March 22, 2020 - 322 active listings until they get put on hold as is the 75 real estate listings in the Santa Clarita Valley which are adhering to the right ways in the current COVID19 and Coronavirus market.
As of March 23, 2020, at 1039hrs PST - 317 active listings, 77 listings with the "hold do not show" status and 12 have been withdrawn from the market for sale.
The thing that this run does display is that real estate is on hold.
What is the result of non-compliance with this "cease and desist" order?
Our industry is full of non-hackers that want to make their own rules.
However, what if "their own rules" cause the spread of this pandemic - the Coronavirus aka covid19?
I have placed each of our real estate listings that we currently had as active, on hold for the next 30 days.
This is because real estate is not a "necessary" business to continue to be operating during the world's attempt to stop the spread of this virus.
Those real estate agents may have not gotten the word from their risk management department. Some real estate agents don't work for a brokerage that is fortunate enough to be able to protect their clients by being able to have a Risk Management Department - Thankful to be with RE/MAX.
If you are a home seller and have contracted the virus, without signs of your infection, if someone visits the home that you have for sale they could catch the coronavirus. They could take that virus and spread it to those who they know.
Maybe you don't have it. Maybe the buyer's agent has it and does not know it? Maybe their buyer's husband has it without knowing it. See the problem?
Then what - I'm sure that would be traced back to you having a showing of your home in the time when all should be placed on hold.
However, each of my home sellers understood. They had no issues with playing it safe. They don't want to be the responsible party in the spreading of the virus. Nor do they want to catch the virus because of showing their home.
The real estate playing field has been leveled - there is no unfair competition at this time in real estate, or there should not be. All is on hold for now - but you do have another option.
The "Withdrawn" option
Don't do it! My reasoning is that your phone and email will start blowing up. So many hungry real estate agents pay for this information to come into their inbox or CRM.
Some even have robo dialing system or a system where they automatically leave you a message instead of speaking with you directly.
They will call and will call and will email and maybe even door knock you during this time.
The next obvious question would be where did they get your phone number and email address? I'll bet you dollars to donuts they did not get it as a result of your agent's mishandling of your personal information.
At least not anymore. I make it a point never to enter my client's phone number into the MLS. The multiple listing service has a "private remarks commentary field". In that field, what we put is to be kept confidential, not for the general public's purview. Of course, if it's something that is trying to be hidden such as something that needs to be disclosed, that won't happen. I'm referring to items such as phone numbers of the seller so they can be notified or asked if a showing can happen. A showing that an actual real estate agent is attempting to set up.
I learned a long while ago, I set those showings. I'll take the additional time to text my sellers. However, even when my seller's information is nowhere to be found, not even on a contact that was filled out when I accepted and took their listing, where is it being taken from?
How are these agents getting it? It does not make sense?
I should say it did not make sense 10 years ago - back in 2010 - it was the agent's fault. Bad management of their seller's personal and private information.
Today, it is made available by data-mining companies that have built big businesses around the monetizing of your personal and private information.
They find it, in some cases pay for it and then sell it to those who are looking for it.
In the case of a home that you are having sold, your information, at least your name is on the title - that is a public record. As far as your unlisted home phone (if you still have one of those), cellular phone and email address connected with your property, that is an entirely different animal.
Have you ever wanted further information about something online? Maybe you got that popup that told you that by entering your email you will save 10%?
Maybe you put your cell phone number into the machine when you buy groceries to get the discount prices?
There are so many ways for your personal and private information to get data-mined - it's so unfair.
If your home is withdrawn from the Multiple Listing Service, even though you have a contact with your current agent and even though it's active, you will get calls.
So many calls. Not all of the phone calls will be from agents. They are companies and businesses that sprung up to get agents' appointments. Listing appointments with sellers who have had their home withdrawn from the for-sale market.
The same entities will call if your listing expired. God forbid if your home was withdrawn from the market, then a few months later the expiration date came - you get a double whammy.
I had a seller that had a change in their life via the death of his spouse during our listing period. I totally got it and withdrew their listing from and canceled the listing within the Multiple Listing Service.
This was back in 2016 and he still gets robo dialed and agents who are calling to see if he wants to sell his home.
Still - as of this post that is coming up on 4 years this April - OMG - seriously agents, are you insane.
This seller happens to be a friend. We go shooting often, a friend from my LAPD days. He is not too upset, he just views the entire system as broken.
If you have your home actively listed for sale, I'd go the "on hold" route. If enough of the home sellers currently go this direction then when the issues at hand are over, the days on market timeframes won't negatively impact the resale market in the Santa Clarita Valley.
Real Estate won't take the same hit as the stock market
When the stock market starts showing signs of selloffs the bond market starts to be the go-to for a lot of the savvy stock investors.
When the Bond Market gets stronger that forces downward pressure on interest rates - and then we break into a refinance market - which we have currently.
Ask any lender - what is their main business of the past couple months - It is all refinancing. Very little home buyer loan action at this time.
When people refinance, as a rule of thumb, they typically don't turn around and sell their homes.
Double-check before you refinance, if you plan on selling, to see if you have to wait a certain amount of time to sell your home if you do decide to refinance it.
If your lender says it's going to be fine and that you won't have to pay any fees, costs, or prepayment penalties if you were to refinance your home and immediately place it for sale and get it sold within a month, then have them put that in writing.
The reason for this is it's easy for them to say you have nothing to worry about.
They may even hedge their bet on you not selling your home in the next little while until the prepayment penalty expires.
Financing is going to be the issue
There have been many "deals" that have been pertaining to home buyers that have been in the process of buying a home.
They have already completed everything and are waiting for the loan to fund. Then, the calls come in and the emails are received. No funding, no funding order, and funding have been pulled for re-evaluation.
This is not the first rodeo - 2007 same thing happened. Buyers and sellers that were in escrow together had their transactions canceled because the "lenders" needed to re-evaluate.
This also happened in the Santa Clarita Valley after the fires where many of the "in-process" loans were stopped because of the insurance companies who stopped writing polities on homes until the smoke "literally" cleared.
Is it fair that they do this? Is it fair to the home buyer that their funding stopped? I'd imagine they could be happy if the stopping of them buying said the home would equate to them saving money in the long run.
If the market is indeed going to get cut into 1/2 as we observed during the fall of the 2006/2007 markets due to the subprime lender, then yes - the home buyers having their deals canceled should be elated.
This market is not that market - this market is being caused by a virus, not bad loans being granted hand over fist to buyers that today would not be able to borrow with today's loan requirements.
Sick people are going to need places to live. Sick people will also have to maintain their earnings in order to finance real estate. Most are not going to be able to do that for a while.
This is just beginning and we are in for a bit of a ride. Just do yourselves a favor and take your time, be good to each other and take care of yourselves. If you see someone that needs your help, then ask permission to help.
I'm Connor, we are on the cusp of getting more information pertaining to the state of the real estate market morphing.
This feels similar to 2006/2007, but it is moving a lot faster than what I remember and it's not financially based on the same blame point as before.
When you are ready call me for a discussion as to how the best way for you to get your real estate won will be when the "germs" clear.