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Bait and switch online lending platforms what to watch out by the First Responder Realtor · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Good day, Santa Clarita.
• 0:01
  SPEAKER_00: I'm Connor with Honor.
• 0:02
  SPEAKER_00: Let's go ahead and talk about the daily real estate news.
• 0:04
  SPEAKER_00: Right now, October 17th, day 290.
• 0:06
  SPEAKER_00: The coming soon market watch is going to be 14 new properties are coming onto the market.
• 0:11
  SPEAKER_00: 82 properties have entered the market in the last seven days.
• 0:14
  SPEAKER_00: 71 properties in Santa Clarita Valley have had their prices adjusted.
• 0:17
  SPEAKER_00: 18 homes are back on the market.
• 0:19
  SPEAKER_00: These properties have were in escrow and actually came back, has canceled.
• 0:23
  SPEAKER_00: 30 properties have gone active under contract and pending, uh, 49 are pending, excuse me.
• 0:29
  SPEAKER_00: That's going to give us a total of 79 properties currently in escrow as of this morning, the 17th of October.
• 0:35
  SPEAKER_00: Now, right now in mortgage interest rates, remember the Fed met.
• 0:38
  SPEAKER_00: If you've been watching real estate for any time, I'll tell you the Fed met last month, and that's going to be about the 17th and 18th of September.
• 0:45
  SPEAKER_00: In that meeting, they did change that federal funds rate.
• 0:48
  SPEAKER_00: That's the rate the banks trade money back and forth.
• 0:51
  SPEAKER_00: The issue is we were hoping that that federal funds rate reduction was going to impact mortgage rates a lot more than it did.
• 0:59
  SPEAKER_00: But mortgage rates, folks, are dependent on other factors as well.
• 1:02
  SPEAKER_00: You got the 10-year bond, the economy, unemployment.
• 1:05
  SPEAKER_00: There's a lot of rationale that goes into that mortgage interest rate.
• 1:09
  SPEAKER_00: People were hoping it was going to get down to the fours.
• 1:11
  SPEAKER_00: Now we're still sixes, high fives.
• 1:13
  SPEAKER_00: But all of those numbers I mentioned, that all very much depends on your type of loan and also on your credit history.
• 1:21
  SPEAKER_00: When you're looking online, one of the things I always tell my clients, they get very excited.
• 1:24
  SPEAKER_00: They see, oh my gosh, this place has this really low interest rate.
• 1:27
  SPEAKER_00: I'm going to sign up.
• 1:28
  SPEAKER_00: What they end up finding is that interest rate was no better than an interest rate of a mortgage broker that was local or in an office.
• 1:37
  SPEAKER_00: And there really is no other advantage except, and I'll throw it on the side of that local mortgage broker, in that regard, you can actually go see them at their office and have a face-to-face conversation if you like that sort of thing.
• 1:50
  SPEAKER_00: And I think a lot of people do, especially when you're talking about borrowing hundreds of thousands, if not millions, of dollars to buy real estate.
• 1:59
  SPEAKER_00: So that's important to know.
• 2:00
  SPEAKER_00: The things that you see online, a lot of those rates are known as teaser rates.
• 2:05
  SPEAKER_00: So they haven't been vetted against any of your credit worthiness.
• 2:09
  SPEAKER_00: Watch out for these things.
• 2:10
  SPEAKER_00: Don't be too quick to give up a lot of information online.
• 2:14
  SPEAKER_00: Looking at the real estate market here in Santa Cruz Valley, we're seeing that the lack of uh reductions in interest rate caused the market to slow just a little bit, but we're still moving at a pretty good pace.
• 2:27
  SPEAKER_00: We do have the new residential listings that enter the market going out relatively quickly.
• 2:32
  SPEAKER_00: Days on market time frames are somewhere in 25, 30 day mark on average for most of the Santa Carita Valley cities.
• 2:39
  SPEAKER_00: It's going to depend on where your home is priced, though, if you happen to be a seller, how that's going to work out.
• 2:44
  SPEAKER_00: One of the things that I explain to my sellers is when we're looking at pricing your property, we want to look at it at today's value, not try to overestimate in the future because maybe there's a particular trend in real estate and we see prices going up hand over fist month after month.
• 3:00
  SPEAKER_00: It's difficult to call that next month as far as what that value may be.
• 3:04
  SPEAKER_00: So what I suggest to my clients, we need to price it for today as we enter the market, because if we try to go higher, that listing might actually sit and not move at all.
• 3:14
  SPEAKER_00: What happens is buyers start to look online at the valuation systems and make determinations that how this house for what it offers from their research is actually overpriced.
• 3:24
  SPEAKER_00: So they don't even set the appointment to look.
• 3:26
  SPEAKER_00: That's something to consider when you are pricing your real estate.
• 3:30
  SPEAKER_00: For you buyers out there, one of the things I suggest is I do have one of my clients that called me recently, and she was completely taken by one of the online lending platforms that were saying how they're going to save her all this money and actually give her a much better interest rate than she could get elsewhere.
• 3:49
  SPEAKER_00: I did have one of my local team members, uh a lender, by the way, call her and actually informed her that that rate that they were promising was actually higher than what they could get her because they had access to a particular loan program, that everything else was great and the same.
• 4:04
  SPEAKER_00: The only change was they're actually going to be paying less than interest, who would have thought.
• 4:09
  SPEAKER_00: That's something to follow up with.
• 4:11
  SPEAKER_00: I always recommend that definitely the first best stop in real estate is the agent.
• 4:15
  SPEAKER_00: Ask them what you should be doing and ask their opinion.
• 4:18
  SPEAKER_00: Should you be buying now or should you be selling now?
• 4:21
  SPEAKER_00: I did an incredible article a couple days ago.
• 4:23
  SPEAKER_00: If I do say so myself, and it had all those tenants in there, what I look for when I'm advising my clients selling or buying.
• 4:31
  SPEAKER_00: They have questions that's important to answer, and everything I put in there is factual information.
• 4:36
  SPEAKER_00: You can find that at my blog, Santa Clarita Openhouses.com.
• 4:40
  SPEAKER_00: Up at the top, just click on my blog and you'll see all those articles.
• 4:43
  SPEAKER_00: They're corresponding to home values, property prices in Santa Clarita, current market trends, real estate data, and everything comparatively with the online systems and of course the big five syndication sites, but also looking down at the real estate data via our board of realtors to make sure the information they're giving to those people in the world is actually vetted and verified.
• 5:06
  SPEAKER_00: I like to do that with so many deep fakes and misinformation online.
• 5:10
  SPEAKER_00: In order to get you to do something, I think when they're using tricks or devices and fake numbers to get you to click or get you to enter your information, I find a problem with that.
• 5:22
  SPEAKER_00: That's why my show, that's why Santa Clara Openhouses.com, and that's why I'm Connor with Honor.
• 5:27
  SPEAKER_00: First responder realtor, I'm here to help you when you're ready.
• 5:30
  SPEAKER_00: Reach out and thanks for watching today's market update.
• 5:33
  SPEAKER_00: We'll be back tomorrow on Friday.
• 5:35
  SPEAKER_00: Be well, we'll talk to you soon.