thought they were victim to a fast-talking type of salesperson who sold them a bad bill of goods. Whereas they priced their home for less than they should have, causing massive showings and multiple offers. The sellers at that time got angry and told their agent to cancel the deal before they accepted an offer.

Some sellers are not informed from the beginning by agents in a hurry. When I meet with sellers, as is the same with the other top agents in Santa Clarita, I take my time. I make sure to build in extra time for questions. Being misinformed is a bad way to start a business relationship. To me "misinformed" is the same as "not informed". All points need to be hit upon and the client needs to be adjusted to the current market dynamic.

Having a seller not being able to be home for an entire weekend during the COVID19 lockdown because their home is being shown every 15 minutes to home buyers, is something those sellers needed to have explained beforehand.

Getting over 20 offers for their home in the time frame of 2 days is another thing they need to be prepared for.

It equates to being sensory overload and the concerns and questions will come if not covered beforehand.

Some agents are quick talkers. Not my cup of tea.

Some agents are refined, smooth and you can tell they know their stuff - More my style. I do like to buy things. And I love dealing with a professional salesperson. Not those who use tricks or devices to sell you something, but those who have a craft and believe in you and their service/product.

More Santa Clarita inventory coming?

With lumber prices up over 200%, new housing may be rising in cost at a pace to outrun the local resale prices.

That may move paused home sellers into a more active role in moving more toward getting their homes pre marketed and placed onto the market for sale.

In addition, there are several large projects in the new housing realm that have been approved and where they are now open for taking loan applications with their preferred mortgage lender.

While that is not exciting news - this could impact the re-sale market and break loose some inventory soon!

If you remember shortly after the COVID pandemic was in full swing and businesses had shut down, the act of forbearance was initiated with the big mortgage lenders.

That ship has run its course and the MBA estimates 2.8 million homeowners are in forbearance.

This will be ending on June 30, 2021.

What then? July 1st - or at the mortgage payment due date, the next payment mortgage payment is due.

The numbers of people who will be able to meet that July 1, 2021 payment is different depending on the inquiry and source online.

However, most are talking about a re-adjustment of sorts related to housing prices.

I'm not sure if even the overall forbearance number is enough to teeter this market due to the number of homes that have negative equity - which is very close to zero in the state of California.

Now, as of May 4, 2021, the Santa Clarita Valley included, has most of the homes holding mortgages in a positive equity position. For all purposes, these homes could sell where the sellers could walk away at least being even, in most circumstances they could talk away with money in the pocket. (check with your tax professional)

Housing prices have risen to such a point because of home buyers and the bold moves to inject cash above what the appraised value would be on their home purchase.

This did not happen overnight, but it did happen by buyers who became tired of losing out on offer after offer.

Finally, they did something that I'm still not comfortable with, they chose to waive the appraisal contingency, and pay the difference between the appraised value and what they offered in cash.

Today, that waiving of the appraisal contingency is commonplace. I'm still not comfortable with it, but as one of my buyers told me, "Connor, I respect your position and that you are looking out for my best interest, but I need to buy this home and I will do whatever it takes to do so..."

At $60,000.00 over list price, my buyers beat out the other 27 offers and had a home.

I will tell you, while some would like this market to continue forever, it will not. It's unsustainable.

The tipping point factor is the question.

What will tip this market and cause a readjustment of home prices?

Moving into the interest rate question. This one is a favorite of some of the more predatory in the real estate/lending game. 

Hurry before interest rates get out of control. We have been very low with regard to interest rates for the past few years now.

Although we probably won't see rates in the 2's again - they are just breaking into the 3's and that may cause the next real estate listing rush in the Santa Clarita Valley.

Most of those people who own real estate, which was contemplating selling before COVID, refinanced. They are at very low-interest rates. In fact, some of those people refinanced multiple times - every .3% to be exact. 

Now with the rising interest rates, they are asking themselves the question - what happened to me wanting to sell and move up, down, or away?

They look at the market, they could sell for a hefty return and do what they want, if what they want does not include buying a home now. Why? Because inventory is slim to none in the same market.

If they want to exit California, they may find better inventory numbers, but that will depend on where they are going. They could find themselves surrounded by other Southern California relocatees who are wanting to do the same. Ask the locals what that means when So. Cal people take their big California home equity returns to other states to buy locally?

It means prices are soaring in those markets, to a point where "the locals" cannot afford to buy anything the prices they had hoped to buy. New housing is being outrun, they cannot build homes fast enough, same in the Santa Clarita Valley, and the re-sale market is tied up with all being in escrow.

This is happening so much to the point where I get others that have migrated years ago and the locals almost want to throw rocks at any cars from California. 

The world has indeed changed.

I'm Connor - there are many reasons for a re-adjustment in the local market within the real estate world. I would say throw caution to the wind and don't be swayed too easily. 

I will keep you on top of the real estate-related news. If the local Santa Clarita real estate inventory changes in any way I'm on top of it. The same applies to the interest rates, new housing, and forbearance.

I'm on top of all of them because it's my job. and I love my Job!!

Be well - thanks for taking the time to read and let me know when you are ready for me to help you with your Santa Clarita real estate. 

May 2, 2021

For Sale 21627 Rose Canyon Lane, Saugus, Santa Clarita, California 91390

New Listing for sale 21627 Rose Canyon Lane, Saugus CA

Great home in Saugus CA. This home has Gray plank flooring and is void of carpet everywhere.

Homeowners did not want the new owners to have to replace the carpet due to allergies etc.

No HOA, No Mello Roos! Gated RV, Large Lot, Three car garage, large driveway slab, and wonderful curb appeal. This Canyon Heights home in Saugus offers 4 large bedrooms with plenty of kitchen cabinetry with custom slide-outs and newer upgraded kitchen appliances. Granite counters with full stone backsplash provide a warm feeling showing true pride of ownership. No carpet in this home, all rooms and spaces have custom flooring of varying types including a beautiful gray plank on the lower level. This home has a tankless water heater and newer plumbing to set your mind at ease. This home's systems have been attended to by the homeowners, most of the manuals and other documentation have been kept and will become the property of the new homeowners. This home has ceiling fans in most spaces. Custom sliding barn doors have also been installed at the entrance to the main bedroom's bathroom. The main bedroom bathroom has an oversized oval bathtub and that is separated from the heavy glass-enclosed shower that has a custom tile enclosure. This home has a downstairs exposed walkway on the second level with views of the entry and entry-level with dining space, hence the grand two-story entry ceilings! The backyard is accessed via the RV space or custom double french doors leading from the kitchen/living rooms. Gated pet runs tie into an oversized backyard, which is private with large shrubs and trees behind the back yard boundary, great for entertaining, and pool-sized to boot.

This Saugus CA home is ready for move-in. There is nothing to do as a home buyer as this home is "turnkey" in condition.

I'm Connor MacIvor. The home next door is listed for sale at $899! - Let me know when you want to see this exceptional value.

 
 
 
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April 25, 2021

April 2021 Santa Clarita real estate market update and review

Santa Clarita real estate advice by the expertsOpinions - that are like in some instances what everyone has. You may have heard the "like what" of that statement - if not, I'll save you from the profanity.

Real Estate opinions - they can be self-serving. 

Some agents say buy now because the real estate market is only going to get more expensive. After they make that statement they fall back to the historical record for real estate.

And yes, if you go back to the first recorded numbers - like back in the late '40s and early 50's - a cute single-family home in Compton California was $11,000,00 new.

Today that same home in Compton CA would be in the $500,000.00 range.

So the agent is right, home prices do continue to go up. What they left out is the ebb and flow that occurs during the "going up" process.

There are seasons of change where real estate hits a cycle known as a foreclosure cycle. 

Other seasons of change in real estate fall upon a "corrective" cycle.

Still, others are called a buyers market where the market is so laden with inventory that home sellers become more desperate and cut their home prices to the quick.

These seasons occur in between the home prices increasing.

There are other outside factors that also impact real estate and can cause or influence these seasons. 

  • Economic downturns
  • Inflation
  • Recessions
  • War
  • Government regulation

These are only a few - but in big picture speak - Now, April 25, 2021, may not be the best time to buy a home in the Santa Clarita Valley!

There - I said it and I'm sure this will be spread to every single seller who is desiring to sell their home and wants to use Connor MacIvor (that's me) to do so. Real Estate agents can be cheeky like that :)

Well, the truth is the truth. Can home prices go up forever? It has not happened yet - every cycle increase has been hit with some form of lowering of prices and or a large amount of housing inventory that has outrun buyer demand.

Is not a good time to buy a home. Only if you have to and there are apparently a lot of people that have to. That would explain how the homes that enter the "for sale" market in the Santa Clarita Valley are off the market in escrow within a few days.

And it takes a few days because of the counter offers and responses that each offer gets from the Seller's real estate agent.

The way it works is when a home hits the market it starts being shown immediately if there is not a "coming soon" build-up. 

Coming soon shows the home as "coming soon" within the online channels and gets agents and people interested in seeing it. 

It's a great seller benefit because the feedback they receive and the interest level(if high) is very reassuring.

Once the home enters the "available" and "active" real estate market, the showing starts.

Due to Covid - there were changes that have become routine when it comes to viewing real estate. Some of those "routine" changes are still in place and don't seem to be changing - one such change was the stopping of open houses.

That may change soon - but the disinfecting between showings, the buyer registration and questionnaire, the home seller covid instructions, and other items are now typical in the showing of real estate listings.

After the appointments are made, confirmed, and executed - buyers with their agents start the process of interviewing the seller's home that is for sale.

They will get buyer questions as far as what the home is valued at, how the listing prices support the condition, the school district, and locations if applicable if there is an HOA the cost and what they cover, plus any extra property taxes known as mello roos or special assessments.

After that step - the buyers usually are very quiet if they like the home enough to write an offer on it.

A good-savvy real estate agent will have already told their clients that this would happen and how it'd play out.

After the ice is broken, it's time to write the offer. There is a lot riding on an offer within a total seller's real estate market as we see in Santa Clarita Today.

The offer is submitted with all of the supporting documentation to the seller's real estate agent. If a mistake was made on the buyer's offer or if any of the requested supporting documentation is not received that particular buy may miss out.

You see, the market moves fast. When you are a listing agent and you get 25 offers in three days on a home you just listed for sale, any mistake in offers received causes angst.

Some agents don't have time, or won't take the time, to send reminders or requests for the information that was clearly laid out to be received when submitting an offer.

At no fault of the home buyer, they did not know better. Hence the philosophy to hire smart out of the gate.

You find agents online, their own personal business websites. Look at their blogs. I run the top Santa Clarita real estate blog.

What are they writing about? Or are they.

In today's informational world where everyone wants "instant gratification", most agents are not doing anything but paying for your personal information so they can sell you. There are companies that are data mining in nature. They obtain your personal and private information and sell you to the agents who pay for it so they can in turn sell you a home. Heard of Zillow, Realtor.com, those other internet real estate websites including Instagram and Facebook - you ask the question and you have just been sold.

The problem is you will come across the agent who does not digest and regurgitate the market on a daily basis on their blog or on their real estate radio show.

I cannot provide the best service without writing about it and talking about it. To be able to write down factual information and opinion about the real estate market is a Blessing.

Hence why I'm busy and why my clients say such nice things about their experiences.

Have a look around my Santa Clarita real estate blog.

Go to my Santa Clarita YouTube channel for real estate where I post our real estate radio shows.

When you are ready - call me and I'll take great care of you.

Please, do yourself a favor when it comes to hiring a real estate agent to be on your side when buying or selling a Santa Clarita home.

Don't trust someone else - another entity to find you the real estate agent. Do a bit of the elbow work yourself. Look around online. You will start seeing what I tell people about.

Review websites, we do the work for you so you don't have to when hiring a real estate agent, websites like that.

I would rather save my clients money when using my services, provide great service and a better experience than pay the online real estate syndication websites to steal your personal information.

So, when you are ready - call me.

The Santa Clarita real estate market update April 2021

The inventory numbers are nothing remarkable. They have stayed constant during this entire month and are unremarkable today, April 25, 2021.

  • 185 total residences for sale
  • of those 41 are coming soon status
  • Total Active inventory is 144 as of 4/25/2021 - 1327hrs
  • 186 residences are Under Contract
  • 359 residences are Under Contract not being advertised for back up offers
  • Since the beginning of April 2021 - 317 residences have sold, closing escrow

The cities researched for this Santa Clarita real estate market update were the following:

  • Castaic
  • Canyon Country
  • Saugus
  • Newhall
  • Stevenson Ranch
  • Valencia

There are other things for sale that are included in real estate, such as land. I did not include those numbers. The reason is that land listings usually take a lot longer to sell amongst other variables that would eschew the numbers and provide inaccurate comparisons.

Of the types of residence that I included are all the "stick-built" homes, condos, and townhomes. Here is a break down of the data research:

  • Single Family Residences
  • Condominium
  • Townhouse
  • Duplex
  • Triplex
  • Quadraplex

I also ran all common interest fields - Common interest is used to describe the type of ownership of the property being offered for sale consistent with the ownership types recognized under California Law.

  • Community Apartment
  • Condominium - (detached type)
  • Planned Development
  • Stock Cooperative
  • Timeshare

Special listing conditions was the next field, which I researched, that I wanted to be included so you'd see the total results for these listing types:

  • Standard Sale - aka equity sale, no distress, except maybe the commission being charged :)
  • Notice of Default, NOD
  • Real Estate Owned, REO
  • HUD Owned, Housing, and Urban Development
  • Short Sale
  • Probate Listing
  • Auction
  • Bankruptcy Property
  • Third-Party Approval
  • Trust
  • Conservatorship

When I do my Santa Clarita real estate market research and updates I am sure to collect all the data possible so when you read it you know that I'm not rolling the dice hoping to influence a selfish drive within myself.

It's factual, data verified information and I'm glad to provide it to my real estate clients in the Santa Clarita Valley cities.

When you are ready - call Connor.

April 24, 2021

5 strategies to buy a new Santa Clarita home at a discount

1. Make sure you show up with your own agent. There is no cost for you to do this. The new home builders allow you to hire your own agent and they pay your agent to represent you. Talk about total transparency.

2. Make sure you go in already pre-approved. The new home builder is going to want you to pre-approve or pre-qualify with their lender. If you go in with a solid pre-approval letter from a reputable lender, it gives your agent a stronger ability to start pre-negotiation tactics with the new home builder's agent. (more about this later)

3. Find out the phase release number and other "phase" related information. This will show your more new home savvy than most. In fact, you may enjoy the shock on the face of the new home builder's real estate agent. Earlier phases usually gain more equity than later built phases, depending on the local Santa Clarita real estate market condition.

4. Don't be afraid to ask for discounts, credits, and incentives. When you are going into a new home builder community and when you are represented by a real estate agent who has no connection with the new home builder, ask them. That agent should be forceful with the new home builder's agent in asking for discounts, credits, and incentives. 

5. Find out what you are paying to be a homeowner in the community in which you are buying. Maybe you can have the new home builder pay 1 year of your Home Owners Associaton Fee?  Maybe they will pay 6 months of any special assessments or Mello roos fees.

First Things First - get your own agent

New Santa Clarita home agents for hireIf you want to buy a new Santa Clarita home you need your own agent. If you were being sued in court, you would not request to work with the attorney for the defense or prosecution - depending on what side of the law you are on. You want your own "shark" for your attorney.

The new home builders in the Santa Clarita Valley have their own agents. You also need your own new home expert by your side throughout the process. 

Having your own new home agent is especially important during any and all negotiation phases with the new home builder's agent.

Of course - you could ask your agent to give you some of their commission back. That would be up to them. 

Is it offensive? I don't think so. They may tell you that you'd be pretty angry if your employer called you in and told you, "Ralph, I know you worked 40 hours this week and that your hourly pay is $55.60 per hour. However, I'm going to take 25% of your earnings for myself - thanks for being a team player."

Some agents look at that in the way I laid it out above. Me, I don't. I get it. If you don't ask you won't get it. So why not, you don't have to be a stick in the mud about it and you should have a decision to make when you don't get back a cooperative tone.

If your own agent has been around the block in real estate at least a few times, they are bound to have represented people with new home builders. 

However, most agents just sign up their clients and let the new home builders' agent take care of the rest.

I have often wondered where that value is?

I can guess that they may be contemplating, "It's costing my clients nothing, the new home builder is paying me to sign them up, what do they care?" Well, I'd care a lot. Show me something! Show me your value - that is what I do when it comes to my clients buying new Santa Clarita homes.

That attitude does nobody good. - Hire smart when it comes to getting a new home agent. Interview a few - make sure I'm on the list.

Go in pre-approved for a home loan

I know that most are going to say. This step is a waste of time because the new home builder is going to have you, or I should say make you get interviewed and give up your financials with their lender of choice.

That's cool and don't panic about your credit being harmed. There is a mechanism called a rapid rescore that fixes multiple mortgage credit inquires.

But, when you and your agent walk in and when you are pre-approved, it's a stronger position than Joe Blow who is there not represented and without a pre-approval letter. In the big picture, it helps you get what you want.

First, the new home builder's agent knows you are serious. Second, they know that you have been talking about re-sale real estate also. They may actually try a bit harder for your business. 

Plus, if the new home builder is offering incentives if you use their lender of choice, you may find that they are asking you to pay more in interest or costs in order to give you that "credit". A different lender that is not tied to the new home builder in a captive way may be able to beat a 7,000 closing costs credit with a 1/2 lower point interest rate. In the long run, that would be better than 7K all day long.

One additional item - The new home builder's preferred lender also now is put on notice there is a competition between them getting your money and someone else. They might actually try a bit harder to keep you happy!

How many phases, what phase currently, and when?

In the Santa Clarita new home builder community, a "phase" is a group of homes that are going to be offered for sale. 

Most new home builders operate in "phases". Releasing a pre-determined amount of homes per phase.

These phase releases depend on consumer interest and actual homes selling in each phase.

Phase releases also have the pricing strategy restructured. Phase one may be less expensive than Phase two and so on.

Phase releases typically have a fixed number of homes to be released. 

Total build-out could be 100 homes - each phase could have been pre-determined to be 10 homes released per phase. That strategy has been built around a lot of smart people who crunch numbers for a living. 

Those tactics change often, where if inventory is moving slower, it could be that the prices are reduced for a faster sale or the phases are cut from higher numbers to show a better supply and demand profile.

Most homes at new home builder communities sell at lower prices during the beginning phases. They typically continue to get higher in price per square foot as the phases are bought, built, and moved into. 

You can also make a determination as to approximately how much the final build-out phases are going to cost. This could be good for an investment strategy. 

You may as well take every advantage you can get when it comes to new housing and the buying of. That is why I ask all these questions for my clients.

It gives them the best advantage. (there's more - stay tuned).

Show me the money...

If I buy this home, what will you give me?  I'll tell you if there is a high demand for new homes, you will be lucky to get the new home under contract in your name.

Lately, there has been a re-sale strategy rumored to be starting at a new home builder near you. 

That is the highest and best pricing strategy.

There is a price for the new home. You know what that price is, but you are supposed to offer your highest and best offer right out of the gate if you want the home.

There could be complications with this strategy. With re-sale, the home buyers in a hot "sellers" market are even going as far as to waive their appraisal contingency. Meaning, if the home appraises for less than they offered, they will pay the difference in cash. 

It may be legal, but it is not as clear-cut as it may appear on paper. There are a lot of moving parts to this strategy. It's important to get the best advice before venturing into the highest and best and removing appraisal contingency scenario.

Ask the new home builders rep for discounts, credits, and considerations. That's what I do well. 

Ask the agent you chose to represent you at the new home builder for part of their commission.

If they tell you no, you have a decision to make, do you walk or do you continue to buy the new home.

That one is up to you.

I will tell you that I'd not let real estate become too personal. If you make an emotional connection with buying a home, you will have a tendency to take everything personally. That includes if you ask your new home agent for part of their commission and they tell you no. It may be their office is taking 70% and the IRS another 20 - leaving them with a few hundred bucks, instead of thousands. Go easy and do the right thing. 

However, it does not hurt to ask.

What's it cost to own a new home per month?

You have your mortgage payment and your home insurance payment. 

You may have your payments broken down into a total monthly payment that includes, principal, interest, insurance, taxes, and Home Owners Association(HOA) fees.

Or, your loan may be structured where you pay for your taxes twice a year and your own HOA once a month, etc.

Find out what the costs are and see if the new home builder is willing to pay those fees for a pre-negotiated time period.

Something that you may not know about the new homes and new housing is most have a higher HOA fee during the build-out. When they are all finished, the HOA typically reduces to what will be the "normal" monthly amount.

Of course, most Home Owners Associations have a clause in the CC&R's that they can increase the HOA fees at particular times of need. CC&R's - Covenants, Conditions, and Restrictions.

Most of the new home communities in the Santa Clarita Valley, including Five Point in Valencia have mello roos taxes and special assessments for every home being sold.

The new homeowners will have to pay these fees when they pay their taxes or on a supplemental bill. Make sure you have that factored in. 

Paying up to a year in advance of mello roos or HOA, or both is not a bad question for me to ask the new home builder representative.

Sometimes, that question is so far out of the left-field, they ring corporate and get the approval. It's nuts, but if you don't ask, you don't receive.

I'm your new home agent, Connor MacIvor

What do you think? A lot of moving parts right? Well, it's not that tough. But when the inventory is low and the buyer drive is high, you may walk away being happy just getting a new home to buy under contract.

If the pushing is hard enough, there are usually some incentives to obtain. Knowing the right time to ask and when to time these types of requests are also very important.

In some cases, you don't want the new home builder's agent knowing the hand you are holding. Hence, you don't ask during the first meeting.

You should wait until some precalculated time later that corresponds to your best advantage if the answer is in the affirmative.

If the answer is in the negative, you have now asked at a point where you may be able to get the "no" overturned.

I'm Connor with Santa Clarita new home experts.

Here is where you can sign up for me being your new home agent.

April 23, 2021

Home prices, overbuilding and buyers paying whatever it takes to buy a Santa Clarita home, is this a problem?

Santa Clarita real estate market updateOne of the largest concerns when it comes to real estate is the case of overbuilding. What if there are new home builders that don't do their research then set out to build a bunch of homes.

Those homes may have had a particular price point assigned, but if they build too many, those price points are going to be restricted to ink only and not develop into actual greenbacks.

The Santa Clarita Valley has had limited real estate homes and inventory for the past several years. In fact, the buyers' markets of old have not been seen since late 2011 and early 2012.  That was the bottom of the Santa Clarita market between the 2006/2007 recession and housing market collapse and now. 

I will tell you that it's not the appraisal standards that are causing the issues. It's the high buyer drive and the restricted inventory. 

Is it a buyer's fault, if they are capable and willing, wanting to write an offer on a home that is $70,000.00 higher than the listing price, which would far exceed appraised value? No, it's a free country and economy. Buyers are allowed to pay what they want when buying real estate. 

They can pay as much as their financial profile will allow. The question is whether that is smart or not?

Could it be that home buyers are paying too much for real estate today? Or when the appraised value is not cared about on the buyer's side, and they agree in their original offer to pay what they offered, even if that amount is much higher than appraised value? Could that pose a problem?

If you ask any seller if this poses an issue, they will mostly say no. Most of the home sellers, at least those we have encountered as of late, are leaving the state of California to go elsewhere and find a home to buy. 

There are very few markets in the country, where real estate is concerned, that carries the same high price per square foot cost as the Los Angeles real estate market. 

Also, the Los Angeles market is always moving. There are a lot of people wanting to move and live here - earthquakes and fires/floods aside, the weather is hard to beat.

The price that can be gleaned is not where we California people are moving from. There are people buying those homes in droves - as you can see by the buyer demand the willingness to pay whatever it takes.

The problem that is being seen, and what is keeping our inventory from exploding with home sellers wanting us to sell their real estate, is we are moving to areas and paying a premium to do so.

This is blowing up other real estate markets across the country and making their inventory slim to none as well.

Hence, the home sellers that want to move from So. Cal. to Oregon, Idaho, Tennessee, and Florida don't have access to a lot of homes for sale.

Plus the locals love us people from California driving up their real estate prices which is causing their numbers to be higher than the local folks, with their current earnings and savings, can afford to spend.

They will tell you this, but won't say it making the record, but I hear from other professionals in those markets what's being said.

The fix, if you are looking for one, to the current market is going to be a loosing up of real estate and homes for sale in the Santa Clarita Valley. If I'm talking about the Los Angeles County real estate market, that statement can be re-posed by (insert city name) needs more homes for sale.

There is one area, that no one seems to be speaking about, probably because they are unable to keep up with Santa Clarita's home buyer demand. 

That is new housing. The new home builders are working hard, hand over fist, but they cannot build new homes fast enough. There is a delayed-release and the next homes from buying to occupancy are months away - even the new homes by Magic Mountain will have 2022 occupancy dates.

However, if the new home builders were in a position to produce homes faster - they could, in theory, outrun the market and create the buyer's market that so many want to be.

I don't foresee that happening. I do, however, think that there is going to be a big deal about the forbearance coming to an end this June of 2021. During the first couple of weeks of July, you will see that some media outlets will be talking about the coming foreclosures - that may put the current market back on its heels a bit.

I'm Connor MacIvor with REMAX - Santa Clarita Home Experts. When you are ready, call me and I'll get you set up with the right questions to ask and what direction would be the best to take depending on the market at that time.

Thanks for taking the time to read the top Blog for real estate in the Santa Clarita Valley cities. Please share this article with those whom you think could use it.

April 19, 2021

15 necessary homebuyer questions that need to be asked and a Santa Clarita real estate update April 2021

PDF for transcription of this episode (2021-109) of the Santa Clarita real estate radio show and podcast!

 

Santa Clarita Home Experts radio podcaster (00:00): New Speaker (00:00):

Good to everybody. Connor Mac Iver. Welcome to Monday, April 19th, 2021. Today, we're going to talk about the 15 best questions to ask when you are considering buying real estate. And then these are going to be, of course, built around somebody that's been representing buyers and sellers since 1998. We'll also include in today's update. What's going on in Santa Clarita Valley, and we'll be able to talk about the limited inventory and some of the better ways to approach it. If you happen to be somebody that needs to buy right now. And of course the sellers out there, they're really riding this wave of extra high prices, prices on real estate. That all seem to be exceeding the appraised value on property. In fact, a lot of the buyers out there that are in this particular market, aren't even concerned about what the appraised value is. They are willing in contract to state, Hey, listen, I don't care what this property appraises for.

Santa Clarita Home Experts radio podcaster (01:06):

I'm going to pray, pay, excuse me, pray to pay, but pay the price that the seller and I agreed to within the contract and counter offer scenario. We see that a lot. So let's get to these 15 questions to ask when buying real estate, the first question, and this is going to be dependent for you as a real estate buyer on your own earnings, how much money do you have coming in every month? How much money do you have going out? How does that look? And that question's going to be talking about what your total budget's going to be. Now, when you go to a real estate lender, somebody that's in a game of letting people borrow money, understand that they should be very friendly. They should be giving you the best service. They should be not taking advantage of you because you getting alone is going to depend on your credit profile.

Santa Clarita Home Experts radio podcaster (02:02):

Not how well they like you. And I only say this because there are a lot of people that come to us within the real estate process. As the second party, after they've spoken to a lender, they come to us and we listened to their lender story about how their lender treated them. And in some ways it's not very good. In fact, the lender should be treating you like you're top shelf all the time, because there's nothing special that can happen if they like you, or don't like you, they're making money from you just as the real estate agent you select is making money for you using their services. Again, they should not be weary of answering questions. They should be available. They should be there after hours on holidays and on weekends, because you're going to need questions answered. Yes, even at those times, we find when people are using, in some cases, mainline banks and lenders, they're very much adhering to a nine to five, Monday through Friday, weekends and holidays off type schedule that doesn't help real estate buyers out there in the market that need an answer on a Saturday evening may be proceeding labor day holiday.

Santa Clarita Home Experts radio podcaster (03:16):

When it comes to how much they can actually increase, there may be offerability or what happens if this particular residence is carrying a Mello-Roos tax, or let's say the HOA happens to be higher than they had previously planned on. These are questions that need to be answered, especially when the market is moving as fast as it is now in Santa Clarita. As we get close to closing out April, 2021, those questions do need to be answered and the lenders need to be there for their client. If you're working with a lender

that isn't there, reach out to me, myself, Connor MacGyver, you can find me online now pretty much everywhere. Call me on my cell phone. And I'll introduce you to a lender that is in fact available and ready to serve. So the total budget's going to come down to what you can expect to pay.

Santa Clarita Home Experts radio podcaster (04:12):

And also when you're looking at it and the lenders giving you how much home you can purchase, let's say $500,000. You want to also work in those other things that you're going to have coming up every month with regard to your payment. So if you happen to be financing $500,000 worth of real estate, also, you want to kind of factor in what your electric bill could potentially be. You'll be able to get that from us. If you're using us as your representative to buy real estate, we usually go into those questions in detail with the seller's agent and we find out what they typically pay. Now, there's really not a lot of verification, but you get an idea if they're paying, you know, $30 a month and they don't have solar for air conditioning, when they're living in an area that isn't covered by anything, that's probably a ruse, but usually, most of the sellers will give us information as far as what those utility bills cost.

Santa Clarita Home Experts radio podcaster (05:05):

And we'll be able to back them up with the actual utility bills themselves. We do see this happen quite a bit. All we have to do is ask. And so that's something to consider now, besides those things, your payment's important, what your insurance is going to cost you per month as important. So looking at your total payment, but then one of the things that also corresponds to budget is going to be your tax profile. When you go get your taxes done, or do your taxes, what is your write-off going to look like for actually owning real estate versus renting, as you may be currently are or not you're living with parents or whatever, but looking at that number, you could be getting quite a bit of money back per month and per year from the IRS, depending on you purchasing real estate and your own credit profile.

Santa Clarita Home Experts radio podcaster (05:56):

You want to look at those numbers as well. Then in California, number two talks about right, whether homes are located in flood zones or prone to other natural disasters. I think in California, we have pretty much everything. We have fires, floods, earthquakes. We saw this come down, back in the Northridge earthquake. It devastated a lot of real estate. We've had floods, we've had fires, you name it, we've had it. And we can go into biblically why that might be, but in this case we won't, but I will tell you this, whenever the disclosures come in and you're purchasing real estate, you're going to see where your home happens to be located. And it could be in a flood zone or a fire zone. In some of the areas out here in Santa Clarita Valley, we do have the Santa Clara river that runs through Santa Clarita.

Santa Clarita Home Experts radio podcaster (06:44):

So it could be close to that particular area and it could be slotted or identified by insurance companies. And even the, the County is being in a flood zone. For example, because of its close proximity with the Santa Clara river. The other thing it could be on the outskirts or, or on the edge of our particular campus communities, such as Stevenson, ranch, or Saugus, where the property basically boundaries budding up against land that hasn't been cleared for a long time and has a lot of shrubbery and dry foliage that could potentially cause problems. We've seen this. We've seen many fires out here, start and go through. Then after that we've had, of course the rains come in for whatever reason seems like horrible time, but that does create problems. Then, then of course we have the earthquake zones out here. You're gonna potentially buying any real estate here in Southern California.

Santa Clarita Home Experts radio podcaster (07:42):

You're going to be located in some kind of a zone and having to do with natural disasters. So please just know that going in the building biggest question is, can you get insurance for this particular property? If you can great find out what that number is. It could be that particular insurance company is charging you a lot of money for insurance. When maybe if you were to call around a two or three others or go through broker, they would be able to find you something that's a much better, more reasonable deal from a reputable insurance company. So look at that. When you're purchasing real estate, we do have a list that we give our clients whenever they get ready to buy real estate out here and also sell things to ask and things, to look out for another question that a lot of times, especially lately, because of COVID and all of those, those issues that that's created, we don't get answers to is why is the seller moving that could give an indication to you of maybe some kind of urgency in this market though?

Santa Clarita Home Experts radio podcaster (08:45):

It seems like all the sellers are urgent to sell. And it seems like everybody gets multiple offers on properties. And those offers actually exceed where seller actually had the property priced at something to look at when you are purchasing. So be weary, but again, in a slower market with lots of competition, multiple homes for sale that fit your criteria may be finding that one where the seller really does need to get out because school is starting somewhere. You might be able to maybe take advantage of a seller situation if that's the type that you are and maybe get the property at a further discount. But at the end of the day, you won't know. And at the end of the day in this market, April 19th, 2021, we don't see that mattering much at all. Also to even get that question, answer from you, between you and the seller doesn't happen because in most property showings, during COVID, nobody is at the residence at all.

Santa Clarita Home Experts radio podcaster (09:46):

So for your chances and running into the seller, aren't really feasible on the other side. If in fact, you ask your agent, us to contact the seller's agent, then we can't have any communication between us and the seller directly because they're in contract with another agent, but I can ask their agent all day long. What is the seller? Why is the seller leaving? Get the answer to that question? Who knows if it's true, that's where we don't know. So again, if it makes sense, maybe it works, but try and use that as leverage, getting that answer really doesn't help. The other thing, too, when you're going into real estate, what's included in the sale. A lot of agents aren't really very informative when it comes to showing real estate, as we are. We're not that way where the other way we like to be informative.

Santa Clarita Home Experts radio podcaster (10:34):

So if you walk into a resonance and you see things that should be considered, and this, these are things that are installed in properties, usually attaching items to the properties with bolts and some kind of fastener. Usually that makes that item become part of the property. But I can't tell you how many times that we've had people purchase real estate. We get to the final end of it. And we do that final walkthrough. Then all of a sudden that item that they really, really liked that appeared to be fastened is gone or has changed a good one case in point would be a light fixture. Maybe you walk in and you see this beautiful, gorgeous crystal chandelier hanging over the entrance forum of the property. As you start to head up the stairs, just a beautiful item, assuming because it's installed and it's 50 feet above the ground, it's going to be something that comes with the real estate.

Santa Clarita Home Experts radio podcaster (11:36):

Not realizing that in fact, we should have asked for it going in, which I always remind my clients when you're coming into real estate. If you see something that really is an eye catcher, something that you really want, but it's installed, we should ask for it anyway, like a fancy ceiling fan. Of course, those are installed and it should come with the property, but the seller does have a way out. If you don't ask for that one specifically, they could swap it out with something else, maybe something else that doesn't have as much value or something else that isn't as loved and adored by the particular seller. So hence them taking it with them. When you walk into properties again, typically the refrigerator doesn't come washer and dryer. Typically doesn't come. If you want those items to remain. Definitely good to ask up front. Usually the installed items, the stove, the microwave, if it happens to be installed, not just sitting on the counter dishwasher, if it's not a standalone unit, but it's actually installed within counter space.

Santa Clarita Home Experts radio podcaster (12:37):

Those things typically come with properties at the end of the day, though, a good agent's going to mention those as well as the buyer, wanting them to be included just in case. And it really does make everybody makes that playing field a lot more level and keeps people more comfortable. Now, when it comes to inspections, looking at the properties, a lot of these things that you're going to be finding out as a buyer about real estate are going to come to you via disclosures. And these are things that the seller's going to fill out. And then later on, after you've had a chance to review those disclosures, depending on the timeliness of the seller, completing them is going to now have you having have a home inspection done at the property and you'll be there for that. That's something that you really want to make that time for and make sure that your agent has that scheduled.

Santa Clarita Home Experts radio podcaster (13:29):

So you're a part of the home inspection at any house you're buying here in Southern California. Well, when you do that, you're going to be there. And some of the home inspectors are pretty good. They might go review building and planning and they might look at the local city and jurisdiction and say, listen, I'm going to be doing a home inspection at this house over here at one, two, three, four, the corner of anywhere. And don't walk. So I'm going to do my due diligence before I even go to the property and meet my buyers. I'm going to have everything pulled. So we're going to find out what kind of systems are in place. Maybe there was a recall on the HPAC unit, maybe there was a building permit pulled for a back porch, but it was never completed those sorts of things. So you might find more information about that in disclosures or the home inspector might bring those to the forefront.

Santa Clarita Home Experts radio podcaster (14:22):

You're going to want to find out ultimately what's going on. If you have a large structure that was built on the property and it's something that looks like it should have required a permit yet there is no permit. Then you have a decision to make. At that particular time, of course you could ask the seller to potentially go out and have a city inspector comment permanent, but there are limitations to that. And in fact, the city might come out and they'll say, well, we're to have to find you for building this or you tear it down and then you've gotten nothing out of it. Now you're missing a porch that you actually would have liked just to consider when you do look at property and real estate, understand that without any kind of validation, whether or not things are permitted, it could be that they are not. If usually things are built within a contractor type grade,

Speaker 2 (15:15): Usually the appraisers

Santa Clarita Home Experts radio podcaster (15:17):

Will accept them, but it's going to depend on the load program and that particular appraiser, when it comes to the home inspector, though, they should be able to pull whatever permits have been completed. Also, when you look at disclosures that the sellers produce, there should also be further information as to what things the sellers did permit and what things they didn't permit. Things that usually go on the inside of the property, maybe hot water heaters excluded a lot of times don't get permitted. But again, there are things in place that they maybe should be just depends on the city, local jurisdiction, but you want to check and find out if in fact the permits were there and they apply to any kind of major renovations or additions. A lot of times what we'll see when we go into a property, let's say the property has completely new flooring and floor molding. A lot of times we found out at some point during disclosure process that there was a flood in the home. Some pipe broke consent, it made the seller go through their insurance company, make a claim and get all the flooring and crown molding and bottom of the dry wall replaced because of the extensive flooding. Those are things that's good to know because what could happen?

Speaker 3 (16:35):
Well, mold could have formed

Santa Clarita Home Experts radio podcaster (16:37):

Somewhere in the property because maybe it wasn't dried out properly before the new flooring or floor molding or the walls were repaired on the property. That's something that a home inspector is going to be able to use to follow up on and look a little bit more diligently at whenever they do their home inspection, better protecting you. Now, of course, the roof is something that the home inspector should look at. That's another part of, of the process. When you are looking and questions to ask, when you're buying the house, they should also either walk it or drone it so they can find out what's going on with it. A lot of the composite shingles on properties out here, that's usually in Santa Clarita Valley. And even in the rest of Southern California, those are, what's used mostly asphalt shields shingles. You don't see that often, but it just depends on where you are.

Santa Clarita Home Experts radio podcaster (17:29):

That Spanish Mediterranean type composite, shingle tile roof, that concrete type ceramic roof. That's what really is prevalent here in Santa Clarita Valley. And those do carry a great warranty. They seem to last forever, but the problem is, is they do crack. They do slip and with the fluctuations in heat and cold, they do get damaged over time. So when the home inspector goes out, they want to verify that if there is damage to the tile on the roof, it has an affected the paper underneath. So the roof is still holding its waterproof ability from the rains and the things that happen to fall on and have a wet nature. What they'll do is they'll also go to the undersurface. If they can gain some kind of access to whatever attic might be in place, they'll also look underneath. And if they see anything that might resemble some kind of a previous leak, we'll try to find out what that may have been.

Santa Clarita Home Experts radio podcaster (18:25):

Or if it's a current leak, we'll find out if, how we're going to ask and approach that to be repaired prior to the buyer buyer closing on the property. Now, when they do look at the tiles are a lot of times when they are cracked, we do have tremors out here. We have earthquakes, like I said, we have very dramatic, cold and heat here, here in Santa Clarita Valley. Also, when people go up on roofs, maybe install something else. I like solar, or maybe go up on the roof to attack a window or to clean out a

gutter. If they don't know how to walk on these tiles, they're going to end up breaking them. We had a closing in Valencia, not too long ago, and they must have had over 150 broken roof tiles. And you can tell that was committed by somebody that was up on the roof, doing some kind of renovation to the underneath of the eaves.

Santa Clarita Home Experts radio podcaster (19:14):

They didn't know the first thing about walking on a tile roof. They ended up breaking a trail of these particular tiles from one end of the house to the other. So it's good to know. The sellers were able to at least credit us to have that done. But part of that process, it required me to have one of my roofing contractors go out. Of course, somebody that the buyers agreed to to go out and look and give us an estimate for that roof and how much it would cost to have repaired. So they were able to get that done. After escrow Crow closed with a credit from the seller. Now we're talking about appliances, major systems in the house, electrical HVHC again, I, as I stated earlier, it's important to look at those items. And in fact, we do see that with a lot of those items, the disclosure process that's in place is going to answer some questions on the other side of it, the home inspector, if he goes, pulls, permits, or knows that this particular house has these type of systems in place because of their time doing home inspections, they know where to look.

Santa Clarita Home Experts radio podcaster (20:22):

They can find out if there have been recalling on particular units and get that cinched up with you as well. And then finally, we're looking at the time on the market reference points for the seller's home in this particular market. I wouldn't expect to see houses on the market more than five, 10, 15 days before finally getting into escrow. It's going to depend though, on the agent's timeliness, how hard working they are and how many offers they received and what their particular method of responding is. Some agents really only respond to a few. Some agents really do their due diligence, and they'll get back to everybody that wrote an offer. And some agents fall somewhere in between. If you are encountering timeframes long waits between responses, just reach out to your agent and say, listen, I need to be kept in the loop. Even if you have no information for me, at least call me and tell me, Hey, Connor, I have no information for you.

Santa Clarita Home Experts radio podcaster (21:26):

A lot of agents drop the ball and they believe that their clients are already aware of how it actually works in real estate. And I would say 95% of the people out there purchasing real estate need to have this explained to them. So they don't think that they're being ignored by the seller's agent after they have their own agent, as their buyer's agents submit a nice, solid, strong offers with all the supporting documentation. Now, as a buyer, when you are making an offer on real estate, what I mean by supportive documentation is going to be, you're going to need your pre-approval letter, your proof of funds. And also the clear, concise written offer with a type of loan program you're going to be using. These are necessary items to accompany the offer and they have to be submitted. One of the things that agents make a big mistake with is whenever they're submitting offers, and this is at no fault of their buyer, but when they're submitting offers, they don't include all of the supportive documentation.

Santa Clarita Home Experts radio podcaster (22:27):

So now their email ends up to be a three or four-string email instead of one that has all of the information contained within that messes with a seller's agent, especially if they're dealing with multiple offers and if they have a lot of offers and now they have to try to pull apart three different emails to get

the documentation from this particular buyer. In some cases, they may not. So having a good solid agent that knows how the offering process works and is able to make that follow-up and cover it with you is incredibly important. So not right now, we're going to go to srhr.com. That's going to be a Santa Clara to home experts. That's where I get all the information for the current market.

Santa Clarita Home Experts radio podcaster (23:19):

And now we're going to go ahead and pull up the inventory here for Monday, April 19th, and cover that currently still in a seller's market. I've been speaking with quite a few sellers that we're going to be putting their listings on the market here over the next month. And within that process, a lot of the questions have to do with what if, what they're looking to buy isn't available. It isn't ready. There are mechanisms in place and right now, because it is a seller's market, it wouldn't be unreasonable. If you are a seller, but needed to stay put in your house after it actually closed and sold for a few months, it wouldn't be, it wouldn't be exceptional to do that. It would be kind of a formality, especially with the number of buyers out there. We would just want to say, listen, would you be able to have a rent back for the seller?

Santa Clarita Home Experts radio podcaster (24:09):

If he, in fact, chose you to purchase the residence and the rent back would be for a specific amount of time. So basically you as a seller would be able to remain in place at your property and you would be able to stay there for whatever time you agreed while your new house was being built, or while more inventory coming onto the market for where you were going or whatever you need at the time for, and then what you would do, your payment would be whatever the buyer's payment was, uh, at that particular time. So you would basically cover everything, their property mortgage, their insurance, and whatever other things that they pay per month on the property. So you would be covering that if their rate and then they would be able to, uh, stay where they are as well until in fact, they moved into your property.

Santa Clarita Home Experts radio podcaster (25:03):

So we're going to look here. I did pull up, uh, Santa Clarita Valley and I put together all of the active listings here. So we're going to go ahead and look at this real quick. So this is going to be a daily inventory. This is going to be residential properties. That's going to include single-family, residences, condominiums, and townhomes. And it's going to pull down duplexes. Quadraplexes triplexes, which we don't have very many at all. And the cities that I'm going to pull this return for are going to be Ken and country steak, new hall, sagas Stevenson, ranch, Val Verde, and Valencia. So it's going to be everything out here and you'll be able to see it. It's going to be active properties and it's going to also be coming soon. So let's see what the results are. So currently right now, daily inventory, we do have a total of 196 active and coming soon listings on the market and all of Santa Clarita Valley.

Santa Clarita Home Experts radio podcaster (26:04):

Now, when I go back and pull off the coming soon listings because they're feasibly not on the market, that returns 164 active real estate listings currently on the market in all of Senate, creative Valley cities, all residential in nature. Then that's April 19th, 2021, Monday at 10:34 AM. Now when I pull the actives off and look at the coming soon, there are 32 listings that agents have slotted to becoming on the market at some time in the future, they have 21 days in which to start advertising these coming soon listings. If you're not those listings and you're not going to see them on a lot of the internet websites out there, including the agent's own MLS driven websites, you're going to have to contact your agent,

contact me. I will put it together for you. So you'll have the coming soon results in your search. So you're best able to prepare for what listings are going to be coming onto the market.

Santa Clarita Home Experts radio podcaster (27:07):

Currently with these 32 listings that are going to be coming onto the market within now in the next 21 days, there's a lot to choose from there. A lot of various price ranges properties in different cities. And I believe we're going to still continue to see this trend. As the agents start being more and more comfortable using the coming soon listings, it started last May and with COVID and the properties being locked down and difficulty in showing properties. I don't believe agents really took full advantage. Now I see that number going up, but we're still very limited with real estate inventory, not a lot of homes for sale, but again, that trend can't remain the same. Also, the trend that buyers are paying whatever they are agreeing to on contract with the seller, not giving any care to the appraised value. That trend is also going to stop at some point in the future.

Santa Clarita Home Experts radio podcaster (28:03):

The question is when right now there's a lot of equity in this market. So people are looking to have this foreclosure market break and houses start to fly off the shelves and go on sale with a lot of extra real estate inventory. I don't see that one of the things you can look at. And I said this back in the day in the last foreclosure market pay strict attention to new housing. If they're building which they are, we have a whole new development out there by magic mountain, opening up five point. If you're interested in that, please let me know. We represent clients in new housing all the time, but having said that they're very active and they're building upwards of 15, 16,000 residences out there, and they're going to be doing the same up at the plum Canyon development up at skyline. They have another couple of hundred residences to build out there as well.

Santa Clarita Home Experts radio podcaster (28:53):

Plus more in the future. One of the things I will tell you about new housing, a different dynamic. And I was speaking with a toll brothers rep last week. He had mentioned to me, that toll brother is now going to be the first new home builder. That's going to start the highest and best process with regard to their listings. So a new housing, if you've ever purchased one before, usually, you know what that price is. It's on a sale sheet, you'd go in and that's your offer. Usually, if the property has been sitting for a while, or if new housing isn't moving as fast as the corporate entity that's attached to, it would want them to move. There might be some fluctuation in bendability on that price that you offer. That's where we'd come in. We do that negotiation. We try to get your lot premiums lower.

Santa Clarita Home Experts radio podcaster (29:40):

We try to get the cost of the house lower. We try to get extra incentives and these sorts of things paid. But at the end of the day, if new housing's flying off the shelf, we might be best off being able to get you some kind of credit with closing costs, being able to get you some kind of a rebate, but there is always money saved when you use us for the simple fact that you're not paying my fee, I get compensated from the new home builder. So my fee is mine to do with what I need to do. So at the end of the day, if you want to see the new housing inventory, go to Santa Clarita, home experts.com forward slash new Santa Clarita, home experts.com forward slash new. And you'll be able to look at those residences and what's going on here as far as the building goes, but they're very, very active new, or the toll brothers starting the highest and best response to offers could also potentially have buyers.

Santa Clarita Home Experts radio podcaster (30:34):

And he wouldn't answer the question but could have buyers also giving up their right to have as part of their contingency, the appraisal, meaning that they're going to pay whatever the difference is. And if the appraiser goes out and says the property isn't worth it, the buyer has still agreed to go ahead and pay that difference. That's a slippery slope, ladies and gentlemen, be careful with that. If you want more information or want to know why I think that is or isn't, please give me a call. You can find me online. I am Connor MacGyver, Remax gateway here in Santa Clarita Valley. Thank you so much for listening to this week's real estate broadcast. Monday, April 19th, 2021. It has been a pleasure and I hope up buyers. You digest that information. If you're not a buyer, but know somebody's interested, please send them this, send them this radio show. It's going to be posted up on youtube.com forward slash S C V moves. That's our YouTube channel. You can go ahead and forward that to them. They'll be able to see the or listened to this audio podcast, and hopefully, it will help them make the best decisions when it comes to real estate here in Southern California. It is my pleasure. I am Conor with honor. Thank you so much for listening. Have a fantastic week. And when you're ready, I'll be

Speaker 4 (31:50): Here. Be safe.

April 1, 2021

Is Santa Clarita real estate headed for a foreclosure market?

Connor MacIvor Santa Clarita real estate radio (00:00):

Good to everybody. Thank you so much for tuning in. I have Connor MacGyver, your local real estate professional Santa Clarita home expert located of course in Santa Clarita, California, which is just the next city north of the city of Los Angeles. This is going to be a real estate update. We're here on April 1st, 2021, and we've gone through the COVID. It's still going on now. The vaccines are available. I think that's going to change the dynamic in the market a little bit, but don't forget. As we track back, we did have a lot of refinances. I mean, a lot of refinances. So most of the people that were slotted to kind of sell and maybe break free of whatever, they're kind of relaxing a little bit at a time. Doesn't seem to be as of the essence as maybe it would have if they still had a higher interest rate.

Connor MacIvor Santa Clarita real estate radio (00:46):

Santa Clarita best sales real estate agentAnd a lot of people did that. I'm talking about the Santa Clarita market. I'm talking about real estate here locally. Uh, the best place to go is going to be, of course, our blog to get further information and news. Then I'll give you the update today. We'll talk about inventory. We're going to talk about the market. We're going to talk about some of the issues that we see coming up and have seen with regard to buyers in this market. What to watch out for the things that are of course, more, most important to care about. And we'll also get into agent selection, but first and foremost, this particular market, if you aren't, uh, looking at the data and you really haven't jumped in yet to real estate, or try to maybe Mark your place currently, we're seeing that it is a seller's market, and that is because of lacking inventory.

Transcript of this Santa Clarita real estate radio market update episode.

Connor MacIvor Santa Clarita real estate radio (01:32):

So because the inventory is so low, there are people out there that are looking to sell their properties, of course. And when they do come on, the market, those properties are really obtained at a premium. Now, of course, it depends on the property itself, how it looks, the kind of repair. Is there any competition? What's the price point. And also where is it within the sweet spot? If in fact is once you get over a million dollars in Santa Clarita Valley, the dynamic changes a little bit. So it takes longer to sell those properties even at a seller's market, but not as long as it might take. If the market were more let's say even, or if the market were in a buyer's condition, which currently it isn't, we haven't seen a buyer's market for quite a few years here in Santa Clarita Valley. The market's been more even in the past, but really we're off the chart and on the seller side currently because of that and because of the lacking inventory, most of the properties in the sweet spot, which in Santa Clarita is somewhere.

Connor MacIvor Santa Clarita real estate radio (02:28):

If you can find one single-family residence between $450,000 and 850 to $890,000, that's about the sweet spot, those properties in that price range, they're moving relatively quickly within a few days. And there are multiple views, lots of activity within the first 24 48 to 72 hours. The viewings of those properties, of course, in Santa Clarita career, I'll set up by appointment only there aren't open houses currently allowed as of April 1st, 2021. I would assume that's going to come back at some point, but right now the vaccines are kind of fresh. Now it's kind of open up to most of the public, but again, it's not opened up to everybody. So I think once that answer's given and a lot more people get it, if that's what they choose to do, I believe that the market will start to open up a little bit. I don't know if it's ever going to be back to what it used to be as far as showing scope, but now everything's appointment only, and everything is covered with a COVID disclaimer.

Connor MacIvor Santa Clarita real estate radio (03:27):

In fact, any buyer that wants to see real estate in this present market has to be given and actually formally sign a document that talks about COVID, and there have they been around COVID have they, do they know anybody that has it have? How do they feel? You know, they've been traveling lately and they have to actually sign it. And it also gives information regarding the seller's responsibilities, as far as the property goes and how they have to prepare for viewing and also by our actions and activity when they get into the property, what can they do and what can't they do? So this is something that every buyer has to sell or sign, excuse me. And then the actual sellers of these properties, get the notification, and then they approve the showing or not don't approve the showing, but it depends. It depends on the property.

Connor MacIvor Santa Clarita real estate radio (04:18):

And it depends on the time slots, most of the showings. And this is a little shocking to some people because you know, you're about to spend half a million bucks or better. The showings are 15 minutes in length. If you're going to be looking at a 3,500 square foot house that happens to have a large backyard and a pool, and they give you 15 minutes to view it, that's usually not enough time. So we try to ask for longer timeframes to view properties, but in some cases, the sellers realistically know that somebody is going to be okay with 15 minutes. In fact, multiple buyers are going to be okay at 15 minutes and they're more than likely going to like the house because there is nothing else like it on the market, just because of the supply and demand scenario. So they're going to go ahead and take that 15 minutes shot.

Connor MacIvor Santa Clarita real estate radio (05:04):

They're going to look at it. It's going to be enough for them. They're going to come back. They're going to go to their agent. They're going to write the offer. And they're going to have that offer submitted to the seller's agent as soon as possible. Having said that, we'll talk a little bit about buyer drive and also what buyers need to do. And before you can even step forward, in some cases with even looking at properties, the sellers are going to expect the buyer to also send over a pre-approval letter. Now in this particular market, that's interesting because I've always been of the school that if in fact, I'm going to be sending a pre-approval letter, that preapproval letter is going to match the amount on there's going to match the amount of the offer we're making. But we're talking pre-offer. We're talking previewing, looking at the property even before looking at the property, submitting a letter that shows the qualification amount and the buyers are being requested to do this.

Connor MacIvor Santa Clarita real estate radio (05:57):

So your first step is a buyer. After you speak with me, you want to go ahead and step forward and you want to talk to that local real estate lender. That's either referred to you by me. Or if you know, somebody got some friends or family or have a referral, then, of course, you go to them. But at the end of the day, I believe that because you're not paying my fee, but you are paying the fee of the lender. It's not bad to get at least a couple of opinions when it comes to borrowing money. That's very dynamic. There's a lot of bells and whistles, a lot of moving parts, very important to know that who you're dealing with is going to give you a fair deal. Maybe not the best deal, but a fair deal. And there is some trade-off, right? You might find somebody that gives you a better deal, but they're not able to get on the phone.

Connor MacIvor Santa Clarita real estate radio (06:45):

They can't do any adjustments to the prequalification letters and they just don't seem to be very service-oriented. They might actually not even answer your phone call. In fact, they might not be available on a Saturday evening after I show you a property that happens to be within your price range, but

maybe at the top. And you want to see what those numbers look like as far as what your payment's going to be. Maybe they're not available. So then we have to wait, but the seller is going to be reviewing offers Sunday morning, and it might be too late at that point. So having a good point of contact, cell phone number, local number, home number, whatever it may be to a lender is really, really important. And to make sure that they are accessible and available to help you after hours on holidays.

Connor MacIvor Santa Clarita real estate radio (07:34):

And of course on weekends, this is a good step. When you're talking about loans and lending, a lot of people get a little blind when they start watching television and they see these interest rates that are promised these great deals out there. Once they start to see those, then it starts to create issues because those are known as teaser rates. And a lot of cases there's really no validation or verification as to whether or not that rate's going to apply to you. And in fact, that rate might be very, it might be first, you know, best case scenario with somebody. That's got a FICO score. That's, you know, above heaven and they have the backing and credit report to basically show that they are going to get the best possible deal in the world. And a lot of cases, that's not the case for all of us, other people.

Connor MacIvor Santa Clarita real estate radio (08:24):

So finding out whether or not you qualify, what you qualify for, and what the terms of your agreement are going to be is incredibly important. That's where that local lender comes into play. You're going to be giving them all of your information and they're going to be able to produce a qualification. Now it's not going to be the same day. They might be able to give you an idea of what you qualify for. But with most reputable lenders, that idea is not enough to substantiate them, producing a qualification letter or pre-qualification letter from them. A lot of those need to be qualified, and that goes all the way through. So they're going to have to run all of your credit. They're going to have to look at everything line by line. They're gonna have to get other information from you, paychecks. W2's all of that other information.

Connor MacIvor Santa Clarita real estate radio (09:15):

And if you're self-employed employed, of course, profit and loss statements, those sorts of things, but they need all that information to be able to pass that through their system and get approval. Once they have approval, then you're good to go. But sometimes that takes a few days, if not a week, it just depends on the lender and how busy the lender is and how fast you can give them all the information they request. Typically, they'll send you an email and it'll have a list of information. And when you send it in, there'll be a recipient. It might not be the lender themselves, but it's gonna be somebody that works for them and they will receive your information. And then they'll pass it off to the people that need to review it. My suggestion is to talk with your lender and says, listen, I really get my feelings hurt often, and I get them hurt quickly.

Connor MacIvor Santa Clarita real estate radio (10:06):

So it would, I would be hurt if you didn't communicate with me from this point on, I really don't want to hear from anybody else on your team. I want to hear from you. That always helps my clients when they're dealing with the lender, because I don't like the tail to get too long. Where now you're dealing with three other people that you don't know from Adam and they weren't the ones you interviewed for the job of being your lender. And none of them know what the other party's doing. That's kind of the fall apart of these big teams, these mega lenders. So it's nice to have that local resource. That's going to be able to deal with you personally and promptly and really gives a crap about customer service. That's

super important. All right. So that's the buyer advantage right now because of the multiple offers because of what's going on in the market.

Connor MacIvor Santa Clarita real estate radio (10:50):

In a lot of cases, cases, these properties might appraise for a particular amount, but buyers, when they make that offer, they're stating, you know what I actually don't want to, or don't care about what the property appraises for. I'm going to step forward and pay the difference. So if the property is priced at 700,000, this buyer may have been around the block. A few times may have been frustrated and they look at the property for sale at 700. And they say you know what? We're going to offer at seven 40 because we want to be the highest and want to get the property. In that case, maybe 700 is the maximum amount that the property may appraise for. We won't know until the appraiser rolls out to the property and the appraiser actually works for the buyer's lender. Once that happens, then they'll come back and they'll give an amount.

Connor MacIvor Santa Clarita real estate radio (11:38):

But before that, we're talking at the time of offer, some of the buyers are putting out there that they don't care what it appraises for. They're going to pay the difference no matter what that is, which could create a problem with them depending on their loan type, they might not be allowed to pay the difference. In fact, sometimes the bank stopped them at the appraised value. So that's something to look into. If you're one of those that want to jump on that and actually offer higher and remove that appraisal, contingency yourself, thinking that that's going to make it or make you better compete, compete against those other offers that are being submitted. Now, of course, today, we see that cash of course is King. That seems to be typical. Then after that conventional loans are very good. As far as sellers are concerned because there's more money involved in that transaction because the percentage of down payment happens to be higher.

Connor MacIvor Santa Clarita real estate radio (12:36):

So for a conventional loan, the typical run of the mill garden variety usual, conventional is usually 20% down. Now, in some cases, there's a 15 and a 10 and a five and a 3% down conventional loan. But the sellers look for those funds because with the offers are being submitted, your proof of funds, POF. You're going to see that. So it's going to be your bank statement, some kind of an IRA, something that shows you have these funds, and you'll be able to finish and close escrow. If the seller accepts your offer. Now at the end of the day, there are all sorts of reasons for you to cancel the escrow. If you decide the house isn't for you, you haven't and contingencies, which has some cases from the buyers. Those are being whittled down contractually that 17 days, but maybe you want to make your offer a little sweeter.

Connor MacIvor Santa Clarita real estate radio (13:28):

So you offer 10 days for inspections, which is enough time to get those done. But it is a little tight. You will have the inspector roll out to the property. Somebody you might know if they're certified, bonded and experienced and knowledgeable, all those sorts of things. If you don't know anybody, then we have recommendations on the home inspector front, you pay them their four or five, $600, whatever it may be, depending on how to size they'll go out to the property within those 10 days, hopefully within a couple and they'll do a walkthrough of the property and they will do their inspection. They'll provide a written report, which then later you'll be able to look at it. You'll be able to develop a potential request for repairs from now all real estate in California. You by herself, there, even your sellers listen up. All real estate in California is sold as-is.

Connor MacIvor Santa Clarita real estate radio (14:16):

That's just the way it's intended. And that's the way it is on contract. However, you could ask, even if the agent puts in a clause and reminds you via some kind of a counteroffer, something that you're willing to sign to be able to get the house still, there is no harm in asking. And please remember that agents that say, we're not going to ask because the property sold as is, I think they're lazy. And they should in fact do that for their client, because then they've served. They've served their client's trust 100%. So that's on the buyer. End of it. I know buyers are frustrated. I think in the future, we're going to have a change in inventory. My predictions is, are as follows. Now you remember last year when COVID broke loose, it was a mess real estate shut down. It actually stopped for quite a while.

Connor MacIvor Santa Clarita real estate radio (15:11):

Open houses were no more. And then they started developing paperwork and things to sign and disclosures. The lawyers were very busy and finally, they came to some agreements on how properties were going to be shown how people are going to conduct themselves and that approval process to get in and view these listings. So they fix that also at that time, sometime around May or June, the banks, Fannie Mae, Freddie Mac, and some of the other banks, they decided, you know what? We're going to make this a little bit easier on those people that are holding mortgages currently, because of COVID the way COVID seems to be impacting almost everybody. We're going to allow them to get involved in a process called forbearance. Forbearances where you don't have to make any payments for a specified amount of time. And in this case, a forbearance you needed really to do nothing, at least with the institutions that I mentioned, and at least from what my clients have told me, you have to do, you had to do nothing but call and say, COVID effected you.

Connor MacIvor Santa Clarita real estate radio (16:12):

And then they said, okay, we're going to put everything on hold for the next year, the maturing date maturation anyway. Wow. Probably ruin that one. So the end of June, June 30th, 2021 forbearance is over. What's going to happen. So there's a lot of questions about, is it going to be the next foreclosure cycle or foreclosure market? I don't think so. However, there are probably a few, maybe more than a few folks out there that still can't make their basic mortgage payment. So once forbearances over, that would be June 30th, 20, 21 July. First, that next payment's going to be due.

Connor MacIvor Santa Clarita real estate radio (16:59):

I'm assuming, and I've read online some news pertaining to this, but I'm assuming the banks aren't going to come to people and say, we want you to pay us everything you haven't paid. And last year, I don't believe that banks are going to build some kind of an escrow account and then take all of those payments and put them into something separate and then mandate that each homeowner pay a little extra month into that account. So I don't think that's going to happen. I do think that at the end, once it's over the, bank's going to make the payments that you haven't made the people in forbearance, they're going to tack it onto the end of the loan. With that scenario. I believe the banks probably didn't have the foresight to, there was going to be some kind of a virus that crippled the United States economy and everyone else.

Connor MacIvor Santa Clarita real estate radio (17:55):

So usually in the small print at banks, a lot of stuff in there. I mean, there's a lot of stuff and their act of God, there's everything. I don't know if something like COVID that's scenarios in there. So what I mean by that is there's probably not a clause that States automatically extended because of some kind of a

virus or some kind of, uh, this type of an event, therefore modifications. I would think I'm thinking modifications have to be done. So basically, if something happens in the future and a person loses their ability to pay back their mortgage, then at that particular point, the bank has to move forward with a notice of default and foreclosure action. But if the mortgage isn't correct, if it hasn't been re-recorded with a new end date E in this case, if you started forbearance last June and it ends next June, that's a year.

Connor MacIvor Santa Clarita real estate radio (18:58):

So if the end of your mortgage was sometime in the future, which I'm sure it is a year from that date, it actually is not the year that you agreed to originally when you obtain the loan or do the refinance, I'm wondering who's going to pay that fee or the bank's going to pick it up. Is it going to be free? Is that going to affect anything in the market? I don't know. The other thing is the Coronavirus. We have that vaccine out there that now is accessible to most people. Is that going to change the dynamic of the market and are more listings going to enter the market as being for sale, changing the market from its current profile of being a seller's market into a home buyer's market. That's another question. Now I will tell you, there are a lot of people that were slotted to sell last year, but those people changed their minds because of COVID.

Connor MacIvor Santa Clarita real estate radio (19:53):

They thought they would sit tight. Now there's a lot of people that want to sell, either move up downsize, or get out of California and come into California. Those people are looking for a house to purchase, but they're not seeing the house that they want to buy, which in some cases, as a seller, you're putting the cart before the horse, because realistically in the first place, what I would do, I would put my house on the market for sale, have the agent build up everything, advertise it and start showing the property. But I would put in a clause with any buyer stating that I have the right to obtain, look for fine, write a contract on it, obtain my home of choice. That way, if I can't find a house, then there's no deal with whatever buyer had the accepted contract on that house that we were selling for the person that isn't really sure if they're going to be able to find a house.

Connor MacIvor Santa Clarita real estate radio (20:50):

So you definitely want to have that clause built in there and in a sellers market, that's easy to get buyers to agree to. If it happens to be a buyer's market, there's going to be a lot more difficult to because there'll be other sellers out there that are going to be in competition with that. Won't be so easy or excuse me, will be easier. And won't have that home of choice contingency put in on their side. I'm Connor MacGyver. I hope this guide has given you some insight into the real estate market here in Santa Clarita Valley. I'll tell you my Google business pages are a great way to contact me, but I'll leave you my phone number here in case you're one of those folks that happens to have pad and pencil next to them or the smartphone. They could open up something to write it down.

Connor MacIvor Santa Clarita real estate radio (21:33):

It's (661) 400-1720 on a local agent here with Remax. I'm Connor MacGyver known better as MacGyver and associates. And of course, my website is Santa Clarita, home experts.com. I do run the longest-running podcast here in Santa Clarita Valley in Los Angeles areas pertaining to real estate. And I hope you see the value. Please share if you know anybody that's wanting to buy or sell real estate, please, including yourselves, reach out to me directly. And I will treat you better than family. I hope everybody's

 

doing great. Thank you so much for taking the time. Listen, you'll be safe. Connor MacGyver over and out. 

 

March 31, 2021

6 Questions to ask before you sell your Santa Clarita home - report access

March 26, 2021

Is a Market correction for Santa Clarita real estate on it's way?

Santa Clarita real estate market newsBefore I get into the issue of a market correction coming to the Santa Clarita real estate market, let me cover the particulars of... me. :)

Connor MacIvor, Honorably ret. LAPD, Realtor since 1998 and ready to serve. 

I have the longest-running Santa Clarita real estate radio show and podcast where I talk about the Santa Clarita housing market and how to keep safe when buying or selling real estate.

My approach is one of being straightforward. I don't like games and know the best ways to take advantage of all markets in real estate, buying new, selling resale, and investing in homes and real estate.

The best way to approach anything real estate-related is by acquiring knowledge. That is how I treat my clients. I give them the verifiable information pertaining to their real estate goals and we move from there.

Once we have a clear endpoint, I can give them all of the information they will need to get there safely while being protected.

In the last Foreclosure Market in the Santa Clarita Valley, we worked with Citi Bank and handled the sales of its foreclosure assets. (real estate owned - REO - properties)

That market was caused by guidelines within the lending world that allowed purchasing of homes with very little verification of ability to pay the mortgage.

Today, the approval process for a home loan is a totally different animal than it was back pre 2007.

So much information is required, and throughout the process of buying a home so much information is required to be updated. 

Credit inquiries can and are conducted from pre escrow all the way up to the funding of the home loan.

The appraiser's functions and processes have had a restructuring since 2007 as well. The appraisal reports they produce are double and triple checked by others involved in the process and neutral parties as well.

The real estate market from a lending perspective is very tight today. While money is cheap, low-interest rates, getting qualified for a home loan is not what it used to be.

That being said, homes are being sold. 

In the Santa Clarita Valley, during the past 30 days, we have had 359 residences sell. These sales consisted of Single Family Homes, Condos, and town-homes in the cities of Castaic, Canyon Country, Newhall, Saugus, Stevenson Ranch, and Valencia. 

Today, March 26, 2021, we have 190 residences for sale, the above criteria apply. However, about 25 of those are what are called "coming soon" real estate listings. This means they are being marketed for sale but they are not yet allowing showings.

At least showings in the general sense. Some may be able to be shown if I ask nicely. I do my best for my clients when it comes to accessing real estate listings.

That leaves me to the question that I posed in the title of this post, "Is a Market correction for Santa Clarita real estate on its way?"

We have interest rates in the 2% - 3 %s. That is so low, it could be considered FREE money.

The Santa Clarita market, in general, is more than 10% higher than the last cycle correction, foreclosure market, back in 2007 that carried us through the end of 2011 when the real estate prices bottomed out, then started increasing to where we are today.

I read a lot of "real estate agents" newsletters. For some reason, I'm on their drip campaigns. Which is okay, I do take a minute to read through what they are sending, and the biggest item that is front and center is that "There is no market correction coming to Santa Clarita real estate, so buy and sell now!!!"

You are reading that as I am I bet. Self Serving comes to mind.

Here are the facts:

We have had a plague of low real estate inventory in the Santa Clarita Valley during the past 4+ years. 

The interest rates on real estate have never been lower, creating a refinance market where all those who were contemplated selling refinanced their home loans to absurdly low interest rates.

COVID-19 arrived during the 1st quarter of 2020, last year, and put a halt on real estate activities for a time.

COVID-19 was a reason why mortgage companies started with the forbearance option for mortgage holders, and there are a lot that partook of this program. That means some mortgage holders are not paying their mortgages and have not been since mid-2020. 

That program was scheduled to end in June of 2021, now they have extended it to September 2021. 

If the financing arm of real estate is sound. And if the real estate market has high levels of equity. And if we have low levels of real estate inventory and a high buyer drive where properties are selling within days. Where can a correction come regarding the Santa Clarita real estate market?

Two places: If a ton of sellers decide, "now is the time to sell" and flood the Santa Clarita real estate market with listings, which overrun the buyer drive, creating a buyer's market, homes will reduce in value.

Second Place: What will happen with all the home mortgages in forbearance?

Will the banks just have those mortgage holders resume their payments when September comes?

How many of those people are still without employment and having a hard time making ends meet even without a mortgage payment?

To see how these may play out we have to wait. 

I know this, the market is at an all-time high in Santa Clarita Valley. 

Homes are selling for more than comparable values because home buyers are willing to inject their own funds to exceed the appraised value of the home they are buying.

Those "new prices" are those being recorded pertaining to the Santa Clarita real estate values.

We will have to wait to see if a market correction is coming. I know that buyers are having a hard time buying real estate with the high level of competition they are facing.

Home sellers are enjoying the seller's market and having their homes sell for higher than asking and appraised value.

Santa Clarita real estate agents are seeing some of the same 'games' that existed in the last foreclosure market with regard to homes being listed for sale.

Keys go missing so no others can view the homes, super high offers relying on the appraised value to negotiate to a lower purchase price, etc...

My first step in real estate representation is a meeting. Meeting with my buyers or sellers and discussing the market, the trends, and the traps to watch out for.

I'm Connor MacIvor and I endorse this message :) - Be well and call me when you are ready to have your real estate won.

March 15, 2021

Santa Clarita realtor update for housing and home sellers and home buyers

Santa Clarita real estate sellers and home buyersThe current Santa Clarita real estate market is deep in a seller's zone. Meaning that we are in a seller's real estate market where sellers are calling most of the shots.

Most of the advantage goes to the home sellers during a market like this because they have no other listings to compete with.

In those neighborhoods, there are very few real estate listings for sale at the same time.

All in the Santa Clarita Valley have been correlated by their particular city. Below are the two by Valencia Zip Codes.

Valencia CA Market Report Zip Code 91355

Valencia CA Market Report Zip Code 91354

(as an aside, I have generated market reports for each neighborhood, zip code, and city area within the Santa Clarita Valley. If you want to see what is happening in Tesoro, I can send you the report. If you are interested in Bridgeport or NorthBridge, I can send you each or both. I have data beyond that others have and really am a data-heavy realtor. There is truth in the factual numbers)

Hence, with the lack of inventory, there will only be one or possibly 2 homes for sale in the same area of a similar nature that had been built by the same builder.

During the offering phase, in most cases in a seller's real estate market the showing appointment is mostly automated. Selling agents don't want to have conversations with agents who are representing buyers. That is a shame and not the case 100%, but it's high.

There are things that have to be discussed with the listing agent in order to do my home buyer's due diligence at my top level of which I'm capable.

These automated showings started before the pandemic was called 03/2020. They have only gotten bigger. Then we just found out that one of the mega real estate syndication companies bought one of the showing platforms. Imagine that data breach?

So many more spam calls, connecting phone numbers with addresses and emails with both - that's like buying a list of names, phone numbers, and addresses back in the 1980s to sell those people land. 

The current market is not finished morphing. I will tell you this, if you have someone who wants to buy your home from you, they will tell you they are going to save you money on commissions. They are going to save you money on repairs, and they are going to save you money on what you'd have to pay for escrow and title insurance. Basically, their offer is going to be so good that you will not want to go the route of a traditional real estate agent and listing to sell your home.

Let me work the numbers. After they pitch you and give you their number, call me and let me tell you if it's a good deal or not.

PDF for Valencia CA real estate market report 03152021 zip code 91355

PDF For Valencia CA real estate market report 03152021 zip code 91354

(these are the PDF reports for the Valencia CA real estate market. I wanted to show our clients my data mining approach to real estate, this pays off big dividends for home sellers in my market that utilize my services and those buyers who are looking to have the best possible advantage in a seller's market when working with me.)

I have had clients do this with me and they are typically $70-100,000.00 too low in their offering price and the $$$ they save they will save you would cover that and more, putting more money in your pocket if you were to just have us sell your home traditionally.

And as far as the pitch regarding repairs and renovations. These are negotiated items folks. They are nothing to sweat over and in a seller's market buyers are not expecting much depending on their personal experiences.

So, sellers watch out for "we will buy your house" scams. 

Buyers, watch out for those "phone calls" and spam inquiries that have hunted you down on your social media.

Once you start asking questions to your friends on social media about real estate, you are going to be contacted. You will be sold to several, if not more service providers and your phone and email won't start filling up.

Some of those social media systems look as if they were built for our pleasure, but our pleasure equates to money and it's huge in amounts. You are worth more than you may know.

Current housing numbers in Santa Clarita Monday, March 15, 2021

  • Total Active listing 165
  • Total coming soon listings 29
  • Total number of homes that are in escrow 513
  • 81 homes sold in the past 7 days in all of the Santa Clarita Valley Cities
  • For my market update purposes: Santa Clarita consists of Acton, Agua Dulce, Castaic, Canyon Country, Newhall, Saugus, Stevenson Ranch, and Valencia.
  • I research all residential real estate, up to 4 units to 1. My Santa Clarita market data includes all Single-family homes, condominiums, and townhomes, plus those multi-unit (which are not very common in the SCV)

This is very typical and has been the case since January of 2021. Not much is different in the Santa Clarita real estate market as compared to last year.

We still have low inventory. We still have the pandemic. We still have a massive refinance market for those of you who own real estate and have a mortgage on said real estate.

Some of the differences come in the way of the problems solved. There is a vaccine, that may allow homes to be held open again. However, I heard on the wire this AM that some countries are refusing it - a lot of big named countries, that may cause a wrinkle in the blanket for sure.

There are those people who are wanting to sell and move thinking about the refinance they just completed.

If you have been considering selling or buying a home for any time at all or if it's your first time pondering, call me directly on my cell phone 661.400.1720 we will schedule a meeting and I'll listen to you and what your needs are and do my very best to keep you protected and serve you in the best way possible.

For the current Santa Clarita home seller who is on the market or in escrow, speak with your agent regarding anything I have spoken about on the Top Blog for Santa Clarita CA.

For those of you who are not committed to a real estate agent, I'm here. My phone is all over the search engines. It's at the top of my Santa Clarita home experts website.

All you have to do is call or text. I'll take it from there.

Buyers in Santa Clarita real estate.

If you don't like who you are working with, get to the bottom of your "why".

Buyers are no longer getting the pick of the litter

There are certain "allowances" that are made in a seller's market by home buyers. The same works out in a Buyers market, with certain allowances that sellers have to make.

Those allowances in a home seller's market for a home buyer maybe the fact they need to reduce their inspection times in order to stay competitive with the other buyers. They may need to increase their initial deposit amount to show the seller their seriousness (there is more to explain with this one - ask when we meet), it could also be the home buyers wanted to waive their appraisal value and pay the difference between that the appraiser said and what the buyer offered, if the "offering" amount is higher.

If the one hits in this market, all a buyer can do is their best. They need to have a top negotiator hired as their agent, someone with a ton of experience in markets like this, and they need to have their financials all lined up in a row with their underwriter's approval letter in hand for the specific offering amount. They also need to have an agreement from their lender that their lender will call the listing agent who is representing the seller to have a conversation with them about how "overly qualified" the buyers are if that is the case.

After you do all of your due diligence and after you prepare in the right way to buy a home in a market such as this, if you don't get the home that you wanted, then it was not meant to be.

That is the way you have to accept it. Any other way is futile, I promise. We have been here before.

I'm Connor with Honor at REMAX and I'm the local Santa Clarita, home expert.

When you are ready reach out to me and I'll be by your side to protect and serve your real estate interests.

"Connor with HONOR, over and out!"