Who do you want to hire?
An agent who is representing the home seller or someone who is representing you?
Not a trick question. The agent who is representing the home seller is under contract with that seller or sellers.
If you have your own buyers agent, and if they are utilizing a Buyer Broker Agreement, you are under contract with your own buyer's agent.
Having your own Buyers Agent to which you are under a binding contract with puts you in a position of advantage.
No entity can strip you away from having your own representative. They cannot push you into using their services and exclude your chosen realtor from being involved in your home buying process.
I have even entered new housing after working with a client for a time, only to have had them visit the new home center in my absence.
They innocently entered their information into a tablet in order to view the model homes, at the new home builder agent's request.
When they called me to show up because they wanted to buy a new home, I brought with me the home buyer broker agreement that we had executed and was on file.
I showed the new home agent, they had to call corporate and we had to wait a few days for the response.
In the end, my buyer broker agreement was upheld and I was allowed to represent my home buyers in the purchase of the new home builder home.
I have lost clients to new home builders before. The difference was I did not have a buyer broker agreement.
On the buyer broker agreement, there is a place that I could fill out and have a client sign that would give me the authority to go after that client for a commission if the client chose not to use me to be their agent.
I don't fill out that portion. If I have a client that is not happy with me, I'll never hold them to something that "forces" them to have to use my services in buying a home.
I have not had a client want to fire me as their buyer's real estate agent. However, even though that is the case, I always make sure that part of the buyer broker contract is in my buyer's favor.
The buyer broker agreement creates a bond like the bond between a listing agent and their sellers.
There is an official contract in place which creates the official agency and a bond that is contractually very strong.
Buyer Broker or Buyer's agent agreements are not to be taken lightly. Not that you are going to fire your agent, but look at the fine print and see if they are going to come after you for their commission if you decide to get representation elsewhere.
Santa Clarita home inventory remains super low
I was speaking with a client yesterday, a new client, he wanted to know the effect that COVID19 had on the Santa Clarita real estate market.
I responded, speaking with the lack of inventory, real estate was still moving at a blistering pace. With listings selling in sub 30 days. With having more homes in escrow than for sale and with the new home centers building new communities hand over fist, it did not seem to have much of an impact on sales.
The thing that it did impact was the number of listings that were available for sale. It hurt that statistic. From all of the numbers I have been able to research, we were on target to have a higher closure rate than the same time in 2019.
However, January was good, February was better and March was on target to be stellar and that trend would have continued throughout the summer of 2020.
Covid19, the coronavirus quarantine was put into place early March 2020 and the Santa Clarita listing rate slowed down to a crawl.
This kept the Santa Clarita real estate market in the seller's zone and it has not left that zone in more than three years.
Please enjoy the show and I will be back with you in short order to continue to keep you updated on how the Santa Clarita real estate market is doing. Whether it's a good time to buy or a good time to sell real estate. With other explanations of how lenders work, how to get your best deal on a home loan plus other real estate educational topics.
Santa Clarita market update by Connor MACIVOR (00:00):
Good everybody. I am Connor Mick today's Monday, June 22nd, 2020. And if you were like me, I wasn't sure that we would get here as a country, but here we are. So I do have a Santa Clarita real estate update for you. I've been doing this since 1998, and I have lots of videos online on YouTube. Also, lots of real estate podcasts and radio shows that I've produced over the years. This particular video will also be turned into a syndicated radio show, and it'll be publicized all over iTunes, Stitcher radio, and all of the other platforms out there. So looking at the real estate market here in Santa Clarita Valley, you can see over the last several months, we've actually even reduced further in real estate inventory. And that's created a lot of pressure on buyers out there because of, uh, even during COVID I was speaking with a client yesterday, a new client.
Santa Clarita market update by Connor MACIVOR (00:52):
They were curious as to what those numbers look like during COVID. Well, we had a seller slow down and that seller slowed down actually created even a stronger seller's market because we still did have quite a few buyers out there that were buying up real estate. So currently we are in the three fifties and I'll get you that, that exact number here in just a moment. So I can comment on that, talking about the local inventory and what those numbers look like. Now, one of the things I wanted to talk about was in regards to negotiation on real estate, a lot of people, uh, sometimes not a lot of people. It used to be a lot of people used to be the only resource you had was going to that listing agent. The one that actually had the listing, calling them, assigned, dealing with them, and attempting to use them to negotiate the purchase of that particular home.
Santa Clarita market update by Connor MACIVOR (01:45):
Now that's known as dual agency and dual agency. In my opinion, I don't really appreciate the process just for the simple fact that it's difficult for a real estate agent to play both sides fairly can some maybe bite at the end of the day, this is what is known the agent that's representing. The seller knows the seller's bottom line. The agent that's representing the U U, which is the same agent in this particular case. Also knows your bottom line. That's a lot of information for one person to know, to be able to play it safe on all party sides. Now, of course, they're supposed to act with due diligence and transparency and being totally upfront. But at the end of the day, when you're a real estate seller, you inform your agent that you're willing to take $525,000 for your property, but you're going to start the listing at $550,000.
Santa Clarita market update by Connor MACIVOR (02:42):
The buyer comes to your agent at it, no fault of your agent, because your agent didn't reveal it. The buyer says you know what, I'll offer this seller $525,000, not the listing price of five 50. So then your agent comes to you and says, Hey, Clyde, I have, I have an offer for you from a buyer that I was able to procure myself. And they're offering you $525,000. Well, now Clyde is thinking isn't that? Wasn't that my bottom line. So then we have a trust issue that kind of Wells up and starts. It doesn't happen all the time, but what I like is I like to be on the complete side of one party, either the seller or the buyer, that's where I find it most comfortable because then the gloves can come off and I can do what I need to do to get my client what they want.
Santa Clarita market update by Connor MACIVOR (03:40):
And I believe that's, everybody's dream in this business. All good agents want to get their clients what they want. That should be the ultimate goal. That's what keeps me in my business, doing a great job and
being busy because of that kind of mission statement, if you will, or code of ethics. So that's where I am in that process. So within that, when it works that way, like at new housing, for example, you have the opportunity to have your own agent represent you when purchasing a new home from a new home builder. Now, when you go to the new housing and you can find all of those at Santa Clarita, home experts.com forward slash new, sent a clue to home experts.com forward slash new. When you go there, you'll see all of the new listings that are currently for sale in the Santa Clarita Valley.
Santa Clarita market update by Connor MACIVOR (04:35):
When you go into a new housing development to look at the model homes, a lot of times you're going to have an iPad or some other device, or maybe even a piece of paper that you're going to be handed. And they're going to explain to you that the builder would like to know who is coming in and out of the model homes by doing so. And some of the builders are very good at posting this, but by doing that, by putting your name down, just stating that, Hey, my name is John Smith. I want to come to look at the open houses. Maybe it's asked for an email. Maybe you don't want to put that, but at least you put your name, maybe a contact number, or whatever. At that particular moment, you have just excluded your ability to have an agent on your side, represent you throughout the process.
Santa Clarita market update by Connor MACIVOR (05:20):
You have to then deal with the builder's agent, the builders real estate agent that's on their payroll. My suggestion is always to have your agent with you when you're viewing new housing from the very beginning, have them come with you, go through the process, explain to you. What's currently available. Just like I did over this last weekend. I had clients and I took them around to all the different new housing builders made those introductions, but I stood by their side and asked all those questions that really need to be asked, just like when you're buying a resale, the same thing your agent is going to do, they be working for you and they should be looking for any issues that could come up and affect your homeownership. So if they see something or they know something, or if they happen to know that something's going to be happening in this neighborhood, or maybe a street that was a col-de-sac is going to be opened up and it'd be a thoroughfare. That's kind of good to know, especially if you're going to be buying one of the houses, that's close to the end of the coldest act. Maybe the coldest sack is what attracted you to that neighborhood in the first place. So that disclosure, that understanding that local community is incredibly important. So let me go ahead and log in here
Santa Clarita market update by Connor MACIVOR (06:36):
And let's look at some inventory and then I'll be able to make comments as far as what's going on in the local market. And what I'm doing now is I'm logging on with my iPad, to the local board of realtors. And I'm getting into the saved search that I have, which is in regards to what's happening here locally. And that's going to be the inventory numbers. And then we're going to look at coming soon numbers, which is a new criterion that's been allowed to be placed within the MLS, which is something that you might not have access to. If you don't have a local agent sending you real estate listings directly through the MLS. So as of this morning, if you track back a couple of weeks, uh, that inventory was around four 20, four 30 as of this, and that was still low as of this morning, it's 365 active listings currently on the market.
Santa Clarita market update by Connor MACIVOR (07:30):
And when I run it, I run all the way through acting all the way through Valencia. So acting awkward, I'll say Castaic Canyon, country, new hall, sagas Stevenson, ranch, and Valencia. All of those cities, those six cities are considered at least as far as data are concerned as being within the Santa Clarita Valley. A lot of
people look at the more core cities as Casta Canyon country, new hall, Saugus Stevenson, Rancho, Valencia, but act on Oakwood. All Sarah is still part of our board. So every single listing that happens to be posted for sale, you'll see up at Santa Clarita, home experts.com because I have that data all the way through Los Angeles, Orange County, and all of those different areas, further South and also out East. But once you get it to Palmdale, Lancaster, that board changes. We'll have some data on the local sites, but a lot of times the greater antelope Valley board of realtors, just in case you happen to be looking out there, they're not going to be, they don't share their data.
Santa Clarita market update by Connor MACIVOR (08:30):
So it's going to be a little more difficult. So you definitely want to find that local agent out there. If you need a referral, I have that for you also. So please hit me up for any referrals here in Southern California, outside of Santa Clarita Valley, of course, I've ensured the Los Angeles quite a bit, Simi Valley, quite a bit for ensuring quite a bit, but at the end of the day, if it's too far and just as a post that I'm currently in the process of writing when an agent says that they're local, and maybe they're saying that they're local a hundred miles from where their office is, they might not really be local. And the reason why I'm saying that is local has to do with being able to function effectively, be able to have the knowledge and experience to be able to provide that protection security for their client.
Santa Clarita market update by Connor MACIVOR (09:17):
If an agent goes into another area to list a house for sale and doesn't know the local ordinances that Gover real estate selling in that local area, they can potentially get their seller into trouble or even their buyer. I'll give you a good example of that port wine, Amy, for example, if you don't do real estate and port white near me, or you don't have the experience of selling a house or houses in port wine, Amy, and maybe you're a Santa Clarita real estate agent, what ends up happening is when you take a listing over there, there is a portion of time that needs to be allotted for a city inspector. You register the property with the city and a city inspector goes out and looks and finds out. If there have been certain changes that our city-mandated over time, as far as plumbing and those sorts of things, if you don't do that, and let's say the listing happens to squeak by, without the city being notified, it's listed for sale.
Santa Clarita market update by Connor MACIVOR (10:16):
Maybe it's listed quickly and sells quickly. And maybe the city doesn't pick up on the sale, which usually they do, but sometimes they might miss it. Now there's a new buyer in there. You as a seller, very happy, you're happy with the performance of your agent, at least to this point. And you go on your Merry way and live your life within a very short amount of time. You're probably going to start getting letters or inquiries from the city, or maybe a potential lawsuit on behalf of the buyer of the property. The buyer that maybe even had their own agent, but maybe their agent wasn't local, either. Maybe their agent didn't understand the local ordinances or know that these inspections had to take place. So now the buyer is being fined by the city or approached by the city stating you need to take care of these items because they're city-mandated.
Santa Clarita market update by Connor MACIVOR (11:08):
Well, now the buyer's going to do what well, they're going to call their agent and their agent is going to say, Hey, I just represented you in the sale. You're going to need to talk to the sales agent, which is a little CS, but they shouldn't do that. They should be there for you, even in that process and admit to it, Hey, I didn't know that let's see how we can remedy this situation. But a lot of times people don't do them, they're not very, uh, they don't do the Maricopa thing very well. They just kind of pass it off to
somebody else. But at the end of the day, that's going to upset you. That's why it's important to have somebody that understands those local disclosures. The city regulations, same thing in the city of San Fernando city of San Fernando, not the San Fernando Valley in Los Angeles.
Santa Clarita market update by Connor MACIVOR (11:52):
The city of San Fernando is a separate city. When you're selling there. There's also city inspections that have to be conducted and the seller has to pay for those. But an agent could take a listing and it's not very far from here, probably 14, 15 miles from my front door here in Santa Clarita, to the city of San Fernando city hall. There, if I'm not aware of that, the property could potentially sell and close escrow. Then the buyer would be hit up by the city stating that you know, we should have inspected this property. And then, of course, everything runs downhill. And the agent that said, Hey, I'm local use me. Well, she probably should have said that because they didn't understand the local ordinances in Santa Clarita Valley there's lawsuit, tracks, disclosures, there are particular disclosures as well that you get as a seller to fill out as a real estate buyer from the seller on a property that you're wanting to buy.
Santa Clarita market update by Connor MACIVOR (12:48):
And they should all be the, it should be all of them. But in some cases, you have outside area agents listing a property in Santa Clarita Valley. They don't know those local disclosures. So sometimes they'll rely on the agent that is local. That may be the agent that has the listing. But if the agent has the listing, isn't from this board of realtors, maybe an outside board doesn't understand or doesn't have access to the local disclosures. Well, that could create issues. So again, maybe the question, the better question is besides where your office is located, if their office isn't within the city, you're purchasing it, maybe follow up with asking them some experience questions. What kind of disclosures am I looking at in a particular area? What kinds of city inspections are required? Is there like a retrofit inspection that has to happen to, for a company to come out and make sure there's a strapped water heater, for example, or a gas seismic, shutoff valve?
Santa Clarita market update by Connor MACIVOR (13:48):
It's important to hire locally. I'm going to get off my horse with regard to that. So let's move on to the inventory. So currently 365 active listings for sale in the cities that I mentioned, acted, Oakwood, all say Casta at Canyon Country, Newhall, Saugus, Stevenson ranch in Valencia. Now the other category, excuse me. The one that has been something that started from May 1st to May 5th. That's about the timeframe. This start it's coming soon. You're not going to see those listings on my website center created home experts.com because, uh, the provider that I get the listings from, which comes directly from the MLS. So they're going to be complete. They don't have that field yet. The other Sindecuse syndication sites, the Zillows the truly is the Redfins these, I don't believe they have that. They have been able to fix that either. So now the only place you're going to see a listing, that's going to be coming soon.
Santa Clarita market update by Connor MACIVOR (14:44):
The official coming soon, not the fake coming soon, which you'll see on some of the syndication sites. The official coming soon is going to coming from directly from the board of realtors website. And that's the only access there is through an agent. So if you're working with me, what I do after I get all your criteria about what type of home, including price range and the price range is important real quick, and I'll touch on it lightly. You may be qualified for $750,000 from a lender, but that's $750,000 payment is going to be painful for you after you work on your bills. And of course, lenders have a certain ratio that you have to meet. You can't exceed it, or you can't qualify for whatever amount that is. You have to be
within a certain 12 five for seven 50. You have to have a certain minimum bills, a certain minimum of income and so on and so forth.
Santa Clarita market update by Connor MACIVOR (15:37):
So that's how you're approved. But at the end of the day, you might look at that payment and you might say, Ooh, that's a little heavy. And it looks like I'm only going to have X amount of dollars left to go to Disneyland, which we love to do. So going to Disneyland. Cause that's a that's, that's a very expensive item, even going every once in a while now. So you want to have that money in reserve. And if you have too high of a mortgage payment, even though you're qualified for it, it might end up meaning that you take fewer trips to Disneyland. Therefore your family might not be as happy and so on. So even though you're qualified for seven 50, look at that payment and see how it fits. Maybe 700 is a better bet, maybe six 50 and lower is a better bet. That's the case. Then make sure your agent just like I do make sure your agent adjusts, that search to all pull in listings that are under that particular amount or at that amount. And under that's important to know because if you don't, you might see got a frog in there. You might see listings that are over your comfort zone and may fall in love. And then it may start. You may want to start to gravitate towards that forgetting the old rule, your own rule that you created.
Santa Clarita market update by Connor MACIVOR (17:02):
I think I got the frog out of there now. So let's get back and if I have to pause it again, I will. All right. So coming soon listings currently 13 are coming soon onto the market. And again, the cities that I ran or act in all the way through Valencia, that's all that's listed. I believe that this category is going to become much more prominent in the near future. It's still too new for agents to really wrap their mind around, to see the advantage. Also, once the listing is taken by an agent, they typically want to get that listing on the market as soon as possible. And that's fine. But the thing that does a seller, the most harm is to release a listing onto the multiple listing service before it's completely ready by ready. I don't mean by being ready to be shown by ready.
Santa Clarita market update by Connor MACIVOR (17:52):
I mean, being, having all the advertising and marketing built before it is released, that includes the professional photographer. That's going to go out to the property and take the pictures, having it completely cleaned, having a decluttered as per the instruction of the agent that does the walkthrough because we, every listing all go out to the listing. I walked through the listing and I point out things that need to be changed. I point out things that need to be modified and in some way, brought to a different standard than I do this because I work with a large number of buyers. I know what buyers are looking for. So if you have a house that has walls completely covered with photographs, for example, my instruction is going to be, let's get rid of those. And then look at the underlying wall. If those pictures have been there 30 years and you take them down and there are outlines on the wall of where they were because the paint underneath has been protected for 30 years, but the paint out here has not.
Santa Clarita market update by Connor MACIVOR (19:05):
That's on the outside of the frame, you're going to have to take those pictures down and repaid. Why? Well, people that see real human beings and photographs have a difficult time imagining themselves in the house. They have a difficult time imagining that house as being theirs. And they're not being anybody connected to it. The best way to have a piece of real estate looked at as far as a resonance goes, something that people are going to live in, not a piece of land. I don't know where you put pictures on a piece of land, but where somebody is going to actually live. You want to depersonalize it, get rid of
all of the pictures that have real human beings in them, and then fix those spaces behind them, their nails in the walls. You want to patch those. And if you have to go through removing a whole bunch of nails, because you have a wall full of pictures and then retexturing and repainting, that's also good.
Santa Clarita market update by Connor MACIVOR (20:00):
When people see a house that isn't cared for and is falling apart, they automatically think discount. And they think that the price that's been established is usually too high. Even if it's not even if the agent talked to their client in that regard, the seller and said that we're going to do an adjustment to allow the property to sell in its current condition. A lot of times those buyers aren't thinking that way and their agent isn't either. So really you want to get those things fixed. Now, when it comes to taking a kitchen that might be outdated and putting in a new kitchen in order to get it to sell, that's really not great advice, but that's also market dependent. If you have five properties that are exactly like yours and you're competing with all of them, but all of them have upgraded kitchens and they're all listed at $500,000 and yours has a 30-year-old kitchen, where are you going to list?
Santa Clarita market update by Connor MACIVOR (21:08):
Or are you going to match them with a kitchen and then listed $500,000? So these are questions that are very market-dependent, and you have to see how fast those properties are selling today. It is a seller's market. There's very literal little that sellers need to do to the real estate listings to get them to sell. They just have to be priced accordingly. They just need to be priced in the realm of fair market value. And if you're thinking about a price at 700 to seven 10, I would say you should be more considering a price at six 99. If you're considering six 66 70, I would say, you need to be below six 50. So a lot of the real estate search engines are pulling in $10,000 increments and in some cases, $50,000 increments. So it's nice to have your home scene. If somebody's searching at 700 and less, if, of course, you're, you were thinking seven, 10 or seven Oh five.
Santa Clarita market update by Connor MACIVOR (22:08):
You want to be below that next hundred thousand dollar figure. And then also in the $50,000 case, if somebody's searching at six 56, 49 would be a good place to be, to get your house seen by more people. These are little tactics, little strategies that actually help in the long run to sell real estate. But as I stated before, releasing that listing onto the market before all the marketing and advertising have been packaged and put together is a mistake. The final reason on that is this real estate syndication website, Zillow, Trulia, Redfin. , these entities pull that data once it's published, they're operating for the entire country. Well, in fact, even another in other countries as well. So they're pulling a lot of data to update. Every few moments is almost impossible unless you're working on a local real estate website, like Santa Clarita, home experts.com.
Santa Clarita market update by Connor MACIVOR (23:06):
So when they pulled their data, you might not see any change your agent makes and the next week maybe they put that listing on the market, but they're not going to get the pictures for a few days. Well then when they upload the pictures, it's going to take time for those pictures to populate those other websites. So it's going to be naked for a while when people are searching, maybe people are searching in that particular neighborhood, and then you have a competitor come on. The market that was advertised, had their advertising and marketing prepared before it was released. That being the case, that property goes into escrow and yours is still sitting. So make sure your agent has a plan and explains
that plan you with regard to how they're going to prepare the advertising and marketing portion of your listing before they release it into the world.
Santa Clarita market update by Connor MACIVOR (23:52):
I hope everybody's enjoyed today's Santa Clarita, real estate update. I am Connor MacGyver when you're ready, reach out to me and I will be here for you. I hope your week is blessed and I hope pleasant, and I hope everything you want comes your way. When you're ready to reach out to me, please check out the number one set of creating a real estate blog. I know that because we're the top part of the search Santa Clarita home experts at the top tab, you can click on our blog or if you're a better typer type in SantaClaritahomeexperts.com forward slash blog. And you'll be able to see this particular video show and all of the other updates that I do on a multiple, multiple days per week basis. Be safe. We'll talk to you soon and until next time over and out.