First Time Home Buyers run the comps 26-2019 - PDF

Transcription of Radio Show - First Time Buyers run the comps

Conor w/ HONOR: 00:00 Good day everybody, we actually moved offices. I'm really excited to stay still, of course, under the remax brokerage as far as we're concerned, we've been in real estate for the past 20 years of me becoming a licensed agent back in 1998. I will say that even today, the best choice as far as our clients go and the best service that we get as agents, the best support that also has a direct impact on our clients as remax and we're very happy to be a part and there's no, uh, no fluff, no window dressing. It's all business and at the end of the day it's really us watching out for our clients, making sure that all of their needs are completely fulfilled. So that's number one. Number two, showing houses. This last week it seems that they don't know where this all started, but it's very important to have comparables pulled on properties.

Conor w/ HONOR: 00:53 Now we're closing out the January of 2019 in the market, the real estate market here. Over the next few months, we're gonna see a whole lot of additions to inventory right now. We're still very low. It hasn't picked up. There hasn't been that uptick that we talked about last year and in fact things have been very slow since about November of 2018. Typically that's the way it is because you have the holidays, you have that slow down. You have then sellers and buyers that really don't want to do a lot during the holidays, but there are some stellar deals. We got a client, a property in a cast stack for $50,000 less than the last one sold for only about a month before and we closed that Christmas Eve, so that's exciting and those types of deals do happen during the holidays. The other side though, you do have sellers out there that are not looking to fire sale their homes.

Conor w/ HONOR: 01:47 They're still sticklers to that list price. What I always say is every buyer that's looking to write an offer should have somebody on their side. I either real estate agent that is pulling the comparable data so they can see what this particular sellers home is worth, the one that wouldn't want to move forward with what that house is worth, and they do it by a few things. You should do 180 days history. They should and then look at those properties that they pull. If there's something at that actually closed 160 days earlier that you're going to use as a comparison. Remember agent that that appraiser isn't going to count that property. If it's over 180 day vegetable and if it's over that and the appraiser doesn't get order, you guys write the offer so on it takes a few days back and forth and finally on day 21, the property goes into the appraisal, gets ordered.

Conor w/ HONOR: 02:43 It's another five or six days before they get out there. They're not gonna include that compact comp will have expired and pass that hundred 80 day variable. So we'll look at those numbers. But anyway, after you get the comparables, apples to apples, you have 180 days. You have a same bedroom, same bath, if you can, plus or minus a couple hundred dollars, 250, 300 square foot on the home. Lots kind of important, but again, see what kind of comps you're pulling in and look and see if in fact that's similar, may be overpriced, maybe under priced, and then you compare those items that you find. You compare those with the other things you know. How long has the property been for sale? Have there been any price reductions in the past? What's the buyer drive and what's the real estate market like? What's that particular sellers competition like?

Conor w/ HONOR: 03:37 Maybe there's five others that are identical. That's something that might be able to take advantage of. These are the things that had good season agent are going to look at it and going to provide to their clients when it comes to wanting to make that offer. Also, the other thing is this, when you're with your age, you go out there and you're looking for real estate. Don't be scared to say what would you offer and why? Most agents, if they're worth their salt, are going to be able to tell you well until this point, unless they've seen the property before, until this point, I haven't seen the property. Now that I've seen it, I can give you what I think, so I'm going to go back. I'm going to gather the data. I'm going to pull comps on. I'm going to tell you what I think of the property.

Conor w/ HONOR: 04:20 Now, of course they can give you a ballpark. I mean we look at properties all day long with clients and we know what these properties are selling for them, with the sellers are accepting, but to get it most accurate I can tell you, but to show you is so much more important. That's what a seasoned agent is willing to do. Now. We moved offices, so right now we're unpacking the boxes in there, so really not meeting clients there, but we do have a small little conference rooms, so that works. If you're in the market right now, are thinking are going to be in the market two or three months. It's important to have that first meeting where you sit down with a seasoned professional in real estate and you say, listen connor, this is what we're thinking of doing. What would be the best way to achieve it, and then connor is going to explain everything you've ever wanted to know about loans and lending plus some stuff you probably could care less about how closing costs work, how to potentially get those taken care of by the seller, and that depends on the market.

Conor w/ HONOR: 05:17 Those are the things you're paying as a buyer to buy real estate above and beyond your down payment and your deposit and so on. These are those other items. You're part of escrow. You're part of title and your lenders fee. How to get those negotiated down as low as they can be, and then how to potentially get it so you don't have to come out of pocket. So we'll talk about that. We'll talk about how lenders make their money, what the big banks have versus the credit unions out there versus the other mortgage brokers that are in the world. Loaning money on real estate would have drove direct lenders. What type of information you're gonna need to convey. There's also rumors on the street out there that talk about preapproval being only good for certain amount of time. Well, yeah, if you don't, if you cut all contact with your lender, they run your credit. Look at the tax returns, look at the paycheck stubs, the whole nine yards. So they approve you. They say, okay connor, you're good at $595,000 grade. That's a property that has an Hoa, you know, for 100 bucks up to $100 bucks and maybe has Mello Roos for up to two point five percent or whatever it may be. Okay, great. So that's. Connor knows ways he's available. Well if I cut all contact, excuse that interruption. If I cut all contact

Conor w/ HONOR: 06:35 with a lender, then what's going to end up happening is I'm not going to be approved after about three months. The lender just has to do it all over again. So really after three months I'm ready to write offers. Yeah. If nothing changed, potentially, but the lender still gonna have to run you through the gamut and the machine, but if you in the process of buying or you're thinking about it six months or eight months, you're going to still be in contact with that lender even though you don't even want to pull the trigger for six months from now. A hundred 80 days, still no big deal, so it's good to find out. Also what is six months or a year ahead of time, get you, get you prepared and also gets you the resources because at some point you're going to be looking for real estate online and you want to make sure that you're looking in the right places like sctv nest icon, and why that's important is because a lot of the real estate websites out there have had built around the idea that your personal information is worth money, which is true.

Conor w/ HONOR: 07:34 Agents will pay tons of money to give these sites to put all their fancy schmancy window dressing. A beautiful platforms together and have you give up who you are by asking about a property or looking into a property. We don't do that. Everybody that comes to stv and that's dot com is I'm assuming is going to be working with me. Our site is connected directly to the multiple listing service. There is no spam and if somebody gets on SCTV and so just to kick the tires and they tell me, hey, I'm just kicking the tires. I say, Greg, I don't. I don't bother. I don't bother anybody. I have that site built for a good resource site for Santa Clara Valley. That's SCV, forward slash blog. See all those articles to be an mls database where you see all of the multiple listing service listings and I also put it together to house housing radio, which you're listening to right now.

Conor w/ HONOR: 08:31 How any takes you right to stv, forward slash radio. I am connor MCI ever. Always a pleasure. Connor with honor place. When you're ready, let me know. The market is moving. Be a slow. There are properties that have 70, 80, over 100 days on market. They'd nobody took them off the market for the 90 through that reset. They're still there. They're wanting to be sold. Don't fret. You'll find what you're looking for. At the end of the day, if you write an offer and it doesn't get accepted for whatever reason, it wasn't meant to be chalk it up to that higher power or whatever, but don't look at it as if something you're doing wrong or somebody doesn't like you or whatever. The end of the day, 99 point nine percent of the sellers out there are going to take the offer that gives them the best benefit, not only monetarily, but also has the best chances to close, and that's going to typically be those people that have super high ficos and also people that have more money down. I've caught her mic Ivr, remax gateway, headquartered in Santa Clarita Valley, serving greater Los Angeles cities and we'll talk to you soon. Be Safe.