Santa Clarita home experts radio show episode 2020-90
The way the world turns. Those who have crystal balls do very well or get hushed up quickly.
I hope to be the first one if I was able to choose :)
If you track back to most of the successful businesses - they all started with one thing.
It went from that one thing too many things. Most of which were successes - but with a few failures along the way for good measure.
I can attest that failure if taken in the right way, is a really good thing. I have failed more times than I can count at a variety of things in my life.
I'm sure you probably have similar experiences. I can choose to have my failure cripple me and put me down for a longer and longer time until death. Or - I can choose to get back up after life hits me with the hardest knockout punch it can muster. Once I get up I can want to feel sorry for myself in a pitiful sort of way. Or - I can choose to regroup, analyze the error and get out there and make it happen.
Real Estate is a moving target. There are times when the market is moving in an upward pattern where home sellers are doing very well. There are other times when the market is moving sideways and then into a buyers advantage zone.
Currently, the Santa Clarita real estate market is moving sideways, but remaining in a seller's zone.
Our home sellers and those of other agents in the Santa Clarita Valley cities are wanting more information about the state of the real estate market.
I do my best to keep everyone updated with our Santa Clarita home experts' radio show where I showcase the current state of the Santa Clarita real estate market.
Below is the transcription from this Santa Clarita real estate radio show updating you as to real estate in the Santa Clarita Valley Updated March 30, 2020. This is the Santa Clarita real estate radio show episode 2020-90.
Connor with honor (00:00):
Good. Everybody. Connor MacGyver, thank you for tuning in. Santa Clarita home experts. Now, if you're not in Santa Clarita, it doesn't really matter because we give a full impression of the real estate market from Santa Clarita Valley to raid or Los Angeles cities to Los Angeles County and to other areas herein Southern California. We also hit on real estate on a nationwide level also, and we do this show weekly, so when you're ready, anytime during the week, you can go to Santa Clarita home experts, just Google it. You'll find any one of the many radio stations were all over the world wide web and you'll be able to click and you'd be able to listen to our latest broadcast. Now today's March 30th, 2020 it's approximately 10:07 AM and we're going to give you the real estate market update. I'm going to talk about the covert 19 or the Coronavirus impact on real estate. I'm also going to talk about current housing inventory here in Santa Clarita Valley and how that's reflective, uh, as being very similar in other places in the United States.
Connor with honor (01:05):
In addition to that, I'm going to talk about the buyer, seller drive and also Zillow. Zillow has some new items out there and maybe they're going to be taking over real estate kind of as Amazon did retail. It feels that's where it's going right now. Well, at the very beginning, and I'll talk about that before I get into the Cove at 19 or the Corona issue and how that market update is coming right now or as far as in the very beginning when Zillow first had its online presence, they kind of absorbed a lot of that traffic that AOL real estate was getting and Yahoo real estate if you remember those back in the day before the internet was really anything fancy. This was during the dial-up days, but there were still a lot of rules and regulations where the best sources of the listings at that time were still with the local agents through the listings that they personally held.
Connor with honor (02:04):
Well, those dynamics changed where you're seeing that the online systems including Santa Clara to home experts.com it's an actual MLS connected site, so you can go there, you can search for listings, you can find all of the active inventory. Well, Zillow's made a monopoly on that. They've been able to take all those truly as well. The red fence on, so forth. These are all systems out there that a lot of people search on. Then whenever they inquire, Hey, I'd like some further information and they hit that button. Then all of a sudden their personal information doesn't just go to one person as it would on Santa Clarita, home experts.com which is my system, my website, so you don't have to worry about anybody else except Connor MCI ever knowing who you are and the only point of contact you would have with regard to real the estate here in Santa Clarita in Southern California would be Connor MacGyver.
Connor with honor (02:59):
So that's me. So you would be dealing with myself. I would educate you in the real estate process and take it from there. That's how I operate. These other systems, they sell your information in the form of leads to a lot of agents that are paying those services. Well, if you look online, they've become very, very powerful. They have a lot of information and the agents themselves are the ones that are contributing to their success. They're not only paying them, you know, thousands of dollars per month to be able to get these leads, but they're also giving them written information that gives them a lot more web presence. Then I'm able to punch in at my, you know, two to 3000 words a day and our Santa Clarita blog, that's the best I can do and I've done very, very well and I'm still page one as far as the results go.
Connor with honor (03:49):
However, when you have, you know, 50,000 or a hundred thousand, 150,000 agents that are regularly contributing to the Zillow blog, yeah, can't, can't touch it. However, at the end of the day, you're going to be better served by finding that local, consummate, real estate professional expert, local knowledge expert and dealing with them, period. And that's the way it will in the end and a lot of people do eventually, get to that point because they go to these bigger websites, they do a little searching and then when they get serious they start Googling more specific things and they find, wow, Connor knows about this area. Connor had his kids in school at this school. Connor's raised a family in Santa Clarita Valley. Connor was a cop before so he brings a little bit more to the playing field than a lot of agents that started in other industries and came into the business or maybe didn't really start in any, any industry and came into the business in that manner.
Connor with honor (04:45):
So people end up seeing Connor with honor. They end up seeing Santa Clarita home experts and moving on. So back to Zillow, you go to that web system. Now Zillow is doing loans, so when people start to look for real estate, they typically find that local area expert and hopefully they find me in the case of loans and lending, the same would apply. There are local lenders and you get on television. That's a very crowded space as well with regard to advertising, lending, mortgages, refinancing, that whole financial market is very, very inundated. Like real estate, like insurance, like vehicles. All of those spaces are very busy online as well. And they're very expensive to try to maintain local placement unless a singular person is, you know, willing to put that work into it like I am. But a lot of folks, you know, they just don't have the time.
Connor with honor (05:41):
They don't have the knowledge, they don't have the ability and that's cool. So they try to pay other systems in place to give them leads. Well now Zillow not only sells real estate in some way, shape or form themselves, but now we have broken into loans and lending is Zillow also. So those local lenders used to share those ad spaces with their agents and with their agents, they would pay for part of their advertising legally so they could be listed on their agent's page. So they're paying, you know, a certain percentage of whatever the Zillow fee is to get those leads. Well, now lenders are paying their competitor to advertise those agents. Not sure how it's gonna work. I think that this is only the beginning, Zillow and real estate. The very beginning was basically advertising a seller's listing out there without permission from the seller or the agent.
Connor with honor (06:39):
That was kind of the beginning of Zillow and then everybody freaked out, but somehow they made it work. They were able to kind of crawl in bed with the right entities. Now they have full market access and they're able to put every listing, probably not so much through the boards of realtors agreements, but through the brokers who actually are the owners of the listings. So each individual agent takes a listing on a, in a particular area, in a particular home. Then their broker is the one, the big corporation is the one that potentially gives approval for Zillow truly in those other syndication sites to take those listings and advertise them online. And does it help sellers? The more exposure the better, but I don't know if it's, it actually comes down to being able to be categorized and looked at his exact monetization amount for particular things that have sold.
Connor with honor (07:37):
So if it was just in the multiple listing service just in the two or 300 other systems out there that are typically advertising real estate listings, including you know, hundreds if not thousands of real estate agent websites. It's all propagated there. You know, I don't know. I don't know if there's actually a betterment for the seller with regard to Zillow, but they're now picking up the loan and lending in Yvette. However, people are going to come and just like you want to choose that local real estate agent. The local lender is also important. They also live in the area. They also potentially have raised families out here. There's more of an ability to go in and knock on their door directly and lodge a complaint, see them face to face, shake their hand and brace them or punch them out. Just kidding, but you know what I mean.
Connor with honor (08:33):
There's more accountability in that regard and also them being local I think gives them a little bit more credit. Having a brick and mortar office I think also gives people a little bit more credit. Now the whole industry on the real estate of is moving away from that. Lending probably will follow suit in the years to come. But right now because of all the different entities within the office of a lender, it's not just the lender himself, but, and I'm sure they have virtual underwriting, they're virtual assistants. You've seen all that. I don't know if lenders have taken their entire lending business and put it into the cloud and operate that way, but at least here at the local level, as real estate agents, I know a lot of agents have started operating in the cloud.
Connor with honor (09:22):
That being the case, I don't see a lot of lenders have done that because they actually have brick and mortar offices. And as far as us, I also have a brick and mortar office too. I still have an office where I go to now that was deemed an essential component via the Coronavirus. Now I can go back to my office when I'm ready. I still think I do have an elderly, uh, my mother in law lives with us. We take care of her. If I were to, the less I go out and get exposed, I think the better. I don't want to bring anything home. And as far as real estate goes, that market getting into the coronavirus and the covert 19 impacts on real estate, it definitely slowed the market down. Currently, in Santa Clarita Valley, we have a very low number of listings at 331 active listings now on the market.
Connor with honor (10:11):
Last radio show we were in the three twenties so nothing's really changed on that front. We do have homes going into escrow. We are currently in the process of almost 500 listings that are under contract in some way, shape or form on their way to close. We would venture to say that we'll probably have 30 to 40% of that fallout and go back into the market. So if you're one of those people that are out there looking for a specific home, make sure your agent just isn't looking and searching the real estate listings that are active, only make sure that they are also looking at the home listings that are in process in those areas. You want to. For example, if you're looking in Valencia, if you're looking at a zip code nine one three five five and you're looking for a single-family residence, that's a single story, 14 to 1800 square feet, three-bedroom, and you're not seeing what you want, then your next step is going to be to find out or have your agent, and we do this for our clients all the time.
Connor with honor (11:20):
Look at those listings and there's not going to be a bunch, but if you look at 500 homes in the process, actually in escrow with an agreed-upon contract between that buyer and seller, then you go back and look at the active inventory at three 31 and you're only seeing five houses fitting your criteria, but you
don't like them. You're bound to find seven or 10 that are currently under contract and then very simply, your agent can reach out to those seven or 10 agents with those listings that happen to have those properties in escrow and reach out to those other agents and say, Hey, you know what's going on with this property? And believe it or not, we've been really lucky in this call it fate or luck or maybe you know just working well and we've been good at this and sometimes you call and while Connor, I can't believe you just called. In fact, we just got word from the buyer that they're going to be canceling escrow. So the property's going to go back on the market and we're able to take our buyer in there, look at the house and get the deal done. So
Connor with honor (12:27):
this is what you do. You make sure you tell your agent, you don't just want to see the active real estate inventory. You also want to see the properties in process and you want to be able to be, you want to be taught how to identify which ones are in process so you can separate those. And then your agent, if you see something you like of the listings that are under contract, then your agent should be able to make those phone calls or send those emails. Or as I do video emails because people, feel more obligated to respond to a video email because that's more of a new thing and it gives an appearance. Like I've put a lot of work into it when in essence I haven't, I've just trusted that, uh, you know, the people that tell me that I'm a 10.2 on the one to 10 scales, I trusted their right so people don't shut off my video or get sick or throw it away.
Connor with honor (13:22):
I do send those out to those agents and they usually respond in a favorable fashion. That's your tip. So if you are looking to buy real estate in this current market and you're still active, even with the coven 19 and everything else, you still want to see it. There are several ways the showings can be done. They can be done virtually. There are still quite a few listings out there that are vacant so that also works. Agents can open it. You go in or you can be on FaceTime with your agent as we do with our clients and walk in and go through the home. In addition to that, inspections can be performed and you'll get reports of those. I do know, and I see this online and I thought I'd throw it out there. I was going to stay away from this because it's gonna upset other people in my industry, but I've never been one to care
Connor with honor (14:17):
buying a house sight and unseen because we have this coven 19 a coronavirus. Personally, I wouldn't do it. Sorry. I can go and I can shoot a video and I can make it. It's just not the same. The feeling of the house isn't the same. Our virtual tour is not the same as walking through the house in person. It's never going to work that way. You have to see it in person. You're spending at least half a million dollars paid off over 30 years. You owe it to yourself to look at this listing going in person. Look at the entire thing from top to bottom. The next step if you like it if your offers accepted that your agent wrote on your behalf. Because there are ways to make that work better than just writing a regular offer as we do for our clients over time. There are love letters you can put in there.
Connor with honor (15:03):
There's a lot of information. There's a much stronger preapproval letter that your agent can put together. These are all tips of the trade. These are aware. You're not going to find one of those large syndication entities. Being able to have an advantage over that local consummate real estate expert. So once you have all that put together and you get your offer accepted, then the next part of the inspection, you know, I'd be honest with you, that's not something I'd miss either. So you want to be
there for that. Some people haven't slowed down as far as real estate goes. I know a lot of agents are talking about virtual this, virtual that, you know, that's great for advertising and maybe it brings them some kind of street cred, but I sure wouldn't do it. I would want to go into a house, walk through it, smell it, touch it, feel it because there's a lot of feelings that come across the bow when you are in residential real estate looking and I would do it that way.
Connor with honor (15:54):
If you are interested in this current market, great and if you want to wait until they call this off here probably the end of this month or sometime in May, then that's fine as well. I don't see, and here's my expert opinion, I don't see this having an effect in tanking the real estate market. When the stock market falters, the bond market gets stronger because people put their money's in those bonds. When that happens, the interest rates get lower and that's where we are with the fed at two and 3% that's where people were able to purchase. I don't see that changing. Even when the market, the stock market goes back up to where it was previously. I don't see those interest rates changing because they were already in the threes. I don't see they're getting much higher. If we're going to talk about higher interest rates, I would probably look for that to happen sometime in 2021 if at all.
Connor with honor (16:51):
But right now real estate with the low inventory, it's a massive refinance market. When people refinance the residential real estate, they typically don't want to sell it, so we see a lot of that. In addition, here's something to watch out for with regard to refinancing. If you are, find out if there's any kind of penalty. What happens if you refinance and get that awesome interest rate and then say, you know what, inventory solo, it's still the seller's market. I was listening to Connor on his radio show the other day. I think I want to sell it. I think I want to sell in downsides. The kids are gone. They have their own families now. They moved to Phoenix. Maybe I'll move to Phoenix or maybe I'll stay here and you know, all my grandkids are out here and in Santa Clarita or you know, maybe I'll go to San Fernando Valley or wherever it is and you decide to sell.
Connor with honor (17:45):
Made sure when you're refinancing that you're not going to be slammed with any kind of a prepayment penalty. So what that means is this, you go to refinance to a lower interest rate. You're really not thinking about selling. Maybe you are maybe just you're going to kind of wait for a few months, but prepayment penalties, things like that can take a while. They can go for a few months, they can go for a few years, they can create an issue for you if you want to turn around and sell. So I would ask, is there a prepayment penalty and if so, is that something you can live with? Maybe it's mandatory on some with some financial institutions, maybe they're going to tell you, well we have to have it because you know that's the only way we're going to make any, any money. You've talked to other financial institutions, they might tell you no, we don't have anything like that at all.
Connor with honor (18:34):
Or yeah, we have one. It's one year and if you want to get rid of it we can. But your interest rate instead of being 2.9 it's going to be 3.2 and you just have to weigh it. Is that worth it where you, you think you might sell the next, you know, six months or a year? As long as that prepaid premium payment penalty is going, then you have to look at the market. Right now we're in a seller's market right now. We have a very low inventory. We still have properties being sold. It hasn't stopped. It's just not moving as fast as it was, you know, prior to Corona, prior to the Coronavirus, the coven 19 virus real estate was moving a little
faster. We're not talking hand over fist faster. We're talking a little bit faster. We had more homes that were moving into escrow a little faster.
Connor with honor (19:18):
Now we're seeing that the days on market timeframes are increasing. So instead of taking 15 to 20 to 30 days to sell, if they are going to put this market on hold or kind of in, in less sure necessary, right? Because a lot of those folks out there, they're out of work or they're standing by ready to go back to work, but because they're not essential, they're not part of an essential employer, then they're really not making that money depending on who their employer is and what they're paying. So those folks are the last people that should be thinking about buying real estate, selling. Well, if you're going to panic sell because you don't have a paycheck before I would do that. I would reach out to my lender and find out as part of this Coronavirus and covert 19 if they're offering anything enable to enable you to not have to pay or to allow you not to have to pay your mortgage payment for.
Connor with honor (20:19):
While we've seen this go on as well, there are a lot of financial instances, Fannie Mae, Freddie Mac, if you have those loans and they're backed by them, you're able to have that extended, I think just with a phone call, that was the word that I put out on my blog from what I understood the other day from an article that I read. You can see that by going to Santa Clarita, home experts.com forward slash blog you'll be able to scroll down and it would appear that if you have one, those types of loans, it should be pretty easy to put your mortgage on hold and if you're, you know, don't let it lapse. Here we are at the end of March. If your payment's due on the first, you better hurry up today's Monday, you better start making those phone calls and find out and in fact, we don't know where this is going to go at this point.
Connor with honor (21:07):
I would hope that the virus itself and the Corona has been blown far out of proportion that we don't need anywhere near the resources that are being called in. I hope that's the case, but even for people that have employment that's continuing, I would still call those lenders your mortgage holder and say, Hey, listen, you know, I need a, you know, forgo buy payments for a few months. How long can you give me? And they're not going to give you and find out how it's paid back as well. That's something else that's important. If you are going to put your loan on hold for your home, make sure it's just a hold. There's nothing fancy like some kind of an escrow account that this gets built on or whatever. Maybe they can just lengthen out the time. If they're going to give you a six-month break and making mortgage payments may instead of your pay off date being when it was, maybe it'll be that plus six months. So now your entire mortgage just moved six months into the future as far as being paid off. If you were to make your just strict payments for the next 30 years or whatever it is, I think that would be cool. I don't know how they're doing it, but at least reach out to them. And that would be that first step before any of that government money from their fancy $2 trillion
Connor with honor (22:29):
help package could come to you. [inaudible] you know, I'm not going to get into that. But anyway, so you see that's kind of the process. Banks are doing it. So pick up the phone and make sure you make those phone calls. And if your investors out there and you have rental properties, from what I understand, those are also able to hopefully be extended just to ask how it's gotta be paid back. Find out if there's any kind of issue and even once they grant you they say, sure Connor MacGyver, you don't have to make your payment for the next six months on your residence located at, you know, this such and
such a street in Valencia, California. That's fine. Go ahead and miss your April 1st payment. I definitely don't want it to be an April fool's joke on Connor where now all of a sudden my credit gets nailed because I have a 30 day late.
Connor with honor (23:24):
I need to get that in writing folks. You need to understand that in writing. If there are going to bless you to miss your payments, make sure the person on the phone sends you something, some kind of an email, some kind of a registered letter or regular, you know, by mail letter, maybe a FedEx letter, something that shows in there that you're able to not make your payments for a particular amount of time just in case somebody forgets to flip the switch on the bank's end and all of a sudden you see your credit score dropped by 150 points because you just missed a mortgage payment that the person on the telephone swore to you that you wouldn't have to make, make, make for six months or a year. Watch out for yourselves. Nobody else is gonna do it for you. Love yourselves. Take care of yourselves.
Connor with honor (24:21):
I'm Conner. You know people ask, you know, a lot of people say, boy, you know, you're so good looking Connor. You know, they rate me at a 10.2 and then other people say, why not a 10.5 you've already broken the scale. Why not go all the way? I say, well, I can't justify pulling three. Anyway, love you all. Thank you for listening. Santa Clarita home experts. I am Conner with honor MacGyver, not a given name. I will talk to you soon. Please be safe out there. This has been your Santa Clarita real estate update for greater Los Angeles areas and the rest of the real estate world in general. When you're ready to reach out to me, Santa Clarita, home experts.com I will be here for you and take great care of each other. Be safe, be well, and we will talk to you soon. Connor MacGyver over and out.