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Real Estate close out 2021 in Santa Clarita Valley by Connor with Honor and other exciting information · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Well, I'll tell you, there's a lot of excitement going on in the real estate world.
• 0:04
  SPEAKER_00: I'm Connor with Honor, Connor McIver, Compass Real Estate, headquartered here in Santa Clarita Valley, serving all of Southern California.
• 0:11
  SPEAKER_00: I've been selling houses representing buyers and sellers since 1998.
• 0:15
  SPEAKER_00: Let's get to this excitement.
• 0:16
  SPEAKER_00: We're closing out the end of the year, 2021.
• 0:19
  SPEAKER_00: 2022 looks like it's going to be another year of increasing real estate prices.
• 0:28
  SPEAKER_00: However, from what the experts are saying, it's not going to be a massive, dramatic increase, probably 2 to 4%, depending on the market.
• 0:36
  SPEAKER_00: And it's going to be consistent for 2022 and 2023.
• 0:39
  SPEAKER_00: The only thing that's going to throw a wrench in that would be interest rates starting to climb.
• 0:46
  SPEAKER_00: And apparently the powers that be don't believe that's going to be an issue.
• 0:50
  SPEAKER_00: But again, let's watch because you know lots of things.
• 0:54
  SPEAKER_00: When they say that they're not going to happen, they always give it a follow.
• 0:58
  SPEAKER_00: You know, it's not going to be an issue.
• 1:00
  SPEAKER_00: And then all of a sudden it becomes a big issue.
• 1:02
  SPEAKER_00: So right now, as of today in Santa Crita Valley, we are the 28th of December, 2021.
• 1:11
  SPEAKER_00: 104 active listings.
• 1:14
  SPEAKER_00: About five of those are coming soon listings.
• 1:17
  SPEAKER_00: So that's it.
• 1:18
  SPEAKER_00: That's in all of the Santa Crita Valley.
• 1:20
  SPEAKER_00: That number is ultra low.
• 1:21
  SPEAKER_00: In fact, historically, probably a record breaker, very close to it.
• 1:26
  SPEAKER_00: I believe we haven't even experienced double digits if we get rid of the coming soon stuff.
• 1:31
  SPEAKER_00: See those actives at 99.
• 1:34
  SPEAKER_00: I don't believe I've ever seen that.
• 1:36
  SPEAKER_00: And I've been doing this since, as I said, 1998.
• 1:39
  SPEAKER_00: What does that mean to those home buyers out there?
• 1:42
  SPEAKER_00: Well, the buyer drive has also slowed down, and that trend is very typical through the holidays.
• 1:47
  SPEAKER_00: Usually starts sometime in October and continues throughout the end of the year until maybe mid-quarter one.
• 1:54
  SPEAKER_00: So we're looking sometime mid-February where everything starts to pick up again.
• 1:59
  SPEAKER_00: You're going to see more listings entering this market because the last couple years we've been halted or stopped by COVID.
• 2:07
  SPEAKER_00: And when COVID first broke, you had a lot of issues pertaining to the real estate methods and mechanisms, everything that was in place, open houses, how to show properties, those sorts of things.
• 2:21
  SPEAKER_00: Once COVID reared its ugly head, there was a pause in real estate, as we see with other tragic events out there.
• 2:29
  SPEAKER_00: You have floods, you have fires, those types of things, and of course, Southern California here, we get earthquakes, those actually halt the real estate process.
• 2:38
  SPEAKER_00: And a lot of it is insurance dependent, where a house, in order to close escrow, has to have an insurance policy placed on it before the closing occurs, so the asset is covered.
• 2:50
  SPEAKER_00: Now, whether that insurance is purchased by the bank, which is typically a lot more expensive than if you were to take that private route and you had to find that insurance company yourself.
• 2:59
  SPEAKER_00: But either way, the house does have to be insured before it closes.
• 3:03
  SPEAKER_00: Imagine this a couple days before closing, you know, 7.0 earthquake hits.
• 3:09
  SPEAKER_00: Now all of a sudden, those insurance companies that were about to give a policy on that residence or were very close to it, or maybe had already written one, they're going to redact it.
• 3:19
  SPEAKER_00: They're going to pull it back or not going to write it in the first place until they figure out what's going on.
• 3:25
  SPEAKER_00: Is that earthquake enough to be some kind of an insurance company killer?
• 3:30
  SPEAKER_00: Are they bonded enough to be able to have enough money to be able to support all those payouts?
• 3:35
  SPEAKER_00: These are big big boy questions, talking about, you know, college level stuff.
• 3:40
  SPEAKER_00: And again, that's why real estate typically pauses.
• 3:43
  SPEAKER_00: Usually the title companies are still moving money.
• 3:47
  SPEAKER_00: The banks themselves are still loaning money.
• 3:49
  SPEAKER_00: So all those processes are usually fulfilled.
• 3:52
  SPEAKER_00: It typically is that insurance component of a real estate transaction that puts everything on hold.
• 3:57
  SPEAKER_00: So that being the case, we haven't seen that kind of event for a long time.
• 4:02
  SPEAKER_00: And as I'm knocking on the steering wheel, hopefully that kind of event won't ever occur again.
• 4:08
  SPEAKER_00: But you know as well as I that really probably is too much to hope for.
• 4:13
  SPEAKER_00: Moving into the real estate realm here in the beginning of the first quarter, we're also going to see, because of COVID, people unfortunately getting more and more used to it.
• 4:24
  SPEAKER_00: I believe people are going to start being more real about listing properties and moving.
• 4:28
  SPEAKER_00: And I do believe with different states having different parameters, different rules in place with regard to COVID, I think people might be seeking greener pastures where maybe it's not being taken as it is taken here in California.
• 4:44
  SPEAKER_00: Now I'm not here to argue who's on the right side or the left side or what the right way to approach it is.
• 4:49
  SPEAKER_00: It does kill people.
• 4:50
  SPEAKER_00: Lots of things kill people.
• 4:52
  SPEAKER_00: And again, it's something that each person needs to make up their own personal decision.
• 4:56
  SPEAKER_00: But I've heard from more than one person in my periphery, my sphere of influence, telling me that, hey, Connor, I'm gonna leave the state of California because I want to go to a more friendly state.
• 5:08
  SPEAKER_00: And I do understand that.
• 5:10
  SPEAKER_00: Sometimes California can be a bit rough.
• 5:12
  SPEAKER_00: It just depends if you like it.
• 5:14
  SPEAKER_00: The nice thing about California is we're kind of close to just about everything.
• 5:17
  SPEAKER_00: We're at Santa Clarita Valley.
• 5:18
  SPEAKER_00: I've got the beach maybe 45 minutes away.
• 5:21
  SPEAKER_00: Heaventura Peers 55 minutes away.
• 5:25
  SPEAKER_00: Down the 126, we have a lot of infrastructure here, a lot of business.
• 5:29
  SPEAKER_00: A lot of people want to do business, and the weather really is fantastic.
• 5:32
  SPEAKER_00: We have been getting rain, but we've needed it really, really bad.
• 5:36
  SPEAKER_00: You can't really beat it.
• 5:38
  SPEAKER_00: Plus, everything's very close.
• 5:39
  SPEAKER_00: You got Hollywood here, you got the entire film industry here, you have a lot of other stuff going on.
• 5:44
  SPEAKER_00: In Santa Clarita proper, we have a lot of great infrastructure.
• 5:48
  SPEAKER_00: We have a mega industrial complex, a commerce center, great mall, lots of restaurants, lots of pasales, lots of things to do at night or day.
• 5:58
  SPEAKER_00: And the schools out here, if you have kids that are school age, a lot of the schools are blue ribbon, fantastic, and better than a lot of the private schools that are out there.
• 6:08
  SPEAKER_00: Something to investigate.
• 6:09
  SPEAKER_00: Now, what's going to end up happening last year in 2021, just kind of a quick recap, we saw starting pretty much at the beginning of 2021, all the way through spring and summer and into fall, multiple offers on most real estate listings that were being put on the market.
• 6:26
  SPEAKER_00: In that regard, you had many different buyers interested on one single home.
• 6:33
  SPEAKER_00: So when a house went on the market, there were a lot of viewings within the first 72 hours.
• 6:38
  SPEAKER_00: In excess of, you know, one hour, one per half an hour, or one per every 15 minutes, and it just kept going like that.
• 6:46
  SPEAKER_00: So in that case, a lot of those buyers ended up writing offers.
• 6:50
  SPEAKER_00: With those offers, they included proof of funds, FICO scores, and also pre-approval letters by reputable lending companies or mortgage brokers.
• 6:59
  SPEAKER_00: Some were direct, some were not, some were through a mortgage broker resource.
• 7:04
  SPEAKER_00: But again, pre-approval letters really, in some cases, aren't worth the paper they're written on.
• 7:09
  SPEAKER_00: I do know there have been a lot of changes to that process.
• 7:12
  SPEAKER_00: Something to be aware of.
• 7:13
  SPEAKER_00: The best, most strongest type of pre-approval letter is going to be an underwriter approval.
• 7:19
  SPEAKER_00: And whenever you're I'm meeting with my buyers, I try to emphasize that being a very important part of the process because that's going to put you above a lot of the other people that have written offers on the same listing.
• 7:31
  SPEAKER_00: And it's not necessarily going to have to address price, although, as I stated in a YouTube video on my Connor with Honor channel at YouTube, I did talk about sometimes price is really the easiest thing to address, but in essence, maybe not the most effective to address when you're writing an offer.
• 7:52
  SPEAKER_00: Those offers have to be put, you know, put together in a certain way.
• 7:55
  SPEAKER_00: You want to make it look very mature, you want to make it appear that your agent or your agent needs to make it appear that they have it all together, and that whenever they send that email that contains that offer, everything is there.
• 8:10
  SPEAKER_00: They're not missing any part of it.
• 8:12
  SPEAKER_00: Now, in some cases, let's say you kind of rushed into this process, which I would never tell anybody to do, but let's say you don't have that pre-approval letter.
• 8:20
  SPEAKER_00: There might be some time to do it, but I'll tell you what, as a listing agent listing real property again and again and again, and I have multiple offers on a property, it's going to be difficult for me to go back after I've looked at 20 offers that are complete and have everything I need to present to the seller.
• 8:36
  SPEAKER_00: So I go to the seller and present those offers.
• 8:39
  SPEAKER_00: The one 21st offer was lacking, let's say the pre-approval letter or FICO scores.
• 8:44
  SPEAKER_00: Everybody else had it as per my instructions in the multiple listing service.
• 8:48
  SPEAKER_00: You see where I'm going.
• 8:49
  SPEAKER_00: It's difficult to go back and pull that in.
• 8:51
  SPEAKER_00: Now, do we?
• 8:52
  SPEAKER_00: Yes, because to me, that code, that honor is there, and I wouldn't want a home buyer, even though they're not my home buyer, I wouldn't want a home buyer missing out because of their agents' inability to follow instructions if that happened to be the case.
• 9:09
  SPEAKER_00: And maybe the buyer was just behind the gun, couldn't get the approval letter in time, maybe too much information was needed.
• 9:15
  SPEAKER_00: And in that particular case, heart goes out to them because real estate is a very complicated process, probably a lot more complicated than it used to be.
• 9:23
  SPEAKER_00: And I remember in 1998, the files were nowhere near as thick and nowhere near as many disclosures and pieces of paper required to close a transaction back then as we see today.
• 9:35
  SPEAKER_00: That was where the market was.
• 9:37
  SPEAKER_00: 2022 is probably going to be a lot of the same.
• 9:40
  SPEAKER_00: It's going to depend on the number of listings that get placed on the market for sale in 2022.
• 9:45
  SPEAKER_00: If we see real estate break open and we start seeing a huge amount of listings flooding the market because those people have really been waiting the last couple years as COVID has worked its way through and now they're frustrated, now they really want to get out of California.
• 10:01
  SPEAKER_00: They don't want to wait because the places they're thinking about going or have decided to go to have now become very, very expensive.
• 10:10
  SPEAKER_00: But again, in that regard, it's relative.
• 10:13
  SPEAKER_00: If you're moving from a more expensive market, which California typically is comparatively to every other state out there, with you know exceptions, right?
• 10:22
  SPEAKER_00: I mean, Manhattan's probably, I don't know price per square foot, but it's probably more expensive than here in Santa Clarita Valley.
• 10:30
  SPEAKER_00: Maybe not in comparison to the Homby Hills, Bel Air, and that Platinum Triangle over there.
• 10:36
  SPEAKER_00: But again, it's probably, you know, very, very, very, very close to even Beverly Hills in that area, also.
• 10:43
  SPEAKER_00: That being the case, when these houses start hitting the market for sale, it could be that we're going to see multiple offer situations as we saw last year and even the year before.
• 10:54
  SPEAKER_00: But we won't know that until we get there.
• 10:56
  SPEAKER_00: But people are watching as the houses are becoming more expensive.
• 10:59
  SPEAKER_00: And what I was going to state is it's practically a wash and maybe even in a better spot because the prices in California have gotten higher.
• 11:07
  SPEAKER_00: If you're going to be moving to rural Texas, I know that those properties have also gotten more expensive, but not at the same pace as Southern California, even Santa Clarita Valley.
• 11:16
  SPEAKER_00: So you're going to still be making out a lot better.
• 11:20
  SPEAKER_00: The question is going to be: is there inventory for you to purchase?
• 11:24
  SPEAKER_00: Is there enough, are there enough listings out there in the place that you've decided to move to so you can look and actually find something that you want to buy?
• 11:35
  SPEAKER_00: And I'm sure if you've been waiting two years, year and a half or a year since COVID really started to come through, and you've probably seen a lot of real estate listings and become exceptionally frustrated, I get that.
• 11:47
  SPEAKER_00: Just tell yourself it's going to be okay, and there is timing and there is right timing.
• 11:51
  SPEAKER_00: So don't panic when it comes to real estate.
• 11:56
  SPEAKER_00: What's meant to be is meant to be, and it's always going to work out in some way.
• 12:01
  SPEAKER_00: Might not be the best way, but it's going to work out for you.
• 12:04
  SPEAKER_00: So just tell yourself that.
• 12:05
  SPEAKER_00: The other thing that I always tell my clients is if we're out there and we write our best offer on whatever real estate and it doesn't go through, and we did everything we could to make it happen, and the seller chose somebody else, usually that choice from the seller is going to be listing price or offering price dependent.
• 12:25
  SPEAKER_00: Now there are ways to structure an offer to make it more attractive and even to maybe give it more weight besides price, but in most cases, or some cases, depending on those prices being offered, those particular sellers are going to go after that highest price.
• 12:42
  SPEAKER_00: However, if that seller does sit down and talk with her agent, it could be that those highest price offerings aren't going to be the best in comparison to people that might be offering less, but have more substantial down payments, maybe better loan practices, maybe they have higher FICO scores, and maybe they have more money in reserve to be able to close the transaction versus somebody that's offering a lot more going with a loan program that's not going to even allow them to pay the difference, which is typically the case when people are offering more.
• 13:14
  SPEAKER_00: Usually in that regard, they're also just saying that, you know what, we don't care what this property appraises for.
• 13:20
  SPEAKER_00: We're going to go ahead and pay the difference in cash into this property.
• 13:25
  SPEAKER_00: There are loan programs out there that won't allow that.
• 13:28
  SPEAKER_00: Know that as a real estate agent, if you don't, talk to your lender, find out what loan programs allow that money injected into the transaction.
• 13:37
  SPEAKER_00: Because if you're writing an offer, that seller's going to be miffed, especially if their agent, the seller's agent, the listing agent, isn't aware of those when they're talking about those offers to their seller.
• 13:50
  SPEAKER_00: Maybe they'll agree with a particular highest priced offer that has a loan program attached to it that won't allow that particular buyer to even waive their appraisal contingencies, which is very common, and also will not allow them to inject extra money into the transaction to make up for the difference.
• 14:08
  SPEAKER_00: But yet in contract it says they will.
• 14:10
  SPEAKER_00: So what happens?
• 14:12
  SPEAKER_00: A lot of times that's a lawsuit and that's a problem.
• 14:15
  SPEAKER_00: And that holds everything up because the seller then can't sell their property, and the buyer then can't get their deposit back until all the dust is settled.
• 14:24
  SPEAKER_00: These are things to look at before approaching real estate, knowing going in where you stand, and comparatively speaking, what those other offers could potentially be in a whatever market it is, and how you may stack up.
• 14:38
  SPEAKER_00: For example, if you're coming to me and you're a home buyer and you have 50% down using a nice conventional loan with a very reputable company, a lot of times that's going to win depending on the price being offered.
• 14:51
  SPEAKER_00: Versus that versus another program or another lending program that requires very close to zero down payment or just a little bit of skin in the game, you not being able to come in with any more money than that, even price particular, probably will not win that particular bet.
• 15:10
  SPEAKER_00: If you have an underwriter approval, that might help.
• 15:13
  SPEAKER_00: If your agent is known by the listing agent and they're known as being reputable and an OBS type agent, that also does help.
• 15:23
  SPEAKER_00: And we've won a lot of offers in regard to that without going after price, but because of reputation.
• 15:30
  SPEAKER_00: That's also something important to consider.
• 15:32
  SPEAKER_00: You're gonna get online, you're gonna start searching for real estate agents, and some of them are gonna be members of these reputation portals.
• 15:41
  SPEAKER_00: Now, those aren't free, folks.
• 15:43
  SPEAKER_00: The agents paying for placement there.
• 15:45
  unknown: Uh-huh.
• 15:46
  SPEAKER_00: Understand that.
• 15:47
  SPEAKER_00: Everything costs money.
• 15:49
  SPEAKER_00: So if they're saying they're gonna go out and they're gonna hunt the three best agents or six best agents or dozen best agents in a particular area, they're not they're going to want those agents to pay to be listed on that platform.
• 16:05
  SPEAKER_00: Nothing's for free.
• 16:07
  SPEAKER_00: So don't be kind into believing that this is something that could actually happen where there's some transparent entity out there not interested in making money, spending$100,000 on building an app and a platform and a website, advertising it on CNN or Fox or whatever the news program you love is, and doing it for nothing out of the goodness of their heart.
• 16:29
  SPEAKER_00: Somebody's getting paid.
• 16:30
  SPEAKER_00: And usually it's that company by those agents that want to be listed on their site.
• 16:34
  SPEAKER_00: So be weary.
• 16:35
  SPEAKER_00: How do you do it?
• 16:36
  SPEAKER_00: Well, you follow people like me, you look on my social media, you Google Connor with Honor, and you find me and you see what I'm about, you listen to my podcast like you are now, you go to my YouTube channel, Connor with Honor, you Google me, you see where I am, look at my credentials, and see, you know what, is this some guy that I can trust?
• 16:54
  SPEAKER_00: Is this a guy that I would feel comfortable, you know, trusting to be able to sell my house or help me buy a house?
• 17:00
  SPEAKER_00: Well, that decision is yours.
• 17:02
  SPEAKER_00: I am Connor with Honor, Connor McIver.
• 17:04
  SPEAKER_00: Please check me out on social media.
• 17:05
  SPEAKER_00: You can find me, well, hopefully everywhere.
• 17:09
  SPEAKER_00: My job is to help you find your place in the world.
• 17:13
  SPEAKER_00: You be safe, I'm Connor with Honor.
• 17:15
  SPEAKER_00: Please let me know if I can help over and out.