Santa Clarita real estate expert market update by Connor MacIvor at RE/MAX Realtors.
Below is the show transcription. I have also included some of the links to the various blog posts that I referenced during this video pertaining to the Santa Clarita real estate market. Our blog is the top in the Santa Clarita Valley cities, amongst all of the other blogs, whether they speak about the city, have a guide, or are produced by other real estate agents.
The reason why I'm at the top of that google page for Santa Clarita Blog is because of all of the work I do on a daily basis updating the Santa Clarita Valley communities pertaining to the current state of the local housing market.
It's not easy, but it is rewarding. To go out in public and have people throw marshmallows at me, it's really exciting.
"Not marshmallows that are on fire - that would be bad..."
When you are ready, you can reach out to me personally and I will take great care of you pertaining to any and all of your real estate needs.
Our first best step as it pertains to you getting what you want out of your real estate endeavor is a first time meeting. One of those face to face types so we can see if we are going to be able to make a good go of it.
It could be that you meet me and are not a fan. It could be the same on my side, you could be just a terrible person.
Believe it or not, that has not happened yet, it's only been since 1998, so maybe it will soon.
I'm Connor with HONOR, I'm the Santa Clarita home expert and I'm glad to be of great service in the protection and service to your real estate needs.
When ready, call me directly.
Here is the longest-running Santa Clarita real estate radio show transcription.
Connor Macivor (00:00):
How's that for a little bit of cheese. Good for everybody. Connor MacGyver here, Santa Clarita home experts. We're going to get into the market and also the last week of activity at the Santa create a real estate expert blog. All you have to do is go to Google search and search for Santa Clarita real estate, bog blog, Santa CLIA real estate expert blogger, even Santa Clarita blog. You'll be able to pull it up. Just make sure you're at the right place and there you'll see a ton of videos. There'll be one after another. Typically, a lot of the articles that I do write regarding the Santa Clarita Valley market, of course, Mondo a video of I've also produced and also those videos. Typically they're going to be uploaded to YouTube and also our personal video, a storage system, and video presentation. The place is going to be bomb bombs. It's really, really awesome.
Connor Macivor (00:51):
If you want to get into that. If you want more information on that, please let me know. So we are going to do this. We're going to go to our main website. We're going to look at the real estate news. Currently, we're Friday, March six this is your Friday phenolic broadcast typically where I take all of the real estate data for the last week and I put it into one timely show to give you an idea. If you're contemplating buying real estate, thinking about selling real estate, where potentially you should be now in this market and also in your thought process, do this. Never rush into anything, especially when it involves hundreds of thousands of dollars. Always give yourself that honor. In addition to that, before you embark on any real estate adventure, you want to make sure that you're dealing with someone on the other side, a real estate professional, somebody that's been in the business a while also that has multiple, I would venture to say hundreds of transactions under their belt because realistically you go to the school, it's just like the LAPD Police Academy.
Connor Macivor (02:05):
They teach you enough there to get out on the street and not make a complete idiot of yourself. However, there's a lot of other learning and as your training officers used to tell us or you used to tell us, they used to say, you learned everything in the Academy that they get to teach you, but now we're going to show you how they, the real way that it's done and in real estate, it's kind of the same way you go to the school and then after you go to the school, then you get in the field and you start representing buyers and sellers and everything that you learned in the school. Almost everything. It's not applicable. The how to treat people thing, of course, honor and respect and truth. All of those things should always be very prevalent in the way that real estate agent operates, but you can't even call that when approaching real estate.
Connor Macivor (02:58):
You want to deal with someone that has those attributes that I talked about but also is willing to have you come in, sit down for no exchange of a promise of business, no exchange of money, no exchange of you signing something, stating that you will give this agent your allegiance when it comes time to buy or sell real estate. Just to actually sit down and explain to you how the entire thing works. Even if you'd done it before the market changes, the world changes and in real estate, if you're in the business, you know contracts change all the time, lots of revisions. Whenever you're purchasing a house, there are over 40 disclosures that come with just a very simple residential purchase agreement for a very simple home. Welcome to California. So knowing that going in, being best prepared and speaking with somebody that's going to take that time with you, whether you're buying or selling, whether you're just thinking about buying or selling, maybe you're thinking about buying or selling when you graduate college in 2021 depending on if you score that job at the Sunkist orange factory or whatever it may be.
Connor Macivor (04:14):
That's the trick. So that's what you need starting out. All right, so I'm running a, our PR particular real estate website, Santa Clarita, home experts.com didn't come the first time. Now it's up at the very top of this screen. I'm going to click on the blog and we'll talk about a few items that we have posted recently. Now, if you go to our YouTube channel, youtube.com and I'll put that, well, if you're watching this video, your honor YouTube channel, right? So look at our other videos. We've put some together recently that really help put it together for real estate buyers. At least start to have those buyers question in the right way because really when you're approaching real estate, being a buyer or seller, you might not be asking those right questions just because you don't know what questions you should be asking. It used to be with regard to termite, for example, those pest control issues, that rotten wood on houses, those sorts of things, that used to be the responsibility of the seller.
Connor Macivor (05:18):
Now it's negotiable. In fact, it used to be that the seller hired the termite company to go and do the inspection. Well, things happen. Potentially a lawsuit occurred because the seller wants to sell their house. They hire the termite company, they might have an in with them. The termite company gives a report that might not be accurate. You see the appearance. So now the way that it works because of a change, very simple change. The buyer now hires that company to do that investigation on their behalf at the residents that they want to. So because of that, it's changed the dynamic in the real estate market where now that becomes negotiable. That's something that both parties can now try to work out amongst themselves. The seller and the buyer. Real estate changes that way. And you'll see by some of those videos we put together the way, the best way to approach it and asking those questions.
Connor Macivor (06:21):
Because if you go to a property and you're looking, if you're with a good agent, they're going to point that out and they're going to say, well, these are issues up here that you can see on the, on these beams or at the underside of the roof there and the risers, wherever it may be. You see this damage visibly. You're not termite experts, I would assume as I'm not either, but I've seen enough where that's going to be something that's going to have to have extra attention paid to it and we need to see how deep it goes. If you're looking at it on the surface, more than likely it's probably more than that and your neck had. I just am not able to reveal those other issues that are going on with that part of the property. So the videos do help, so please look at those.
Connor Macivor (07:03):
Santa Clarita real estate, excuse me, Santa Clarita, home experts.com forward slash. Blog. The first one that we put together, this is the most recent, are we've had a lot of sellers interview other agents and then we go to their house. Depending on how their house looks. For the most part, there's not a lot that they have to do to prepare for sale, but the other agents are telling them that they have to do a, B, and C. they're gonna have to repaint, they're going to have to remodel, they're going to have to change out some items. So we're talking, you know, a lot of money, five, seven, 10, $15,000 of work that needs to be done prior to the home being put on the market. My question is, and I would have it to those other agents in this market, real estate moving, it's not stagnant. There are a lot of buyers out there because of the ultra low-interest-rate because the impact on the stock market is in blazing.
Connor Macivor (07:56):
Is that a word? Making the bond market stronger. So interest rates are dropping. That's that worked. That's the mechanism. Now, if a seller wants to sell their house, why are they getting the advice that they need to put all this into it when their house is going to be the only one for sale, and if you factor out the number, let's say it's a $10,000 price tag for the seller to best prepare their home for sale, how much of that $10,000 are they going to get back? All of it? Well, you know, in the summer you might get half of what a pool costs. If a pool, if there is a home that you're purchasing with a pool, that seller might get about half of the entire cost of that pool, maybe three quarters. It just depends on the market. If it's a buyer's market, they're going to get less.
Connor Macivor (08:47):
Currently, in Santa Clarita Valley, all the cities, acronym Aqua, it'll say Canyon country cast egg, new whole saga. Stevens, Rancho, Valencia. We're in a seller's market. We had been for quite a while. The bottom of the Santa Clarita market was the end of 2011 beginning of 2012 now we are currently still in a seller's market, very little element, very little inventory, 320 units for sale, all total in all those cities including single-family town, home condo. That's it that that's hardly anything and the way that we gauge whether that's hardly anything or not is the speed at which the homes are actually going and selling, going into escrow and then closing. So it kind of three components the offers written from the buyer back and forth, maybe a little bit of negotiation. Finally, the parties agree to the seller and the buyer and then that property goes into escrow.
Connor Macivor (09:48):
The buyer gets to do all their investigations. Hopefully, they'll have a really good guide as to who they need to hire to do these investigations. They move through, they get reports, they have discovered, they find out other things. They see what the seller had written about their home after living there for so many years. The things they've done. The buyer might have further clarification questions and then the buyer potentially might find health and safety issues that they want the seller to address. So then they write a document or their agent writes in on their behalf or requests for repair. And that goes over to the seller. Even in a seller's market, usually health and safety issues like electrical problems, uh, outlets that are too close to sings that have failing, uh, ground fault interruption circuits, maybe those aren't working. For example, you plug a hairdryer into a, drop it into the water and because it's not working, that circuit's not gonna stop working.
Connor Macivor (10:57):
It's going to continue so that water is going to be charged with the voltage from the houses. So on. That's not a good situation itself. It's safe. Maybe in the house, there's no smoke alarms or carbon monoxide, which required, again, those are things that need to be attended to. But at this particular point, those requests are put in writing and then the seller response, now they might do it themselves or they might throw money at it. Usually. And this is advice that we give sellers. If they offer money first, we'd want to get some kind of a receipt, right? We're not just going to go throw blind money at somebody and say, here, no problem. We kind of want an idea. If they want a thousand dollar credit for two smoke detectors
Connor Macivor (11:41):
at Costco, I think they're, you know, 30 40 bucks for a couple. So if they want that much money, then, of course, they're reaching, right? But if, if it's an electrical issue, which looks like it's going to be three or $400 to get there, maybe there's something wrong with the hot water heater and the way that it's functioning. Maybe it has to be completely replaced. Maybe it's failing, those types of things. Yeah, they get pricing. So then the buyer comes back and sometimes the seller will say, yes, we're going to do it, or no, we're not. Or we always ask that the seller has whatever we're asking for done by somebody who's licensed, professional, knowledgeable, those sorts of things. Right. Instead of having cousin Cooter come over and fix it because he saw a class at home Depot. No offense to anybody named Cooter or your cousins or anybody else.
Connor Macivor (12:27):
For people that go to Home Depot and learn how to do things, but a professional, somebody licensed, bonded, insured just in case would be really fit the bill nicely, but sometimes they don't. But then on the other side is the seller might see, you know what? We're going to go ahead and give you a $300 credit that's going to take care of it. If the buyer agrees, then now the buyer owns it because now the buyer has to go out and hire their own consummate professional but can't come back after the seller and say, well, you hire this guy because they didn't hire anybody. All they did was credit the buyer a certain amount of money. These things happen within an escrow and then finally after that, after all that negotiation, the buyer wants to continue to move forward. Usually, if the seller's agent is worth their salt, they'll have their client issue, the seller issue to the buyer.
Connor Macivor (13:19):
Basically a document that States still wants to buy the house. You've had an opportunity to do all of your investigations, all of your inspections. Your loan is good, you're in place, you still want to buy the house, so I'm going to ask you to remove all of your contingencies and the contingencies are going to be things like loan inspection, disclosures, those sorts of things. So if the buyer at that time and if they have a good agent, the agent's not going to throw this at them or send it to them to sign digitally without explaining it. They're going to say, this document here is that one that we've talked about before. This document is the one that once you sign it, then at that particular point you cancel the escrow. You do not recover your earnest money deposit. The deposit was that money at the very beginning of the process, the 5,000 or 10,000 or $15,000 that belongs to the buyer that's put into escrow and it's still the buyer's property.
Connor Macivor (14:31):
Now that's that money. So if you remove your contingencies, which is required and you agree to that in the contract at the beginning that after a certain amount of time, 21 days for the loan, 17 days for inspections, that's the way the contract's written. That can be compressed by counteroffer in the dealings in the very beginning. Right? So they can negotiate that. An agent could come back and say, instead of giving you 17 days for this and 21 days from the loan, we're going to give you 10 days for inspections and 15 days for your loan. But at that point, that's when the removal of contingencies is sent by this seller's agent to the buyer's agent then presented to you as the buyer. Once you sign it, that's it. So anyway, then escrow continues. If you do sign it, it's done and it's going to close whenever pretty much whatever the lender gets it all done.
Connor Macivor (15:26):
And usually, the date that everybody kind of agrees to it closing usually pretty close plus or minus a couple of days if the lender needs stuff. And this is very frustrating to a lot of buyers. Their agents don't tell them that the lender is going to come up with things that they need. The same documents they had before that they've requested before that you've turned over before. They're going to have further requests for those same documents, but they're looking for to date, um, examples, employment verification. It used to be before the fall of the last market, there wasn't a lot. Dot as far as investigations with buyers. Really? Yeah. They would kind of take the buyers word for it, you know, in a way they had to provide some things, but it wasn't like the credit was run the day before the closing of escrow. Now for you buyers out there, it does happen that way.
Connor Macivor (16:24):
So be careful what you buy. Employment verification could come up at the last minute. It could delay everything because now all of a sudden you're running around crazy. You've got to go to your personality department. A lot of times when you go there, they're not really user-friendly. They're not like, Oh my gosh, Connor, thank God you came in. I have it right here. No sweat. It might take a couple of days. So it takes a while if in fact the lender is requesting and it's not realistically the lender themselves, it's going to be their underwriter or other people within their organization or the entity that's going to be unloading the money. So they will be those that are going to be requesting these documents. Once that's fulfilled and it's all settled, then, in fact, it can close escrow. So that's the way that that mechanism works. So once it does though, you know the question is, is you know what next?
Connor Macivor (17:19):
The videos that we put together and a lot of these people are telling their clients kind of to come back first full circle. They're telling their clients that the sellers out there that are interviewing them, you know, they're giving them a real high unrealistic price for their house. Okay? They're just trying to win the contract. They want them to sign the contract right then and there and then they use network meetings. They use other key things that people really don't know much about in order to pressure them. For example, if I show up to your house on a Monday, if I was one of those, I would say, well thank God I'm here today because tomorrow, you know, is the biggest network meeting real estate. All the top real estate agents are going to be there and we're going to go to Valencia country club and we're going to go in there and we're going to, I'm going to pitch your house, I'm going to get up there in front of thousands of agents and I'm almost on a stage like at a very Manilow concert.
Connor Macivor (18:14):
I don't know if that's a thing and I'm going to pitch your listing. So we've got God this great Valencia house coming on the market got under contract. It's not going to be on the market for a couple of months, but I will give you a heads up if you want to see it again. Then you find out that the meeting isn't going to even take place till three weeks from that particular day. But again, these are pressure tactics and no fall for it. Uh, we had uh, an appointment last week and I told the clients, cause I knew they were interviewing others, no offense to the other agents out there, but I told them if they bring a contract, I don't do that because I believe I can stand on my own wherewithal and after people have a, have time to think about how I've presented, how I've spoken, the things that I've provided, I believe they can make a really good decision when some lose some when most lose a few.
Connor Macivor (19:07):
But it does happen. But at the end of the day they called me back and I said, yeah, you were 100% right on everything you said. That agent was going to say that's how the industry works. That's a majority of them were the minority and the way that we operate. So it's the videos. So hence the education because you knowing to go in is incredibly important. You're about to spend hundreds of thousands of dollars. You're about to spend so much money. It's going to take you 30 years to pay off. And if you're a seller, you're about to sell something as expensive. And then you have a few other items to be concerned about because you might want to sell and move somewhere else. Are you going to be able to do that and how does that mechanism work? I did another video on that here as well, so the first one that we put up on our blog lately talking to sellers out there, and again, agents are telling them they have to do this, this and this.
Connor Macivor (20:04):
You have to look at the market. You have to look at your competition. If there are five houses for sale that are your exact floor plan, I have everything your house has, but the other five had been updated to the max. You're going to either have to match that by updating your house or just expect to get less typically possibly than those houses are going to get. As far as offers, that's it and if there aren't any others on the market, you are putting money into yours depending on the issues. I mean if the seal is falling down, there are holes in the walls. Yeah, we're going to have to fix that. We have to address those things, but if it's about just a little bit of wear and tear, you're not going to get the money back for that. If it's touch a page, sure, yeah, a little bit. Why not? But if it's repainting entire walls,
Connor Macivor (20:56):
again, if those walls aren't attracting from the overall scheme of the house, and a good agent can tell you that there's no point in addressing it, there's no point in moving forward with it because most buyers are going to come in and what do what paint? They want to paint it their color scheme. Even if the house is neutral, especially if the house is neutral, but if maybe there's a focus wall, some or whatever, they're going repaint that as well. Part of the process. So just don't bite off too much and respect yourself, I guess. That's good. Good point. Alright, so then we talked about, I'd put this video here fit to sell. You can see that Senate, it's the first one. It's going to come up. Then we put in our online marketing plan for Santa Clarita home experts. It's quite lengthy, but it's awesome.
Connor Macivor (21:42):
Now what I did for you sellers out there, this video was produced this week. The title is going to be a solution. I'll put these links for each of these things down below in the YouTube video. If you're watching this on BombBomb, sorry, it's not there. Go to our YouTube channel. SCV moves, S CV, M, O, V, E, S and you'll be able to see all of them. But this one here talking to sellers, because a lot of sellers aren't putting their home on the market. They want to move up, size, downsize, you know, a horizontal whatever they want to move, but they're not seeing the house that they want to buy for sale. So I explained to them they're kind of behind. They would be doing it back if they weren't listing their home for sale first. But what does that sound like? Well, that sounds like a sales gimmick in order to get the house under contract.
Connor Macivor (22:33):
So I can score big, but at the end of the day, this is what I explained, just like the video, I'll give you a little piece of it, but you can go watch the video in its entirety to see more. And it's titled the problem with low housing inventory for potential home sellers. Whenever there's little inventory, they're looking online, they're not seeing a plethora of homes that are going to fit their criteria that they want to buy. So what they do, and if I'm representing one of these sellers, we have their house on the market. If a buyer comes in and we find out that buyer, like my sellers, right, we're going to be contingent on selling their home before they can buy it. Another one closing both at the same time. That works as well too, but they have to do that. But I talked to the other agents seeing their contingent offer from this buyer is I'm presenting to my seller.
Connor Macivor (23:21):
I've already had the discussion and I tell my clients we can't accept it because they didn't even put their house on the market yet and I wouldn't, I wouldn't accept it because then it's going to take my client's house off the market and if we get other offers, it's going to kind of, there's a mechanism to, to accept those. But again, it's not going to get the same exposure. So the thing is this, the best is to start with your home on the market. And then if you don't, if you get a buyer that agrees with all your terms, great, then now you can start looking. And if you don't find the house that you want to buy, if it never reveals itself, you've lost nothing. Everything gets canceled and you retain your house and that buyer has to go away and then you're fine.
Connor Macivor (24:14):
That's how that works. The video has a lot more in it, a little bit more intricacy, so please check that out. But that's something to look at. Ah, so then I also did the high-pressure real estate tactic video, which was what I talked about earlier about coming over to the house. We have this big meeting tomorrow, so on and so forth, and I wrote a lot about that also so you could check it out. I also talked about the low inventory and that's been very persistent since about last October, but we've had historically a little inventory for the past few years. Now it's getting even worse. As I was going to explain before, the way that that's factored is the current movement in the Santa Clarita market. For example, if we have a certain what's called absorption rate, X number of homes are selling every month, we look at that number.
Connor Macivor (25:08):
Then we look at the number of homes that are currently on the market, so we remove the factor of extra buyers coming in and just take those two, 300 houses are selling every month. We have 300 units on the market for sale. That being the case, how long would it take for those 300 units to get to zero? One month? That's the absorption rate. Of course, it's dynamics, so more listings are being added every day. Well, hopefully, they are at least now we probably 12 to 20 every week, but those houses are beetles are up to, so right now with our current inventory at the rate of them being purchased were somewhere about a month to a month and a half before getting to zero if we weren't to have all of these other properties added to the mix coming on the market for sale, that's not a great market. Healthy is more like six to eight to 10 months of inventory, but that would also swing the pendulum instead of being in a seller's market where we currently are, it would probably more equal out to be between a seller's and a buyer's market. If we were to have a thousand to 1500 units for them on the market for sale, then that needle, the pendulum would definitely be over on the buyer's market side, but currently, it's a very strong seller's market. I'm Connor MacGyver. This has been your Friday finale broadcast, and this is your YouTube videos, so I appreciate you staring at me for the last 2030 minutes. If you need me, I'm here. We're at the beginning of March, March 6th of 2020 I'm Connor MacGyver. Tell a friend over and out.
Connor Macivor (26:54):
It's always finding the stop button. That's the trick. Be safe.