This post is guaranteed to earn me some great friends and better enemies.
The state of the Santa Clarita real estate market is a Seller Market. This means, for one reason or another the seller's in Santa Clarita hold the advantage.
They may have many offers to choose from, they may have little or none in the way of competition, or they may be able to sell their home at above appraisal values.
These trends come about due to lacking real estate inventory, and now because interest rates are very low, that compounds the market and keeps the sellers happy.
I will tell you assuredly, this market never has been before.
Buyers are waiving their rights in order to compete with other buyers.
If one buyer says that they would like to complete an inspection on the home they want to buy, you'll have another buyer who states, "We don't want to have an inspection."
The buyer who is willing to waive their inspection is putting themselves at risk.
Most of the "paper trail" type issues that can come about are handled by escrow and the title company. For example, if the home has a lien on it at the time it's being sold, it's typically found out and handled. But, that would not be a buyer issue for the most part.
That mechanism is still in place even in today's real estate market where a home seller is able to call the shots at this high level.
There are other "risk management" issues, that are also serviced, even though a home seller may be running in a premium market.
However, to rely on the seller's disclosures and what you can see visually when walking through a home, that may create an issue without a home inspector being hired.
I suppose that you "could sneak" in a home inspector under the guise of wanting Uncle Ralph to come to look at the home sometime during escrow, JIC there is something that you cannot see where he may due to training and education.
But, then we have the covid disclosures that have to be understood and signed before access to the home is granted. This starts with the view first showing.
On those forms, Uncle Ralph will have to be identified. So, there could be that problem.
But to waive the right to a home inspection, what if?
If the seller has not paid their HOA fees for three months, escrow typically finds this out and it's squared before the transaction closes.
Bottom line, is most entities in a real estate transaction are in place so a home buyer does not have to worry about paying for things that weren't their responsibility as part of the home purchase.
However, having made that statement, a lot of sellers and home buyers look at the fee's and want to make sure that they are only paying for that they promised to pay.
In addition, they want to only pay for the minimum.
In a buyers market, which in Santa Clarita Valley I have not seen for a long while, a home seller typically will pay or contribute, or at least allow the buyer's closing costs to be financed.
This would be because most buyers are asking for this in a more stable market. So if the home seller's are going to be competitive with their listing, they may have to offer up front to pay for all or some of the home buyer's closing costs.
FYI, closings costs for a home buyer are only three things, each can be estimated at one percent 1%, aka one point, of the purchase price. Title Insurance (buyers part), Escrow fee (buyers part), and the buyers lender.
Everything is accounted for when it comes to costs and fee's. That is where real estate has it's over version of "Big Brother" watching the process and at some point potentially auditing.
We had a home seller recently, great people, who conveyed to us a story about a relative of their in another state where Real Estate is not so regulated as it is here in Souther California.
They wanted to know if they could do the same thing here, which helped their relatives get a lot more from the buyer than possible here.
I explained that they could not and that what they were asking was a disclosure item, where the buyer must be made aware. I told the seller's it is not going ot make a difference that they need to tell the buyers, there is enough competition that several of the buyers won't fret.
Plus, that is better than being caught lying or deceiving another only to end up in court after you thought all was okay as you were relocating to Florida.
Sellers can as a real estate buyer for what they want. It's up to the home buyer to accept, deny or suggest another arangement.
At the end of the day, most of that type of negotiation needs to happen up front. That requires a real estate agent who has the foresignt built by wisdom, knowledge and experience by direct application.
If you hire less than an agent of that standard, you are going to be looking back wondering what happened, so hire smart.
I wish I could be a fly on the wall at some of the listing agreement signing meetings on the deals where I'm representing the home buyer.
I betcha the things discussed would make an adult truck driver cringe.
At the end of the day a home buyer or home seller is only as good as their Realtor. If that Realtor is up front, honest, has a superior attention to detail and negotiates like my partner does, to a fault, then the transaction should go through with all of the i's dotted and the t's crossed.
However if the seller hires a new agent who smells like a new car and speaks the right words, but has not been asked the right questions so the seller can make their best decision on whether to hire said agent or not, they may hire wrong.
Agents pay for coaching. They pay for training. I have read the scripts and some are quite innocent. Others are a bit more pressure filled.
I tell my agents not to get too involved in scripts and pitches. Get involved in people. Enjoy their time with the sellers during their meeting.
Embrace a buyer's story, smile and venture which led to them meeting. Don't be cookie cutter, but be yourself as long as that "self" is honest and hardworking.
Two tenants that have seemed to skipped a generation.
I'm Connor MacIvor with REMAX Gateway, a real estate company headquartered in the Santa Clarita Valley - Newhall, Valencia and Stevenson Ranch office locations.
If you want to meet with me, let me know and I'll take great care of you.
I discuss real estate as if I'm a loved protective father. Someone to guide my clients and someone that understands that I'm in business for the people, not any other reason.
Be well, I hope this real estate article that has been uploaded to the top Santa Clarita real estate blog has been of great help for you, answered a lot of questions and is something you'd not mind sharing to someone else that can use my serices.
I wrote another article recently and want to tell you to have a read. It's about being brought up to speed about those real estate online systems who say they will buy your home, sell your home, they buy ugly homes, or give you a fancy z estimate. (read Santa Clarita real estate blog article)