Within the last several months, it is August 12, 2021, we have seen quite a shift in the real estate market for home sellers.
There was a time when we had a small number of multiple offers on residential real estate in the Santa Clarita Valley cities. Then that became quite ridiculous, where multiple offers (3-5 maybe) became 30+ offers received on each listing we put on the market for sale.
Of those offers, depending on what the buyers asked for, or did not ask for, we responded on the counteroffer form.
When your agent wants to respond to offers that they have received, make sure they send you everything, including a copy of the email from the other agent who sent the offer.
Most agents do not. The issue as I have seen it in speaking with a lot of clients after the fact they had a "bad experience" with another agent, is disclosure.
Sometimes, there are personal things included in those emails that can be quite revealing about the agent you hired to represent you.
Your agent should be fully transparent as we are when we send the offers received to our clients.
Now, responding to multiple offers, over 20, can be very time-consuming. The best way to handle this is by responding to the top offers.
Those which have been able to be verified. Those in which the home buyer has given all the necessary documents to accompany their offer.
The days of only sending an offer are long gone. When you are a Santa Clarita home seller and looking at the offers which had been received by your agent, you want the following items.
- Lender Approval letter - matching the amount or higher than the amount of the offer.
- (if possible) an Underwriter Approval (UA), its the strongest type of approval letter.
- POF - Proof of Funds. If the buyer on the contract states that they are going to put a 20% down payment and they offer you $800,000.00 for your home, you want to see proof of funds (POF) for $160,000.00. Remember, these proof of funds need to be liquid. They need to be in an account the buyer has access to. If they are in some type of IRA or Deferred Compensation plan - hedge fund or investment, they may not be accessible, don't rely on the fact the home buyer or their lender should have checked - I catch these errors and they can equate to a negative set back on behalf of our Santa Clarita home sellers.
- FICO - Scores - The buyer's credit scores - this is for all buyers coming in on the offer. There may be one person or multiple. The bottom line is you want to see where their credit scores are. It could be they barely make the cut between being able to get a loan and not get a loan. That's a tough position to gamble with. What if they charge one more item or increase the amount they owe on a credit card? That could mean the difference between them buying your home and not being approved.
- Deposit - This is something that is promised in the purchase agreement. It's an amount of money, like a handshake. The POF should include this amount being covered as well. A solid deposit can be anything the current market dictates. In the Santa Clarita valley market, 7k ish - depending on the purchase price all the way to 3% of the purchase price seems to be the standard, then everything in between. Depends on the agent and their seller. By making the deposit too stringent, you may cut out buyers that may be offering more "total money". They just may be using a loan program that does not require as much down, but it will get financed and finished just the same as a heavy down conventional offer.
- The OFFER - The RPA, Residental Purchase Agreement - Where the rubber meets the road for the Santa Clarita home sellers and us as their agent. This is where I can judge the agent who is scribing the offer and see what their clients are all about. Is this an offer from who? What are they willing to pay and what are they willing to remove without being asked. This is also called "giving uprights". What are they willing to waive if their offer is accepted? Where their items that were left out, costs that a seller usually pays ascribed to the buyer? I can also tell if the agent is seasoned or if they are new. This is not only with regard to how the offer was written but in association with their CALDRE license number (in most cases).
These are some of the items which a Santa Clarita home sales agent needs to take an accounting of. Some need to be investigated and not trusted beyond the paper they are written on.
The buyers all want the home they wrote the offer on. Sometimes, it's their representative who is lacking with the preparation and presentation of the offer.
There you have it. Something extra that a home buyer can include to ensure who they are will b shared. In fact, it was not my intention to start filming myself, but homebuyers can be shy. Plus, when the agents see me, I'm hoping we had some positive dealing or contact from the past together. Hence, this is an important step for both the Santa Clarita home buyer and the Santa Clarita home sellers I encounter.
Ok - real quick - I did not plan out the names of anyone. This was adlib.
Sorry, Josh and Joshua - maybe twins? And a quasi Jurassic park dinosaur name for the dog - well there you go.
I want you to be safe, I want you to make the best dealings when it comes to real estate and I want you to make sure you contact me when you are ready to have your real estate not just done but won.
This has been a Santa Clarita home seller tip from Connor with HONOR. eXp Realty.
If you want to see the local Santa Clarita real estate update we post that here.