What are the odds of your offer being accepted?
Actually, the odds that your offer is going to be accepted is probably about 1 in 20.
It seems that 20 is the average number of offers received by my questioning other agents and the offers received on the listings that I am Blessed to sell.
Connor MacIvor REMAX Gateway real estate radio SCV (00:00): Good to everybody. It is Connor. I ever sent a query to home experts.com. You can reach me of course, by cell phone text at (661) 400-1720 that's (661) 400-1720. We're about to get into June of 2021. I'm going to have an ambulance and a firetruck past me and just a second.
So enjoy the sirens in the background while I continue the day, the radio show is going to be about not only create real estate, the present inventory, and what's going on between buyers and sellers. So we're going to cover that. The bigger item I believe is going to be a little dissertation on best practices for homebuyers in this current market.
Now, right now, as of this weekend, the weekend before June 1st Memorial day weekend, we do have it that open houses have been allowed to be started again here in Los Angeles County, and a reminder out to home buyers. Connor MacIvor REMAX Gateway real estate radio SCV (00:59):
The open house agent doesn't happen to be the listing agent at all times. It could be some other agents, some other agent with their company, some other agent with another company. So it could be a myriad of people.
Cool. In other words, I guess the best suggestion is you never want to use the same agent the seller is using. That's my personal opinion.
I've been selling real estate for 22 years and I've never seen any good come out of those situations because in essence, in essence, the agent has to play both sides of the fence. The agent has to play hard bar hardball for the seller.
If they're a good agent trying to squeeze the most out of the buyer. And on the other side of the agent needs to be the best representative of the buyer, trying to squeeze all they can out of the seller. Connor MacIvor REMAX Gateway real estate radio SCV (01:51):
And you're asking one agent to do that while keeping good relations with all parties. So those future referrals will start and continue to roll in. Well, unfortunately, you can answer that question yourself, is that able to be done?
And I say, no, a lot of agents out there are going to disagree. I'm going to get a lot of hate mail on this one. But at the end of the day, that's what I believe.
There are six states I believe maybe more now, but at least six states plus Canada that outlaw the practice of dual agency, not a big fan, but it does happen now that doesn't include agents that happen to be working at the same brokerage because brokerage is different.
Brokers have hundreds of agents, literally hundreds of real estate, state agents under their license under their corporation. And that being the case, you might have a Remax of Santa Clarita agent as your buyer's agent.
Connor MacIvor REMAX Gateway real estate radio SCV (02:53): And on the other side, you have a Remax or Santa Clarita agent as the seller's agent. But these agents aren't part of the same team.
They just happened to be in the same company while dual agency exists because of the broker and other fire department vehicles, God bless you guys. And girls may, all of you stay safe.
Law enforcement as well, jumping back into it, sorry, when I'm on a tangent there, but, uh, they are close to my heart coming back to it. If you have that same brokerage, that same brokerage owns that transaction, both ends of it, but you have these agents that are fighting against one another.
So in essence, you don't have the same agent. So that dual agency I have, I have no problem with whatsoever because, in essence, you're going to find that there's going to be a local company that runs the game on inventory.
Connor MacIvor REMAX Gateway real estate radio SCV (03:44): What I mean by that is they're going to have a majority of the real estate inventory homes for sale at all times. And these are going to be the larger companies.
The Remax is the EXPs. These companies are going to have the largest amount of inventory here in the Santa Clarita Valley, as far as homes for sale.
That being the case, people also get concerned about the buyers, in that if they don't go through the listing agent, they're not going to get the listing sellers. Aren't looking for that anymore. Sellers are looking for the most money and they could care less.
If a Martian brings it is a licensed your, your particular real estate agent. Now, if you're a seller and your agent is trying to sell you on one of the offers, they're representing the buyers of your residence, I would really, really look at that very carefully and make sure you do not make sure you're being told the truth. Connor MacIvor REMAX Gateway real estate radio SCV (04:45):
Make sure that all the I's are dotted and T's are crossed. And you are being completely honest with you really have to know this, and you have to look at it from all angles because if your agent's getting an offer more than likely, there's going to be other agents.
So many offers as well. And in most cases, those other agents, if you have 20 versus one, those other agents, some of them are going to have stronger offers, better offer more capable offers than your own real estate agent, and your real estate agent folks do have a vested interest in bringing an offer. It's called a double commission, the commission that they charged you, and also the commission that you're paying the buyer's agent to bring a buyer.
The seller pays both of those costs. So sellers are wary, just make sure that you're looking at it correctly.
Connor MacIvor REMAX Gateway real estate radio SCV (05:40): And if in fact, your agent is bringing the best buyer great, but again, it's a tough perspective.
I do tell my sellers if I happen to get a buyer, I will push that buyer to another agent, let the other agent handle them so I can stay on my seller side a hundred percent. So the buyers out there are facing this.
This is the current market here in Santa Clarita valley. We do see very limited inventory, not a lot of homes for sale. The ones that come on the market for sale typically get released in a coming soon fashion.
About a week before they actually hit the market. What coming soon means is basically this is kind of a preparatory beginning or preparatory announcement saying, listen, this house in one week, it's going to be on the market for sale. So prepare yourselves if you're interested. Connor MacIvor REMAX Gateway real estate radio SCV (06:33): And that preparation is going to include a preapproval letter.
And that preparation is going to include you getting together. Your proof of funds, proof of funds has to do with the money. You're going to put down, showing that in fact, you have enough to close escrow.
So if you go to your lender and he says, you're qualified for a 20% down loan, you're going to want to show some kind of a bank account or a statement that shows you have 20% in there. Typically that preapproval letter and that proof of funds is something that's given to the agent prior to them, allowing your agent to schedule an appointment, to look at the property.
Now that happens. Well, that's stated on paper more than it's enforced, especially in Santa Clarita valley. When you have agents that know each other, and you know that Connor MacGyver isn't going to bring a buyer to your residence. Connor MacIvor REMAX Gateway real estate radio SCV (07:29): That hasn't been pre-qualified because that's an absolute total waste of everybody's time.
Connor MacGyver only works with people that are qualified and that are verified and vetted that actually can and want to buy real estate. And if a person's not ready, Connor, MacGyver's not going to waste their time.
So a lot of agents knowing that they'll accept a lot less for me to be able to schedule that appointment because they know I always do my due diligence when it comes to real estate buyers, as a lot of agents do, but in the end, if they still want it, if that's something that they've talked to their seller about, they've sold their seller on the sellers, excited about then great.
Then we'll get you the proof of funds showing that the buyer has enough to close escrow and purchase this residence.
And also that preapproval letter state, if they're approved at least the list price of the property, talking about these prices, they'll see a lot of properties selling for them. Connor MacIvor REMAX Gateway real estate radio SCV (08:28):
Some agents are trying to what's the word, trying to calculate what the property is going to go out as far as what level, how much so they're pricing those properties above where the fair market value is and that being the case, they're trying to dial up the number.
Well, there's always an absolute number when it comes to making offers on real estate. And that typically does not correspond with how property is priced. That's going to come down to competition.
And it's also going to come down to what's showing on the internet syndication websites that properties are worth. You can run property values through the Remax site.
You can run it through Zillow. You can run it through Redfin. You can run it through a Remax. I already said that, uh NRPR, which is another system. There's a lot of them, realtor.com. You can run homes, Val, how home values in there.
Connor MacIvor REMAX Gateway real estate radio SCV (09:26): Realistically, you're not going to get the best value until you go to the actual multiple listing service and have somebody pull you the exact data either by track code, which is very spot-on specific.
Or if there are not enough closings that match up, then you can do have your agent do a search or have us do a search and pull the data via the multiple listing service, but in a radial type format. So it doesn't have to be within that same tract.
If they can pull all the four-bedroom properties that sold in the past 180 days in a half a mile radius and they get at least six solid or five solid matches of sold closed properties that are all verified and vetted, and that is very, very close in relation to the subject property.
Then that's probably a really good comp profile and that's going to be better and more accurate than one of these syndication systems like Zillow or Redfin that are pulling data, using a computer program.
Connor MacIvor REMAX Gateway real estate radio SCV (10:31): When you have eyes on the ground, they're looking at the pictures, the agents comparing those, they're saying, wow, this, this one has a pool. This one doesn't.
So we're going to go ahead and exclude the properties that have pools because the subject property we're looking at doesn't have a pool, but let's say all the properties do and maybe one or two don't, then that agent's going to be able to put together the, uh, substrate subtractions, if you will, or the removal, uh, regarding the addition of a pool or the exclusion of a pool and those sorts of things. So in essence, the agent will be able to do those subtractions.
So you know what you're getting. So for example, a particular time of year a pool might add, I had, uh, you know, $50,000 to a property depending on the pool. But if you get a few in the pools that look very, very similar, you can really deduce what that number is.
Connor MacIvor REMAX Gateway real estate radio SCV (11:25): So then if you only have one comp with a pool, you can look at the other ones, deduce that let's say it is $50,000.
That's the difference in what these others sold for. They didn't have them and the ones with them. Then you can do those subtractions and you can match up subject property very well.
That's how good agents do it. That's how that process works. And then they send you this report. That's going to give you the information that really you seek, and it's going to help you make better decisions when it comes to offering.
Now, today, those better decisions, realistically, aren't where comp value is, but at least you go in knowing what the property's worth. So if it comes down to the highest and best strategy or scenario, which is typical because as I was going to continue with, so properties are released a week as coming soon.
Connor MacIvor REMAX Gateway real estate radio SCV (12:12): Then the following
Thursday, typically they become active and they say the first showings are going to happen Friday, Saturday, Sunday, and Monday. And those shows are typically between nine and six. All of them are by appointment. Only all of them require them.
COVID documentation to be sent. And you have to read through this and sign that COVID documentation has to do with whether you've been exposed. You know, anybody that has been exposed to travel around people that have been exposed. So all of this stuff.
So as long as everything's, no, then you move forward with a showing. It's just basically making you aware that, you know, walking into a closed environment, isn't, you know, super safe with regard to viruses and such. So what you do after you fill that out, then there's other, yeah. Things that have to be done that pre-approval letters.
Connor MacIvor REMAX Gateway real estate radio SCV (13:00): If in fact, the agent is going to be strict and also that proof of funds, if the agent's going to be struck, that has to be sent over and then the properties are scheduled to be shown and we go look.
So that's usually what happens over a weekend, over a weekend. Typically seller's going to get multiple offers, several offers at least. And a good agent is going to counter back the highest of those offers.
And the best of those offers, maybe a handful, maybe the top three, because if an agent's good and doing really what they're supposed to, they're going to be countering specific to each of those offers instead of just blanket countering all of them, because some of those buyers, and this is a newbie mistake, some of the buyers might have put in there, had their agents put in there. They want certain items.
Connor MacIvor REMAX Gateway real estate radio SCV (13:47): I E like the refrigerator and let's say the refrigerator isn't staying.
Then the agent has to write a specific counter stating, you know, buyer to exclude the refrigerator from their offer.
It's not included in the, with the home. So there's going to take it, something of that nature, maybe not as wordy, but you understand the process.
So now they have to counter them specifically a blanket counter doesn't really help because it doesn't address that unless they want to put everything.
The top five mentioned that they want, that might be fangs, that the seller wants to keep putting all of those in there, I suppose that would work, but it's kind of lazy.
It's a little low-brown suggestion that has always worked with people that don't cut corners and give you full service all the way.
Now in this particular market, there are, there is a lot of frustration. Connor MacIvor REMAX Gateway real estate radio SCV (14:37):
Buyers are very bothered that they're searching for real estate. And they always asked me, where should we be searching? Should we be searching at our maximum amount? Or should we come down 40 or $50,000 just in case to be completely Frank, both of those strategies are fine, but in some cases, as we've seen, you know, kind of, uh, not very rare that people will still get properties, that list.
So it's really hard to say there's a lot of other information that needs to be obtained. And sometimes that information is not obtained easily if not obtained at all. So you kind of have to go in there very strong and then have an agent that's willing to step up and try to squeeze a counter out of the other agent.
And typically if you have a good agent that's productive, this other is going to definitely want to counter, even if maybe they're not in the top three, just because they realize that at some point there, the role might be on the foot and the shoe might be on the other foot and they might want to count for one of their buyers.
Connor MacIvor REMAX Gateway real estate radio SCV (15:50):
So this is something to look at when you are hiring an agent. And I know everybody's going to tell you they're the best in the business, best in the world, and best that's ever lived. But at the end of the day, I think you can sit down and kind of deduce how they are. Look them up online. Kind of see what those reviews are,
I not a big fan of Yelp, but it is what it is. You know, have a look at that, see what you think, you know, and I'll still look at things in that regard. Look at Google reviews, kind of see where they are. I think a lot of people that don't like Yelp go to Google, but you can see all of that.
And then maybe they have a website with reviews too. Maybe they have three, you know, mom, dad, and some cousins somewhere. Connor MacIvor REMAX Gateway real estate radio SCV (16:26): But at the end of the day, at least you kind of get a better idea. And the interview is really important as well.
I would do it over the camera, over some kind of FaceTime or zoom, so you can see their face and their reactions to the questions you pose. How long have you been in the business? How many homes did you sell last year? How many buyers have you represented in your career?
Approximately how many sellers do you consider yourself a buyers agent and why it may be, you're just a seller's agent and why should I use you as, as a buyer's agent? You know, there are lots of questions. Do you know anything about financing? Do you know anything about loans?
These things are important too, because if you do have a real estate agent that is savvy and real estate loans and lending, then when you go and you get that loan through somebody he knows or someone else he's able to at least, or she's able to at least say, you know what, this is a great deal.
Connor MacIvor REMAX Gateway real estate radio SCV (17:18): Or, you know, if this is a horrible deal, this is, you know, something that usually doesn't happen to.
This is something that happens all the time. At least that gives you an extra layer of protection. So that's not a bad practice. If you happen to find somebody that does also function or has functioned maybe in the past, in the loan arena.
And we do that as well here at Santa Clarita, home experts, I'm Connor MacGyver with re max and Santa Clarita home experts. I hope your weekends, fantastic. Memorial day weekend. We're coming up here beginning of June 2021.
When you're ready to reach out to me. And before that, you can check out our blog at Santa Clarita, home experts.com forward slash blog. Be careful what you read online, what you digest, and I'm not talking about, um, religious or sins or any of that stuff.
Connor MacIvor REMAX Gateway real estate radio SCV (18:09): I'm talking more about real estate because there's a lot of websites out there that are S slanting or being self-interested in the content they produce.
And they put it out there in order to influence some kind of a buying or selling decision, whatever their method may be, know that we're coming up on the end of forbearance, the end of June. So in 30 something days, very close to it.
We're going to be the forbearance is going to stop. So these people that haven't made a payment because of COVID and hardship, they're going to be forced to make their payment. First, to July, there are a couple of questions still floating around, out there with regard to how they're going to make up that year or 18 months' worth of a payment to their bank. Probably not going to be called all at once.
They're probably not going to say that, um, you know, you have to, you have to catch up right away, or we're going to foreclose that will throw the market into a downhill spiral. Connor MacIvor REMAX Gateway real estate radio SCV (19:12): For sure.
I think that they're probably going to develop some kind of an escrow account tack on what they owe to the end, or just hold it in abeyance. And if in fact they ever sold the property, that amount would come to do whatever it may be to the bank. So there are certain ways I also don't know. And I'll leave you with this.
If you are in forbearance, I don't know what that's going to look like with regard to your credit, because I believe on the credit states, a person's in forbearance, but I don't know if that goes away. When you start making your payments July 1st, and it goes into some kind of an escrow account, or if it's a more difficult process, I am Connor never.
It is always a pleasure. I do appreciate you. Thank you so much for tuning in, and we will talk to you soon, Connor McCarver, over and out.