I'm Connor MacIvor, I am with eXp realty and have been selling real estate, representing buyers and sellers in the Santa Clarita Valley and within other So. Cal. Communities since 1998. The deal is this - I am your go-to when it comes to housing and homes.

When you are ready reach out to me and I'll make it happen for you. I give full discussions on the housing market and also develop strategies for my housing clients.

Buyers and Sellers are always included in the decision-making processes pertaining to their real estate interests.

When you are ready - hit me up and I'll take great care of you!

PDF from the transcription of the Santa Clarita real estate radio show

Santa Clarita real estate agents

Santa Clarita real estate's Connor MacIvor realtor (00:00):

Good to everybody. I am Conner mic. I ever exp Realty longest-running real estate podcast and broadcast here in the Santa Cruz valley. And this started back a long time ago, originally licensed 23 years ago. And that was back in 1998 in our am today, selling real estate, still representing both buyers and sellers. One of the best places to go online, to be able to check out not only the real estate news, but also what's going on in the real estate industry. And to find out those listings, the things that are coming onto the market, that coming soon listings and all of those [inaudible] dot com S CV nine eleven.com. In fact, that's the entry portal to each and every update show that I put together. So every week I do a show like this. It depends on the day of the week when it comes out.

Santa Clarita real estate's Connor MacIvor realtor (00:45):

But for the most part, when there is new something to talk about real estate that I believe is very pertinent to helping both buyers and sellers make the best decisions. That's when we come together. And when we talk, so here we are July 20th and that's 2021. Uh, we're sitting here at Tuesday, had to cheat and look, we're going to have a couple of things to talk about with regard to real estate. One of them happens to be what's going on in the market. And if you've heard anything about the local market, you're going to hear that real estate is hot. It's booming, everything's moving very quickly and that's actually true. However, we're starting to see a little bit of a slowdown just because we don't have the volume of sellers that would make the market move even faster. And of course, there's always critical mass.

Santa Clarita real estate's Connor MacIvor realtor (01:29):

There's always that particular number of sellers that starts to be flat the market and cause the market to then shift from being a sellers market where it is over into a buyer's market. But currently we don't have that situation because we are, uh, very low in inventory, just over a couple of hundred units active for sale in the Santa creative valley to be a move of that metal needle from being fully on a sellers market, where we are now over to a buyer's market prime to get five times that maybe over a thousand active listings. And is that going to happen? Probably not for the next few months, but there are a couple items coming up that I'll talk about. That could cause the market to go into somewhat of a flux. I don't believe that the foreclosure market's looming and coming as a lot of people talking about, because right now here's one of them.

Santa Clarita real estate's Connor MacIvor realtor (02:19):

So right now, when people are buying houses, a lot of them are doing what's called waiving their appraisal contingency. Some of them are doing this with bad advice from the real estate agent. So watch out for this real estate agents are not attorneys. If you're going to start to modify and change things, a lot of times it's best to get that legal counsel, at least to answer the question, to find out what ramifications there could possibly be, but that's a whole nother story. But when your agent is explaining this to you, you have to understand all of the potential consequences for you as a real estate buyer. If you're going to start changing things in contract or limiting your basic rights when it comes to buying real estate. So whether I'm representing a seller or a buyer, I need to explain these things to them.

Santa Clarita real estate's Connor MacIvor realtor (03:03):

So they understand what's going on in the real estate world and to best use those to their advantage. However, when it comes to buying houses, you've heard real estate is moving quickly. So what's happening is the buyers are then giving up some of their contractual contingencies, things that are in

contract that state, you know, buyer, shell, uh, have the home appraised. And if the home doesn't appraise for a particular amount or at least what the buyer offer on the property, if it appraises for less than the negotiation reopens up in this case, when they waive that appraisal contingency for the most part. And there's again, a lot of little nuances here, but for the most part, that means that buyer now is willing to pay up to the point that they offered on the property. No matter what the appraisal comes in at. So let's say, and if you don't know, if you are buying real estate, it's your lender.

Santa Clarita real estate's Connor MacIvor realtor (03:57):

That is the one that's going to be hiring the appraisal and the appraiser to go to that property. Typically it's the seller's agent or seller that allows the appraiser access. There is not much communication. I'll tell you that right now with the fiasco that happened back in 2006, 2007, that collapsed appraisers. Well, they like us, but they don't talk to us too much and vice versa if they need additional information. Great. But for the most part, what I like to do is try to keep it arm's length. And what I'll do is I'll have my sellers allow them access into the property so they can do their appraisal and get all their numbers. If they call me later and say, Hey, Connor, how did you come up with this particular price? When you put the property on the market, I'll send them what I have so they can look at it.

Santa Clarita real estate's Connor MacIvor realtor (04:45):

But again, that appraiser, if I'm representing the seller, that appraiser isn't really working for anybody, but the buyer's lender to make sure the property's worth such and such a value depending on where the offer is and so on. So if a property is priced at, let's say $700,000, and in this hot market, you're understanding as a buyer that you have other people you're competing with. And there are multiple offers because you're getting a counter offer that states there are multiple offers on this property. We want you to offer a, give us the highest amount you're willing to pay. So let's say 700,000 looks about where the value is on that residence. And that's easily seen. You can do it yourself. You can go look at the syndication sites, Zillow, Redfin, realtor.com. Uh, even my system center create a home experts. Dot com has information there SCV nine eleven.com does as well too.

Santa Clarita real estate's Connor MacIvor realtor (05:42):

And you'll be able to punch in a property address and get a value. Most of the time, the value's not bad. You know, it's going to be somewhat close, but again, it depends. I've seen values, fluctuate a lot on some of those systems, but it just depends on the property. For example, if the property is completely custom, then that valuation system is going to be doing very well. If there's nothing to compare the property to again, that valuation system isn't going to do justice. And the reason being is this, the system is looking at sold and parables, let's say all the sold comparables didn't have a pool. Didn't have a view, didn't have upgraded kitchen, but everything was the same, same builder. And all, it's going to be difficult for that system to come up with those other values. Now, of course, most people know a pool costs, X amount of dollars to put in a new kitchen with these type of mahogany or hundred and a Hoggy cabinets and so on and so forth, you know, that costs this much and so on.

Santa Clarita real estate's Connor MacIvor realtor (06:39):

So you can calculate it, but that's not enough. It's going to come down to what is the buyer? What are buyers willing to pay? Is it dollar for dollar? Probably not, but it depends on the market. Beverly Hills, maybe dollar for dollar Bel air, maybe more than dollar for dollar. Once you get away from those super super hot markets and Santa Clarita is pretty hot, but it doesn't have that kind of price overage. You'll see that these valuations are a lot more difficult to do. And those systems are very much unreliable at

that point. Coming back though, when you're looking at it, at least you kind of have a good idea of what properties are worth. So that gives you some, at least a standard to start from. Now, the appraiser's looking a lot different. They're going to pull in those comms. So probably not going to use those valuation systems.

Santa Clarita real estate's Connor MacIvor realtor (07:25):

So they're going to do it, how I do it, where they're going to go into the multiple listing service. And they have a, uh, some type of a partnership with the multiple listing service or the board of realtors, they're able to access that data. And then they also call people. So I've been called many times by appraisers asking me what a particular property. I might have an escrow. That number looks like. And in essence, I can, I can help them out or I don't have to help them out. But I think it does help in some way shapes or forms. If I do kind of give them a little bit of an idea or tell them where we're in escrow, because maybe we're going to be closing soon. And by that time they have a deadline to meet on the other end. So by me not helping could be inhibiting the buyer on that other sellers, residents and so on.

Santa Clarita real estate's Connor MacIvor realtor (08:11):

So helping doesn't hurt a lot of agents. Don't I believe that again, helping doesn't hurt. So looking at the market, the grand scheme of it, looking at the appraisal contingency that's in place in contract. Once you remove that, then that's $700,000 figure for what the house is worth versus you offering the $780,000 because you're willing to pay that difference. You've just pretty much committed to it. Now there's other reasons to cancel escrow. If in fact, you do waive that appraisal contingency. You have other contingencies in place as well. The thing I suggest though, is you need to explore those with your agent and find out ethically and lawfully. If are things that you're comfortable with, because is it could be that seller. For example, you go in waive your appraisal contingency. The property, the same scenario runs. You have a $700,000 house that's listed for sale.

Santa Clarita real estate's Connor MacIvor realtor (09:08):

At 700, you offer seven 80, you win the bid, you get it. You're in escrow. The appraisal comes back that you wave on paper. You said, listen, I'll pay the difference. The appraisal comes in at $720,000. That's a $60,000 difference. You said you would pay. What if you change your mind? What if you change your mind for an entirely other reason, an entire other reason, maybe you found out that an X, Y for an ex husband or ex somebody lives around the corner, or maybe you found out that you chose incorrectly and a school system. You thought the house was in it wasn't, these are innocent mistakes. And the other two, maybe not so innocent, but maybe research would have helped with those, but they're not appraisal things, but what's the seller I to think, well, the seller's going to think that you canceled because the property didn't appraise and now you have to come out of pocket with $60,000.

Santa Clarita real estate's Connor MacIvor realtor (10:04):

If there are other contingencies in place and you didn't remove them, you could cancel for something else. If in fact it were true. Well, now we're all speaking about truth. We're not speaking about lying or deceiving or anything else we're talking about truth. It's true. You could, but even if it is true, the seller has the right to not give you back your deposit. Well, they have the right to stop the process of giving her deposit back because they have to agree. But when they don't agree, then their house stops. Doesn't continue to be marketed, cannot be, uh, cannot have another offer written. So basically they're stuck in limbo as well. Tell it all gets worked out legally. How does it get worked out legally? Well, it

starts with the brokers talking, the agents talking if it's the same brokerage, then that tries that scenario tries to get worked out.

Santa Clarita real estate's Connor MacIvor realtor (10:55):

Then if it can't get worked out, then that moves into arbitration mediation on the courts. Uh, maybe starting at the board of realtors, then moving into the courts. And then finally, if everybody's still at a stalemate and there aren't agreements reached, or if people want to continue it, it could go all the way to court. And you would have your day. These are problems that a lot of people aren't thinking about when they're going out there, they just think, well, this is easy. I just write in here. I want to wave my appraisal and I'm going to be okay with that. You have to think it all the way through. We've had some people in this hot market, not just wave their appraisal contingencies, but wave every contingency that they've had. So when they make that deposit, which is kind of the handshake to purchase real estate, that's kind of an entry point.

Santa Clarita real estate's Connor MacIvor realtor (11:43):

The deposit money that the earnest money deposit is yours. It belongs to you, but that's what starts escrow off showing that you're serious. And what that, what does that well, 10,000 or better typically, depending on price range, but that's an average. So 10,000 or better. So you have that money that you wire into escrow, but during all the negotiations, you decided it would be best. So you can get the house to waive all of your contingencies after they get their money. And you decide to cancel. Even if it's immediate, you might not get that back because you've given up all of your contingencies out of the shoot, not just appraisal, but inspection all of them. So that's something to really consider and that's major big league ball. And I think in some cases, some people are being given bad advice, but again, back to it, the market is that hot, where people are willing to do a lot, to be able to purchase the real estate.

Santa Clarita real estate's Connor MacIvor realtor (12:45):

So then looking at the market, everybody says, well, it's got to come to an end. And of course it will. Everything always ends at some point, but then they say, it's going to end in the foreclosure actions. And these notice of defaults all of these issues. In fact, I'm getting emails from different people that were for different large entities and banks talking about these training programs that I saw come through back in the mid two thousands, 2005, 2006, 2007, just people trying to make a buck stating that, Hey, Connor, you'd give us a $600. And then we're going to enter you into a particular baking system. That's going to show the banks that you're that local foreclosure expert. And then you'll be able to sell their foreclosures. When this market collapses here in a few months, the market's not going to collapse in that manner like it did back then, because back then, if you remember, weren't even maybe interested in real estate at that point.

Santa Clarita real estate's Connor MacIvor realtor (13:38):

But back then, it was because people were getting loans at a hundred percent. So there was no skin in the game. You know, Connor MacGyver didn't put in a hundred thousand dollars down payment. He didn't, I was able to get Connor MacGyver and people like me were able to pull and get a hundred percent financing like a veteran would get. So there was no fat or skin in the game. There was nothing. There, there was nothing to trim. So when the market collapsed and the sub or fell, now my house that I paid $500,000 for is now worth $300,000. And when I had one of my notes, so I had a 20% loan and an 80% loan that 80% loan is going to come to mature and I have to pay it off totally in three years or two

years or a year. And what I would normally have done was use the equity in the house that I've gained because the market would still continue to go up.

Santa Clarita real estate's Connor MacIvor realtor (14:35):

Right. But I didn't, I didn't, I didn't have the equity. What happens? Well, that second, it's going to call that loan. And if Connor and I ever can't pay it, I don't have the money in the bank nor do I want to give them that money in the bank. Let's say, then it's going to default. Now as far, whether they're going to come get the money later on and come after me and Sue me and take me to court, that's a whole nother issue, but at least you understand kind of the complexities of it. Now, as we come forward to today, that market isn't the same because we have that cash in the market because buyers are willing to pay the difference in cash. And we've had many of our listings sell for way above what that fair market value figure is. And it actually goes above and beyond what the appraisers are capable of because the lending institution states, I'm only going to loan you $680,000, but you offered $750,000 a difference of $70,000.

Santa Clarita real estate's Connor MacIvor realtor (15:34):

So that's coming out of your pocket. Some loan programs don't care. They're still happy. In fact, we may be even happier because now they even have more equity in the residence. Well, I guess maybe not because the appraiser came in a lot lower, but at the end of the day, they don't care. But if you're using other types of federally backed loan programs, they care. In fact, you can't remove your appraisal contingency with those programs, but I'll see it day in and day out on an offer. I get there'll be that particular type of financing that states at least on the financial side of it and the buyer, not, maybe not aware the agent may be not aware, but it'll state somewhere in the small print you cannot use or remove the appraisal contingency with this loan program. The property must have an appraisal contingency.

Santa Clarita real estate's Connor MacIvor realtor (16:22):

So these are good questions to ask your agents. You want to find out what the repercussions are with regard to you offering, uh, more than what you guys believe fair market value is. And then you want to talk to them about the ramifications. If you remove your appraisal contingency, and then you want to talk to them about maybe making your offer a little sweeter without having to, to really remove anything, maybe just shrink some of the timeframes. Maybe you can call your lender. And the lender is actually going to be ready to go in and close in three weeks. And what the seller really wanted was a fast close. And in some cases, those time dependent closes are more valuable than money. Believe it or not. And we see this day in and day out as well. So finding out when you're about to purchase real estate, finding out the sellers needs as far as do they need a fast escrow that could help you on the other side of it, maybe they need a long drawn out escrow.

Santa Clarita real estate's Connor MacIvor realtor (17:18):

In fact, so long where it wouldn't be allowed, therefore they say they want to rent the property back from the buyer for a couple of months. Maybe they need that. And maybe to them, because the area they're staying is area dependent, not money dependent money doesn't have an influence on it. Basically. Maybe they need to stay in this area in this neighborhood because of a particular school or whatever, but they still wanted to sell. That could be your glory day. You could walk in where nobody else was willing to give him those two months at whatever your payment was going to meet with principal insurance and taxes, whatever that number is, that's what that usual rent back looks like. But

 

then nobody else could do it. And they have to stay in the residence because it gets verified by the federal government or someone that's sometimes when money doesn't talk and money walks and people that are more green and can enable that are able to help them with maintaining records.

Santa Clarita real estate's Connor MacIvor realtor (18:19):

I didn't see it for a little while longer while they sell the top of the market. It actually pays off SCV nine one, one.com. Folks. This is just a little bit of a help video, but I am going to post because we did talk about numbers, real estate inventory, still low. We're seeing conventional buyers getting beat out all the time, but other different loan programs from people that are a little bit more willing to roll those dice when it comes to waiving contingencies. And of course, uh, doing things that other people aren't in agreement with I'm Connor MacGyver STV nine one, one.com exp Realty. Please tell a friend when you are ready to step forward and the purchase of real estate or the sales of, I would love to be a representative again, STV nine eleven.com. You can get all the information there with pertaining to the real estate market, searching for houses and such. When you're ready for me to find you something. Once I get your criteria, I'll dial you into our local boards. You can also enjoy the coming soon listings. And if I can get you into those early, yeah, it's my pleasure. Thank you all so much. I am Conner with honor MacGyver, and we'll talk to you soon. Thank you so much, Santa Clarita, and everybody else, please share this video with your friends. I would appreciate it. It does help. I will talk to you later.