Santa Clarita real estate radio episode #2021-026!
Does it ever stop? So much pressure, it's surprising that anything gets done at all. I remember one of my first bosses speaking in this tone, well, always.
Maybe it was how he was wired. Maybe it was his "Niche phrase". Maybe he did not know how good he had it?
Real Estate is full of fast-talking types. So many who personally seems to be on a mission to score one more deal, to sell one more home, or to do that one more thing.
There are hard-chargers who are there for their clients at an "industrial heightened" level, and there are those who don't have their client's best interest at heart.
I'm Connor MacIvor with REMAX Gateway HQ'd in the Santa Clarita Valley CA. I'm here for you when you are ready.
Here is the weak transcription that I include with my videos and Santa Clarita real estate radio shows.
Connor MacIvor Santa Clarita home experts radio (00:01):
Good to everybody. I am Connor MacGyver. Today's January 26, 2021. I want to talk to you about real estate and some of the emotional problems that people are running into. Of course, all real estate transactions. If at all possible should be dealt with like a business transaction, one professional to another you're a home buyer. You want to deal with the home seller on a professional basis, not to let your emotions get involved. Same thing with home sellers. You want to try to deal with buyers from a professional point of view, professional standpoint because once you start to tie emotions and feelings to the transactions, I think people start to make mistakes and it could equate to the buyer may be walking. Not that they're trying to blackmail you into fixing or repairing or giving them a credit, but they could potentially walk. Or on the other side, the buyer, you might not be able to get what you really want from the seller or need from the seller in the way of credits or repairs or those sorts of things.
Connor MacIvor Santa Clarita home experts radio (01:02):
So it's important that you have a good representative. That's able to talk you off the ledge if you happen to get tied up. But what I find is this first and foremost, the biggest problem that both buyers and sellers have, isn't really their fault. It's the fault of the people that they've chosen to represent them. The people that they've chosen, the real estate agent or Zillow or Redfin or whatever, aren't informing them about the entire process. They're not explaining the a to Z of the real estate. What potentially could happen, what problems could arise, what things that we're going to be looking out for to best protect the sellers and buyers. One of the things that are most misunderstood on both behalf of both parties happens to be when a buyer can back out of the transaction, being able to retain his entirety posit and have that return to them.
Connor MacIvor Santa Clarita home experts radio (01:55):
Sellers are misinformed about that. Part of the process. Buyers are also misinformed. Unfortunately, some of these reasons are selfish in nature. At the end of the day, of course, nobody wants to have a transaction fall apart, but when there's something wrong or a miss, or if the purchase is deemed by another professional, not to maybe be a good idea. I think that a professional step forward should step forward and say something. If it does come down to a disclosure issue, I E something discovered about the seller's house, which happens from time to time, unbeknownst to the seller, the seller might've lived there 30 years, but didn't, wasn't aware that there was a leak inside of one of the walls that caused this mold that the buyer's home inspector discovered so on and so forth. Again, those things have to be remedied. So what happens is a lot of times the associate, well, that's just a little, or I've been living with that for 30 years and that's fine.
Connor MacIvor Santa Clarita home experts radio (02:50):
You have, but now you're selling your house. Is the buyer okay with it or not? If the buyer's not okay with it, that's fine. Do you have to fix it? No, you really don't have to do anything. Your house is being sold as-is unless you've great and contract to fix these items. If they do happen to come up, but if not have to talk to an attorney, but really at the end of the day, more than likely you really don't have to do anything you don't want as a seller. The problem is now it has to be disclosed. So now this has been brought forward by this buyer. Let's say you're going to get emotionally involved in angry and tied up and say, you know what? I'm going to go ahead and cancel this with this buyer. Or I'm not going to give the buyer what they want.
Connor MacIvor Santa Clarita home experts radio (03:33):
Therefore, that buyer potentially is going to cancel the walk away. I had plenty of offers on my property. I'm sure they're all, y'all still waiting in the wings to buy it because it's a great house. The problem is now you have to disclose that there was mold or some substance that looks like mold discovered in your property. What if that buyer's not okay with it? What if that buyer wants it? Remediated tested, remediated, taken care of what if they want a credit to do so, those sorts of things, there's a lot to look at. Also, it could be that it's not the buyer's decision. What if the appraiser catches on or finds out or learns or discovers things in the property where his lender, the bank that the buyer's getting the loan from? What if they're not willing to purchase a property that's missing flooring or maybe has holes in the walls or is missing a dishwasher that was removed at one time in the history, but they're leaving an open space there.
Connor MacIvor Santa Clarita home experts radio (04:36):
These things do come up and depending on the loan, the appraiser, their guidelines could depend on whether or not they're going to approve. It may be the seller did a beautiful garage conversion, but in the appraisal guidelines for that particular loan, the house can't have a garage conversion. What now? Well, it's going to probably cut out all of the people in the future that might come to the house and say, we have that same type of loan, or we have this loan. You look and say, well, that's the same type of loan. The last buyer hat, for example, VA and FHA, there are certain required garments and rules with those loans, those appraisers come to amount to a property. And if memory serves those properties, get a tag that keeps that appraisal alive and active on this particular piece of real estate for six months. So let's say you, as a seller is in contract with a veteran buyer and FHA buyer, something falls apart in the transaction.
Connor MacIvor Santa Clarita home experts radio (05:35):
The buyer decides not to move forward. You decide to remarket your property and put it back. The next FHA buyer that comes and writes an offer, they're going to be tied to that same appraisal. So if it wasn't an appraisal thing that had you have that transaction not go through, be it your choice buyer's choice. Couldn't agree. Couldn't come up with, uh, something that was a win-win for both parties. At the end of the day, you're going to be tied to that appraisal for a few months, same with VA. So these are all things that a good agent is going to explain to you. And as a real estate buyer, a lot of buyers are concerned. Well, what if I find something I don't like in the property, then we'll approach the seller. We'll say, Hey, Mr. And Mrs. Seller, I know you want to sell your house.
Connor MacIvor Santa Clarita home experts radio (06:21):
This is what the buyer's inspector discovered. The buyer has issues with it because of small children, old children, elderly people, them, themselves, bad dreams, whatever it may be. But again, you go to the seller and you ask if the end of the day of all parties are treating this as a business proposition and not emotional in nature. I believe that everybody's going to survive the process and actually be a lot better off because once people start looking at things from an emotional standpoint, big mistakes are made and I will throw myself and my colleagues and real estate under the bus as well. A lot of agents make the mistake of getting emotionally involved also. So to have a representative, somebody you trust somebody that you've put your faith in representing you. And all they're doing is constantly stirring the pot or engaging you in nonsense banter, Guinea, you angry on angrier, who does that
Speaker 2 (07:20):
Help? Didn't help anybody.
Connor MacIvor Santa Clarita home experts radio (07:22):
So it's a massive mistake that does occur from time to time. So if you're working with that kind of real estate agent, cut it off, I'd go somewhere else. Because what you want is you want that calm in the storm. You want that person, that's going to talk you down off that ledge. You want that person. That's going to tell you if you happen to be a real estate buyer in this particular type of market like I said,
we're January 26, 2021. So we have very little inventory and each property, if it's priced in between this particular price range in Santa Clarita is going out with multiple offers in the twenties for the most part. And in some cases, those properties are selling for 50, 60, and $70,000 higher than the list price. And the list price was based on good, fair comparable properties. What happens in that regard?
Connor MacIvor Santa Clarita home experts radio (08:15):
Well, right now, most everybody is being countered. At least the best of the officer being countered. So if you have one of the best that was submitted by your agent, you're probably going to get a counter back that says what's your best and highest offer. Well, that's again, not emotional it's business. If you were selling the house, your house and you had all these offers coming in, you would want to go through the same scenario. I would think because it's business at the end of the day, you want the most qualified buyer that has established the best terms for you as a seller, especially when you have all this competition who's to offer you the most amount for your property. That's at the end of the day, I believe what a seller in this market's looking for. If there are 50 properties now in competition with your house, then that's going to change the buyer's going to be able to call those shots.
Connor MacIvor Santa Clarita home experts radio (09:10):
The buyer is going to be able to ask for things that a buyer in this current market wouldn't be able to ask for and get away with. So the thing is this, no, the market has your agent. Explain it to you. You as buyers out there, don't panic. There's a game to be played. Unfortunately on all sides, the seller wants to get the most amount of money for their property. And you, as the buyer want to get the best deal possible. The thing that is causing this market to continue to increase in value. Isn't now the appraisal or the appraiser standard or the appraisal standards out there, or the appraisers themselves. What most people are doing in this market today is the buyers within the contract. When they're making that offer, excuse me, prior to getting into a contract, when they're making the offer, they're more than willing to waive their appraisal contingency.
Connor MacIvor Santa Clarita home experts radio (10:03):
And they're more than willing to offer up. We will pay the difference between what the appraised value is and what we offered on the property. That happens a lot. And for a lot of buyers, that's a tough pill to swallow because there's not a lot of people. It's not a hundred percent of buyers out there who are willing to say, I don't care what it costs. I want to buy this house. It's important to know that's how the market is. I do foresee this loosening up here over the next couple of months, two, three months. Remember it looks like from what I've seen, the governor of the state of California, it looks like we're going to start opening things up and it looks like COVID might be something that's about to go away. I'm not sure how all of that changed. We'll see how that, where that gets us in the next couple of months.
Connor MacIvor Santa Clarita home experts radio (10:53):
But if that is true, and if that is the case, there are a ton of people out there that are waiting to put their homes on the market. And this all goes back to 2020. We look at the first quarter of 2020 as we got into March, we were on record to set some records that we hadn't seen in the listing of real estate over the
last previous four years. From that point, once COVID happened though, as the seller said, Oh my gosh, can't sell right now. We have to figure out what's going on in the market. And then of course we had the pandemic. We had the lockdowns, we had all these other things. So properties really became restrictive, not a lot out there for sale. Now we move into 2021 where we have the politicians telling us that it's all going to be calmed down.
Connor MacIvor Santa Clarita home experts radio (11:43):
A lot of those people that wanted to sell last year, that didn't, they're going to start putting those homes on the market. And I believe that's going to start potentially leveling the playing field from where properties are currently priced. And with the lack of, I believe we're going to start seeing more coming onto the market here in the last, next few months, those properties didn't last year. The question is, is that going to be enough real estate, enough listings, and price ranges out there to be able to give buyers more choice six seven. And if that is the case, are there still enough buyers out there to absorb that inventory quickly within two, three, four days as there is now? And if not, then what's going to happen. Is the needle's going to go from being a full seller's market and start to creep back maybe a little bit more evenly between a seller and a buyer's market.
Connor MacIvor Santa Clarita home experts radio (12:34):
I believe we're going to have to get 10 times the inventory over a thousand or 1500 units for sale before it actually flipped that needle all the way back into the buyer's market, where it starts to take three, four, five months to sell a piece of real estate. Now interest rates are incredibly low and the twos and to go any lower, I don't think could happen. And right now we're seeing that there are multiple offers on properties and very, very little inventory. I'm Connor MacGyver. That's a little bit of talking you off the ledge as a real estate buyer seller again, get what you want. Don't get tied up emotionally, but go in with a professional so they can explain to you what to expect, because the worst thing to happen is to be blindsided by something you didn't think was going to happen or didn't have any idea about.
Connor MacIvor Santa Clarita home experts radio (13:30):
So when I talked to my clients, I explained to them in the story, had a client a couple of weeks ago that did this, had a client this week that this happened to, I had another agent and I was talking, he had a buyer that experienced this. So you take, I've been at since 98, you take those 20 plus years of experience and you add that with today's market. That's what you need is somebody that'll explain that process. Then you can make your decision. And if you still want to be emotional, then you can be emotional. Hopefully, your agent has the wherewithal to be able to be that calm in the storm that the agent needs to be. And that's what working with a true professional is all about, about I'm Connor MacGyver. Thank you so much. You can visit us online, Santa Clarita, home experts.com. It's always a pleasure. And I don't think I'm on a diet. I think I'm just, just going to leave it and we'll see where we go. It's been about a week so far, so we'll check it out and let me know what you think. If you want other topics talked about, please reach out to me. Connor MacGyver. Yeah. gmail.com. You'll be able to find it on set Saturday. Great home experts. I'm here. Give me a call. Connor MacGyver over and out.