Latest / Connor with Honor: AI, Real Estate and Real Life / 5 Home Buyer mistakes that may cost you thousands if not attended to when buying Santa Clarita real estate

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5 Home Buyer mistakes that may cost you thousands if not attended to when buying Santa Clarita real estate · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Everybody, these are five things that could leave you without a house or leave you spending way too much money.
• 0:06
  SPEAKER_00: These are five things that buyers should never do and also reflect on when it comes to purchasing Santa Clarita real estate.
• 0:13
  SPEAKER_00: First off, first thing a buyer should never do when buying Santa Clarita real estate is don't fall in love too quickly.
• 0:19
  SPEAKER_00: Don't hang those mental curtains that are going to equate to you just loving the property so much you're willing to do whatever it takes to get it.
• 0:27
  SPEAKER_00: Now there's a difference between wanting to get something because it's a good deal or a good value, more of a business decision versus getting something that you have developed a very quick emotional attachment to.
• 0:39
  SPEAKER_00: Watch out for that because typically buyers end up spending way too much money and not doing enough in the way of inspections and investigations.
• 0:47
  SPEAKER_00: Well, that brings us to number two, skipping the home inspection.
• 0:50
  SPEAKER_00: Never, ever skip the home inspection.
• 0:53
  SPEAKER_00: Even buying new residential real estate, believe it or not, from a new home builder.
• 0:57
  SPEAKER_00: My suggestion is make sure you do get a home inspector to look at the property.
• 1:01
  SPEAKER_00: Now, home inspectors come in all shapes and sizes, different certifications.
• 1:06
  SPEAKER_00: Just make sure the ones you're using have all the proper documents, the proper certifications and education.
• 1:12
  SPEAKER_00: You can find that out just by calling them.
• 1:15
  SPEAKER_00: They should have some online resource that'll be able to give you what kind of certifications and credentials they actually carry.
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  SPEAKER_00: They'll point out certain things that might have you prevent future problems with the property, maybe maintenance issues, maybe large trees, root systems that might be not impacting the property yet, but could in the future.
• 1:36
  SPEAKER_00: In addition, they'll talk to you about grade, electrical, they'll talk to you about the roof, they'll talk to you about all the components of the house, the ones that you need to pay attention to.
• 1:44
  SPEAKER_00: And also, it's a good guide for you to maybe seek a request for repairs for the health and safety stuff from the seller, depending on the type of market you happen to be in.
• 1:53
  SPEAKER_00: Now, number three is going to be underestimating closing costs.
• 1:57
  SPEAKER_00: It costs money to buy real estate, besides what you see is what's known in the auto vehicle world is the sticker price.
• 2:04
  SPEAKER_00: Whenever you're purchasing real estate, you have that price that the house is listed for, then there are other costs that you need to incur as a buyer.
• 2:12
  SPEAKER_00: If you're going to be purchasing real estate, the new part of your agreement or closing cost could be your agent's commission.
• 2:19
  SPEAKER_00: But if your agent is going to only seek compensation from the seller, then that won't be part of your cost.
• 2:25
  SPEAKER_00: The other three things that typically you'll encounter as a real estate buyer are going to be your lender's fee, which could be one point or one percent of the purchase price.
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  SPEAKER_00: So out of a million-dollar property, it could be somewhere around$10,000.
• 2:38
  SPEAKER_00: But again, make sure you talk to them and find specifically what that fee would be.
• 2:42
  SPEAKER_00: You're part of title, you're part of escrow, and they're about somewhere around 1% each.
• 2:47
  SPEAKER_00: So closing costs, besides what you may pay a buyer's agent, are going to be somewhere around 3% or less.
• 2:53
  SPEAKER_00: It's just going to depend on the market where you happen to be purchasing, but you can do a lot with that.
• 2:58
  SPEAKER_00: You can either put it into the transaction in the form of a deposit or in the form of your down payment.
• 3:05
  SPEAKER_00: You can also maybe find out if the seller will let you finance that as part of the purchase, or maybe the seller will pick up those costs altogether.
• 3:13
  SPEAKER_00: If the property happens to be priced too high, you can have that kind of negotiation done for you by your agent to see if the seller will pick up the closing cost fee.
• 3:23
  SPEAKER_00: In addition, you want to make sure with those numbers, the type of loan you get is going to make it be dependent on whether you need to bring in even additional money to maybe pay a year's worth of insurance and six months' worth of taxes.
• 3:38
  SPEAKER_00: That would be an impounded type loan on the residents.
• 3:42
  SPEAKER_00: So you'll get all those numbers from your lender, not have to worry, but make sure you know those going in.
• 3:47
  SPEAKER_00: What are my closing costs going to be?
• 3:50
  SPEAKER_00: And then ask yourself the next question: how are we going to cover those if we don't have the accept enough for the down payment to go into escrow with?
• 3:57
  SPEAKER_00: You need to figure that part out.
• 3:59
  SPEAKER_00: And then another one, in ignoring the local market, this is huge.
• 4:02
  SPEAKER_00: A lot of people walk into real estate, not really understanding the dynamics of the market, maybe just picking up things they've seen online on YouTube videos like this.
• 4:13
  SPEAKER_00: A lot of the markets that agents are talking about are here in Southern California.
• 4:16
  SPEAKER_00: They're much less dynamic than the movement we experience out here in a typical year in the Santa Clarita Valley, which borders Los Angeles City.
• 4:26
  SPEAKER_00: Whenever you're closer to a major metropolitan area, you're going to see a lot faster activity and a more robust market versus the Midwest, for example.
• 4:37
  SPEAKER_00: So when you're looking at these real estate-related news articles talking about local markets, make sure the local market they're speaking about is actually local to where you're interested in purchasing.
• 4:47
  SPEAKER_00: In addition, you'll want to look at those local prices and find out where they're trending.
• 4:52
  SPEAKER_00: Also look at the local inventory.
• 4:54
  SPEAKER_00: Supply and demand is always an issue.
• 4:56
  SPEAKER_00: If there's too much supply and not much demand, you're going to have a buyer's market, and vice versa, you're going to have a seller's market.
• 5:03
  SPEAKER_00: Knowing the market going in, you'll be able to gauge your movements and your strategy the best to help support what your actually your actual goals will be.
• 5:13
  SPEAKER_00: And then finally, rushing into an offer, this is always good advice.
• 5:17
  SPEAKER_00: Do not do that.
• 5:19
  SPEAKER_00: If the market is moving quickly, you'll know that and then you'll be able to adjust accordingly.
• 5:24
  SPEAKER_00: But typically the seller isn't going to take the first thing that gets submitted, especially in a highly competitive market.
• 5:31
  SPEAKER_00: Usually they're going to give a window of time.
• 5:33
  SPEAKER_00: Now, not in all cases, but a majority of them, because the seller doesn't want to do themselves a disservice and doesn't want to ignore their own bottom line and their own interest.
• 5:42
  SPEAKER_00: So they might gather offers over two or three days.
• 5:46
  SPEAKER_00: That being the case, as long as yours is competitive with the others, more than likely you'll get some kind of a response.
• 5:51
  SPEAKER_00: But again, it's not guaranteed.
• 5:53
  SPEAKER_00: What I would do is when I talk to my clients, depending on strategy, we usually try to go with our best offer forward, maybe leaving room depending on where that seller's price happens to be.
• 6:04
  SPEAKER_00: If they've tried to undercut the market as part of the strategy to get a multiple offer scenario moving, then that next step would be maybe to offer accordingly.
• 6:13
  SPEAKER_00: At least we're in the game and we'll get a response to our offer and then have an idea what highest and best might look like.
• 6:20
  SPEAKER_00: That's going to be up to your agent to try to find out where you need to be.
• 6:25
  SPEAKER_00: But at the end of the day, make sure you always understand you're the boss and your agent should be treating you that way.
• 6:31
  SPEAKER_00: If you're about to make a mistake, like I do with my clients, I inform them.
• 6:35
  SPEAKER_00: But at the end of it, if they still want to proceed and do things, at least I've made my point and then we take it from there.
• 6:42
  SPEAKER_00: In most cases, things do work out.
• 6:44
  SPEAKER_00: I will not let my clients get too far ahead of themselves and cause themselves issues.
• 6:49
  SPEAKER_00: But you need to find the right agent in order for that to happen.
• 6:52
  SPEAKER_00: Thank you so much for watching.
• 6:54
  SPEAKER_00: If you want to get more information, you can go to Santa Clarita openhouses.com.
• 6:58
  SPEAKER_00: If you want to have a moment with me and get on a Zoom meeting, 30 to 45 minutes to talk about buying and selling real estate in Santa Clarita or anywhere else, you can do that.
• 7:07
  SPEAKER_00: Zoom me, scv.com.
• 7:09
  SPEAKER_00: We'll jump on a zoom meeting together, and then I'll be able to talk with you and listen to what you're looking to do in real estate, and then I will be able to help together.
• 7:19
  SPEAKER_00: We'll be able to come up with a great strategy to so you can best get most advantage out of any market, whether it's here in Southern California or elsewhere in the United States.
• 7:28
  SPEAKER_00: I have a fantastic network of agents I work with, but the preliminary meeting on zoommescv.com will be between you and I, or you and whomever else you want to have on the call, and we will talk about it then.
• 7:40
  SPEAKER_00: I hope you're well.
• 7:40
  SPEAKER_00: I'm Connor with honor.
• 7:42
  SPEAKER_00: I appreciate you watching.
• 7:43
  SPEAKER_00: We will see you in the next one.
• 7:45
  SPEAKER_00: Take care.