Santa Clarita home experts real estate market update 02-27-2021
Original PDF of transcription from this episode of Santa Clarita home experts real estate update
How is this for a transcription? LOL - not very good, but it gets google juice. Listen to the broadcast of the longest-running real estate radio show and podcast for the Santa Clarita Valley pertaining to real estate and only real estate.
This is What I do - I'm a Realtor in the Santa Clarita Valley and I want to be your Realtor. When you are ready so we can have a discussion between you and me. I will answer all your questions and give you some you should consider before embarking on your personal real estate journey with me.
Santa Clarita home experts real estate realtor (00:00):
Just about 180 units for sale, all residential real estate, including single-family residences, including condos, townhomes, altogether Santa Clarita Valley act and Oakwood Alzay Castaic, Katie of country, new hall, sagas Stevenson, ranch, and Valencia. That's it. 180 active listings. And about 22 to 25 of those 22 to 25 are coming soon listings. So there's not much out there on the market for sale. However, we have 450 odd units in the process. That means in escrow, good to everybody. I am Connor MacGyver, Santa Clarita, home experts.com did a real estate show yesterday on YouTube talking about some of the more non-market strategies and things that we don't see come up too often. Back in the day, when you would buy real estate, a lot of people were under the presumption that it's best to go to that listing agent to be able to buy that house.
Santa Clarita home experts real estate realtor (01:05):
So by default, you would almost be told by your powers that be by your sphere of influence. The best thing to do would be you to go to that listing agent and approach them and say, Hey, listen, we want to buy the house on the corner of the walk. And don't walk that we saw your real estate sign in the yard stating it was for sale. That's the way things used to be done fast forward to today. That's not the way things are done at all. In fact, if it's a regular seller, they're going to want complete market exposure, and 99% of the time or better, it's not going to be their agent that has the strongest, most capable real estate buyer. And this is done how this is done via the counter process. So if you're using the same age in which some States actually call it illegal and unlawful, they don't allow it including Canada, which is a whole nother country, right?
Santa Clarita home experts real estate realtor (02:09):
So they're not allowing dual agency in those States. And then Canada, California, that is still legal. So it is legal for the agent that represents the seller on their home to represent buyers on that same Southern home. So it is legal out here. Nobody's breaking any rules by doing it, but there are a lot of disclosures that go along with that kind of representation. There's a lot of information that has to change hands because there's going to come to a point where that agent working for that seller, having that buyer for that seller's residence, 're going to have to confront that buyer and proceed to counter their terms, trying to squeeze that buyer for as much money possible, trying to squeeze that buyer for the best terms for that seller and coming from the same agent, the buyer's hired kind of seems strange. And then later on in the, you have other things that need to be negotiated.
Santa Clarita home experts real estate realtor (03:02):
Let's say the buyer's inspector found something wrong with the seller's residence. Maybe it was during the inspection. They found out that the garage door from inside the house, outside in the garage, didn't have a self-closing self-closing hinge, let's say, or the water heater wasn't strapped correctly, or some other health and safety issue that really should be remedied before the buyer purchases the house. Now, of course, the way it works in real estate, at least now everything's up to negotiation. There are some items that an appraiser could call out that might not be up for negotiation that is going to have to be fixed at somebody's expense before the close of escrow, whether it's legal to have the buyer pay for it before it closes or even smart. These are things that definitely need to be explored by all parties, because at the end of the day if a buyer pays for something to be done because the appraiser called it out and the seller refuses, but the buyer really wants the house and the buyer goes against what their agents are telling them not to do it because something could happen. The transaction could fall apart. They pay several thousands of dollars to have this issue remedied because it's a hot
market. There's not much inventory on the market for sale. And because they've been around the merry-go-round trying to buy a house. So they're desperate, right? So they say they're going to pay it. So they pay for it. And then the seller dies.
Santa Clarita home experts real estate realtor (04:39):
Now they're out, that's a problem. And of course, I hope nobody's seller dies and nobody buyer dies. I hope nobody dies ever again, but at the end of the day, it could happen. So having that good advocate, that person that's on your side 100% of the time, not on the other side as well. Well, that creates a problem. That was what the blog post was about. Basically, the way listings were being scheduled. So watch out for that. And then some people are still kind of have that old school grade where they believe that they can still con and trick the system and play the games out there. And agents aren't excluded from that dynamic, just watch out. And when you're hiring somebody, make sure that you're there on your side 100%. Now let's talk about the low listing inventory and why that is. This started to occur last year in 2020, around March or so, February, March, everything looked really good.
Santa Clarita home experts real estate realtor (05:34):
And the market looks like we were going to start to get stellar numbers of inventory. We're reporting 250 units for sale. Then 300, then three 70. We were looking really good seeing these a typical seasonal increase in a normal real estate market, which would, if it would have actually continued to go through whatever it turned, the Santa Creta market here in 2021, uh, it would have made it more of a normal market. But we did have that virus that comes out of China. We had that effect, the world population. We have lockdowns put in place. We had all sorts of other issues come up because of COVID. And then the real estate was put back on its heels yet again, and there was now another reason to cause the market to stagnate and people, and you can't blame them. People that had houses to sailor have houses, they want to sell not being able to sell those houses or even asking themselves, should we sell right now or not?
Santa Clarita home experts real estate realtor (06:32):
You have that coupled with super-low interest rates. So pretty much everybody in the world is somewhere around 2%. If you're not, I would definitely recommend you give us a call or your trusted lender or somebody, but on that front, make sure you get a couple of opinions and a couple of net sheets or price estimates, knowing exactly what you're going to be paying and judging those services against one another. Because realistically, if you are going to be financing in some cases, in most cases, it's not a super big deal. Moving from entity to entity from mainline bank to me and my bank investor to investor hedge fund a hedge fund, whatever it may be, wherever you're going to get your house refiled through. It's not that big of a job for the people that are going to be doing it, especially if you bought your house and you have that equity setting there, usually that refinance is a no-brainer.
Santa Clarita home experts real estate realtor (07:26):
One of the things to consider before you start embarking on it is looking at your own lender. The people that holds your mortgage note now and see what kind of deal they can do. And then looking elsewhere at some offsite, maybe a local lender, some of the people on TV, they're going to tease you into a fancy interest rate. They're going to say, if you're not at 1.7%, then you're spinning your wheels, wasting your money. That 1.7% interest rate folks don't fit for everybody. That's not a guarantee. They'll tell you that just to get you to call and then the wine and dine you and romanticize you into some other deal and you'll accept it is their deal going to be the best it might be at the end of the day, though,
if you're not looking at the documents, you're not looking at a couple of different cost estimates from different lenders based on the same thing, a specific interest rate, as long as all those variables are the same, then you'll be able to look and see, well, this one over here seems to be less expensive.
Santa Clarita home experts real estate realtor (08:32):
And if everything seems to work out, this is going to be their interest rate. Then as you get a little bit closer, they'll have run all your numbers. They'll have locked you in at a particular rate. And then at that time, you'll be able to see, yeah, I feel confident with who we're using. And if we're talking a 10th of a point, you're splitting hairs. But if the main interest rates going to be very similar to being the same and the charges are going to be zero, if not very low, these are going to be things that you're going to want to look for. And it's going to actually help you out. So refinancing if you haven't done it yet, and you can save at least half a point, that's kind of the rule of thumb. Some lenders are going to talk you into it. If you can save a third of a point, if you've had your mortgage for less than three years, a third of a point is still going to make sense for you to refi.
Santa Clarita home experts real estate realtor (09:21):
You're going to have to pencil it out. You're gonna have to look at the cost. You're gonna have to look at how many payments you made already. What that's cost you, how much principal you've paid towards up to this point, if it is interest only, and then don't forget whenever you're doing a refinance, you're extending the term of your mortgage. So if you had 25 years left, but now you want to refi, you're going to now have a new 30-year mortgage, unless you're cutting those numbers. And you're shaving those down, getting your mortgage down to let's see a 10 or a 15 year. And that's a whole different animal, still, a refinance, maybe something to look into. But again, most, if you're going from a mortgage to a refinance mortgage unless you do something differently, it's usually a 30-year note. So you're starting that all over something to consider looking at those payments.
Santa Clarita home experts real estate realtor (10:12):
Seeing if it's worth it, just sit down very simply with a pencil and a piece of paper or a computer in a wand, whatever it may be a stimulus, but you know, put something down and figure out if it's gonna make sense for you. I'm Connor MacGyver. Thank you for tuning in Santa. Create a home experts.com. One of the things I will say, as I said a lot today, one of the things I will say is this. We have a lot of new construction going on in Santa Clarita Valley. Most of it doesn't seem to be ready till September all the new home bills out here allow the new home buyers to use their own real estate agent. Again, kind of along with the dual agency thing that I spoke about earlier, it's nice having your own representative on your side during the process, as long as it's not costing you as a buyer, anything.
Santa Clarita home experts real estate realtor (11:05):
So if it doesn't cost you anything, why wouldn't you bring somebody that understands the process that gets to be your voice that does that's. That's able to say what they feel and doesn't have any skin in the game to best protect you. That doesn't care whose feathers they ruffle. And they're only there to get you the best deal possible. The most in discounts, the most in incentives, the most in new credits, new housing credits over there at the new construction factory where they're selling the upgrades the most in credits for closing costs. Why wouldn't you take somebody like that with you? And I'll tell you the only reason why people don't is because they don't realize it's a thing. They don't realize that once they walk into a new housing center to look at those model homes, the first moment they record their actual name, then that prevents them at the builders cost.
Santa Clarita home experts real estate realtor (12:02):
Now at the builders cost 100%. The builder will pay your agent to represent you at no cost or harm or detriment to your position, purchasing a new house. It's not going to cost you a dime or hurt you in any way period. They offer this. But once you go in there and you give up your name, I'm John Smith, it's all done. It's all finished. You've just given up your right. Once you put your name on some, in some computer programs, showing that you were there without your agent, having it provable, it then cuts your agent out of the process of being able to be your representative of the new home builder, new housing site, period. That's it. So they don't put it up in big bold letters because they believe that you should be able to have your own representative. And do they really want to pay your agent now?
Santa Clarita home experts real estate realtor (12:56):
Probably not. So that's why they kind of build it in this way. You walk in, you're excited to see new housing. You're excited to be there. They hand you an iPad, say, Hey, Mr. You mind, would you put your name down here? Just so you know, we can send you updates. And when we're releasing, releasing new phases, things like that. So I had a cough there. I was able to hit pause almost all the way, but that's what you need to look for. So when you do go into new housing, I'd say, no, thank you. I said I'm just here to look at the models. Well, our, our, our, our, our business requires you, uh, fill it, fill out this form. Oh. And if I don't fill out the form, I can't look at the new houses. It's okay to say, it's not going to hurt.
Santa Clarita home experts real estate realtor (13:48):
Nobody's going to beat you up. I promise. And when I was younger, I probably wouldn't have been so standing up for my own rights, kind of a thing. But as I get older, I, uh, I'll ask, I'll ask the questions. And if they insist, I'm now John Smith, not Connor MacGyver. Anyway, it works. I hope everybody has a fantastic week. We're starting out here on Saturday. We're closing out in February. Uh, today's the 27th. We have March 1st coming up here on Monday, please. Any information you need, let me know. You want to check out those new houses. Let me know about real estate resale. Really. It's tough to go wrong. When you're looking at the real estate websites online. If it's a local system like Santa Clara, home experts.com or Paris nine one, one.com. We have both of those systems. They're all IDX-driven. So you're going to see the multiple listings, uh, the coming soon stuff, as well as the active stuff.
Santa Clarita home experts real estate realtor (14:47):
If you're looking online that the best way to get those coming soon listings, isn't going to be through any particular website. It's going to be by contacting Connor, MacGyver me directly and giving me your parameters. And I'll send those to you or have the system generate those coming soon listings to you. At the very moment, they hit the market for sale. That way you're guaranteed to see the coming soon listings before I even see them, you're going to get that notification right away. I've caught her. Let me know what areas you're looking for, what your parameters are, and what's your minimum housing required payments would be, and I'll be there and get you all set up on the coming soon listing email. You'll be safe. Connor MacGyver Connor with honor over and out.