First things first. To skim the waters and get you the best Buyer Information possible.
Never give up any of your personal information online. If you must register only do so on an MLS connected site where you know the owner is a real estate agent, not a syndication company. My site is one such example - SCVnest.com - You will have access to all of Southern California real estate and homes for sale.
If you are looking elsewhere, that's fine, just don't give up who you are. Text me or call me with the information and I will vet it properly.
This is a good time to have you enter my contact information on your mobile phone.
Connor MacIvor - Realtor - Real Estate Agent
After you fulfill this objective, you now have me with you when real estate issues, requests, and questions arise. You can text me, call me or email me and I will respond quickly with the truth and true information.
Also, if you have someone you run into that needs real estate help, you can direct them to me. We are always able to show our gratitude when we get referrals from our friends, clients, and readers.
So, save me on your phone. I will be useful I promise.
When searching online, you will run into listings and homes for sale on the syndication websites that are "too good to be true". They are low priced, they are in great areas and you can have them for pennies on the dollar. BE warned, those are baited homes and properties. Don't give up who you are to get more information. Give up my information and I'll find out what they are and get that information back to you asap!
Use me, that is why I am in the business of buyer and seller representation in Real Estate.
Also, When entering into open houses or new home centers, don't let them know who you are. By saying your name, it prevents you from having your own real estate negotiator on your side when buying a home. That is a more prevalent tactic by the new home builders and new home centers in California, just know it so you don't fall into that trap. FREE works well and to have a FREE expert new home negotiator on your side when buying a new home, that is a super bonus. We have saved our clients thousands of dollars when buying a new Santa Clarita home. Don't limit your new home representation possibilities.
I have covered these topics in rich detail elsewhere on our Santa Clarita real estate blog, it's at the Top of Google, FYI. Do a search by topic in the right margin of every blog page to see more information.
What do you think the seller will accept as a fair price?
First off, we are going to need to see how much the true value of the home, condo or town-home is relative to the comparable sold history in the neighborhood. We will need to look at sold homes, those which have closed in recent months. Maximum of 180 days from the date we are making our inquiry.
Zillow's Z-Estimate - It's okay to look at, but you will see that in some cases (most cases recently), it's either too high or too low in comparison with the Board of Realtors Sold Data and Market Reports.
Other online estimates of value - Go ahead, do your research, but you will further see what I exemplified by talking about Zillow.
The rubber will meet the road when we get into the multiple listing service MLS and start the research.
I will look at 180 days of sales history. If I have 10 results of closed properties within 1/2 mile or within the same tract in comparison with the home we are interested in writing an offer on, that's great. I will then whittle those 10 homes down to the most recent sold dates. I will then ensure that the homes that we are looking at for comparable and fair market value are by the same home builder, or in close proximity and as close as possible.
A perfect comparable sold home scenario would be exact matches on square footages, similar upgrades, and modifications, same year built, same bedroom and bathroom count and same lot square footage and elevation.
If those "most perfect" choices are not available in the "closed listing", then ranges need to be used. Also, I will determine how much each addition and subtraction from the subject property as compared with those sold listings is worth.
For example, if all the closed (sold) homes that are in the closest proximity with the most recent sold dates only consist of three bedrooms, and the home you are having us help you buy has 4 bedrooms, then I use historical market data to determine how much an additional bedroom is worth.
After that research is done, we know for certain what the fair market value of the seller's home is.
Now - onto the other real estate market factors which will impact our offering price.
Functional Obsolescence of the seller's home
Is there an item, upgrade or other issues that are "dating" the seller's home for sale? Is there something that is not desired by the majority of those buyers in the current housing and real estate market?
It could be like having some Granite pattern and in a color that is not desired by a majority of people in the current buyer market. If the homeowners installed this type of granite in the kitchen, backsplash, bathrooms and on the fireplace, it may be a home buyer will not want to proceed with making an offer because of the cost involved in the changing of those items.
Something else that I have seen is where home is a three bedroom, it was built as a three bedroom, it is advertised as a three bedroom, but once we go and see the home we find out the homeowner decided to remove a wall separating bedrooms 2 and 3 - making one large bedroom.
I always find that some sellers are oblivious to how changing their homes can impact future sales. That is why I have a Same my Information on your phone method.
I want any and all home sellers to call me if they are going to change any of the functionality of their home. Including installing solar panels. Sometimes those solar panels don't transfer very well and it creates deals that fall out of escrow. I have seen it before.
Location can also be an indicator of being able to obtain a home for less money than the comparables indicate. Everything being equal, people want to live in close proximity to others for the most part. There are other's, less than a majority, that wants to live "away from" others. Determining the type of market, whether or not there are advantages to be had for my home buyers related to the current location of the home they want to buy, is super important.
Length of time to sell - Days on Market Time for the Seller's Home
Another important factor in answering the question of how much will the seller accept from a home buyer for the home they are selling comes in the "how long on market" question.
How long has the seller's home been on the market for sale? How does that time compare with the other homes that are on the market?
All things being equal, the seller's home may just be following the standard averages within the current housing and real estate market.
As a home buyer, this is something that you may be able to leverage to your advantage. However, going in half/cocked is not the right method.
My home buyers are armed for bear. I have given then all the tools and data points in order to be able to have our case presented to the home seller via their agent without being offensive.
If in real estate everyone treated each and every transaction like a business, then it'd be an easier world.
Unfortunately, this does not happen. Most home sellers may take offense at a lower than asking price offer.
This is a mistake, look at all offers received as a starting point. Also, as a home seller anywhere, another point is not to put your home onto the housing market for sale at your bottom line. Leave some room for negotiation.
Today's real estate buyers understand that type of pricing strategy.
Historical activity causes more clenched fists
If a home seller has their home on the market for sale and if it was standing room early, where the listing price was such the home received a lot of visits from those looking, they may be harder to move from their current listing price.
Then you have the time that has transpired between the time the home was first listed to the time when you want us to put in the offer for you.
Those visits may have been hot and heavy in the beginning. That being the case it may have made the seller a bit bold in the approach to pricing.
However, at the end of the day, my advice to all home buyers is to give it a shot. Similar advice comes from me to the home sellers of the world that we represent, don't be offended. It's always a starting point in both cases.
Another type of historical activity has to do with the home sellers having been in escrow with a home buyer for a time. Real estate transactions fall out of escrow or cancel for various reasons. Not all reasons have to do with some type of bad discovery made by the home buyer or their inspector.
Sometimes real estate transactions fall apart due to issues that arise on the home buyer's side. This happens in the case of a home buyer not being able to close the transaction due to an issue with their loan. That is why I always advise my home buyers to ensure they are getting the best in lending advice and services.
Use local, use a lender that has been vetted by your friends/family or your real estate agent. Make sure there is some type of enforcement mechanism that exists between your referer and said lender. That is why it's important to ensure you are using a real lender with a real office, just in case something goes awry and you need to take some type of enforcement.
We are very good at finding out the "real cause" of why an escrow may have been canceled. We bring that to our buyers and we strategize from there after all the data is obtained.
The money is not the only thing on the table
After all the data is obtained we are getting closer to making a GREAT offer, but not quite.
Timeframes need to be talked about. How long are we going to give ourselves to conduct inspections? Within the contract, the regular time frame is 17 days and 21 days for the loan.
If these time frames are shortened on the buyer's side, it may make the seller happy. The same with the buyer's loan. Maybe the home buyer can make their loan something that is more "secure" from the seller's standpoint?
Enforcing "as is" from buyer's side can also be of help if there happens to be a lot of interest on the seller's home.
Shortened escrow time may also help if the seller wants their home to get through the sales process fast.
All of these changes need to be discussed between all home buyers, the buyer's agent and the buyer's lender. It may be that some of the changes that want to be attempted will cause harm to the buyer and are unachievable by the entity that will need to adhere to those changes.
I have been representing both Buyers and Sellers since 1998. The bottom line in my client based business model is that I always treat my home buyers and sellers the same way I want to be treated.
That is otherwise known as the "golden rule".
Program my information into your phone, if you have not already,
Connor MacIvor - Real Estate - Realtor - Agent
I will be here to help you make the best decisions when it comes to buying or selling Santa Clarita real estate. If you happen to be in a different city or market, reach out to me if in California so I can direct you to the best of the best.
I have the best exposure for local Santa Clarita real estate market online. We have the number one positioned real estate blog in Santa Clarita on Google.
My method is about advice. Wanting both my home buyers and home sellers to be the most educated in the housing market place. I don't want my clients to have to call anyone else. I am here for my exclusive clientele.
Be safe - Talk soon and please ensure you are getting the very best in Santa Clarita real estate representation possible. When you are ready I'll be here.