Latest / Connor with Honor: AI, Real Estate and Real Life / Home sales rebounded in January, after a decline, but not for the reasons you may have expected
Transcript
- 0:00good day everybody February 23rd, 2024 I'm Connor with honor today is our Friday's Open House broadcast gonna talk about open houses that are happening out here in Santa Cruta Valley but I do wanna talk about some information that we lead online from various sources out there the first one home sales rise the highest level since August of 2023 the highest level since August of 2023 and that is as of January 2024 and it says supply is inching up this headlines actually somewhat true probably not for the reasons you would consider to be valid what's happening is every year towards the end of the year we get that slow down and that always happens as we approach the holiday seasons first and foremost a lot of people make their movements in real estate dependent on basement of children within schools that's a big thing for those of you that don't have children yet or aren't gonna have children never have a lot of parents that have kids they want to make that move depending on maybe getting a better position or living in a better area so their kids can go to maybe public school and if they have been going to private and so on so they're looking for those options out there that typically starts to happen more in the spring and summer times because those folks are have their kids in school the other times in the year depending on where they live and traditional school seasons real summers off and those sorts of things that is really movement dependent and then every year we have the holiday season as we had this last year same thing so August September everything slows down September October we start to get in the holidays got your Halloween then you got your Thanksgiving coming up November then you got Christmas then boom back in January then you have the first part of the year you have New Years and then you have Super Bowl right so then that happens everybody still distracted but then after Super Bowl things change a little bit even with the high interest rates we have that increase in real estate listings currently in Santa Cruta Valley all total 294 we were 2 84 I believe yesterday 2 80 I do these shows everyday I believe that's where we were but now we're 2 94 sore inching up when I did started the show this last week we were in the two 50s to 60s so you can see the inventory is getting more however that same inventory isn't moving any faster than it already has been and we started to see those changes implemented in January so we have seven days 10 days on market prior to houses out here in Santa Cruta Valley getting into escrow for you sellers out there that's massive that's huge stuff good news for you for real estate buyers that means your competition level is still very high and you're still gonna be running into multiple offer situations with properties and potentially giving up things that you might not be absolutely comfortable with and I only mention that because there are folks out there that will talk to their buyers and their buyers do things that potentially they might not want to do do things that potentially they might not want to do because they really don't understand how the process works and I'll give you an example if you're working with somebody and they're telling you hey it would really benefit you to remove the contingencies and I'll give you an example the loan contingency let's say you're going in you need to borrow money to purchase real estate and you need a loan to do so your agent might say listen to be more competitive you should remove your loan contingency what that really means folks is if you get rid of your loan contingency you get into escort for whatever reason your lenders unable to get you a loan because something they didn't see or maybe something changed maybe you went and you thought it was a good idea to pay off your serious card if there even is a serious anymore but you went to pay that credit card off thinking that that's gonna help in actuality you paid it off your DTI your debt income ratio was high maybe the company said you know what we paid this off let's go ahead and recoup we're gonna reduce their credit limit on this paid off credit card instead of being 5,000 keep paid it off we're gonna reduce it to 1,000 well now your credit profile has been injured because of your action because you didn't ask your lender first however to remove that contingency means that okay I will still proceed with the listing still proceed with the purchase even if I'm unable to get a loan but you can't right so now the sudden what happens well the deposit that you put into the property because you remove that contingency it doesn't exist anymore that deposit now becomes property of the seller if in fact that's how that ends up playing out but that's how dangerous it is through contingencies and we really don't know who we're dealing with there's a lot of deep fakes a lot of bad information out there online I built my system Connor with honor com I take the videos I do I produce those and I produce content from these so people can see what's happening in the market so that's where the big headlines are talking about how January is more spectacular than even December and even how January's numbers are now finally even more than the highest sales numbers we saw back in August folks that's a yearly holiday slow down the other thing that's impacting the market that we talk about quite frequently and everybody seems to is the interest rates and yes they are higher than normal but not higher than the national average on the much larger scale I remember when my parents bought their house way back in the day we're talking 16 18 20% interest rates in some cases so that financing was a lot more creative where the sellers were doing a lot more than they would do today to try to help somebody obtain financing so they could get their house sold but also don't forget back when my parents bought their first house I can't imagine that house being more than thirty thousand dollars and even today because where is located in another state probably not worth more than 60 or 65 thousand dollars so your market is going to depend on how your real estate portfolio performs and whenever I'm talking to both buyers and sellers out there and especially real estate buyers cause the sellers have already at least been through it once they have one property but the buyers when they approach real estate it's super important to start building that intelligence where you're looking at things as a savvy real estate investor would you're looking at properties of somebody that really builds their world and their financial wealth off of real estate it is a fantastic tool to use whenever you're looking at even the very first house you're buying and I have a couple I'm representing that they're buying their first house they're in their early 20s which is fantastic way ahead of the curve they're gonna be buying their first house together and I told them as we were talking we haven't looked at one house yet but I said listen when you go in and we start looking at residential real estate this particular house your first one do your best to hold on to it that's the one that's gonna be your Keystone house that's the one your foundational element that's gonna be your home that keeps you protected and that you try to get paid off try not to leverage anything against it and then from that residence that's where you're gonna start building your wealth so if in fact you have equity in that house at one point and you wanna take that equity out to make another purchase maybe a move up purchase still try to do it so you retain the house maybe get some tenants in there maybe get some renters now all of a sudden you have that mortgage plus being taken care of depending on how that rental market is at that time but then you have that residence taken care of and you use a little bit of equity and maybe some money you've been able to save as well to make that move up and then you just continue so you leapfrog residents to residents and then at the end of 10 15 20 years you have this great real estate portfolio and if we look back at real estate prices historically we're not gonna see that those prices are actually going to reduce over time historically real estate prices have just continued to go up over time so if you would have bought a house back in when my parents did maybe in a much better market like Southern California we would see them having a lot more wealth than they ended up dying with which well wasn't much but that's something to think about so let's talk about some open houses and what's happening in Santa Cruta Valley if you are out looking at open houses my recommendation I talk to my clients about this as well you can go in and you can tell the agent all day long you're working with somebody else you're not working with somebody else just be wary of wherever you give up any personal private information they're probably gonna have some kind of a log there that you'll be signing they're probably gonna have want you to give up your information they might say that hey my seller really wants to know who's coming in so maybe we can follow up and see if they like the residents that being the case make sure that you look at that and figure out if in fact you want to and if you don't you can put down your agent's name or Connor with honor whatever it may be and usually when you walk into open houses you don't know who you're going to get if that's actually the agent working for the seller who's under contract with the seller or if it's someone else just representing the open house trying to get more leads and that's really why it's being held open not only to sell the residents which statistically less than 3% I believe the National Association of Realtors reports open houses actually sell but that's 3% you wouldn't have without it as I tell my sellers but on the other side of it the biggest motivation for an open house are the leads these are buyers coming in ladies and gentlemen that want to look at a residence so I'm there with all my bells and whistles on and I give them the beautiful spiel and say hey this house could be yours when in actuality anybody that goes into an open house they're gonna have to battle it out with the other people that are writing offers on that particular residence in most cases and I say in most cases because there are very odd situations where sellers out there will take the first offer in they won't entertain anything else will take the first one in but that ladies and gentlemen is incredibly rare in any real estate circumstance because that is an event where the seller is not getting what they possibly could out of the residence and maybe it's because of inconvenience and there's a lot of websites as well that are out there that say let us sell your house hassle free well hassle free means nobody's gonna come out and really engage with the individual the house isn't gonna be shown so you have to worry about picking it up but what does that cost at the end of the day how much more money are you going to be giving up because you don't wanna be hassled as far as I'm concerned folks hassle me folks hassle me a little bit it's worth it if I'm going to bring in an extra 50 60 70 thousand dollars in profit instead of trying to use a company where they're going to just do something have asked and not give me what I really need or what the equity represents in the real estate that I'm selling so watch out for these things out there there's a lot of bad information online we're gonna see even more in the future when it comes to your home's value I'm not a I'm not a chatbot I'm a real living breathing human being this is my voice this is me talking to you and what I would suggest is this if you're curious what your house is worth pick up the phone and you call me go to corner with honor.com and fill out a form the contact form or call me from there whichever you want and then I will pull up the value a few ways to look at this when you're talking about residential real estate values you want to look at the actual data of sold properties that are very much comparable to yours if yours want to sell something in Valencia California in California in the North Park area for example and the house is a four bedroom and it's two stories and it was built 14 years ago this particular residence has 22 or 23 square feet it's got a good size yard but the houses but the houses are somewhat close together comparing that residence with a residence that's similar but in Las Vegas or in another state or something or something that doesn't match up that isn't a good value and we're seeing some of the information online skewed by some of the syndication sites out there basically you go on there you put in what your property is worth and they give you this fantastical value and all of a sudden you're very excited cause you might actually be able to sell your home for so much more money ladies and gentlemen a lot of times when I look at those figures those figures are pie in the sky and I'm not sure where they're getting that data from but the information doesn't exist and does not the actual information is not something that we can compare to the other residences they're using data that doesn't exist and then in some cases because they're trying to get you influence a decision selling or buying whatever it may be then on the other side of it we look at the debt and sometimes it's low but again it's manipulated and put in place to try to get you to do something potentially that you might not be ready to do the true information is having somebody give it to you that has giving given my somebody that has knowledge and experience I've been doing this since 1998 and understands the pricing process then after that you can beat me up about commissions and costs and all that stuff cause the world is a very fair place and I enjoy arguing and talking and discussing my commission and how my value is and why it's worth it for you but again at the end of the day that's still your decision to make so if you're looking online for open houses you can go to Santa Crude Openhouses com that's my system you'll see them there I'll repost for today so you see all the freshest new houses out there that are advertised for sale but what's gonna end up happening is you're gonna be driving around you're gonna be running into some and you're gonna be walking in there and again it's your choice how you wanna be what you wanna say and so on I'll throw one more thing out there on Thursdays we did our Hoping House broadcaster excuse me our new housing broadcast for Santa Cruta Valley I had that poster where I interviewed Josh Calderon at Toll Brothers fantastic young man been working on the new housing world he's probably not that young but he looks good anyway he's working in the new housing world for better than 20 years people say at least say at least agents I remember when I first started all they have it easy those new housing agents it's because they could not perform in the resale world that's why they're selling new housing I beg to differ and I beg to differ because of this most cases the new housing agent they really have to live by those reviews they have to live by the way that those sellers and buyers especially of new housing interact with him and their experience if they're in that game for too long and they are completely a screw up and they piss everybody off they gonna end up not being a new housing agent for very long but somebody that stuck it out for 20 years like Josh my hats off to that man I'm Connor with honor I hope you've enjoyed this if you have please share you can find me online at Connor with honor.com talking about new housing if you wanna see those I do have a system in place for that Connor with honor.com forward slash new and slash new and you'll be able to get to that widget and see all the new properties that happen to be listed for sale here in Southern California and for others we always have a tour that we like to set up with those of you that are interested in new housing so I can be with you your very first visit and then from there we can discuss better options maybe how to get better financing more incentives maybe bigger builder discounts lots of things because in some cases when you have your own agent on your side when it comes to new housing the negotiation becomes now two party so now I'm on your side the builder's agent is on their side so then we get to come together and attempt to get you more than what you normally would without having your own representative I'm Connor with honor we'll see you tomorrow be well over and out