I'm touchy and feely to a point, that is as it concerns my clients, home buyers, and home sellers here in the Santa Clarita Valley and in Southern California that I have known, know, and will come to know.
The biggest help has been the patience exhibited by all, but that is not without some qualification.
In order for a person not to be "surprised," they have to be well informed.
This is a hard market for a home buyer. I will not allow my clients to delude themselves.
I wrote a review for a doctor that I went to this morning to get my physical at 51 years old. He was straightforward, he had a balanced bedside manner, but rude he wasn't.
There was another reviewer and prompted me to step forward with a written down survey of my own experience.
Santa Clarita blog by the Home Expert Connor (00:00):
That everybody Connor MacGyvered. I do want to give a few snippets for this week's real estate radio showing broadcast Santa Clarita, home experts.com. Today's February, March 12th. Of course, 2021. Let's go to Santa Clara, home experts.com. You'll be able to see the blog there. If you are doing a Google search, trying to find our website and you go to Google, Santa Clarita, home experts, it's going to pop up top position. It just makes sure you do not click on any of the ads, because apparently that keyword, those keywords are pretty well demanded, high demand. So people are paying a lot of money to have those as clicks, or you're going to see now on that same page where organic results are, you're going to see results pertaining to, uh, ads. So they're going to going to be other mega websites. They're the big Zillows and real realtor dot coms.
Santa Clarita blog by the Home Expert Connor (00:48):
And so on the syndication sites that are going to be paying for placement. All right, so here we go. We'll go to Remax. Anyway, of course, Santa Clara, home experts.com and then forward slash blog gets you there, there, and we did a few updates here this last week, but I want to give you the highlights because you'll be able to read more and see more information pertaining to how the market's doing. And again, I'll be upfront and honest from the get-go. We are definitely still in a seller's market very much so there has been no break-in that, but let me tell you this, you might be a frustrated buyer out there, but properties are, we're still going into escrow. Things are still closing. Buyers are still becoming new homeowners. Sellers are still being selling and going and getting what they want. So it's still happening for people.
Santa Clarita blog by the Home Expert Connor (01:37):
Some of the price points though have increased quite a bit. And if you look back at 2007, uh, last foreclosure market that we had were overdue for that, if you believe in the ten-year cycles and also any kind of price adjustment, the weight overdue from that as well, if you believe also, well, we're about due, I guess now for that, if you look at a 10-year cycle, because the bottom of the Santa creative Valley market was the end of 2011, beginning of 2012. So I guess that would about correspond to where we are maybe a little bit later in the year, but to be able to have a price adjustment there haves to be several things working together to make that happen. And first and foremost is we're going to need either the buyer drive to stop. And I don't see that happening with the interest rates, still being very low in the threes.
Santa Clarita blog by the Home Expert Connor (02:25):
Now, high twos, threes. It depends on the credit of course, but with that, I don't see the big change happening as of yet, as far as inventory goes, I don't see those increases as well. So you couple those two things together. If you have a buyer drive that slows down, plus an increase in the number of properties that are listed for sale in the sign of creative Valley or wherever it is you happen to be searching for a real estate vineyard, see the market start to change in the way that properties are going to start selling for less than they currently are because now it's going to start taking longer to sell properties. And that adjustment that sellers have to go through from when they were, you know, at Starbucks meeting with me or at my office meeting with me, talking about how fast their property sold, how fast these things get into escrow, and then actually closed, you know, 30 days later with buyers asking for very little in the way of any type of request, as far as to even repairs, even health, and safety stuff.
Santa Clarita blog by the Home Expert Connor (03:23):
A lot of times buyers are just running through because they don't want to rock the boat at all. And again, if you have a good agent, there are definitely ways to do that without insulting anybody. But at the end of the day, buyers have a lot of rights when it comes to purchasing real estate. And I found over the years, doesn't hurt to ask. So kind of keep that in your toolbox when you do get to that point in your real estate transaction, if you happen to be in the market, whatever that is, it doesn't hurt to ask anything. You can always ask for things. The worst that they can say is no, we're not going to do it. They can't say, you know, no we're going to cancel because you asked you still have a right to ask. So please make that a point. Know that.
Santa Clarita blog by the Home Expert Connor (04:03):
So the five tips for Santa Clara to home sellers in their own market. And I did put this in here. I also linked to an article that I put together a few days ago regarding why do you need a real estate agent, especially in this market as a real estate seller. I'll talk to that in just a moment. I did. That's going to be one of the ones I covered today, but when you look at this, I gave those five reasons. So number one was, of course, check out the competition before spending money, a big driver. And I don't know what it is. I don't know if, if it's part of some kind of a sales pitch, maybe to get the sellers to want to hire a particular agent, but this always comes out at that initial walkthrough of the residence you have as a real estate agent, you go into a particular residence.
Santa Clarita blog by the Home Expert Connor (04:49):
You meet with the sellers, you guys sit down together and you make, you know, you look around the house, you start to make decisions as to, you know, what the seller should do to make their house look, maybe more presentable, a better case, best case. And as an agent, you'll have already looked at what that competition happens to be. So then you can speak from a pretty good point of advantage. You can say, well, these properties that I sent you, they're the closest in comparison to yours. They happened to be active and on the market. And if you'll notice you haven't done anything to your kitchen for the last 30 years, but each one of these has an upgrade. So these are, this is going to be the demand. And this is how we really set the price. We look at the neighborhood, we look at the com, the comparables, the ones that have sold.
Santa Clarita blog by the Home Expert Connor (05:31):
And we also look at the ones that are on market. And if we can get some good comparables with properties that have closed escrow in the last 30, 60, 90 days, and they have those same attributes as the other properties that you might be in competition with, and we have a lot more conversation to have, we have to figure out what is it going to be worth? Are they going to get any extra over the cost of what would be construction for you? If you happen to go redo the kitchen, or if you were to redo the bedroom, or if you were to, you know, attend or whatever your competition happens to be. But what if there is no other property that happens to be on the market in competition with you? That's this market today, you might see one come up. I know that we listed one on the circle, J ranch.
Santa Clarita blog by the Home Expert Connor (06:12):
Very recently, there was one of the streets that happened to be an escrow and one around the corner that happened to be in escrow, but both of those properties were pretty much finished. So those are excluded from the competition model. I talk about it with my sellers. So putting those aside, then we went to we'll look at those in a way with the other properties that have closed in the last 30, 60, 90 days, and
kind of see what they have and see where their price points are. But today where the markets different is even if an appraiser, I'm looking from an appraisal standard because in this market, we still have a lot of buyers going in steady. You know what? I know I'm gonna have an appraisal on the property. I know there's going to be an appraiser. That's going to be, you know, basically summoned by the lender that I happen to be using the appraiser's going to go to the property.
Santa Clarita blog by the Home Expert Connor (07:02):
The appraiser's going to look at it and going to look at all the comps in the neighborhood can establish value. He's going to tell me what the house is worth at the end of the day. It would be kind of neat if you weren't paying any more for the house and what the appraiser said, but this market's changed a little bit where we actually have buyers right out of the shoot because they're so incredibly frustrated in the market. The only way that they can get in is by offering above and beyond that listing price, then they take it further and they offer above and beyond what other values potentially could come in, maybe, uh, there are online estimates of value. So they look at the Z estimates out there that Zillow has, and they estimate from Trulia. And then Redfin's estimate and realtor.com system. And all these sites are carrying real estate estimates of value.
Santa Clarita blog by the Home Expert Connor (07:52):
And the bottom line is really the multiple listing services, the most secure way, the best way to get it. And you can see that by finding out what your home is worth by going to Santa Clarita, home experts.com. It's going to pull on the NLS data, but at the end of the day, that qualified professional, looking at your residence, sitting in front of you, and comparing it with everybody else, that's really the best way. So then you guys can make decisions as to what should be changed, if anything, right now, because there is very little competition on the market. And I was going to state this about the appraisal standard. The appraisers are going up to a certain point, but buyers, as they're going into residences, they're stating that I don't care what it appraises for. I'm going to give you this much money, even if it appraises for less, and how I'm going to do that as I'm going to inject cash into the transaction.
Santa Clarita blog by the Home Expert Connor (08:41):
So that's this market folks. That's Friday, March 12th, 2021. That's where we are. And you look at the 120 active listings that are on the market. All throughout a set of creative Valley. I'm not talking about land. I'm talking about single-family, condominiums, townhomes, acting awkward, all say, the country can stake sagas, new hall, Valencia Stevenson ranch. That's it. Hundred 20, 125 and fluctuates every few minutes. And the property's going to escrow. Some I give listed on the market, some actual closeout, and so on. So that's going to adjust that active inventory. Some of the properties go from closed, excuse me, active to closed. And some of the properties right out of the shoot, they're actually offered as coming soon listings. And I'll segue into that for a moment. The best way to see those is to get a search set by one of the local real estate professionals, such as myself.
Santa Clarita blog by the Home Expert Connor (09:37):
I do a, send me an email or give me a call and tell me your name. And I need an email address and say, this is what I'm looking for. Set me up on a coming soon search. So I'll be able to do that. Most of the agents are using that. Now that's fairly recent technology. Well, maybe not technology, a fairly recent addition to the multiple listing service algorithm. So we're able to actually go in and pull listings or enter them into the AMLs at 21 days, and then subsequently pull those listings and show our clients. Those are the ones that are going to be coming on the market again, 21 days or less as far as timeframes go. So
you'll be able to see it. So number one was checkout competition in that one, uh, shaping panic occurring lighting. I went into a kind of a thing I remember back in the day, as you know, 30 plus years, but dating before you went on a date, you kind of got prepared, right?
Santa Clarita blog by the Home Expert Connor (10:28):
There were things that needed to be done to be clean and take care of clothes and pressing. I don't see that really happening, but you want that with your house. You want to prepare your house for the showing as if somebody was going to come to date your house. And I have a lot of information on that and statistically, why that's definitely more advantageous. And that means you're going to have the house in such a way where they walk in the door. They can tell that you prepared it for them personally. So I did go into, uh, an explanation. Yeah, if you will, if some of those higher points what to look for and what to do as far as decluttering it showing off space, that's number three, focus cards, a number four focus cards. This is good because people see the attention to detail. And maybe even though they're going to walk through your house and potentially see maybe a double-sided, you know, Butler pantry with, you know, French inlaid glass doors, maybe they'll miss it.
Santa Clarita blog by the Home Expert Connor (11:22):
Maybe there's a tribute in that Butler's pantry that they might not notice. Maybe it has matching court tops to max the kitchen and the bathrooms or whatever it may be. Focus cards are cool. You have them printed up real nice. You can get your own font, go to Google docs. If you don't have a word processor, because that works fine and just choose a nice font. And you can, you know, write these cards out, put them in sheet protectors and get some of the masking tapes. So it doesn't hurt any of your paint. Then do those little circles, masking tape holders. They can put those pictures up anywhere. You have dimmer switches, you have sliders, you have, you know, particular, light fixtures. You're proud of led lights, uh, dimmers on those. If you have any kind of system that works with app controlling lights, front door, these are all good things to show off that might not be very apparent at first glance.
Santa Clarita blog by the Home Expert Connor (12:18):
So focus cards are cool these days, and that's going to be the difference between and your house is something else that happens to be on the market. Of course, listed by me. It's going to have focus cards then, and then here's finally number five on that particular post. And this one really rings true to a lot of sellers out there. If you bought your house 20, 30 years ago, now you're thinking about selling. Maybe now let's get out of Southern California here. Let's so let's go somewhere else. Or let's downsize, whatever AB there's going to be emotions involved. You lived in this house for a long time. I lived there, you know, 20, 30 years, there's going to be a lot of memories that have been there over the years. Now it comes time to move. And a lot of times people that we list houses that have been on that long haven't done much.
Santa Clarita blog by the Home Expert Connor (13:04):
And it depends on the person, right? So some people good like that. I know several of my friends, they're just kind of good at everything. You know, I'm the MacGyver, but I really, you know, I'm pretty good at what I do. But if I try to branch out and do something handyman, ask, uh, mess it up. Well, on the other hand, they're pretty good at everything. It seems, at least that's what they tell you. And that's what Facebook portrays them as. And you'll see that they do fix things. They do all these things on their own. Maybe you're not that way. Maybe you're the guy that just stays in his house for as long. And now
it comes time to sell it. There that'd be things that are going to be pointed out. Usually, that process starts with the home inspector, or if you want to hire your own pre-sale inspector to come out and do a write-up on your residents, that also works really well.
Santa Clarita blog by the Home Expert Connor (13:48):
And at least it gives you what to expect from the other end. And then that report, because it's not discoverable, it's something that you have to provide and it would be good to provide it because now that just gives us shows total transparency to a home buyer. Once they see that document, they're going to really, tie themselves closer to your home than maybe they would have before. And that's because that's so rarely done when they see it, that it means a lot to them because I also have my comments, I say, for a seller to do this, they're very confident in their residence and for a seller to do this. They're one of those people that don't try to hide anything under their sleeve. They're not trying to hand an ACE or a risk to an ACE or sleeve and ACE. They're going to show you their hand and people like that a lot.
Santa Clarita blog by the Home Expert Connor (14:35):
Yeah. When you look at those properties, don't get offended. It's all business. It should all be a business transaction to you. And if you're working with me, I remind my sellers of that because emotions do run high. When you're talking about high-stakes games, lots of money. And especially you've lived there for 15 years. You've never had a problem with it. Now, all of a sudden there are 25 different types of investigators and inspectors walking around your property, trying to see what's what, and how's how that can be a little offensive. I get it. But we'll talk about that more in our listing meeting when we first meet and start talking about listing that residence for sale. Next post that I did put up this week, housing inventory in the center, right? Don't let it panic. You. I'm shifted to talk about that a little bit.
Santa Clarita blog by the Home Expert Connor (15:20):
And I put the active numbers of listing since October of last year. And you can see, we went from October 2020, and this is still way deep in a pandemic, four 75, March of 2021, currently two 63. So we've gone down quite a bit in the last month to four months to close was two 90. So we're seeing that inventory. This is going to be all of the active listings, including land. So that's why there's going to be a little bit higher number than we actually have on the market today. But these are averages folks. And these aren't are actually the numbers of active listings per month. Not average as I'm sorry, but as it works out, these numbers are very, very low and it's keeping the market in a seller's market. And that also is keeping the market. So is the market with interest rates. One of the other reasons why properties aren't coming onto the market in droves because believe me, there's a lot of people out there that want, well, the reason why they're not right now think about it.
Santa Clarita blog by the Home Expert Connor (16:14):
They've just refiled. The 2%, they just went five to 1.7%, 1.9%. That's where they are as far as interest rates. So they have a very inexpensive interest rate on their house and even a million-dollar property that payment if they've done it before, it's going to be much more relaxed now. So they're probably not as much in a hurry as they might've been earlier. You start seeing interest rates tick up. They might get a little concerned because that's what the buyer's going to think that they're going to be paying when they do go in there and start making offers on properties. If that interest rate gets too high, sellers are going to start to have more of a difficult time selling their properties in the higher price ranges. And of
course, that's going to depend on the wherewithal of the buyers, what kind of money they have access to?
Santa Clarita blog by the Home Expert Connor (17:04):
What kind of down payment, what kind of loan program they're going to be using? Whether they can buy down their rate or all it could be that the rates are 5%, but they're able to buy it down to three and a half or three. And on paper that looks good to them. So they could still do it. And don't forget that option as well. That goes with anything, but sometimes it's not worth it. Especially the lower rates get to buy down the rate. Doesn't make a lot of sense on paper, but it's something to watch out for. And at least ask, let's get to one of the last articles here. And our home sellers are sounded creative, playing fairly. Are they taking advantage of buyers? This came to us because one of the properties we were representing the buyers with the seller was one of those people that have lived there for a long time and never had any problems and love the residents.
Santa Clarita blog by the Home Expert Connor (17:54):
But there were a lot of things that the seller didn't do. Didn't maintain the HVHC, didn't change the filter probably in 20 years. Didn't do a lot of those other things that a lot of people in the neighborhood have done. So when you start looking at compound properties or properties that you're going to compare the sellers too, and you start to notice that there are properties out there that happened to be a soul for more money and they're even less money, but in better shape, these, your questions that come up and also when you have any inspectors in there and they start to discover things, it doesn't look good when the seller tries to go fix the thing before the other inspector, the more professional, the more knowledgeable in that particular industry, whatever was discovered because, at the forefront folks, this is how it works.
Santa Clarita blog by the Home Expert Connor (18:44):
You're gonna have the home inspector, they're going to go to the property. They see some kind of growth, somewhere I E mold or something that looks like mold. Uh, they might be confident enough to call it out as mold, but then, later on, they're gonna have to go to court. If this plays all the way to the end, and they're going to have to talk about their knowledge and expertise, as it comes to mold. This reminds me of when I was a police officer, you stopped, but where you're trained and don't go anymore. I don't care how many detective shows you watch. You. Don't try to take that extra leap because now you're going to be in court saying that you owe Nancy, drew all of the credit for all of your knowledge, that doesn't work really well in court.
Santa Clarita blog by the Home Expert Connor (19:25):
You're going to get a laugh and then you're going to lose the case. On the other hand, they say, you know what, there's this black substance on the wall. Uh, there is a place that could be exposed to water and damnedest. And I think this should be further looked at by that type of professional. So what does that let us mold inspector? So of course we hire them all to inspect, or the seller gets made aware that the potential mold in this particular cabinet and the garage where the HVC is. So you have the, you have all of that issue. So you have all the air circulating through this particular cabinet and what happens. Well, when I show up with this gentleman, okay, inspector, because we have COVID right? So a lot of people can't be going tramping through the house. We go there, we look, and it's pine Sol, fresh folks, a smell it.
Santa Clarita blog by the Home Expert Connor (20:12):
And the whole thing has been clean. It's all been cleaned up. Well, the problem is, is if it's real mold, you can't clean it up. It still scars the wood and whatever surface it was on. So at that particular time, he did take his samples. They checked it, it was mold, it was bad mold. It should have that type of mold so on, but at least it got done. But how was that look to the buyer, are they hiding things on purpose? Was it just the case of somebody in their eighties that just wanted to get stuff done? I'm trying to think back to my grandfather, you know, even my dad towards the end there, he probably just would have gone on and done the same thing. But that generation is different than this one. If I would've had my wherewithal, if I even would've been representing that seller, I would have told them don't bother to go out and try to make any adjustments because it's not going to change anything it's already been seen might not have been identified yet, but they're still going to be able to find a sample.
Santa Clarita blog by the Home Expert Connor (21:10):
Even if you cleaned it up with all the bleach on the world is still going to be there. And sure enough, the guy went out. So though I see where it was, what happened? I said I had no idea. So it looks like somebody cleaned it up. You smell that. And I said, yeah, I smell it. You see, I believe in pine saw. I said, well, I had no idea. Cause again, not my seller represented the buyer. So it's their best interests I really want. And I really want to make sure so whatever side. And that's why I also talk about dual agency a lot about having your own representative, not choosing the agent, representing the seller. I hope this has been helpful. Folks. Please check it out. Santa Clarita, home experts.com forward slash blog. Lots of data in there for this last week. A lot going on here.
Santa Clarita blog by the Home Expert Connor (21:50):
I'll be back here on Monday. I am working this weekend, Sean properties tomorrow. That's another thing. If you see anything on the market, that's been out there more than three days, four days rest assured that if it's priced between 400,000 and $900,000 single-family residence, but there's going to be multiple offers on that property. And you'll probably watch as it disappears, should be advertised for sale for a little while, why the agent tries to get their, their, their, uh, you know, the stress level calmed down a little bit because now they have to go through and they have to discuss the countering process with the seller. And they also have to start the negotiation process and accounting process with all of the offers, because you know, you might be able to leave a few out that are ridiculous. And some offers are some offers in this market are undercutting a well-priced home, $200,000 and they do exist.
Santa Clarita blog by the Home Expert Connor (22:51):
Some offers are saying, you know, they're contingent or they're never going to remove any contingencies or whatever it may be. And they're just out of the competition. There are so many other people that are willing to waive all of those types of rights, just to be able to get in and be, uh, compete at that high level is we're seeing in this current market that said, I hope everybody's fantastic. Connor, Iver. I do appreciate your listening. If you know somebody that can, uh, be how to be helped by the listening of this, please let me know. Also, if you want to click that subscribe right button below and give us a thumbs up, that would be very helpful as well on YouTube. I'm Connor macabre have great weekend folks. And if I can help let me know condom macabre over and out.