Latest / Connor with Honor: AI, Real Estate and Real Life / Sellers Santa Clarita paying for buyers closing costs - it's not the way things have been in real estate, but that's why I'm here

Transcript

Sellers Santa Clarita paying for buyers closing costs - it's not the way things have been in real estate, but that's why I'm here · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Good day everybody.
• 0:00
  SPEAKER_00: Connor McIver, Connor with Honor here, July 6, 2022.
• 0:04
  SPEAKER_00: This is going to be your Santa Clarita real estate update.
• 0:07
  SPEAKER_00: We're going to look at inventory currently and we're going to also talk we're going to also talk about some trends that have been happening here in the last couple months that have uh done a pretty good job dissuading sellers.
• 0:18
  SPEAKER_00: Also slowed the buyer drive a little bit.
• 0:21
  SPEAKER_00: We do have extra inventory on the market.
• 0:23
  SPEAKER_00: And by extra, I mean somewhat closer to normal inventory.
• 0:27
  SPEAKER_00: If you look at a historical inventory amounts, typically it takes about six months.
• 0:33
  SPEAKER_00: This is known as what's uh known as absorption rate.
• 0:36
  SPEAKER_00: Six months to get from the current amount of listings to zero, if none were added to the market.
• 0:41
  SPEAKER_00: That's a typical market.
• 0:42
  SPEAKER_00: Right now we're looking at uh half a month to a month to deplete that inventory, maybe embarking now on two months, because we have the additional units.
• 0:52
  SPEAKER_00: So now 474 residential properties are listed active for sale.
• 0:56
  SPEAKER_00: Of those, there are some coming soon.
• 0:58
  SPEAKER_00: That's 18.
• 0:59
  SPEAKER_00: Uh, when you see those properties online, you're gonna have a tendency to want to jump on them.
• 1:05
  SPEAKER_00: I'll tell you this, don't panic, because in 99.9% of the time, those real estate sellers out there, the people I list and sell homes for, they want to wait.
• 1:15
  SPEAKER_00: They want to wait till they get complete market saturation with the advertising and marketing plan that I put together for them on a personal level.
• 1:23
  SPEAKER_00: Also for the residents, actually, we get that out there put on the market, and then we want that complete exposure.
• 1:30
  SPEAKER_00: Once that happens, then we're able to gauge better how the pricing strategy was, and usually before we have a great idea what's going to end up happening, because there's plenty of comparables and market data to compare the residents with that I've listed for sale and put out there in the world to be sold at the best possible option for that particular seller.
• 1:52
  SPEAKER_00: Now, right now we're seeing these markets start to slow down where buyers are starting to be a little bolder than they were before.
• 2:00
  SPEAKER_00: Before, as far as the offers go over the last several months, and I would say uh January throughout maybe May-ish, uh maybe beginning of June, we did see multiple offer scenarios on every listing that was put out there.
• 2:15
  SPEAKER_00: Really, price range wasn't super dependent.
• 2:18
  SPEAKER_00: Once you got over$1.5 million in Santa Crita Valley, uh there was a little bit of slow that was noticed.
• 2:24
  SPEAKER_00: So those properties still weren't moving that fast.
• 2:27
  SPEAKER_00: Now that number has resulted to be under that$999 or$1 million price range.
• 2:33
  SPEAKER_00: We're watching those properties continue to move pretty quick, but again, that additional inventory, or the inventory that we haven't seen for a very long time, bringing us up in the 470s now, whereas three months ago we were in the 230s, 240s, we can see that that it has slowed down the market quite a bit.
• 2:52
  SPEAKER_00: The other factor that's changed the real estate market here in Santa Crita Valley and elsewhere here in Southern California happens to be the interest rate changes.
• 3:00
  SPEAKER_00: Now they went up.
• 3:01
  SPEAKER_00: I guess there was a large rally in the bond market yesterday.
• 3:04
  SPEAKER_00: Looks like that's gonna have a little bit of an effect on interest rates, so hopefully that's gonna lower them a little bit more, maybe spear the market off a little bit, but again, time's going to tell if that's actually gonna factor in being the case.
• 3:19
  SPEAKER_00: The other thing, too, is we're gonna continue to see more listings added over the next couple months, and then usually we see that fall slowdown start to happen in real estate.
• 3:28
  SPEAKER_00: Might be a good time to look for uh those deals out there, but it's gonna depend on the sellers, of course, because a lot of the sellers are not testing the market, but they really wanted to get the height of it, and they're now curious.
• 3:40
  SPEAKER_00: Oh, I hope I didn't miss it, because we are seeing a lot of properties start to have price reductions, not moving nearly as quickly as before.
• 3:48
  SPEAKER_00: We're also watching as the sellers are starting to make particular allowances that they weren't willing to make before, i.e., in paying closing costs or contributing to closing costs for some of the real estate buyers.
• 3:58
  SPEAKER_00: Also, them, uh the sellers themselves accepting contingent deals, which didn't happen before.
• 4:05
  SPEAKER_00: And in plain terms, that basically means that particular buyer uh has a house to sell or some other thing that they have to get done prior to them being able to finish and close on the seller's listing.
• 4:18
  SPEAKER_00: Most of the time in the past, there weren't those, well, there were those buyers out there that were contingent, but they had a very difficult uphill battle to get that offer accepted.
• 4:28
  SPEAKER_00: And for the most part, their property, excuse me, their property had to already have been an escrow in order for the sellers to even entertain a contingent offer on the house having to be sold.
• 4:41
  SPEAKER_00: Something to look at if you are a seller out there, make sure that you're looking at all the information, all the data.
• 4:46
  SPEAKER_00: Your agent should be able to pull that so you're not surprised or blindsided.
• 4:50
  SPEAKER_00: They should be able to explain to you the whole process.
• 4:52
  SPEAKER_00: Same with you real estate buyers out there, when you do sit down with your agent, they should be able to cross all the T's and dot all the I's for you and give you those scenarios so you don't get blindsided as well by any part of the process.
• 5:06
  SPEAKER_00: Now, of course, we did have uh this last week, we were able to get an offer accepted for a client, everything was well in the world, the client had changed their mind.
• 5:14
  SPEAKER_00: What ends up happening with this, and for whatever the reasons were, at the end of the day, the question always is, am I going to get my deposit back?
• 5:23
  SPEAKER_00: And the answer to that question, it depends on contract and those time frames.
• 5:27
  SPEAKER_00: Usually, and this is kind of embarks in the legal realm, but the way it works is if everything is well in the world, what ends up happening is you do get your deposit back if you have not removed your contingencies.
• 5:42
  SPEAKER_00: And in contract, within the California Association of Realtors contract, the car forms, those offers have particular time frames built in.
• 5:51
  SPEAKER_00: So if they're not changed, usually it's 17 days.
• 5:56
  SPEAKER_00: So the buyer has 17 days to complete all their investigations, get all their paperwork, do all their due diligence, get their loan approved, the whole nine yards.
• 6:03
  SPEAKER_00: That's usually what that is, 17 days.
• 6:06
  SPEAKER_00: In an aggressive market, like we're seeing up until very recently, we saw those time frames shrunk quite a bit.
• 6:13
  SPEAKER_00: 10 days, 12 days, 14 days, kind of dependent on the offer being written.
• 6:18
  SPEAKER_00: In some cases, we saw buyers throwing the everything out, including the baby in the bathwater, and we were watching people as they were very much willing to waive all of their contingencies right out of the chute, which I thought was uh a lot to be said for the interest level of that particular buyer, because what that ends up meaning is that buyer is now willing to give up their entire deposit, which is around three percent of the purchase price, and that's usually the deposit these days, somewhere close to three percent.
• 6:52
  SPEAKER_00: Uh and just willing to give that up even if they change their mind within the first couple days.
• 6:58
  SPEAKER_00: That's a lot, instead of adhering to contractual time frames or even shrinking them.
• 7:03
  SPEAKER_00: But again, these are buyer dependents, that's what the buyers want to do, so they get to do it all day long.
• 7:09
  SPEAKER_00: That market is starting to slip by, and I believe we're now in a totally different real estate market than we were even a month ago, month and a half ago.
• 7:20
  SPEAKER_00: Watch out for the market.
• 7:22
  SPEAKER_00: Keep your eyes posted on me.
• 7:24
  SPEAKER_00: I am Connor with honor.
• 7:25
  SPEAKER_00: I'm more than happy to help.
• 7:26
  SPEAKER_00: Please let me know when you're ready to sit down, have a discussion.
• 7:29
  SPEAKER_00: We can do it here in my office or wherever, and discuss your real estate needs and figure out the best way to get your real estate either sold or help you buy a house here in Santa Clara Valley or elsewhere in Southern California.
• 7:40
  SPEAKER_00: It is my pleasure.
• 7:41
  SPEAKER_00: This is your real estate update.
• 7:43
  SPEAKER_00: We are June 6th, 2022.
• 7:45
  SPEAKER_00: We'll have more updates throughout the week.
• 7:47
  SPEAKER_00: I am Connor with Honor, and I hope this has been just about as clear as mud.
• 7:52
  SPEAKER_00: Talk to you soon.
• 7:53
  SPEAKER_00: Everybody have a fantastic rest of your week.
• 7:56
  SPEAKER_00: It is my pleasure.
• 7:57
  SPEAKER_00: Connor McIver.
• 7:58
  SPEAKER_00: Over now.