When it comes to real estate, you cannot do it without someone by your side if you are to be successful.
However, that selection is something that should not be taken lightly.
Before you do anything, find that local real estate professional so you can solicit their guidance.
They should be listening and responding more than talking. Their questions should be smart and make sense to you.
To find out who you have contacted at the point when you have contacted them is a good question.
When they want to represent you they should be stepping up with much more information than you need.
I'm Connor with HONOR MacIvor and I'm glad to be of great service to you and yours.
Best Santa Clarita real estate expert video update (00:00)
August 24th. Good for everybody. Connor MacGyver, Santa creator, home experts.com. This is your real estate of debt for everything going on here in Santa Clarita Valley, but today a special show, because I'm going to tell you how you can mess up that escrow as a real estate buyer. Once you've gone through all of the hard work of finding that special agent to work with, moving from that agent into starting to look at properties, starting to get preapproved for loans, giving all that financial information, digging it up, getting it from your employer, getting your taxes caught up. If they aren't fulfilling all of the responsibilities of a buyer, that's getting ready to start shopping for real estate. Then on top of that, you have all of the intricacies of trying to get that house that you want to buy. Especially now today, the 24th of August, 2020, I had to cheat.
Best Santa Clarita real estate expert video update (00:56):
There are 255 total units for sale in all of Santa Clarita Valley. That is incredibly low. Just to give you an idea. We have over 650 properties that are currently in the escrow process, which gives an indication that we're definitely outrunning the ability of the sellers to actually come onto the market and put their properties and listening for sale. The holdback is this and this current market, the sellers right now, they might want to sell a lot. They really might want to sell these properties. Unfortunately, they're holding back because they're not seeing properties out there listed for sale that they want to purchase. So they're kind of putting the cart in front of the horse. You have a horse instead of behind them in front of the cart, you're actually putting the cart in front of the horse, which is a little bit backward.
Best Santa Clarita real estate expert video update (01:49):
The way, the best way it could work is this. You have to have faith, at least in a market that has very little inventory hoping that there is going to be a real estate listing. That's going to come on the market. But if not, if that listing never comes on the market for sale during the term of your listing agreement, and you have built into that contract, a contingency of you finding your home of choice, you have nothing to worry about. Your agent should be able to explain that to you as a seller, that if you do want to sell your property the best way to do it would be to get your property in escrow with a buyer, have that buyer agreeing to your terms, which are you have X amount of time to be able to locate your home of choice. If you don't locate your home of choice by a particular date in a perfect world, right?
Best Santa Clarita real estate expert video update (02:37):
Your agent would be able to get the buyer to agree that this would be an indefinite amount of time. But as that buyer's agent for that buyer, they would hopefully counter that and say, no, you're not going to have forever to find the house you want to buy. We're going to give you 90 days or 120 days or 60 days or 30 days or whatever it may be. If that particular moment then, and you as a real estate seller can then start looking for that residence without having to worry about your house selling. And when your house gets into escrow worrying about an actual closing, leaving you homeless. These are things that you have to have your age and explain to you a savvy real estate agent. Somebody that actually makes a business out of representing buyers and sellers. So that's where that particular mechanism happens to be right now at 255 units on the market for sale.
Best Santa Clarita real estate expert video update (03:33):
The inventory is very poor, incredibly low. And in fact, hopefully, in the next few months, we'll start to see that increase. But at the rate properties are selling I E in Santa creative Valley with only 255 homes for sale. This is active Aqua Dulce, canny country, Dick new hall, sagas Stevenson, Rancho, Valencia, all
the way through the inventory's horrible. So what we see is this, hopefully, in the next few months, that's going to increase, but it's going to increase one of two ways either. We're going to get more sellers that are going to come on the market, wanting to sell those properties, or we're going to get the same amount of sellers currently listing for sale. However, the buyer drives slowing down as we usually see during the holidays. But right now we're at the end of summer, coming up into the fall and properties are still moving very, very quickly.
Best Santa Clarita real estate expert video update (04:23):
A majority, any of the people buying real estate, they're financing conventional, then FHA, then using VA loans. So that's kind of the way that it's working now. A lot of the buyers are move-up buyers. They have something to sell. In the second scenario, we do have buyers that are the first-time buyer's entry point for them is usually townhome or single-family residence around the half a million dollars price point, looking at three bedrooms minimum. And that's all through Santa Clarita Valley properties that are listed at that price range with at least three bedrooms that are either luxury townhome or single-family residents. Those properties are moving very quickly. In fact, we see multiple of our multiple offers on our properties we're listing for sale within very short order. So multiple offers within hours on the real estate listings. The Santa Quade home experts are putting on the market and advertising for sale.
Best Santa Clarita real estate expert video update (05:20):
The important thing is before I get into how you can best mess up your escrow, your chances of buying residential real estate after an escrow, the best thing that you can do is this just made sure that the agent you're hiring understands how real estate works and also make sure like we do before that property is put on the market for sale, make sure everything's done. Make sure all the listing photos have been taken by a professional photographer, make sure that the virtual tours they'll walkthrough tours are also done with the COVID-19 and the pandemic and the way real estate's working. Currently, there are a lot of failed safe mechanisms put into place, a lot of checks and balances as well, documents and legalese that has to be approved by the buyer and a seller when it comes to viewing real estate via their real estate agent.
Best Santa Clarita real estate expert video update (06:15):
So there are things that have to be looked at and most buyers are very savvy when it comes to looking at properties via this bin, this pandemic also sellers are also very knowledgeable when it comes to they themselves, having their properties being shown, especially when they're still occupied by the people that are the sellers that live there. The last thing they want to do is have some Joe citizen come off the street and have them subjected to them. The COVID 19 virus, hopefully, that's not going to happen. Right. There was a little bit of issue that we saw come out of Pasa D and I believe here in the recent past where an agent wasn't affected, I guess, showing properties, that's at least rumor on the street, have no other information, but if an agent has been subjected, they should be quarantining themselves, making sure that they don't have it.
Best Santa Clarita real estate expert video update (07:08):
And if they do getting that taken care of, and the last thing they want to do is tie up with their clients, either having them in the same car or meeting them at properties in that close, locked-down the environment of walking through a residential piece of residential real estate. That's the last thing they should be doing. All right. So let's talk about you as a real estate buyer. You've decided, Hey, I want to buy a house. You've talked to the powers that be, you've talked to your friends and family at that
the particular time when you first started, considering it, of course, everybody around you has now become that real estate expert. Everybody's going to tell you how they did it and the best way to do it. Also, they might have information and they might want to talk to you about who you can hire.
Best Santa Clarita real estate expert video update (07:49):
That's the best in the business. So on and so forth. And maybe they'll get something nice from that agent upon the referral. Maybe they'll get some money, maybe look at some flowers, maybe look at a trip to Jamaica who knows what it may be. But at the end of the day, they could be getting some kind of compensation. So it's them wanting to refer you to this agent? The best referrals are those where people actually want to refer to me because they know that I do a fantastic job and also to be able to put their name on the line for me is a big sign. That in fact, I did do a good job and it does make me very happy. Yeah. At the end of the day, you don't know what that motivation is for these people. If their family, if they're very close friends, maybe there's nothing in it for them.
Best Santa Clarita real estate expert video update (08:31):
But again, maybe there is the thing that you can do for yourself. Once you decide to buy real estate is maybe interview the people that they're recommending you talk to. But at the end of the day, also going out there and doing a little bit of a Google search, seeing who you can pull up yourself and seeing if maybe they fit your bill. So after you've done that, you've then been introduced to a lender. Maybe the lender is somebody that you have referred to you via work. Maybe you have some kind of a relocation package. That's a whole nother blog and a whole another video about that particular process. But again, let's say you don't have that relocation and you're looking for lenders. Maybe your agent is more than likely, but he probably they're going to refer you to a lender that they know. And they work with the lender that they refer you to is probably going to be somebody that really knows how to get the job done and is able to best represent that agent.
Best Santa Clarita real estate expert video update (09:24):
The last thing I want to do is send anybody that comes to me, wanting to buy residential real estate. The last thing I want to do is send them to somebody that doesn't know their business or somebody that's going to railroad them and take full advantage. That looks not good for me. That looks horrible for me. And then how many steps away would I be from being that person that wants to take advantage of somebody? If that's the case that I referred them to somebody that had issues in the real estate lending game. That's why, if I'm ever going to put my name on anybody, endorse anybody besides myself, I make sure that they know what they're doing. And also that they're going to take great care of my clients. And then I have some ability, some kind of semblance of control over them. Especially if I see that things aren't going, as I believe they should.
Best Santa Clarita real estate expert video update (10:12):
Having said that the next step is this. You've gone through the list. Now you're actually looking at properties. I'm going to searching. I'm showing you that coming soon listings, you're looking online. You're seeing those coming soon listings. You're seeing the regular listings that are populated out there for sale. And then at that particular point, we start to look at real estate. So I send you these documents that you have to sign for every single viewing you and me go into the properties alone. If you happen to have somebody in tow, a significant another family member, somebody that wants to come with that you haven't to cohabitate with. We can take them with us as well. Usually, those showings are best done.
Separate. I take you, I take your significant other or whomever that you happen to be living with. We look at the properties. So we've looked, we've seen everything.
Best Santa Clarita real estate expert video update (11:02):
We've decided, you know what? This is the one we want. So then we write that off. After we write the offer, there's going to be a calendaring process. Again, this isn't part of it. That prop, uh, part of the, uh, the real estate transaction, where you can mess it up. We're still negotiating, right? You've just been approved. You have that letter, you have everything that you need at this point to start moving through escrow successfully. Now we have to counter back with the seller. Sometimes the seller sees a strong offer that we've written. And sometimes they say, you know what? We're just going to accept this. We're not going to counter anything back because the agent wrote the offer. She'll clean in a lot of cases though. That's not going to happen. The sellers typically, especially if they have multiple offers, they're going to want to communicate to each one of the buyers individually and say, listen, we want you to either change your timeframes, make more advantageous to our seller.
Best Santa Clarita real estate expert video update (11:55):
Maybe those buyers are going to want to increase their offer and a certain dollar amount. That could be the case as well. So they might fire back in a counter saying, listen, we want these particular terms. And in addition to that, we want you to pay a higher price for the property or tell us that this is the maximum amount that you're willing to pay, whatever it is that highest and best scenario. You're going to see that. Especially if there are multiple offers on properties after that happens, everybody let's say response comes back. There are other things to look at. As far as within real estate, maybe trying to get something besides having to give them more money, using some kind of a tool. We do have love letters that there go the lights. It's good, good for energy conservation. We do have love letters that we do put together for our clients that they do have in addition to their offer.
Best Santa Clarita real estate expert video update (12:49):
And it actually does help out that process quite a bit. So anyway, everything's in the order you then get the news back that the seller selected your offer an hour in escrow. So I'm going to tell you how you can really mess this up. The first thing you can do to mess it up is by going out there and thinking, you know what? I like my car, but I don't love my car. The car has been paid off. I'm going to go ahead and go out there to a local dealership. And I'm going to buy one of those big, massive macho trucks. That's what I want something I can hang American flags off the back. So you go out there and they inquire and your credit. Well, right at that moment, because you're in process with a mortgage. Once that auto dealership hits your credit, I don't care what Bureau it is.
Best Santa Clarita real estate expert video update (13:32):
Even if it's just one Bureau, it's going to negatively impact your score. So that could mess up the entire transaction, leave you so you couldn't recover. Did you buy a car? No. You just went to get the price. You didn't actually buy anything that could actually sink your FICO. Now there are mechanisms in place and the lender will tell you where we can do a rapid rescore and potentially fix that. But at the end of the day, if you were teetering to try to get that credit Bureau to reevaluate or to change that factor, score back to what it was. Sometimes it doesn't work. So it could create a problem thereby 40, that entire transaction for you. And then you have to get rejected by the lender, not able to obtain financing through the mortgage broker or the bank. Now you're back to square one.
Best Santa Clarita real estate expert video update (14:22):
I have to start the process all over and thereby of course get kicked out of escrow. So one of these other buyers that were interested can step up to the plate. So that's what don't go out and have anybody inquiring your credit. There's something else that could come up that you might want to do because it sounds innocent enough except buying a car. Maybe you're looking at some furniture, maybe this residence, maybe you don't have any furniture. Maybe you're looking at your life and say, my gosh, I really don't have anything. So then you go to Williams-Sonoma or you go to one of these other furniture stores. Oh my gosh. Credits so easy there. Especially if you're able to get your real estate finance, you're able to qualify for a mortgage match, how much furniture you can buy. So you go into the furniture store and all my law and my whole lo and behold, there's that mattress that you want, but it's adjustable.
Best Santa Clarita real estate expert video update (15:12):
It's got everything you need. It's like, it's got that temperature foam that they have on there. And then you look and you see that leather couch you want, I mean, the whole thing's leather, you gotta have that. So you start going through it. And then that bill comes to five, six, seven, $10,000. And they say, you know, we have credit. I have to supply it. You're buying a house, right? Even the sales light-tight, you're buying a house, right, Jack. Well, you know, you can use credit to get this and you're going to be fine with the real estate. Don't bet on it. Once you go into that, now your FICO score is going to change more than likely it's going to be detrimental. So don't go out and open up any new lines of credit or purchase any furniture unless you get it blessed by your lender.
Best Santa Clarita real estate expert video update (15:52):
And when you do ask the lender, if it's okay and the lender says, no sweat, you're welcome to go to Williams-Sonoma gets that $10,000 line of credit. Make sure before you do that, you follow up with that lender in written form, in an email, it's an incredibly important reason why you want to do it is not that the lender is purposely lying to you. You just need some kind of verification. So you make sure that you heard correctly, that they said, it's okay to go buy that massive Ford truck or the Chevy or that Dodge or whatever. It's okay to go out there and buy this, buy that, make sure that they bless it, and then follow it up in an email. Here's another way you can really mess it up. How about when it comes to you having credit card debt, maybe you have a couple of credit cards that are maybe a quarter full and you say, you know what?
Best Santa Clarita real estate expert video update (16:47):
I bet you would really help me. I figure I'll go ahead and pay these off. And you come into a little bit of a windfall. Maybe you have some extra money sitting around, or you, you, you found out that you had something that you're able to use now. So instead of asking your lender's advice, you say, you know what? I'm going to go ahead and pay off at JC penny credit card. I'm going to go ahead and pay off this other credit card. Once you do, even though it looks like something that can never negatively impact your focus, but you do it. I've seen cases where these credit card companies we'll say, you know what? You're at zero. We're going to go ahead and reduce your limit. Maybe you had a $10,000 limit. So you only really own the thousand dollars on the credit card.
Best Santa Clarita real estate expert video update (17:34):
That's 10% of your limit, but the credit card company wasn't messing with the maximum amount, which would be the $10,000. Once you pay it off credit card company, for whatever reason could say, you
know what? Instead of qualifying for $10,000, having a $10,000 limit, we're going to cut you down to four, $5,000 Jack. Okay? Now all of a sudden could impact your final score and create an issue just because you wanted to pay something off. So if you really feel in escrow that you need to pay a credit card off, ask your lender, have your lender follow up reform that Hey Connor. So Kay, if you pay off at Cirrus credit card or Gumtree words, dating myself or JC Penney's or whatever it may be, make sure or that any change, anything Shane's whatsoever during the time you're an escrow is well-documented and you asked the lender before you do anything.
Best Santa Clarita real estate expert video update (18:31):
Now, of course, trying to change jobs. That should be a no brainer. Don't do it. Don't switch anything. Unless you go to your lender, say, listen, I'm working at this company now, when you pre-approve me, but I have an opportunity to go work at this other company, but I happen to be in escrow. How's that going to work? Am I going to be okay? The lender says, yeah, the same type of employment. Everything else is saying your patient only going to go up, make sure though that they follow you, follow up with them in some kind of written form in an email, making sure that you switching from working at Dunkin donuts to young donuts, I'm an ex-cop. There is donut analogy, but make sure that you do know, and they do verify that that's going to be okay or no, you don't want to change anything right now, these are very important things.
Best Santa Clarita real estate expert video update (19:15):
Those are the few ways that a buyer can really mess up escrow. Right? I have the entire transaction canceled. I've seen this happen many times. And this video I think is very appropriate. Especially today. When you have very lacking real estate inventory and when a buyer finally gets their offer accepted on the residence, they don't want to do anything today to mess it up because the chances are of them getting something else are going to be very limited in nature. I'm Connor MacGyver. I appreciate you watching more than you know, I'm in Santa Clarita, home experts.com, local Remax agent headquartered in Santa Cruz Valley working all of a sudden California to them for the most part, reach out to me if you're not interested in Santa Cruz, but real estate, but maybe you won't see me, or maybe you want some other area around Santa Clarita. Let me know. I'll be more than happy to hook you up with a referral agent or me, myself and I, I hope everybody's having a fantastic week. I know we're Monday, uh, this week should be stellar and we'll, we'll see what new changes that will be upon us at this time in America. Everybody be safe. If you need me, I'm here. Please share me with those in your periphery, Connor McKeever, over and out.
Did you know that when it comes to real estate that you have a choice?
If you have heard the best place to buy a home is from the listing agent, you would be incorrect. How can the listing agent represent the seller 100% and the home buyer (you) 100% all at the same time? They cannot. No one can.
There are certain things that a home buyer's agent knows about their clients. They know your bottom line, your full approval amount, and that you will "settle" for when it comes to the home seller.
The best way is to have your own Santa Clarita real estate agent. The agent who is used to working with home buyers and who is able to be on your side 100%.
The home seller has their own agent and you have yours! I'm Connor when you are ready to work with the Top Santa Clarita real estate agent, ring me and I'll take great care of you.