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Unlock the Secrets of Santa Clarita Real Estate with Connor with Honor: Top Tips for Buyers and Sellers! · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: A first-time buyer trying to navigate the real estate market isn't always easy, but I am Connor with Honor.
• 0:06
  SPEAKER_00: I'm going to give you three things as a home buyer you want to consider.
• 0:10
  SPEAKER_00: So the first thing is, of course, you want to find that agent that you believe can best represent you.
• 0:15
  SPEAKER_00: You're going to do that by looking on social media potentially, maybe asking friends and family, maybe doing some real estate searching or finding people like myself that love to use education to show people how real estate works and then try to lift off whatever veils might be out there that try to keep people's eyes hidden from the way the industry should be working and the best way to get what they want, either whether it's buying or selling real estate.
• 0:42
  SPEAKER_00: That's why I put up a lot of guides and I try to constantly work on the right content so people that are buying or selling in Santa Clarita Valley can be best educated, understand the process to keep themselves most safe.
• 0:56
  SPEAKER_00: But those first critical steps are going to be number one, you finding that real estate agent.
• 1:02
  SPEAKER_00: Number two, after you find said real estate agent, that next step is going to be to secure some type of mortgage.
• 1:10
  SPEAKER_00: Now, if you're using cash as a buyer and you're going to be making the entire purchase with cash, I would say potentially throw caution to the wind.
• 1:18
  SPEAKER_00: But again, if that's what you've decided to do, we might explore your why.
• 1:24
  SPEAKER_00: But if that's what you really want to do, then yes, we can move forward with that.
• 1:28
  SPEAKER_00: I would suggest because you're cash, you're going to have a different strategy than somebody that's going to be using financing.
• 1:34
  SPEAKER_00: There are certain properties that you're going to be allowed access to that people that are using loans and mortgages won't be able to purchase.
• 1:42
  SPEAKER_00: It's as simple as that.
• 1:43
  SPEAKER_00: And it has to do with those restrictions that are set forth by banks that are loaning the money on properties.
• 1:50
  SPEAKER_00: They want those properties to be in a particular type of shape.
• 1:54
  SPEAKER_00: They don't want to invest their money into a home that's going to need a lot of work or has a lot wrong with it because their investment might go in a bad way.
• 2:04
  SPEAKER_00: So they do make sure these properties are in some kind of semblance of shape.
• 2:08
  SPEAKER_00: And usually, just to give you a tip, as you look at real estate as a home buyer, you're going to discover that the less money you put down, typically the more critical those appraisers are.
• 2:20
  SPEAKER_00: So as a real estate seller, you might want to be concerned with what types of loans are coming to you in the form of what the buyers are using for financing, so you can properly vet them and know how to move forward and which type of loan might be your best selection to make sure that you navigate all the way through the process to a successful closing.
• 2:41
  SPEAKER_00: Now, these types of mortgages, when you're looking at them as a home buyer, again, understanding the less money you put down, typically the house has to be in better and better shape, or the seller will have to be willing to bring the house up to a particular semblance of shape in order to allow the appraisal process to go through and allow it to be blessed, to allow the money to be loaned on it.
• 3:02
  SPEAKER_00: With regard to mortgages, there's a lot of different types.
• 3:06
  SPEAKER_00: As dad would say, he loved a 30-year fixed.
• 3:09
  SPEAKER_00: This is your typical mortgage where your interest rate isn't going to change unless you do something to change it, like refinance, maybe encumber it, other ways to do this, but again, it's going to stay nice and fixed for the term of the mortgage.
• 3:24
  SPEAKER_00: And yes, 30 years to pay off a house, that's not uncommon, and most people don't ever get it paid off.
• 3:31
  SPEAKER_00: They use the house sometimes, the equity in it, to borrow money to pay certain things off, which I would tell you to be weary of that before you start to make decisions and using your home's equity on anything else other than real estate.
• 3:46
  SPEAKER_00: Take a step back before you sign on the dime which is lotted to the line which is dotted to get the money, be careful.
• 3:54
  SPEAKER_00: So these mortgages, there's also adjustable rate mortgages, there's FHA loans and VA loans, there's different types in the book that I'm going to be producing that's almost finished, the Santa Clarita Real Estate Guide, you'll be able to see that information.
• 4:06
  SPEAKER_00: But here in these particular show notes, I will put a lot of the information I'm speaking about, expand it on, of course, so you have a better understanding.
• 4:14
  SPEAKER_00: Now, when you are looking for these different types of loan programs or just to borrow money on a residence, it is going to be very dependent on your credit score.
• 4:22
  SPEAKER_00: Your credit score is going to be on a FICO system, and that particular system is a privately owned various companies that are the ones that monitor the credit.
• 4:33
  SPEAKER_00: You have Experian, Equifax, and TransUnion.
• 4:36
  SPEAKER_00: These organizations give you credit worthiness by a particular score.
• 4:41
  SPEAKER_00: And if you want to crawl down that rabbit hole and look up FICO, F-I-C-O, and do your research on credit score and how it all works, please do.
• 4:50
  SPEAKER_00: You'll come out of this so much more educated and know exactly why you're qualified for a particular amount and what your credit score actually means in the world of real estate.
• 5:01
  SPEAKER_00: A lender's going to cover that, but when you go in armed with knowledge, typically fewer people take advantage of you because you already go in understanding it.
• 5:09
  SPEAKER_00: And if they try for just a moment, pulling the wool over your eyes, you're going to be able to step forward and say, Ha, Jack, that's not true.
• 5:16
  SPEAKER_00: I studied it this morning, and that's what this means.
• 5:18
  SPEAKER_00: And you're wrong, and you're trying to sell me a false bill of goods or whatever it may be.
• 5:22
  SPEAKER_00: Moving through this, number two, let's talk about these different types of uh you have the different types of mortgages.
• 5:31
  SPEAKER_00: Choosing the right home and navigating the real estate market, you're gonna see a lot of real estate websites out there that are going to give you information as far as the residence goes that you're interested in once you get a particular purchase price in mind or a range.
• 5:45
  SPEAKER_00: You're gonna go on these different websites and they're gonna give you valuations on the properties you're looking at.
• 5:51
  SPEAKER_00: They're gonna tell you what the properties are valued for, but you really don't know what those determining factors are.
• 5:58
  SPEAKER_00: My suggestion to you as a real estate buyer is approach that cautiously.
• 6:02
  SPEAKER_00: And if you do see a house that's for sale that you like online and you get close enough to wanting to write an offer, make sure your agent vets the property correctly and looks at it as if an appraiser would.
• 6:14
  SPEAKER_00: Whenever I'm searching for my home buyers, I make sure that I'm looking at these properties as if I'm going to be purchasing my purchasing them myself.
• 6:24
  SPEAKER_00: I look at them and I run all the numbers through in my mind, and then I look at the potential future income that the property could potentially produce if it is going to become a renter, a rental, and then also I look at the potential earnings for the property from an equity standpoint if people are gonna own it and live there.
• 6:42
  SPEAKER_00: And then in the future, if this property can be held held by the owner of it, never selling it, only encumbering it for real estate-related or improvement-related fees, then they're gonna be set probably without much time needing to elapse.
• 6:58
  SPEAKER_00: Probably they're gonna be set and they're gonna have quite a bit of equity rolling over in that residence and not very much time.
• 7:05
  SPEAKER_00: Again, that's gonna be very market dependent, but if you look at the overall historical view of real estate, things have only gotten more expensive and God is not making any more land.
• 7:16
  SPEAKER_00: I guess if we're talking about and uh coasts, all right.
• 7:20
  SPEAKER_00: Well, we'll talk about that later.
• 7:21
  SPEAKER_00: Okay, that's number two.
• 7:22
  SPEAKER_00: So trying to find that right residence, again, whatever matches your price range, and then with that, you want to look at different areas.
• 7:29
  SPEAKER_00: Is it close to shopping?
• 7:31
  SPEAKER_00: Is it close to where you're gonna be frequenting?
• 7:33
  SPEAKER_00: Do you have children that are gonna be school dependent?
• 7:36
  SPEAKER_00: Is that something where you'd want them to walk to school?
• 7:39
  SPEAKER_00: You'd want to discover where these residences are located, what school districts they're within, and then run those school districts down and find out how they score on the different scoring websites.
• 7:50
  SPEAKER_00: Most of them are pretty good, but just look at them and verify what they're telling you and find out where those sources happen to be from.
• 7:58
  SPEAKER_00: If in fact those sources are not, have not been verified, and there's some organization that put itself together in order to try to elicit, uh get some kind of review set up or sell ad space or whatever, you don't need it.
• 8:11
  SPEAKER_00: But just look for the blue ribbon markers and those different schools, and you'll figure out if they are in fact good.
• 8:16
  SPEAKER_00: And then the online systems are typically pretty good at determining, giving you an idea.
• 8:20
  SPEAKER_00: At the end of the day, you're gonna do want to do your interviews, make your phone calls, and so on.
• 8:24
  SPEAKER_00: But these are some of the things to look at as far as neighborhoods go.
• 8:27
  SPEAKER_00: There are very different neighborhoods.
• 8:29
  SPEAKER_00: There are some neighborhoods out here in Santa Cruz Valley that have high mellow ruse taxes.
• 8:33
  SPEAKER_00: These are additional tax assessments on properties that the builders didn't pay to build the property, so they pass those on to the individual homeowners, and all the homeowners agree, of course, if they're going to be buying those residences.
• 8:46
  SPEAKER_00: What does that look like in real dollars?
• 8:48
  SPEAKER_00: Well, so doing that math for LA County taxes, if you buy a million dollars worth of real estate and that's the assessed value, and the tax base in Los Angeles County is 1.25%.
• 8:58
  SPEAKER_00: That's about twelve thousand five hundred dollars a year for normal taxes.
• 9:02
  SPEAKER_00: If there's Melarus and assessments, it could go up as much as double, but it's gonna depend on the amount, gonna depend on the amount of the Melarus and taxes.
• 9:12
  SPEAKER_00: Something that you need to know going in when you're doing the research in the neighborhood and having your real estate agent doing as well.
• 9:18
  SPEAKER_00: Now, of course, when you go out there and you start to look for real estate, you're gonna see open houses and you're gonna see all these new housing and you're gonna have people out there spinning signs and this and that.
• 9:27
  SPEAKER_00: My suggestion is this.
• 9:29
  SPEAKER_00: With new housing, they're kind of particular if in fact you go there and you aren't represented by an agent and you go to the new housing and in fact walk in and you sign something or give up who you are, they will tell you that you can't have a real estate agent represent you any longer at that particular point because you have already visited the new housing without your agent in tow.
• 9:51
  SPEAKER_00: Is that the case at every new housing?
• 9:53
  SPEAKER_00: I don't know.
• 9:54
  SPEAKER_00: But again, if you're gonna go in there and you put your name down, even on an interest list, or want to be reminded when the next price discount will be, which sometimes that information isn't the best, but that's what they'll use as a ruse to get you to put down your name.
• 10:09
  SPEAKER_00: Just be wary of that.
• 10:10
  SPEAKER_00: But once you do, yeah, if you want to hire an agent or have an agent on your side, typically once they have you registered, they will not pay your agent to represent you or even to get a commission on the property.
• 10:20
  SPEAKER_00: Not that you would want it, but to be by your side because they were the procuring cause for you.
• 10:26
  SPEAKER_00: They were the reason you came in because of their fancy signage, not your agent.
• 10:30
  SPEAKER_00: My recommendation before you look at one house, sit down with a real estate agent and have them explain to you everything.
• 10:40
  SPEAKER_00: Just like I do my crash course on real estate, my buyer's briefing, my buyer's roll call.
• 10:46
  SPEAKER_00: We sit down and we talk about it.
• 10:47
  SPEAKER_00: I do the same thing with my sellers.
• 10:49
  SPEAKER_00: All right, so this is some of the things about the neighborhood number three.
• 10:53
  SPEAKER_00: When it comes time, understand, and I have people tell me this all the time, Connor, I don't want to get involved in a bidding war.
• 11:00
  SPEAKER_00: I don't want to do it.
• 11:01
  SPEAKER_00: I just want to go in, I want to write the offer for a reasonable price, I want to get the house great.
• 11:08
  SPEAKER_00: I don't know if that's gonna happen.
• 11:09
  SPEAKER_00: We have to see how active the property is.
• 11:12
  SPEAKER_00: But I will tell you that in this market, because it is a seller's market, currently is where at May 8th, 2024, you're probably gonna have other people you're competing with to buy every house, every condo, and every townhome in Santa Clarita Valley, as long as the seller did their due diligence and they priced the property accordingly within the market parameters.
• 11:34
  SPEAKER_00: Super important.
• 11:36
  SPEAKER_00: And as you saw today, if you looked at my daily real estate feed, we were close to 60 properties that have had price changes.
• 11:44
  SPEAKER_00: So the question is where are those price changes?
• 11:47
  SPEAKER_00: Folks, those are reductions of listing price to a lower offering listing price in a majority of the cases.
• 11:55
  SPEAKER_00: That's a bunch.
• 11:56
  SPEAKER_00: If you're a seller contemplating selling, do not overprice your property.
• 12:00
  SPEAKER_00: Now, as far as bidding wars go, yes, you're going to get involved in it.
• 12:03
  SPEAKER_00: What the best actions to adhere to would be is to make sure you understand every jot and every tittle, every line that is written on contract by your agent in order to purchase the residence.
• 12:16
  SPEAKER_00: Understand that if you're giving up something or reducing time frames, what that exactly means.
• 12:22
  SPEAKER_00: If you're putting something in an offer that states you're going to pay the difference between appraised value and what you actually offered on the property, know what that means.
• 12:31
  SPEAKER_00: If you're going to say you're going to give up a contingency or the right to do some kind of an inspection or the right to have the property appraised for a certain amount, know what that means.
• 12:40
  SPEAKER_00: It's incredibly important that you don't run off half-cocked into the real estate world or join yourself with somebody that's going to lead you into the abyss where you're not going to be able to come up for air and you're going to end up drowning.
• 12:52
  SPEAKER_00: Don't let it happen to you.
• 12:53
  SPEAKER_00: Haven't seen that happen, but it could be a thing.
• 12:56
  SPEAKER_00: All right.
• 12:56
  SPEAKER_00: So that's number three.
• 12:57
  SPEAKER_00: I'm Connor with Honor.
• 12:58
  SPEAKER_00: When you're ready, reach out again.
• 13:00
  SPEAKER_00: These are just some small tips that help help buyers and sellers when it comes down to real estate.
• 13:06
  SPEAKER_00: I will be here for you when you're ready.
• 13:08
  SPEAKER_00: I do appreciate you watching me.
• 13:10
  SPEAKER_00: When you are ready, find us online.
• 13:11
  SPEAKER_00: Connor with Honor.
• 13:12
  SPEAKER_00: All you have to do is Google it and you'll find me as well.
• 13:14
  SPEAKER_00: I'm with Realty One Group here in Center Creative Valley.
• 13:17
  SPEAKER_00: Thank you for watching.
• 13:17
  SPEAKER_00: Be welcome.
• 13:19
  SPEAKER_00: I bid you a good day.