Latest / Connor with Honor: AI, Real Estate and Real Life / Santa Clarita Real Estate: Interest Rate Alert & Dual Agency Exposed!

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Santa Clarita Real Estate: Interest Rate Alert & Dual Agency Exposed! · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Hey everybody, it is June 4th, 2024.
• 0:02
  SPEAKER_00: I am Connor with Honor.
• 0:03
  SPEAKER_00: We're going to do your daily Santa Clarita real estate update.
• 0:06
  SPEAKER_00: Pulling down the local inventory here in the last seven days.
• 0:10
  SPEAKER_00: We've had 10 coming soon listings, 76 new listings, 59 prices, uh properties or their prices changed, 15 properties back on the market.
• 0:19
  SPEAKER_00: 30 properties have gone into escrow.
• 0:22
  SPEAKER_00: 62 had their escrow position switched from being showing backup and active to actually deeper into escrow.
• 0:28
  SPEAKER_00: 73 sold this week.
• 0:30
  SPEAKER_00: That number's a little higher than we've seen the last three.
• 0:33
  SPEAKER_00: So in the last seven days, 73 single family residences, condominiums, townhomes altogether have closed escrow in all of the Santa Clarita Valley cities.
• 0:41
  SPEAKER_00: We have three that expired, five canceled, ten put on hold, two withdrawn.
• 0:45
  SPEAKER_00: Now that's a lot of movement.
• 0:46
  SPEAKER_00: It is definitely clear.
• 0:47
  SPEAKER_00: Buyers out there be weary.
• 0:50
  SPEAKER_00: People are going to ask you to buy down interest rates when you're looking to purchase real estate.
• 0:54
  SPEAKER_00: This is being offered in something as a new buyer or even a seasoned buyer to watch out for.
• 0:59
  SPEAKER_00: Buying down the interest rate, that might be great, but it does cost money.
• 1:03
  SPEAKER_00: And you need to factor in what that money looks like and how long it's going to take you to get back the fee you paid to buy down that interest rate.
• 1:12
  SPEAKER_00: The other thing, whenever you can finance stuff over 30 years in a mortgage, sometimes people don't pay a lot of attention because it comes out to just a few bucks a month.
• 1:23
  SPEAKER_00: If you're talking about super big, super large items,$10,000,$50,000,$60,000 in upgrades.
• 1:30
  SPEAKER_00: That monthly fee versus cash out of pocket at the time it's installed versus financing it 30 years, it looks so attractive.
• 1:39
  SPEAKER_00: Do not get caught up in making the same mistakes so many people do and overextending yourself when buying real estate.
• 1:47
  SPEAKER_00: You want to look at the house, you want to take it in, you want to absorb everything it has at the beginning and then do those adjustments over time.
• 1:56
  SPEAKER_00: If you're purchasing new housing, that's great.
• 1:58
  SPEAKER_00: But please look at what those builder items are going to cost and see if there's some way to potentially do it later.
• 2:06
  SPEAKER_00: I.e., I get it, you're not going to be able to have 30 years to pay it off.
• 2:10
  SPEAKER_00: But I don't know if there's much of anything that you're going to put in way of a builder upgrade at the very beginning of a residence with a new house that's going to last you the entire mortgage time of 30 years.
• 2:22
  SPEAKER_00: I don't know what that would look like if it's changes to the house, like exterior, California room, arched entry doors.
• 2:29
  SPEAKER_00: Sure.
• 2:29
  SPEAKER_00: Those types of things typically will last.
• 2:32
  SPEAKER_00: But if you're going to get a flooring upgrade, or if you're going to get paint done, if you're going to get something else that seems to be could be added later at probably two or three hundred percent less, maybe later is a better option.
• 2:46
  SPEAKER_00: All right.
• 2:47
  SPEAKER_00: So here in California, we do have dual agency.
• 2:50
  SPEAKER_00: Dual agency means it's okay for me to represent the buyer at a house that I'm selling.
• 2:55
  SPEAKER_00: That is in existence.
• 2:57
  SPEAKER_00: There are a few case a few states, however, that make dual agency illegal.
• 3:02
  SPEAKER_00: They do not allow for it to happen.
• 3:03
  SPEAKER_00: So the agent representing the seller has to be different than the agent representing the buyer.
• 3:09
  SPEAKER_00: And in some ways, that dual agency also crosses brokerage lines, if memory serves, from the intel that I did as I was studying up on it.
• 3:18
  SPEAKER_00: In the state of California, there is a document that you sign in a real estate transaction that talks about real estate relationships.
• 3:26
  SPEAKER_00: That's going to have on there that information stating that that agent you select for that time happens to be representing you as a buyer.
• 3:35
  SPEAKER_00: But if on the other side of that you find that agent that's also representing the seller, two things.
• 3:41
  SPEAKER_00: First off, you should be asking yourself, should I really be using the same agent that's representing the seller?
• 3:47
  SPEAKER_00: If I were in a courtroom and I was being sued, would I want to use the same agent as the person suing me?
• 3:54
  SPEAKER_00: Probably not.
• 3:55
  SPEAKER_00: And not that there's a lawsuit pending, but everything seems to be litigated very well if people have, well, regrets or mistakes, or who knows how all of that starts, but it starts to have your own representative on your own side in the real estate transaction, something to definitely consider and hold on to.
• 4:13
  SPEAKER_00: So that's dual agency.
• 4:14
  SPEAKER_00: We see that quite a bit, and we do see here in the near future the commission structures potentially changing for Santa Clarita Valley and Southern California and all of the country when it comes to buying and selling real estate.
• 4:27
  SPEAKER_00: As it is currently, the buyers I'm working with under a buyer-broker agreement, I'm agreeing with them that I will be compensated by the seller.
• 4:35
  SPEAKER_00: Whoever the seller is, the seller's offering a commission, I will be taking that commission.
• 4:39
  SPEAKER_00: I am not beseeching my buyers to pay my commission at this point, but the market is changing, and that's definitely a discussion to sit down and have with your consummate real estate professional.
• 4:51
  SPEAKER_00: In addition to that, as you're looking online, one of the things that we were talking about with regard to buying down rates and the different things that are being offered, interest rates are where they are currently.
• 5:04
  SPEAKER_00: Do not, I repeat, do not purchase a residence dependent on the hopes that rates are going to come down in the future.
• 5:13
  SPEAKER_00: This is a pipe dream.
• 5:14
  SPEAKER_00: Yes, it could happen.
• 5:16
  SPEAKER_00: Yes, lots of things happened, but do not hinge a bet on something you think may happen, even if everybody's telling you it will, because a lot of times, as we've seen at this point, interest rates were supposed to have been lowered, and the market was supposed to be insane.
• 5:33
  SPEAKER_00: Market's still very much a seller's market here in Santa Clarita Valley.
• 5:36
  SPEAKER_00: Properties aren't lasting very long, but it's going to depend on price point.
• 5:40
  SPEAKER_00: You get over$850, and we see properties taking longer to sell, 20 days, even more in some cases.
• 5:47
  SPEAKER_00: You get properties that are priced under the 700s.
• 5:51
  SPEAKER_00: Single family residences, they don't last very long, within a week, maybe two, but again, it's going to depend on that pricing strategy and the way that that property is going to be carried by the agent working for the seller.
• 6:05
  SPEAKER_00: So that is how that works.
• 6:08
  SPEAKER_00: I am Connor with Honor.
• 6:09
  SPEAKER_00: That's your real estate update.
• 6:11
  SPEAKER_00: Here's something that you might want to look into before you start to buy down your rate.
• 6:19
  SPEAKER_00: Find out what rate you're being promised.
• 6:21
  SPEAKER_00: And then ask your lender with that rate that I'm getting, is that like the best for anybody?
• 6:27
  SPEAKER_00: Or am I getting something not as good because my credit profile isn't under the number or my credit score isn't where it needs to be?
• 6:35
  SPEAKER_00: Or maybe there's something that I could pay off or I should pay off and I have the ability to pay off.
• 6:41
  SPEAKER_00: I just haven't paid it off.
• 6:42
  SPEAKER_00: If you ask your lender questions like that, then you will get your absolute best interest rate out of the gate.
• 6:49
  SPEAKER_00: More than likely, you'll be able to do that because you have some time to have your FICO score corrected.
• 6:56
  SPEAKER_00: Maybe not corrected.
• 6:57
  SPEAKER_00: Improving your FICO score to be able to qualify at a better interest rate, that's something you should have time for, but it's going to depend.
• 7:06
  SPEAKER_00: That's definitely a conversation to have with your lender, and your lender should be able to cover the A to Z to all of what that means, what it costs, and how that needs to be put together, if in fact you're willing, but at least you have the options.
• 7:19
  SPEAKER_00: I'm Connor with Honor.
• 7:20
  SPEAKER_00: Thank you so much for watching our Tuesday update.
• 7:22
  SPEAKER_00: We'll be back tomorrow with our Wednesday's hump day broadcast for Santa Crita Valley.
• 7:27
  SPEAKER_00: When you need me, I'm here.
• 7:28
  SPEAKER_00: Reach out.
• 7:29
  SPEAKER_00: You can find me online at all the different fancy places.
• 7:32
  SPEAKER_00: Connor with Honor.
• 7:33
  SPEAKER_00: Over and out.
• 7:34
  SPEAKER_00: I always look for the button at the end so I don't have to edit, but I'm gonna leave this in.
• 7:38
  SPEAKER_00: Have a great day.
• 7:39
  SPEAKER_00: Thanks for watching.
• 7:40
  SPEAKER_00: A friend of mine asked me if I would do a particular show.
• 7:44
  SPEAKER_00: And really truthfully, the first time really anybody's asking me to do anything exciting like this.