Can the home seller just accept an offer without responding to all of them?
Is the real estate market in danger of failing?
Is a foreclosure market coming to real estate?
Did the coronavirus impact the real estate market?
What is real estate mortgage forbearance and will that cause issues?
There have been some misunderstandings on the home front between buyers, sellers, their agents, and the big internet real estate websites.
No one knows where the real estate market is headed. We have a lot of guesses being offered, some appear to be titled romantically so people click on the rest of the article and enter their personal information to gain access to read it.
If the article is not free-range, in my opinion, I would not pay or register for it. I have yet to give in and strike gold in what I read.
The real estate home prices will increase throughout 2021
Ok, but what about the mortgages in forbearance? Are you including those in your estimation?
What is going to happen to those homes, which equate to millions of mortgages, after the payments start having to be made again?
Will the payments just resume where they left off before the Coronavirus arrived from China? Or will the banks set up another system? It would be horrible if the banks told those who were in forbearance to catch up. Some people are approaching a year without making a house payment.
Some people are in forbearance because of another reason besides corona.
Some people really need this time to pay other bills because they have been impacted by the lockdowns and pandemics.
Others are using forbearance as a way to make other investments or for other personal reasons.
The bottom line is we don't know how this is going to impact the housing market.
Loan Modifications for Forbearance remedy
OMT - I'd think that if the banks are going to agree with the homeowners just "resuming" their payments, they are going to have to modify those mortgages explaining the recording the new terms of those loans. That is called a loan modification and costs money. Who is going to pay those associated fees? Will that be a game-changer to the current real estate market?
Why isn't anyone talking about this? Makes me wonder...
Equity is in this market and the stress is different
Back in 2007, at the start of the last real estate market collapse, it was the 100% financing and the lack of validation for borrowers that created that mess.
Plus, one of the largest subprime banks folded and claimed BK, so all of those subprime, (less than grade A paper) loans went south, causing an avalanche of foreclosures and distressed homes.
Those loans don't exist. Appraisers have different standards and don't operate in the same way they did before 2007.
Currently, the housing prices are not going up because appraisers are stating the homes are worth what the home buyers are offering to pay. The housing prices are going up because the home buyers are paying the difference in cash.
That is the difference between the listing price of the home and what the buyer offered.
Recently, as of Feb 2021 - some in excess of 80-100K more.
Multiple offers, high buyer drive, and a "been burned before" scenario is prevalent in the current market.
If a home is priced within the sweet spot in the Santa Clarita Valley, it is going to be shown a lot within the first week, during the first 24 hours on the active market for sale it will have received several offers.
And some of those offers will, upfront and before a counteroffer from the seller, have agreed to waive their appraisal contingency and the buyers will have also agreed to pay the difference between what value the appraiser validates and what they(the buyer(s)) offered.
The highest and best scenario is where the home seller's agent comes back to those who they want to counter, asking them to give their "highest and best" response.
Plus, most counters also include specifics related to the buyer's original offer. Such as if the buyer wanted the drapes to stay, the seller may not agree, so that has to be countered out in the seller's counteroffer to the home buyer.
IF a home receives 20+ offers, which is not uncommon in today's market, the worst thing a home buyer's agent can do is make the listing agent have to work harder by asking for things that may cause pause and a reluctance to counter that specific offer.
Just to in strong and keep the offer clean is my advice in this market.
If we had more inventory and competition between homes and their sellers, my advice would be different for sure.
Delay in viewing the home for sale can mean buyer-failure
This is not an absolute, not much in real estate is, but at the time a home enters the active real estate market there is only going to be a certain amount of time that it will be available before an offer is accepted.
In most cases, think of yourself as the home buyer, the home will stay long enough to incorporate showings over a weekend and at least 5 business days. If the market is hot, as it is now, then those offerers received will be countered at the seller's whim and one of those "responses back" will be chosen, which are in the seller's best interest, hopefully.
In some cases, sellers get tired quickly and get tired of having nowhere to go while the home is being shown during covid changing the rules.
Maybe a great offer comes in and if the seller is within the perfect storm, they may want to just "accept" that offer.
Signing off and opening escrow.
That happens. So hence the reason to be close to being the first in after a home is listed for sale.
That scenario can play out and have a lot of time given to those waiting to view the seller's home listed for sale. Maybe you see the home within the first few hours from when it was listed for sale and have your agent write the offer.
You may not get a response, if at all, for better than a week. That is the way some sellers operate, which can really upset a home buyer.
Don't' take it personally, imagine the playing field fair with good umpires/referees present and holding all parties accountable.
Do your best and if it's meant to be, then it will be so.
Top Santa Clarita real estate agents
Vague and ambiguous - Top pertaining to what.
Heaviest? I may have that won - the jury is still out.
Most attractive - I have been said to have a face for radio, I'll take that as a plus.
You can find a real estate agent that has a mega team in place and who closes 30 transactions a month and who pays Zillow and or Realtor.com upwards of $15,000 a month for leads.
Leads that are your personal and private information. Bringing me full circle about reading those "tempting headlined" articles, don't fall for it.
If someone has to "hide" behind some type of registration, it's not going to be worth it in the end.
Send me an email and ask me the question and I'll write the article and send you the link - how's that.
The best agent in the Santa Clarita real estate world is the one with who you feel comfortable and are able to develop trust. Not all at first, but slowly to a point what you tell everyone about how they helped you.
Recap for Santa Clarita real estate
Misinformation is everywhere, be careful.
A real estate inventory is keeping the buyer competition very high causing the home prices to increase upwards of 50k per home listed for sale priced between 500k and 875k.
The home buyers are being convinced by their real estate agents to start the initial offering process by removing contractual rights, such as to have the home bought dependent on an appraisal. (danger Will Robinson)
Homebuyers are also being instructed to reduce inspection time frames to better fit with the seller's wishes. This can work, but you need to have a smart agent working for you.
Today, Very few real estate transactions are double-sided. Meaning, a transaction where a home buyer is going to use the very same agent that the seller hired to represent them. (this is known as dual agency and is outlawed in some states plus Canada) Whether you think it is problem is up to you. I will tell you to have someone who has intimate knowledge about the home seller, and now the home buyer is giving said person a lot of trust.
With Covid arriving from China back in late 2019, and the official announcement back in 2020 - real estate has not been itself.
When I refer to real estate being "itself" pertains to the market continuing to have opened up during 2020, but the pandemic started in March and a lockdown started.
Homes were will listed for sale, but very slowly. The rate at which Santa Clarita homes were being sold was at a blistering pace. Most homes were in escrow within days and had received multiple offers within hours.
That type of seller's market persists now as we have entered February 2021.
A home seller's market is one in which the home buyers are so abundant that sellers are not having to do anything to keep the home buyer's interested.
There is also little competition between home sellers, or the home buyers are so prevalent, even if there are multiple homes for sale fitting the seller's type and style, they are going out just as fast.
When it comes to home buyers asking for closing cost credits or wanting help with their requests for repairs, in most cases, the sellers stand down and give nothing in a seller's market.
That is the market that we are in now. If we had 5 times the current inventory of 180 residences for sale in all of the Santa Clarita Valley, the market would slow down and even out 1/2 way between a home seller's market and a home buyers market.
If we were to go to 10X the current inventory, we'd be in a home buyer's market in the Santa Clarita Valley where home buyers would have a lot of homes to choose from including a lowering of home prices.
I'm Connor with HONOR at REMAX and I'm glad to be of service to you.
When you are ready let's have a sit-down and discuss my two favorite topics, the Santa Clarita real estate market, and your needs!
Be well, please share and I'll leave the light on for you!