Latest / Connor with Honor: AI, Real Estate and Real Life / Top home buyer mistakes Q3 2026 and what you can to to prevent making them - Sellers Only Agent (tm)
Transcript
- 0:00SPEAKER_00: How do you know that you're actually getting the best deal on the house that you're going to be purchasing?
- 0:04SPEAKER_00: Well, I don't represent buyers any longer, but I did that for 21 years of the 28, starting this in 1998.
- 0:11SPEAKER_00: And I'll tell you, there's a few different ways to do it.
- 0:13SPEAKER_00: Now, first of all, you can, of course, as a real estate buyer, you can take your agent's word for it.
- 0:18SPEAKER_00: And you know what?
- 0:20SPEAKER_00: That might have worked back in the day whenever the data access really didn't exist, but most of the people purchasing now actually ask their favorite large language model of choice if they're offering too much for a piece of residential real estate.
- 0:34SPEAKER_00: Now, you might want to not take that too deep.
- 0:36SPEAKER_00: You should ask for the same verification process you would ask for a human being that's telling you how much to write an offer for.
- 0:42SPEAKER_00: And that being the case, you want to find out what data they're pulling into the mix and have a look at that.
- 0:47SPEAKER_00: Instead of taking its word at first glance, thinking that the large language model, whether it's Gemini or Claude or Chat GPT or whichever model you happen to be using, it's going to give you the number, but then I would follow it up with a question of, well, so where is this data coming from?
- 1:03SPEAKER_00: Well, it might say that it's relying on large uh real estate syndication websites for the value.
- 1:09SPEAKER_00: The issue with that is, of course, it it's looking at skewed data, data that is sometime manipulated to influence or to cause some kind of a buying or a selling decision.
- 1:18SPEAKER_00: So in the case of a seller, the algorithm in the system might not really expressly use properties that are purposely driving a seller to sell because it's either lowering or increasing at a particular valuation.
- 1:32SPEAKER_00: But you know, maybe they're using properties within a particular distance from the subject property on purpose because that area is more expensive, and maybe they want to provide comps of a more expensive nature.
- 1:43SPEAKER_00: Same thing on the buying end of it.
- 1:45SPEAKER_00: Maybe the website is being a little bit low as far as on the buyer's end of it, when the buyer's asking for a particular price point or what the valuation is on a particular property they want to purchase.
- 1:55SPEAKER_00: Maybe they're going in a different sector, different area of that same zip code, looking for numbers that are going to correspond to a more lower figure so that the buyer wants to lock in with the syndication website.
- 2:06SPEAKER_00: And the syndication website is able to now, you know, focus that buyer and refer to them an agent because agents are paying syndication websites tons of money in order to get your information as leads.
- 2:17SPEAKER_00: So you know that being the play.
- 2:19SPEAKER_00: When you go in the large language model and you're asking it, hey, you know, I want to buy this house that's listed for sale at one, two, three, four, anywhere street.
- 2:25SPEAKER_00: My agent's saying this, or I have a real estate agent there telling me that my offering strategy could should consist of this.
- 2:32SPEAKER_00: Or if you're taking the entire contract, dumping it into your favorite large language model, understand there's information on that document that you might not want to be seen by the world.
- 2:43SPEAKER_00: Now, then the question comes in well, is it really being seen by the world?
- 2:46SPEAKER_00: Has everybody seen my personal private information to contract?
- 2:49SPEAKER_00: There's nothing that says it will not allow access to that document by somebody else, some other entity or itself looking at those systems.
- 2:58SPEAKER_00: Knowing that whenever you put anything into a large language model, even when you click the little, and the different models call it different things, but like the iPhone's incognito mode, there is no saying that it's really going to keep everything secret.
- 3:11SPEAKER_00: The only way to really vet that and to guarantee that your personal and private information, whatever you're using on the large language model is going to be yours is to have a local installation here in your residence, either on some kind of a computer or laptop or even something fancy like a DGX Spark or something else that can run large, large language models, or you can cloud base them as well, have your own install on various systems.
- 3:35SPEAKER_00: So you have your own large language model, but it being on the cloud could be subject to maybe data mining or scraping or hacking or something more.
- 3:43SPEAKER_00: So the safest bet is to have that locally.
- 3:45SPEAKER_00: I know I went off on a complete tagging on that.
- 3:47SPEAKER_00: But so if you're gonna be sharing a contract, you know, that's on your own will, be careful with that.
- 3:52SPEAKER_00: And again, you know, things happen, but then it's gonna look over this contract and then it might give you a particular valuation.
- 3:59SPEAKER_00: When it comes back with the number, you want to find out where it got the information.
- 4:02SPEAKER_00: Now, maybe it went out and it scraped particular websites that have multiple listing service feeds within them.
- 4:08SPEAKER_00: That would be a very smart model and something I think would be not a bad idea to do, depending on the access point.
- 4:14SPEAKER_00: So for example, SantaClaritaOpenhouses.com is mine.
- 4:18SPEAKER_00: I have over 11 years worth of historical sold data just for Santa Clarita Valley.
- 4:23SPEAKER_00: I I could have set it up for all of Southern California, but I'm I'm good here.
- 4:27SPEAKER_00: I wanted to be just that local Santa Clarita Open Houses resource, seller representation model.
- 4:32SPEAKER_00: So that's what I plugged into it.
- 4:34SPEAKER_00: So I have all that local data here.
- 4:36SPEAKER_00: If you want something from outside the Santa Clarita Valley, San Fernando, or wherever else, you know, hit me up.
- 4:40SPEAKER_00: I can pull that data via a different system.
- 4:42SPEAKER_00: But a bot could grow, go to Santa Clarito Openhouses.com and then do the due diligence run on that particular residence because it'll be reflected on there for sale.
- 4:51SPEAKER_00: It could go into the sold data, it could extract all of the other properties within close proximity.
- 4:56SPEAKER_00: It could use potentially appraisal guidelines, which the system, I mean, they're a large language model, so it has all the data in the world anyway.
- 5:04SPEAKER_00: So it's going to know how to do the search based on maybe appraiser standard.
- 5:08SPEAKER_00: That would be the other prompt that you want to talk to it about.
- 5:11SPEAKER_00: You're a you're a very seasoned appraiser working for maybe this type of bank.
- 5:16SPEAKER_00: Uh, your client, which is going to be me, is getting uh an FHA loan at 3.5%, or a VA loan or conventional loan at whatever with this much down payment.
- 5:25SPEAKER_00: I'm looking for comparables on this residence.
- 5:27SPEAKER_00: I'm gonna be writing an offer.
- 5:28SPEAKER_00: What do you suggest that valuation be?
- 5:31SPEAKER_00: And you can just take this transcript and plug it into yours, and then it should do the research.
- 5:36SPEAKER_00: Now, more than likely, the large language model itself, and I do this as seller strategies trying to identify properties that are gonna be coming on the market.
- 5:44SPEAKER_00: I have an investment group as well that we taught, we go back and forth with, you know, making the algorithm better, making the LLM better, the large language model.
- 5:52SPEAKER_00: And I have mine, my own install here, so I don't have any of my proprietary information public facing.
- 5:58SPEAKER_00: So I use, you know, one of the large 120 billion parameter models to be able to do that type of research.
- 6:04SPEAKER_00: But you yourself, you know, when it's looking up the data, it's probably gonna pull in the last six months of sold data.
- 6:10SPEAKER_00: It's probably gonna pull in properties closest to yours.
- 6:13SPEAKER_00: It's probably gonna pull in properties that are reflective of your type of residence.
- 6:18SPEAKER_00: So hopefully it's gonna be a bedroom, bathroom on match count.
- 6:21SPEAKER_00: It's gonna be very close to the square footage, if not the same match count, because a lot of times builders, at least in Santa Clarita, and we see this in the new housing tracks in CME and other places, the builders are gonna have three or four different variations of style of home.
- 6:36SPEAKER_00: There's gonna be a multitude of elevations, which is gonna be the design from the outside, whether it's a stucco, whether it's stone, whether it's brick, whether it's some kind of fake wood-looking stuff, whatever.
- 6:46SPEAKER_00: So you're gonna have those elevations.
- 6:48SPEAKER_00: And then there's gonna be different uh configurations on the interior of the residence.
- 6:52SPEAKER_00: Maybe some will have a choice of a down a downstairs suite with a kitchen and these sorts of things.
- 6:57SPEAKER_00: Maybe some don't have that choice.
- 6:59SPEAKER_00: Maybe instead of a half bathroom and you're buying new, you can add a full bathroom.
- 7:03SPEAKER_00: That's always worth the money just talking to you folks that are buying new residents, new housing.
- 7:07SPEAKER_00: If you can afford to stick in that full bathroom downstairs, if it happens to have an office or some kind of a room that would exist as a bedroom, you got to do it.
- 7:16SPEAKER_00: That's that's a big selling point.
- 7:18SPEAKER_00: People that have downstairs bedrooms, and we're bringing in a lot of the older, older.
- 7:23SPEAKER_00: Yeah, I'm older, but they're bringing in even older people to live with kids now.
- 7:28SPEAKER_00: And that's a that's a very positive point.
- 7:29SPEAKER_00: So and that's probably not gonna change because everybody's just getting older.
- 7:33SPEAKER_00: There you go.
- 7:34SPEAKER_00: Facts.
- 7:35SPEAKER_00: So as we're gonna see the world get older, having that full downstairs suite or at least a room that can be used as a bedroom, and then also the bathroom, you know, a full bathroom or at least a shower, at least a step-in shower.
- 7:48SPEAKER_00: That would probably fit the bill pretty well, unless they're gonna have kids and there's gonna be kids downstairs because trying to, you know, wash uh wash an infant in a shower that you step into, it's it's just, yeah, you're gonna go kitchen sink and then hopefully bathtub.
- 8:02SPEAKER_00: That the shower thing's difficult.
- 8:04SPEAKER_00: Anyway, wrap your mind around that a little bit.
- 8:06SPEAKER_00: But hopefully it's gonna do that.
- 8:07SPEAKER_00: Then let's say it can't find a model match, but it's gonna find something within maybe a half a mile to a mile from your residence, as long as there's three or four good comps that measure up, then the subtractions and additions can be done from that.
- 8:20SPEAKER_00: And the large language model, once you tell it to be an appraiser working for a particular entity, it's gonna do the research and find out how to best align with that skill set, develop it, and then use that in the performance of the actions, which are going to be to tell you what that good offering price would be for the residents.
- 8:37SPEAKER_00: Now, once it does that, then you want to compare that information that your agent produced.
- 8:41SPEAKER_00: So it should be more than just your agent saying, yeah, this is what I think you should offer.
- 8:45SPEAKER_00: Whenever I'm whenever I was working with buyers, uh, what I made sure that I did is instead of just saying, hey, listen, you know, I would offer$980,000 and the list price is$980,000, I would give them what they want.
- 8:59SPEAKER_00: Instead of just saying it that way, I would want to show comps true market data showing just what I explained to you about the way that you would have a large language model explore what a valuation should be on a particular piece of real estate.
- 9:12SPEAKER_00: I would go in and then do that pull myself.
- 9:15SPEAKER_00: Same standards, and then I would line everything up.
- 9:18SPEAKER_00: And I wouldn't get all crazy and throw it on a spreadsheet, but I would show something very similar where they had all the information about the property, the the offers that on those on the sold data, what types of offers were received, at least what types of offers closed escrow.
- 9:34SPEAKER_00: So if the buyer happens to be FHA, then I would want to show other FHA type offerings because we're able to see that in the data, what type of loan was produced for this residence upon closing, what was the loan program that they used.
- 9:49SPEAKER_00: If it's all conventional all day long and the buyer happens to be conventional, then great.
- 9:52SPEAKER_00: Then I'll line those up.
- 9:54SPEAKER_00: If there's not enough of the various types of loans to be able to encompass the type of loan the buyer's using, then that's fine too.
- 10:01SPEAKER_00: You know, it's probably going to be very close.
- 10:03SPEAKER_00: I do know that you might hear from people that you have an FHA appraiser, you have a VA appraiser, it's like a bad joke.
- 10:10SPEAKER_00: If you have an FHA appraiser, a VA appraiser, and a conventional appraiser, they all walk into a bar.
- 10:15SPEAKER_00: You know, how do those valuations actually work?
- 10:17SPEAKER_00: Most in most cases, it would seem that the VA and FHA would be a little bit more conservative than the conventional because a typical conventional buyer, and there's different degrees of a conventional loan, you know, 3% and up, but are typically generally understood to be 20% down, there's a little bit more fat in that process.
- 10:35SPEAKER_00: So maybe the appraiser doesn't work as hard, but most of them are working from the same standard.
- 10:40SPEAKER_00: There might be a little bit more give with a conventional buyer as far as condition of property versus uh somebody that's coming in with a VA, there might be less give because the properties that be in a higher level or some kind of semblance of shape that might exceed what a conventional buyer requirement might be with regard to the appraisal.
- 11:01SPEAKER_00: But most properties, at least being sold now, there's very few fire sales.
- 11:05SPEAKER_00: There's very, very few properties that enter the market for sale that are dilapidated or in horrible condition, at least right now, as we're in August of 2026.
- 11:14SPEAKER_00: Things might change here in a few months, but we'll have to stay posted for that.
- 11:18SPEAKER_00: Right now, as well, buyers are very concerned about interest rate.
- 11:21SPEAKER_00: And I know a lot of the sellers I represent, whenever we go into it, sometimes the offerings from the seller is a rate buy down for the real estate buyer.
- 11:30SPEAKER_00: That's a seller cost, and that could go anywhere from$10,000 to$15,000 to$20,000 depending on the buyer and the loan program.
- 11:37SPEAKER_00: But that's an offering that could take place on the purchase of a piece of residential real estate, buying down the rate for a number of years until a certain time when maybe the rates come down so the buyer can refinance or at least helping them save a little bit for the next couple of years and then letting the rate increase to back what it was supposed to be.
- 11:55SPEAKER_00: All that should be written out.
- 11:56SPEAKER_00: Those numbers are very plain and simple.
- 11:58SPEAKER_00: Before you buy into that, make sure you understand the way that loan's configured.
- 12:02SPEAKER_00: And also something important to make sure as well.
- 12:05SPEAKER_00: If you're a buyer going into the process and you're looking at a 20% down structure and it's a 30-year fixed loan, make sure that that variable, that 30-year fix doesn't change to something else that you're not ready for, like some kind of an adjustable rate mortgage.
- 12:20SPEAKER_00: Not that it would.
- 12:21SPEAKER_00: Usually lenders don't switch, bait, and switch anybody like that, at least not anymore.
- 12:26SPEAKER_00: But make sure that you understand if you want a 30-year fixed loan where that payment's gonna stay the same after this rate buy down is expired, one, two, three, whatever years the term is, then you want to make sure that you're going to a particular payment and that payment's going to be fixed.
- 12:42SPEAKER_00: And here's the final thing.
- 12:43SPEAKER_00: So with sellers, when I'm working with sellers, I make sure that I make all these phone calls to the buyer's lender and find out exactly where the buyer happens to be.
- 12:52SPEAKER_00: And the biggest disappointment.
- 12:53SPEAKER_00: And I'll tell you this as a seller's only agent.
- 12:56SPEAKER_00: The biggest disappointment is when I call the lender and local lenders, never a problem, but it's the big lenders that are back east and other places, the ones that are on the 3 a.m.
- 13:06SPEAKER_00: cycle and they're advertising these great, fantastic rates.
- 13:10SPEAKER_00: Whenever I call up, and usually it's a nine to five, a Monday through Friday deal, I'm not able to get anybody after hours.
- 13:16SPEAKER_00: So if this particular buyer working with this particular realtor wrote an offer and they're using one of these lending outfits that aren't local or don't they have people that are working for them that don't answer their phone on holidays, weekends, after hours, it's all nine to five, depending on their time zone that the bank or lender happens to be located within.
- 13:35SPEAKER_00: There could be a problem, especially if it's a multiple offer situation where I need as a seller's agent to talk to these lenders.
- 13:43SPEAKER_00: And the best world for me is when I call the lender up and say, hey, it's Connor McIver.
- 13:47SPEAKER_00: I'm with Sync Brokerage.
- 13:49SPEAKER_00: Here we have an offer from Julie and Jeff Rasmussen.
- 13:53SPEAKER_00: And then they stop me calling my tracks.
- 13:56SPEAKER_00: Oh my God, Julian, did I say Jeff?
- 13:58SPEAKER_00: Julian so-and-so Rasmussen.
- 14:00SPEAKER_00: Oh my God, good people.
- 14:01SPEAKER_00: Yeah, I've been on the phone with them the last week, got all their paperwork in finally, got a full underwriter approval on it.
- 14:07SPEAKER_00: Oh, they couldn't be.
- 14:08SPEAKER_00: They're tickled pink to be able to buy a house.
- 14:10SPEAKER_00: I'm so glad they wrote the offer.
- 14:12SPEAKER_00: In fact, the agent had called me uh earlier today and had told me, and now it's like 9 p.m., but they're answering their phone.
- 14:19SPEAKER_00: And even if they're based on the East Coast, which again, that's not very common.
- 14:23SPEAKER_00: Usually there's no answering on the phone at that time, because that would be what, midnight over there?
- 14:27SPEAKER_00: But still, if if they're answering the phone at that time, I go back to my seller and I say, this one, Julian so-and-so Rasmussa lender loved them and can't say enough good things.
- 14:38SPEAKER_00: So that's that's definitely in the A pile.
- 14:40SPEAKER_00: That goes in the A pile of offers, depending on the other things.
- 14:44SPEAKER_00: Of course, the way that it was written, what the buyers are asking for, what the deposit amount looks like, what the offering amount is, if they've changed any of their time frames.
- 14:52SPEAKER_00: Maybe, maybe they got a little happy to help out the seller, reduce time frames.
- 14:56SPEAKER_00: Maybe I had a conversation with the agent, as I do almost all the time, before an offer is written.
- 15:02SPEAKER_00: Number one, they want to make sure the property is still available.
- 15:05SPEAKER_00: Which that used to be a bigger problem back in the day.
- 15:08SPEAKER_00: Right now, the market's a little slower.
- 15:10SPEAKER_00: Usually most properties are available, but that pre-call before the buyers look at the property, that's important too.
- 15:17SPEAKER_00: Because if you take your buyers, and this is for the agents watching, not that there are many because they hate me.
- 15:23SPEAKER_00: But anyway, so the agents watching this, whenever you take your buyer into a residence and they like it enough to want to write an offer and you say, Yeah, sorry, they this one went to escrow earlier.
- 15:32SPEAKER_00: Well, you didn't call and find out.
- 15:34SPEAKER_00: There's a time frame that the agents get to leave the property available before putting it into an escrow position in the multiple listing service.
- 15:44SPEAKER_00: So if they've gotten the offer, you didn't call before you looked at the viewing, you trusted the MLS to see that it was active, but you didn't bother to pick up the phone and call the agent.
- 15:53SPEAKER_00: Maybe it said go direct, you know, don't need to call.
- 15:56SPEAKER_00: You still call.
- 15:57SPEAKER_00: You still call and say, Do you have any offers?
- 15:59SPEAKER_00: And oh, you know what?
- 16:00SPEAKER_00: We just went into escrow.
- 16:01SPEAKER_00: You wouldn't, you'd be surprised how many times that's said.
- 16:05SPEAKER_00: And now you save your buyer from the heartache because it's hard to come back from that because it looks like you're doing a crappy job as an agent.
- 16:12SPEAKER_00: All right.
- 16:12SPEAKER_00: So now we have that.
- 16:13SPEAKER_00: So we have part of the process where I'm calling the lender.
- 16:17SPEAKER_00: I'm then taking these packages back to the seller.
- 16:19SPEAKER_00: This is good.
- 16:20SPEAKER_00: These this lender had no idea who the hell I was talking about.
- 16:23SPEAKER_00: You know, and maybe they're still good.
- 16:24SPEAKER_00: Maybe everybody gets a counteroff.
- 16:26SPEAKER_00: Maybe one offer just gets accepted.
- 16:28SPEAKER_00: It's not necessarily the case that everybody has to get a counteroff.
- 16:32SPEAKER_00: Maybe nobody's responded to.
- 16:34SPEAKER_00: Maybe somebody writes an offer, and this happens frequently too.
- 16:37SPEAKER_00: And I try to educate my sellers on this one.
- 16:39SPEAKER_00: So you'll have um basically AI systems that are put into place that they just completely generate offers.
- 16:47SPEAKER_00: Whenever a property hits the multiple listing service for sale, an offer is generated by Cobalt Bankers, seems to be a couple that I get all the time.
- 16:56SPEAKER_00: Um there's another company.
- 16:59SPEAKER_00: But it's it's, I don't know, two or three agents that have a system that's been built around this.
- 17:05SPEAKER_00: So what they do is they just send off an offer from an investment group apparently they're working with, hoping that you know the sellers will accept this, you know,$200,000 less than comparable value offer.
- 17:16SPEAKER_00: And they just fire it off.
- 17:18SPEAKER_00: It's it's good to have a conversation with a seller talking about that very fact.
- 17:23SPEAKER_00: So I sit them down at the very beginning, and as we're going over the listing contract and everything, I want to have them explain to me, to them and their brain, what a frivolous offer would be and the ones that I can reject without even putting it in front of them.
- 17:37SPEAKER_00: But all that has to be in writing.
- 17:39SPEAKER_00: So if they tell me, yeah, if anybody tries to undercut us from an investment group,$200,000 or more from where we're listed at, yeah, you have my permission.
- 17:47SPEAKER_00: I don't even need to see that offer.
- 17:49SPEAKER_00: You can automatically reject it.
- 17:51SPEAKER_00: And that's a good place to be because that stuff happens.
- 17:54SPEAKER_00: Then what does that do if you don't have that conversation with the seller?
- 17:57SPEAKER_00: The sellers kind of get irritated because they didn't know that's even part of the process and they don't understand it.
- 18:02SPEAKER_00: And they it's human nature, right?
- 18:04SPEAKER_00: They think that what the hell that what does this even mean?
- 18:06SPEAKER_00: Why, why would somebody take they didn't even see the house?
- 18:09SPEAKER_00: They didn't even call my agent.
- 18:10SPEAKER_00: Now they have an offer.
- 18:12SPEAKER_00: So is my agent playing a game on me?
- 18:14SPEAKER_00: Do you see where this goes?
- 18:15SPEAKER_00: You have to inform people.
- 18:17SPEAKER_00: Same thing with you buyers out there, you need to hear it all.
- 18:19SPEAKER_00: You need to understand what, you know, the last deal your your agent killed when he had buyers in process and and he said, you know what, in my in my particular position, I wouldn't proceed on this purchase because of this, this, and this.
- 18:33SPEAKER_00: And then, you know, if the buyers still want to proceed, at least they made their case.
- 18:36SPEAKER_00: The last time an agent killed the deal shows a lot about that agent's intestinal fortitude, betting on a client versus betting on a commission.
- 18:44SPEAKER_00: It's a big deal.
- 18:45SPEAKER_00: So, you sellers out there, make sure you get yourself aligned with the right agent.
- 18:49SPEAKER_00: If you want to see more about what I do, you can go to santaclarita openhouses.com and communicate through me through me with uh through that site with me or sellersonlyagent.com.
- 18:58SPEAKER_00: I got that one uh coming in the form of a trademark, so you can check all that out and what that means.
- 19:03SPEAKER_00: For your buyers out there, if it's one of my listings, I'm sorry, I won't even refer you to an agent, nor will I represent you.
- 19:09SPEAKER_00: That's my agreement with my sellers.
- 19:11SPEAKER_00: I'm on their side 100%.
- 19:12SPEAKER_00: But if it's about something else that I don't have listed, I don't have all the listings, at least not yet.
- 19:18SPEAKER_00: So at that point, if you want to reach out, I have a team of agents that are just lovely that will take care of you as buyers-only agents and look out for your best interest.
- 19:28SPEAKER_00: So if you want that referral, I get some change off of that.
- 19:31SPEAKER_00: I get a referral fee based.
- 19:32SPEAKER_00: It's all contractual, more than happy to do it.
- 19:35SPEAKER_00: I just won't do it on a listing I have because that puts me too close within arm's reach of my seller.
- 19:40SPEAKER_00: And I really want to just be totally on their side 100%.
- 19:43SPEAKER_00: All right.
- 19:43SPEAKER_00: That's it.
- 19:44SPEAKER_00: I'm Connor with Honor, Santec FloridoOpenhouses.com.
- 19:47SPEAKER_00: Hopefully, this has given you some idea as to what to look out for.
- 19:50SPEAKER_00: And it's always a pleasure.
- 19:51SPEAKER_00: We'll see you in the next one.
- 19:52SPEAKER_00: Thanks for watching.