Latest / Connor with Honor: AI, Real Estate and Real Life / Those auction companies for real estate in a sellers market to get a better slice of the pie

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Those auction companies for real estate in a sellers market to get a better slice of the pie · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: March 8th, 2024.
• 0:01
  SPEAKER_00: I am Connor with Honor.
• 0:03
  SPEAKER_00: This is your daily Santa Clarita real estate update.
• 0:05
  SPEAKER_00: We're going to talk about Santa Clarita, Antelope Valley, and also online, you're going to see some systems out there that have been built around bidding on properties as if properties are for sale at an auction.
• 0:18
  SPEAKER_00: Believe it or not, that's total BS.
• 0:20
  SPEAKER_00: We'll talk about that here towards later in the show.
• 0:23
  SPEAKER_00: So let's talk about local real estate inventory on Fridays.
• 0:26
  SPEAKER_00: Usually we talk about open houses.
• 0:27
  SPEAKER_00: We talk about those types of situations.
• 0:30
  SPEAKER_00: And the reason why I say those types of situations is because a lot of people go into open houses, presuming that they're going to be speaking to the actual agent representing the seller.
• 0:42
  SPEAKER_00: There's a lot amiss there, but I'll just give you one point.
• 0:46
  SPEAKER_00: Usually, agents representing sellers are typically beyond the regular normal entry-level real estate agent in the business.
• 0:56
  SPEAKER_00: Most of those folks, understanding that, of course, open houses really only realistically sell housing 1 to 3% of the time, according to national statistics, it's not a great investment of their time.
• 1:11
  SPEAKER_00: Now, of course, they can meet people, they can potentially get new buyers, but in essence, most of the people that are coming into your open house are going to be your neighbors.
• 1:20
  SPEAKER_00: After your neighbors, it's going to be some looky-loos.
• 1:23
  SPEAKER_00: It's going to then be people that might be interested and just looking at open houses on a Sunday because that's kind of their thing.
• 1:30
  SPEAKER_00: Like people that do the grave markings with the anyway, I've heard that's a thing.
• 1:33
  SPEAKER_00: But anyway, kind of thing like that.
• 1:35
  SPEAKER_00: They just want to come into open houses.
• 1:37
  SPEAKER_00: The other thing that I talk to my clients about with regard to open housing is some of the dangers associated with having them hosted.
• 1:44
  SPEAKER_00: Because when it comes to a regular real estate showing of a home that is for sale, that client, that home buyer, if you will, should be, should have been much more vetted than a person that's just walking off the street into your open house.
• 2:01
  SPEAKER_00: Now, of course, if you have a good agent, they're going to be watching out for your possessions.
• 2:07
  SPEAKER_00: But when you have 30 or 40 different couples in an open house, COVID aside, all those, the cold and transference of air and breathing and all that stuff, let's put that aside.
• 2:20
  SPEAKER_00: That might not be the best thing either.
• 2:22
  SPEAKER_00: But aside, going back to being able to control all the people, it's very difficult.
• 2:28
  SPEAKER_00: So if the seller hasn't open house proofed their residence, and this is what that includes, as a real estate seller, you want to remove everything that would be seen as being personal in nature.
• 2:43
  SPEAKER_00: Photograph of you, photograph of her or him or them or they, um, any of those things.
• 2:51
  SPEAKER_00: Also, if you have the change jar, believe it or not, the one that's full of all those pennies and nickels and dimes.
• 2:59
  SPEAKER_00: The change jar.
• 3:00
  SPEAKER_00: Hide that, get it out of plain sight.
• 3:04
  SPEAKER_00: Now, people shouldn't be going into your closets or drawers or dressers, usually drawers, maybe the closet to see depth, but not digging through things.
• 3:14
  SPEAKER_00: You know, if they came up and see the back wall, you've done a great job.
• 3:17
  SPEAKER_00: So congrats on preparing your house for sale the way that you should have.
• 3:21
  SPEAKER_00: So they see the back wall, they're good with that.
• 3:23
  SPEAKER_00: But for somebody to start going in and digging around, keep things out of plain sight.
• 3:28
  SPEAKER_00: If that's where you put your medicines, you know, your fancy prescription bottles, then keep those out of plain sight.
• 3:34
  SPEAKER_00: Medicine cabinets in the garage, the boxes with the mirrors in front of them, you open the door.
• 3:39
  SPEAKER_00: I haven't even really heard them called medicine cabinets, but that's usually where people keep their medicine.
• 3:45
  SPEAKER_00: If you have one of those in preparation for the open house, make sure there's no medicines in there.
• 3:51
  SPEAKER_00: Nothing that's going to track back to you.
• 3:53
  SPEAKER_00: Now, of course, loaded firearms, of course not.
• 3:56
  SPEAKER_00: Anything that has the ability to be gotten to that's not under lock and key, you really want to rethink what that happens to be because you last thing you want is somebody coming into your residence during an open house, taking a load of firearm and doing something horrible.
• 4:14
  SPEAKER_00: These are preparatory steps to get your home ready for an open house.
• 4:18
  SPEAKER_00: And then after the open house, because now your house has been completely publicized, maybe some of the people that came in during the open house don't really care about your future.
• 4:29
  SPEAKER_00: So then maybe they came and they saw some items that they might like, but they're going to come back later.
• 4:34
  SPEAKER_00: Maybe they think that the residence is vacant.
• 4:37
  SPEAKER_00: Maybe that's just part of their scam.
• 4:40
  SPEAKER_00: Those are things that open houses could open you up to as well.
• 4:44
  SPEAKER_00: Now, it doesn't mean you shouldn't do it, but I'm just saying from the layperson perspective and even a professional perspective, open houses really aren't all that great at selling residential real estate.
• 4:58
  SPEAKER_00: Having said that aside, if you're going looking at open houses, I wouldn't sign anything, give up any personal information.
• 5:04
  SPEAKER_00: Now, of course, the agent might say, well, hey, the seller really wants to know who came to their open house.
• 5:09
  SPEAKER_00: Fantastic.
• 5:10
  SPEAKER_00: Give them my name, but that's about all you're going to get.
• 5:13
  SPEAKER_00: Nice talking with you.
• 5:14
  SPEAKER_00: And usually they leave you alone after that.
• 5:16
  SPEAKER_00: But anyway, something to think about.
• 5:18
  SPEAKER_00: All right, so let me do the local inventory here as I do.
• 5:20
  SPEAKER_00: And today's Friday, March 8, 2024.
• 5:24
  SPEAKER_00: So in Santa Clarita Valley, uh, a bit of kind of a misnormal, a misnomer in preparation for the weekend.
• 5:31
  SPEAKER_00: We had 17 new listings hit the market in just Santa Clarita Valley yesterday.
• 5:37
  SPEAKER_00: So that's going to be the cities of Castayc, Canyon Country, New Hall, Sagas, Stevenson Ranch, and Valencia.
• 5:43
  SPEAKER_00: These countries are running pretty much the gamut.
• 5:46
  SPEAKER_00: I see Saugus, I see Valencia, I see Canyon Country.
• 5:49
  SPEAKER_00: I do see Castac.
• 5:51
  SPEAKER_00: Um, I don't see any Stevenson Ranch.
• 5:53
  SPEAKER_00: So enlisted for sale in Stevenson Ranch.
• 5:56
  SPEAKER_00: But and you run the gamut here, you got a uh one-bedroom, one-bath condominium on Dell Drive.
• 6:01
  SPEAKER_00: Look at that.
• 6:02
  SPEAKER_00: $480,000.
• 6:04
  SPEAKER_00: See where those prices have gone?
• 6:05
  SPEAKER_00: I remember when those were in the hundreds back in the day.
• 6:09
  SPEAKER_00: So that's a one-bedroom.
• 6:10
  SPEAKER_00: Let's see what the top end's given us.
• 6:12
  SPEAKER_00: Uh$1.5 million, so$1,424.
• 6:15
  SPEAKER_00: You get a property on Aldercrest,$3,800 square feet, pretty big.
• 6:20
  SPEAKER_00: Uh that's Canyon Country.
• 6:21
  SPEAKER_00: That's going to be up off of the end.
• 6:24
  SPEAKER_00: And how long have it?
• 6:26
  SPEAKER_00: That wasn't too long ago.
• 6:27
  SPEAKER_00: Yeah,$3824,$1,424,900.
• 6:34
  SPEAKER_00: Running an open house this weekend, well, just to piggyback on it.
• 6:36
  SPEAKER_00: So that's Santa Crita Valley.
• 6:38
  SPEAKER_00: If we look at out at Greater Antelope Valley Board of Realtors, we're getting that information.
• 6:44
  SPEAKER_00: So they have 47 new listings in the last 24 hours.
• 6:47
  SPEAKER_00: Those properties have just hit the market.
• 6:50
  SPEAKER_00: All of this information can be seen at Connorwithhonor.com.
• 6:53
  SPEAKER_00: If you happen to be looking online for residential real estate, that's great.
• 6:58
  SPEAKER_00: Just be wary of where you're searching, the information you give up, and a couple other items.
• 7:04
  SPEAKER_00: If you do want to inquire about a property, understand that typically your inquiry is going to go to people that are paying for your inf to basically paying for your information.
• 7:16
  SPEAKER_00: So if you do want to ask a question, usually it's not to even the person that has the answer, i.e.
• 7:23
  SPEAKER_00: the actual listing agent, but usually it's to somebody that's paying for your information via the website, Zillow, Trulia, Realtor.com, all of those syndication sites.
• 7:35
  SPEAKER_00: You want to find out what listings are on the market for sale.
• 7:38
  SPEAKER_00: You want to go to a system that agents have directly associated with a multiple listing service and have them put you on a search.
• 7:48
  SPEAKER_00: It's the best thing.
• 7:49
  SPEAKER_00: It's very accurate, and then you don't have to lift a finger.
• 7:53
  SPEAKER_00: You get the listings emailed to you immediately at the moment that they're published.
• 7:58
  SPEAKER_00: Right at the moment.
• 7:59
  SPEAKER_00: There is no 15-minute lag.
• 8:01
  SPEAKER_00: You don't have somebody like that reach out to me, Connor with Honor.
• 8:04
  SPEAKER_00: Tell me what you're looking for, price range, cities, areas, locales.
• 8:09
  SPEAKER_00: You just want foreclosure, you just want short sales, you just want notice of default filings, you're just looking for fixer uppers, whatever it may be.
• 8:17
  SPEAKER_00: I can put you on a list.
• 8:19
  SPEAKER_00: Um, as far as investment properties, that's something else before I get into this bidding online system.
• 8:25
  SPEAKER_00: Investment properties, you really have to carefully do the numbers.
• 8:30
  SPEAKER_00: And you have to realize if a property is touting itself as being an investor's dream and it's publicized online and it's in the multiple listing service.
• 8:41
  SPEAKER_00: I'm not sure if it's being offered to all of the public to bid on, if it really is an investor's dream or it will be when all is said and done.
• 8:51
  SPEAKER_00: So watch out for that.
• 8:53
  SPEAKER_00: I can send you those though.
• 8:54
  SPEAKER_00: But again, it's great words if it were only true.
• 8:58
  SPEAKER_00: Let's talk about online bidding.
• 8:59
  SPEAKER_00: So this came up a couple days ago, working with some great people, uh, see a property.
• 9:05
  SPEAKER_00: So I went into I crawled down the rabbit hole on the online bidding platforms for real estate.
• 9:11
  SPEAKER_00: I thought, okay, well, maybe it's something new.
• 9:14
  SPEAKER_00: Maybe it's something different.
• 9:15
  SPEAKER_00: Unless you've been in any kind of industry for any amount of time, you really don't have knowledge as somebody that's been in it longer.
• 9:22
  SPEAKER_00: Of course, that's Captain Obvious stuff.
• 9:25
  SPEAKER_00: 1998, started in real estate, been working in the trenches ever since.
• 9:30
  SPEAKER_00: Now, because of that, there have been a lot of interesting things that have come and gone in the span of my career.
• 9:37
  SPEAKER_00: One of those things is online bidding and acquisitions websites.
• 9:42
  SPEAKER_00: Some of them are operated by the big ones, the Christie's, the big major auction houses, selling off residential real estate, maybe as part of some kind of an estate sale.
• 9:51
  SPEAKER_00: All right, that's a whole different animal.
• 9:53
  SPEAKER_00: I'm talking about an agent using a system that has been constructed only to make it appear that their particular properties are in an entire bidding format.
• 10:05
  SPEAKER_00: So now the property is being auctioned, and usually what happens at auctions is people get a little excited and maybe go a little too far.
• 10:14
  SPEAKER_00: So for these websites for a real estate seller able to paint the picture of maybe hot distress, but not so hot that it's a fire sale, but hot enough to pique interest because of the way they advertise and market it through an online bidding website.
• 10:30
  SPEAKER_00: Maybe it'll be like the Secret Service auctions or the federal auctions, where you have people overbidding for some drug cartel's boss's phone that's worth about$29.95 at Walmart, but they're gonna let it go out at this auction for$240,000.
• 10:50
  SPEAKER_00: So maybe that's the gimmick.
• 10:52
  SPEAKER_00: Just watch out.
• 10:54
  SPEAKER_00: These are online bidding platforms, they look real.
• 10:57
  SPEAKER_00: Here's the problem: usually real estate buyers that have limited funds that are gonna be asking in this market for something called closing costs.
• 11:08
  SPEAKER_00: Basically, the seller contributing so the buyer doesn't have to come in with that much money because they frankly just don't have it.
• 11:15
  SPEAKER_00: That being the case, sometimes the sellers might allow for that, sometimes they don't.
• 11:21
  SPEAKER_00: This market, not a lot of sellers, but it depends on where we are.
• 11:25
  SPEAKER_00: If we're talking about residential real estate in Santa Clarita Valley, probably not as nimble.
• 11:31
  SPEAKER_00: Most sellers aren't going to want to help with the buyer's closing costs.
• 11:36
  SPEAKER_00: Animal Valley, however, seeing a little bit of difference in that market, thereby those sellers potentially could or might be more able to pay for closing costs for a buyer.
• 11:48
  SPEAKER_00: Running into that, seeing an auction site, touting a very new listing, having the online bidding require 150 bucks or so to be able to start the online bidding process.
• 12:01
  SPEAKER_00: And then though that money's actually due at escrow.
• 12:04
  SPEAKER_00: So they rebuilt the model where before it was 250 or some money up front in order to put an online bid.
• 12:10
  SPEAKER_00: So there was a little bit of money being made there by whoever developed that technology and had the idea and got it to market.
• 12:18
  SPEAKER_00: But now it's different.
• 12:20
  SPEAKER_00: You're paying it, I think, and maybe more legal, a legal way to do it, not an attorney, something to ask.
• 12:26
  SPEAKER_00: But now they pay it through the escrow process, that$150 fee.
• 12:31
  SPEAKER_00: Again, that's that's not a problem really for a real estate buyer.
• 12:34
  SPEAKER_00: The problem for a real estate buyer is when we break away from tradition, some cases it's great.
• 12:41
  SPEAKER_00: In other cases, it creates an even more complicated machine.
• 12:45
  SPEAKER_00: So, yes, we can go online and we can bid on this property.
• 12:49
  SPEAKER_00: But at the end of the day, the only way to do it correctly, protecting you legally, is by filling out all of the associated real estate contracts, offering to purchase the property from the seller with all of these various terms, and then having the seller respond back via their agent with how they're going to have those terms addressed, whether they agree, they don't agree, or whatever the whatever their thought process is, actually, after having been guided by that professional real estate agent, they trusted in the process.
• 13:20
  SPEAKER_00: Online bidding, point in case, case in point, be careful with it because there's a lot of people out there scamming people.
• 13:28
  SPEAKER_00: And when you're buying something in droves with other people, if they build that marketing and advertising channel correctly, they could get properties to go up even higher than the market would push them, being already in a very deep seller's market.
• 13:43
  SPEAKER_00: When these sites work, they work very well when inventory's tight, like it is.
• 13:48
  SPEAKER_00: We have very high demand and low supply.
• 13:50
  SPEAKER_00: And that's the market we're in.
• 13:52
  SPEAKER_00: Be wary.
• 13:53
  SPEAKER_00: Talk to your real estate professional for more guidance.
• 13:56
  SPEAKER_00: This has been Connor with Honor.
• 13:57
  SPEAKER_00: I'll be back tomorrow talking about something in real estate.
• 14:01
  SPEAKER_00: So stay tuned.
• 14:01
  SPEAKER_00: Please let me know if I can help you.
• 14:03
  SPEAKER_00: Send this video to those that need it.
• 14:05
  SPEAKER_00: I am Connor with Honor over and out.