PDF for Santa Clarita Blog Episode 2020-202

Santa Clarita real estate experts market news show (00:00):

Good for everybody. July 20th, 2020, well, that's convenient. Seven 20, 20, 20. I am Connor, Nick. I have her longest-running real estate radio show and podcast here for the Santa Clarita Valley cities. I am. Of course, your host Conor MacGyver. We'll try to say that three times fast. Let's get into the inventory currently, before we get into our topical discussion. Sure. About appraisals and loans today, that seems to be one of the big, hot buttons topics for real estate in and around Santa Clarita Valley. It has been repeated Portage that we've started to see somewhat of a decline in the increase in lead prices are at least appraised. So we'll talk about that. There's really no proof as to see the overall picture of that. That'll be probably two or three months away, but we're on the street is where we're going to talk about. And that's actually sometimes some of the best information that is out there for consumption.

Santa Clarita real estate market news updated

Santa Clarita real estate experts market news show (00:57):

All right, let's go ahead and move into a safe search that I did have put together for this very show. And of course, each day of the week, we have a different Santa Clarita Valley city that we do talk about in detail. Today happens to be the Monday broadcast today happens to be July 20th, 2020, and today we're going to get it into the overall picture of the Santa Clarita Valley city. So this is what I do. I run residential inventory only. So that's going to be single-family residences, both attached to detach putts. Those are planned urban development homes, detached condos, regular condos, townhomes differences real quick. I'll throw it out there. Differences between condominiums and townhomes are condominiums that are typically singles story, apartment-style housing. So usually your garage isn't going to be there by the unit. It might be underneath. It might be a lower level than the actual building.

Santa Clarita real estate experts market news show (01:58):

We have some of those types of, uh, condominium complexes out in Canyon country. We do have those other places in some of the others. Your parking might not even be in there. Same building. There might be another location as to where the parking might be in those situations. But again, you could have your own private garage. You could have a tandem garage, the two-car single car you could have of a single side of the garage shared with an additional person, one double door. But each of you has your own remote, you park on the left, they parked on the road park on the right that so on and so forth like that. So that's how that situation happens to work. And then, of course, townhomes a little bit different configuration. Usually, when you're talking about a townhome minimum, you're going to share ceilings, floors, and walls with other units, depending on the location of the condominium with the townhomes, you're going to be multistory.

Santa Clarita real estate experts market news show (02:49):

So at least two stories, a lot of them are going to have drawn direct garage access. You have the diamond heads out here. You have a vested up canons. You've got some nice ones over on the Kenyan countryside up in Saugus there, the Mariposas, those are pretty sharp units. There you do have that direct access garage-type configuration, and they have one to two-car garages, depending on how many bedrooms they have. And typically townhomes are going to be in cluster form. So there's probably going to be two or three or four units maybe per building. And then the buildings, of course, they're going to be situated all across the complex, usually both within Santa Clarita, especially unless you're talking about much older residential real estate in the single-family realm. You're going to have a lot of that inventory with homeowners associations.

Santa Clarita real estate experts market news show (03:39):

I know we get calls all the time. Hey, find me a residence without an HOA or an HOA fee. And that's easier said than done. Just for the simple fact, we don't have a lot of that type of inventory. And unless you're talking about pre 78 pre 80 construction, and then you'll be able to find it. It's just going to depend on what you're looking for with regard to that. And then also my question would be what's the issue with an HOA. Sometimes they can be your best friend and of course your worst enemy. It's just going to depend on your adherence to the CCNRs, the covetous conditions, and restrictions that are imposed by the HOA as voted on by the board of directors. These are the rules folks, the rules that apply to you. So if you're one of those rules type and you're not really doing anything to break the rules, you're golden.

Santa Clarita real estate experts market news show (04:33):

In fact, with the HOA, they could be your best friend. If you have a neighbor that might be wanting to color outside the lines, maybe that's something you need to look at and maybe contact them. Of course, you know, we don't need to talk about snitching and all that stuff, but sometimes you know what? You can't sleep at night. You got somebody keeping you up because somebody is playing the drums. Then you got to turn around and be at work at 4:30 AM and they're still banging on. And at midnight, Hey, I get it. Sometimes local law enforcement isn't enough. And today, well, that's, that's a whole other podcast. We can talk about that sometime in the future. All right. So we're going to look at the results. So that's what I ran all single-family residences attached, detached condominiums, and also townhomes. I also ran everything throughout the Santa Clarita Valley.

Santa Clarita real estate experts market news show (05:24):

So these are going to be the cities of the act and all the way through Valencia in alphabetical order act and Aqua Dulce Casta Canyon country, new hall walk, Anaconda comes first, new whole saga Stevenson, Rancho Valencia. So you're going to see all of those cities. That's what my recon revealed. 322 active listings on the market for sale in all of the Santa Clarita Valley cities. That's not much at all. In fact, that's incredibly low. We had three 18. I believe it was last Monday. We'd been fluctuating 300, 350. If we put, I'll get into this other data here in just a second. So if we didn't list anything for sale in the Santa Clarita Valley over the next month and a half 45 days, we'd be nothing. There'd be no inventory on the market for sale, definitely a seller's market, however

Speaker 2 (06:13):
Ever. And I'll talk about this. This is

Santa Clarita real estate experts market news show (06:16):

The teaser, in the beginning, I did discuss the appraisals and the appraisers, and it seems like there's a new sheriff in town with regard to those entities. They're going out there looking at properties. I've seen a half a dozen in my own case. And of course, they have that water fountain talk or the water hole talk. What is it? Water cooler, talk with other agents. And at the water cooler, they're mentioning that they've had properties that are coming in as well lower than the listing price or the sales price of other inventory that they use to comp out the subject property or the one that they're selling. They get into escrow. The buyer is using the conventional loan product at least 20% down. So that's not the issue. And the appraiser's going in there stating that, Hey, this property isn't worth the seven 75 we'll loan, six, seven 60 on or seven 55.

Santa Clarita real estate experts market news show (07:10):

They're not Hughes huge depressions in price over there enough to kind of throw a little caution to the wind out there for sellers, because they're not getting what those last property sold for. Now, a lot of the cases, some people are going to say, well, you know, you have appraisers coming in that aren't local here in the Santa Cruz Valley. That could be the case, but they're going to their access points going to be that same data that everybody else was going to look at. They, however, might not lean as heavily on the track system. As a local appraiser, might Santa Clarita is kind of cool in the regard or the way that typically the builders are remembered, known that inventory is put under them and built out in the name of tracks and neighborhoods. So if you're searching for properties that are listed for sale, and those that have sold in the last 180 days, you can actually pull up that specific track.

Santa Clarita real estate experts market news show (08:12):

Kaufman abroad started building and 2001, they finished in 2003. It's a neighborhood in Bridgeport. They're the Stony points for example, or whatever. And you'll be able to actually pull up all of those that have sold in the last 180 days. All of those active listings that are in that particular track, the Stony points. And then you can really get a good gauge on where properties should be listed price range. And today when you have a seller's market, you'll see that the advantage of having that versus going into the San Fernando Valley, let's say, uh, somewhere van Nuys between van Nuys and supple that up, uh, North or Burbank South of Oxnard, the ranch-style residence is you're going to do a radio search. And some of those houses have really been done well. And some of them haven't been touched basically since they were built.

Santa Clarita real estate experts market news show (09:03):

So now you have to try to do that cost approach, where you're looking at other properties that have sold, and you're doing your adjustments as a real estate agent, trying to put together that competitive market analysis. So your clients, the ones that you're going to be listening to their home. So your pricing at the right range, if you're too high, this is the danger, right? If you're too high people, you may not be seeing that listing. That should be seeing it. And if you're too low, you might generate not as much income or profit as the seller would like. Although in this market with all the buyers out there, a too low listing price actually could equate to the seller getting more than they would have if they didn't price it with that strategy, we do see that as well, but playing it safe, a lot of sellers out there don't want to gamble with their life, with their life savings tied up in this escrow and this residence.

Santa Clarita real estate experts market news show (09:58):

So really to do them justice, you would price it well, not under market and not over market just well now looking at that saleable inventory out there, if you hit it right, and you're plus, or minus 10, 12,000, you're going to hit that, right? And it's going to be driven out of the park. There's going to be a home run for that seller. And you're going to get multiple offers within days. And then what happens? Well, then the negotiation starts. So you get to do the multiple counters and everybody's happy as far as the sellers, even the buyers are because they've probably been at it trying to buy real estate over the last few months. Now, finally, they get a chance and they get something that they like as well. So it definitely is a win-win in this market. One of the things that I will talk about besides the 322 active listings is a new category, which is coming soon, that was finished there.

Santa Clarita real estate experts market news show (10:50):

This May 1st of 2020, that's when that algorithm had to be put in place. Now coming soon as a real thing, it's not something fake like you might've seen in the past with real estate syndication websites.

Those are in some regard, a little messy because back in the day they had coming soon. And also they had another category called pocket listings. These were great. What a great idea. And they did threaten agents. They said if you put something in here, that is, is it real or not? As it should be, then there's going to be an issue. They just didn't have an enforcement mechanism there. These are syndication sites agents go on there and basically are given free accounts to be able to build out their platform, make their platform even more organically revealing when it comes to people searching for real estate, besides their massive PaperClick campaign, which of course the real estate search engines love because they're paying all that money to the month to be able to have them display.

Santa Clarita real estate experts market news show (11:55):

If it's not organic, maybe even in both places, organic and also the top part of the search engine results in pages, then the SERPs up at the top where you see those ads now in Santa Clarita, just for funds, grins, and giggles. If you were to Google, Santa Clarita, home experts, you're going to see some ads. They weren't there before, but I'm calling attention to those keywords because that's the site that we built out. So now you're going to see ads advertisements on that same page, but that first organic result is going to be our website, Santa Clarita, home experts.com. So if you want to play with that, you got a couple of extra minutes, check it out. What I've also done on our system is I have made it not necessary for you to register, to search for an account, or when you're searching for properties to actually establish an account.

Santa Clarita real estate experts market news show (12:43):

What I would say though if you want to get updated moment by moment at the properties that fit your criteria after he gets your nice little search done on there, you know, three-bedroom houses, you're at your student sagas, you're interested in the newer housing. So you like 2018 and newer so on, and you'd get that search set up there. All you have to do is save it and you'll be able to get those listings at the same moment that I get them. And that's good stuff. All right. So 18 properties are coming soon of these properties, running all the criteria. Let's just have a look real quick. Now, the way that it works once they're put in coming soon, the agents have 21 days in which to make them active. So there's a couple of awkward. I'll say there's a couple in sagas, two in Canyon country, one in Valencia.

Santa Clarita real estate experts market news show (13:33):

Another one in saga says three, four, five, six, a one, two, three, six, a total three cast state two more Von. So it's three total, a couple of Stevenson ranch. These are properties that are coming soon and they run the gamut, highest price of 0.1 0.39, 9 million. And the lowest price point is going to run for three 14,950. That's a bulky Canyon, a village, a bulky village. There are two plus one in Saugus on Robin. These are nice. These are user cute little units. You'd like those. So these, uh, unless it's been converted, they're going to have a laundry area, but not inside the units, for the most part, two plus one, two eight one zero seven. That'll be nice. That'll be a nice investment property, uh, depending on how that pencils out on the rents, but to better than it could probably meant it almost three grand, especially if it has, it does have one garage attached.

Santa Clarita real estate experts market news show (14:33):

Those are built-in 76. Yeah. You could probably get close to cashflow in that. But the trick I was talking to a guy today, before you get back to the inventory, talking about real estate here in California, the biggest, if the market is kind of where it is today, a little flat, the thing that you want to do in California basically purchases the property, hold it. And the rent might take care of the mortgage and taxes and

HOA and the whole nine yards. That's kind of that strategy. Then you wait a few years, get some good renters, and then you're able to turn it, flip it and maybe buy a couple of others or whatever. In other States, the strategy's different where you're able to cash flow the property. But really if you hold onto it a long time, it's really not going to get a lot more expensive than where you bought it.

Santa Clarita real estate experts market news show (15:19):

So these are different strategies to look at when you're talking about real estate, investing, investing in real estate, looking at real estate from an investor's mindset. So you just want to look at those numbers and see if it does make sense and potentially move around or being around a university's great, uh, Texas tech, um, you a T all of these places, you can get a triplex or a quadruplex. There are definitely ways to invest your money. And out here in Santa Clarita, you have the masters college, you also have Cal arts and these make in the college of the canyons. Of course, there are a lot of properties around there that also make good rentals. And usually, it's probably not going to be to a singular college student, more than likely it's going to be maybe three different college students, parents paying each a third, and renting rooms out in these residences.

Santa Clarita real estate experts market news show (16:10):

So there is a good opportunity. You just have to have the right advisor. All right. So we saw coming soon, an active, active under contract currently at two 79, uh, all total with pending property, 640. So once that fetish, these are properties that are actually in the process of escrow. That's a bunch of folks. If you look at the active inventory, we have 640 in process of escrow and three 22 total. So about half of that number, once those runouts, if we had nothing else replenishing and being put on the market, we would be out of inventory. Like we talked about in the last seven days, the properties that have closed escrow sold actually finished and sold 91. And the expired properties in the last seven days. These are properties that did not sell during contractual timeframes, three of those expired didn't sell. And of course, canceled.

Santa Clarita real estate experts market news show (17:09):

We'll go ahead and run those numbers real quick for you. Nine of those in the last seven days and properties that are currently on hold, do not show 68. So you add that to the three 20 to 70, 80, 90, about 390 listings that are that three 22 active, another 68 that have a potential becoming active in the next few days, a lot of agents are going to use that hold status as a reason to have the property not shown. And there could be valid reasons for that baby. The sellers are ill. Maybe they've taken up with COVID. Maybe they have that issue. If that's the case that holds is probably going to be the agent's best friend, because then that property is going to go dormant and not showing as being active and for sale. At least until that issue gets completed and resolve.

Santa Clarita real estate experts market news show (18:02):

If you see a property, you see a sign on a property yet you don't see that property in Santa Clara, the home experts.com and reach out to me, text me, call me whatever it is, communicate with me. And then I will run the Intel and the data more than likely. If it's not in the active MLS it's being held. For some reason, I'll reach out to the other agent and we will have a conversation and I'll get that information back to you, yours truly. No, that's me. You and I will get that information for you. Look at his split. Now for the part of the show you've been waiting for. Let's talk about appraisals and appraisers and some of the stuff that we're seeing out there, the dynamic with regard to property prices and appraised values, something you might not know if you are a buyer that's using an FHA loan.

Santa Clarita real estate experts market news show (18:58):

That means that you would be putting three and a half percent down payment with an FHA loan. You could put more, but the loan itself is a lot more forgiving as far as debt to income ratio and FICO score, allowances credit scores, then even using a conventional 20% down type loan. So for a lot of people, FHA is a really good program to be involved in. And it's a loan type, federal housing administration loan, or FHA that down payment for that's required is three and a half percent, three and a half percent. Isn't much as far as down payment scope, the only loan on the street that's better is going to be a veterans administration loan. They're veterans, somebody that works in or currently works in the United States military. If they are honorably discharged or honorably a member, they could use a veteran loan.

Santa Clarita real estate experts market news show (19:56):

And by, with nothing down, however, with both of those loan products, there is something called closing costs with any home that a buyer has to pay. If you happen to be buying residential real estate, you're coming in with 50% down, you still have to pay closing costs. Closing costs for a real estate buyer does not include me as your agent. My fees for you are free. I get compensated by the seller. Whomever. The seller is if the seller's my seller, or if the seller somebody else's seller, it doesn't matter. The seller builds in my fee when they're trying to sell their house because they understand to have 2,500, three thousand four thousand agents going after a single house does nothing but help the seller get their highest price for the residents. And they know that a lot of people are going to go contact their own agent to have their own agent by their side, during the entire process of buying a home.

Santa Clarita real estate experts market news show (20:57):

So knowing that these folks are going to be hiring the agent that they like, and of course, they want to know what that agent is going to cost them. It costs them nothing. They're going to that agent is going to get compensated by the seller. So the other closing costs that you do pay your part of escrow. Your part is a buyer of the title. The seller has their own parts of escrowed, parts of the title they have to pay. And then your lender fee. Now, if you're talking about escrow and you're talking about title pretty much, that's going to be set as far as the sales price. So if you're buying a million-dollar piece of real estate, more than likely those escrow fees and those title fees are going to be more expensive than buying a hundred thousand dollars piece of real estate or single-family residence, if that even existed here in California, which I'm certain it does not.

Santa Clarita real estate experts market news show (21:56):

So if in fact, that's where you were, that's how those numbers play out. If you happen to be utilizing other loans again, escrow and title are pretty much set by the price of the property. Now, the wildcard in here, the thing that you should, as a buyer, be concerned about. If you are borrowing money to buy this resonance, I E getting a lender to loan you money to buy the residence they charged to. And the third part of the closing costs is going to be a lender fee. So you want to see what that is? How much is it going to be? Is it off the wall? Crazy high? Is it a great deal? Are they trying to tell you they're charging you nothing, but then when you're looking at what's called a good faith estimate or a net sheet, I should say, or a good, yeah.

Santa Clarita real estate experts market news show (22:48):

You're seeing information on there that is resembling a charge. Well, you should ask them about it. The another thing too, that we tell our clients is whoever's promising you something, whoever is speaking to

you on the phone, you always want to follow it up with an email. Yes, it's extra work, but it's really important because a lot of people are going to be giving you that pillow talk nonsense, trying to romance you throughout the process, by promising how they can do it better than anybody else and how their fee is going to be less expensive than anybody else and how the interest rates going to be better than anybody else. So here's what you do. You follow it up with an email. Hey Jack, great talking today. Thanks for taking the time. Have a question for you did mention that you're going to be able to get me a 2.75% interest rate.

Santa Clarita real estate experts market news show (23:42):

If my FICO score is what I think it is after you pull my credit after you review my file, that's where you say my interest rates going to be. And you're sure of it. I just wanted to make sure I heard that correctly because I was going to interview other lenders, but it's important to me to make sure I'm getting my best deal possible. Would you please answer my email back? Well, more than likely if he did promise you that. And he said it in such a hazardous way or away, a way where he wasn't really caring where everything was going to fall, that could be an issue. And he might not answer you back because a good lender is going to look at the entire picture. He might be able to give you an idea. The prevailing rate today is 2.9. For example, that's what most people are getting, but I do have to pull your full credit profile, pull everything, and even submit it to my underwriter before I know, and it might not be today or tomorrow.

Santa Clarita real estate experts market news show (24:43):

It might take two or three days, but at least at that time, you'll know exactly what you're qualified for because we've gotten the blessing of an underwriter. That's a really good lender there, but some of them are going to give you a ballpark over the phone, which is fine, just as long as they tell you that nothing is done until it's done. So now, recently we see the appraiser's going out, and this is something that is hired by the lender whom you're using to get your home loan. The lender will make the call or make the entry. And the appraiser will be dispatched and go out to the property. We had one on one of our listings today. Now in a lot of cases, the appraisers don't want to meet with a real estate agent. They have bad feelings from years ago, so they kind of want to go out on their own.

Santa Clarita real estate experts market news show (25:42):

Sometimes I'll meet with the appraiser just to give them a business card and say, if you need any other comps or comparables, feel free to hit me up. I'll be more than happy to and believe it or not. I would say half the cases. I do have people saying, why don't you go ahead and send me what you have. And that only helps my seller. So it's not the buyer's agent that's meeting the appraiser. It happens to be the seller's agent, meaning the appraiser at the property, just in case they need more information before they put a price tag on this residence, or an amount that the bank's going to loan

Speaker 3 (26:17): An audit

Santa Clarita real estate experts market news show (26:19):

With the appraisal standards. We do see a little bit of difference between a veteran's appraisal, somebody that's backing up a VA borrower using a VA appraiser, which is a veteran VA appraiser veteran, appraisal, working for the veteran's administration. We do see sometimes differences in that versus somebody coming in with 20% down. It just depends on the appraisal, but they appraiser, but

 

they do have very strict guidelines. They have to adhere to when it comes to appraisal standards, they're not just out there dialing it up any way that they would like they actually have to adhere to strict guidelines in accordance with the banks that are employing them. And folks don't forget, the bank is investing their money on behalf of this buyer that banks don't want to lose. So those are praisers. It used to be back in the day, there was a rumor that somebody could potentially pay too much for a residence that happening today, or a house being appraised for more than it's worth.

Santa Clarita real estate experts market news show (27:20):

We don't see that happen at all. All right. So now we've seen properties. We've had some that have sold at a particular level, and then the next property that comes in that gets appraised. It sells for 10 $50,000 less when it's actually the same, or even maybe better outfitted. There's a lot of variables in that regard. But again, if that seller's agent is unable to convince the appraiser by the cops, that they're pulling that established that price of the first place, that the house is valued at a certain amount, the house is going to be appraised. If that appraisal happens to come in lower, depending on what's put on contract, the seller has a choice. The seller could say, you know what? I don't want to sell it, or they can throw it back to the buyer. So you pay the difference or you know what, I'll meet you guys halfway.

Santa Clarita real estate experts market news show (28:11):

There are ways to have that continual negotiation with regard to a low appraisal, but sometimes sellers aren't willing. I will repeat some interesting information about FHA and VA. Both of those loan programs pull a case number on the residents that they're having appraised. So that residence located at whatever the address is. One, two, three, four of the corner of the walk. And don't walk. It's going to have a case number it's going to hold on to that value for six months. So if the seller does reject an FHA or a VA buyer, because the appraisal came in lower than what the seller had hoped, or even lower than they had their price listed or lower than the buyer was willing to pay for the property. They could feasibly say, you know what, forget it. We're going to sell to somebody else. But all things being equal, they're not going to be able to sell it to another veteran or another FHA borrower.

Santa Clarita real estate experts market news show (29:10):

If in fact, they show up in the next six months on the property for any more than what the appraised value was. Good information to know as a seller, I am Connor MacGyver. This has been your July 2020 20 update. And when you're ready, please go to Santa Creta home experts.com, Santa Clarita, home experts.com. There's a lot of great information there. I have a massive blog. You'll be able to click on that and get a lot of information. Please let me know what you thought about the show. I will upload this to YouTube and all of its glory. And when you're ready, reach out to me, I'll be happy to be of great service to you and yours with regard to real estate. Thank you folks for listening, Connor MacGyver over and out.