Latest / Connor with Honor: AI, Real Estate and Real Life / Home owners, mello roos, the roof and other buyer decisions that have to be made with meeting the neighbors
Transcript
- 0:01Santa Clarita where 2,024 2024 2020 four I'm Connor MacIvor let's talk about what's happening in real estate this weekend where it's Saturday so typically you're gonna be seeing and I've already been out this morning we've already been seeing the open house sign starting to be strategically posted a lot of times you're watching as these signs are being put the evening prior to the open house being held so that the agents get more seen sign time out there in the field just something you know if you're looking for that open house and it's not during typical open house hours which are between somewhere between maybe 10 in the morning and 3 or 4 or 5 in the afternoon typically held on weekends if you're not seeing the actual open house then more than likely it's a pre staging of the signs and in some cases agents do it themselves and in some cases they pay people to do it so if you're out there driving around looking for open houses the best resource you're gonna find is gonna be Santa Clarita Open houses.com you'll be able to search from where you are in close proximity to where you are by city anywhere in greater Los Angeles and of course Santa Cruz Valley today's Market Watch has us up to 550 for sale having said this one of the things that I will mention to you is this inventory has been very low lately however we are watching an increase less than two and a half three weeks ago we were barely breaching 500 units for sale now we're 5 50 I would see that number continue to grow but it's going to very much depend on that interest rate currently interest rates have been reducing because there is rumor of course the feds gonna be meeting this next week the 17th and 18th of course they have plans to reduce the Fed fund rate that's what people have been talking about the Fed fund rate is not the mortgage rate that you're thinking about when you're out there wanting to contemplate or wanting to buy residential real estate however usually a change in that rate usually has a change in the real estate mortgage rate if that rate comes down we should see a corresponding change to also the mortgage rate should because the mortgage rate also depends on the bond and also other markets and the economy and so on but a good indication and the way that it's been talked about lately it sounds like next week we're gonna see that reduction how much don't know last time the Fed met they didn't change it much at all that's why we're still in this market however we do have limited inventory
- 2:38and although we're up at 5: 50 that still doesn't change a lot because we have very much a buyers interested market people are still out there purchasing real estate I have seen an increase on the days on market time frames as I talked about the last couple shows looking into the listings that we've seen posted in the past seven days and you can see all these at SantaClaritaopenhouses.com but coming soon listings are 1182 new listings have entered the market in the past seven days we have 81 properties that have had their prices changed about that this previous week I did do a story talking about the price changing and the price changes here in the Santa Clarita real estate market now because there are prices change sometimes that would indicate the market is very robust if the prices happen to be increasing in this particular case we see a reduction in those prices so the price changes aren't increases but reductions usually every reduction is a property that's been on the market 10+ days where the sellers aren't getting as much activity as they thought and maybe their agent inform them the listing price should be a another number but the sellers wanted to go a little bit higher just to make sure they didn't miss out on any of the higher interest offers unfortunately a lot of times that doesn't really pan out people know what they're looking at and with all the online syndication systems that are also showing what they believe properties are worth based on their algorithmic approach to property data mining and those sorts of things they run into issues where those numbers aren't really reflective of that individual local market hence the importance of getting that agent the local on the ground agent that understands why a property in North Bridge might sell at a higher price point price per square than a property in North Park to give you a couple of examples that probably don't apply very much because if you're not locally in Santa Clarita NorthBridge and North NorthPark don't make any sense but if you are local out here and you live in Valencia live somewhere in the Santa Clarita Valley more than likely you've encountered North Bridge and North Park there are other communities like that that if you go the online syndication systems you ask how much your particular North Park home is worth the system is gonna come back with a number and it's gonna depend on what type of action the system is trying to elicit out of you so as a potential home buyer more than likely they want to give you values that show that the property is maybe a better deal so you reach out through their site they'll get paid through the agent that they're referring you to and all is great in the world on the other end of it if you're inquiring on these systems of a as a seller more than likely you're gonna encounter a different pricing strategy when it comes to that algorithm that's putting together the determination as far as value goes of the residence that you're contemplating selling making a decision that's going to benefit these companies I say this try to find that local resource somebody that talks about the market somebody that explains what's happening in the real estate market and somebody that has their fingers on the pulse of the local market as far as housing goes once you find that resource then they should start to set you up with the different things that you're going to need to be made aware of how is real estate selling currently how is the market what can you expect what kind of offers can you expect what are the local buyers looking like if you're a buyer should you be concerned about Melrose tax when does it end or HOAs what do they actually pay for for homeowners association are you able to finance all properties that have an HOA are there insurance issues there are a lot of different questions that need to be asked and answered for people that are interested locally now global systems with syndication sites they're not local on the ground people that live in your community typically they're owning and operating these systems they're built around monetization and hopefully they'll be able to get some money for you going to their system use the local channels Santa Clarita Open Houses is my system go there you'll be able to see everything currently for sale not just everything being held open and open houses but the entire MLS database is there in addition I also have a property evaluation system that pulls on MLS data but again that isn't going to be as precise as me looking at your house in person and then giving up what I can see as far as additions or missions and substractions that I have to put into the system in order to get you the best variable of the best price the price the your property that is to make sure that we're listed correctly when we go on to the market so we don't have to encounter these price changes or change anything because right out of the shoot your house is going to get all the online activity exposure and everything else you need plus that price is gonna be right and as I said earlier buyers understand the market and there are looking at what your house seems to be valued on on the syndication sites my job is to try to let everybody know it comes down to more than that and in fact when I have buyers looking at residential real estate when that's different than the listing price I'll ask them where is that source data where are you looking at and I say well I went on this big site that talks about real estate all the time I punched in the address it told me these are the other factors considerations you should think of and the seller should have thought of those things as well I give them a rundown if in fact we end up writing an offer for less than what the property is being marketed for which is an unusual all want to include verification and validation of those numbers as to why if in fact we're trying to match the market now if the buyer is in a mind frame where he believes that he's all in control and this is a buyer's market which is the case but sometimes buyers because they're getting their information from other sources and that's fine because it's a real estate agent you definitely want to make your client happy you just don't want your client to get into trouble so whatever it takes to keep them happy that's fine but if they start to go over this line that's gonna create a mess for them then you as an agent need to step forward and even if that means blowing that relationship losing that deal that transaction that client at least you sided on the better the better side of that equation and you stood up and you said these are the reasons why you're making a mistake and then you let them do what they need to do after that point potentially probably not being involved because sometimes these mistakes can be incredibly detrimental and it kind of comes down to it's happen on my watch I guess that brings in the law enforcement end of it all right so we have 24 properties that have gone back on the market 35 properties have gone into escrow 44 have gone pending which is a deeper part of escrow so we're talking about 70 75 listings actually entering escrow we still have a little bit of an overlap I wouldn't be surprised if over the next few months we got in the six or six fifties as far as listings go the thing that's holding back the market or of course the interest rates in addition the sellers out there that own these residences are locked in at 2 and 3% in some cases those are the sellers that aren't really moving very quickly because their interest rates are incredibly low and they more than likely can rent out that house and probably make a profit at that interest rate another thing that's been popping up on the news lately and be aware of this there are companies out there that are starting to advertise how they are going to try to help you assume somebody's mortgage so if somebody has a mortgage FHA and VA or examples of mortgages that could be transferred from one party to another but there's a lot of variables here first off even if you're not a veteran you could assume a VA loan but it's gonna be up to the lender and how willing are they going to be to do that in addition if you're going to be let's say assuming an FHA loan which you can it also is dependent on the lender in addition if that particular FHA buyer has property mortgage insurance attached to their payment then you're gonna have to pay that as well usually that does not go away because you're assuming the loan because it has a low interest rate 2 to 3% that means that that property was probably sold two to three to four years ago at that low interest rate so that seller has equity whatever that number of equity is the value if you're gonna assume it how are you going to cover the rest to make up the full amount that the seller wants for his residence you're still gonna potentially have to have a loan for that other part or come out of pocket and cash and offer that to the seller and make everything work out within the real estate sales and have that loan be assumable things to consider though what's that offset gonna look like and what's that interest rate gonna look like and is somebody actually gonna wanna have a secondary position because you still have that primary loan and if you default they're gonna get everything more than likely as long as the market stays where it is and continues to increase and doesn't decline much of it does they're still gonna get the first they'll still get what they want that's that first loan the one that you assumed that that very low interest rate because you're buying with the sellers interest rate what's interest rate going to look like is that gonna be at market or is it going to be even higher because there's more of a risk involved with that type of loan these are questions to ask the lenders before you get too excited and think that it's gonna be a great idea for you to assume somebody's mortgage in addition if you're assuming their mortgage giving them the difference in cash or financing the rest of it then the seller has a question to answer as well where they going to move is there going to be a residence that's gonna work out for them or is are they encountering the same you as a buyer in today's market is or are the limited inventory great questions lots of information online just make sure that the information that you're getting uh makes sense and if it doesn't you can reach out to me and have me clear it up as well also in finality I will say this if you are and the agent or lender is telling you something that seems to be valuable so my suggestion to my clients is always send me an email and ask me about what I've told you if in fact it's very deal dependent or something that carries such gravy wh you want to follow up with everything if you can to those people that are giving you the information the lender the real estate agent the new home agent whomever this is you want to make sure that you completely understand what they're trying to explain so you don't get yourself into trouble I'm Connor MC Ivor thank you so much for checking out this video today this is the Saturday market update I'll be back tomorrow you can find me online of course at SantaClaritaOpenhouses com I'm Connor with honor over and out but these numbers aren't very much at all however those examples are important to note great but this