Latest / Connor with Honor: AI, Real Estate and Real Life / Santa Clarita Open Houses and Connor with Honor present the new commissions concessions intel from your local agent
Transcript
- 0:00welcome to the 24th of July everybody good morning this is Connor MacIvor Connor with Honor SantaClaritaOpenhouses com we're gonna talk about what's happening in real estate in addition we're gonna get into the commission's concession question that's gonna be on everybody's mind here coming very soon because no longer as a real estate buyer are you going to see any kind of offering in the multiple listing service as far as what a seller is willing to pay the agent you're choosing to represent you so let me talk about how that's going to impact buyers and sellers at least a little bit just break through the upper part of that and today show and then of course when people contact me and want more information about it plenty of time to put all of that together so they know what's happening in that current field so let's talk about what's happening we have currently 472 active real estate listings on the market here in Santa Clarita Valley that's gonna cover all the cities and that's gonna be all residential so your single family residences your condominiums and your town home so everything residential that's where we are single family residences just to kind of catch everybody up that's what you think it is a standalone home but they're different configurations of single family residences some are attached so they still have a real front and a real backyard but they share some common wall with a neighbor's home and of course this is back in the day so the builder would be able to put more properties in a particular area what's interesting is those areas that have those houses that attached homes what's interesting is the areas that they're in there still actually even more land that's been allotted for those than current builds now because the lot sizes have dramatically changed in this market you can see in the new housing houses seem to be a little bit closer to each other in addition to that some of them have what's known as a zero lot line so basically a part of your neighbor's property while it isn't attached to your house it's in your yard so if they need some kind of access in the future because something happened inside that wallet say if there's a pipe in there it broke electrician needs access to get into that wall but can't come in from the inside has to go from the outside whatever maybe they'll be something in your documentation on your home purchase that allows for with adequate notice for some kind of utility company contract or whatever that the seller request to be able to get access to that particular part of the property that happens to be sharing a space in your backyard if you will basically you have your fence you're gonna have a portion of their house and your fence continues so it basically makes a portion or a border of your backyard anyway so that's these are the different property types available and that's what currently I'm talking about as I speak about on the show new listings this past seven days 75 48 have sold within the last week and right now we're watching 52 and escrow one of the things also is time on market in Valencia California monitoring the last 30 days of activity in here we're about to close out July 2024 I've been noticing that that days on market time frame total is 35 so when a property gets put on the market residential real estate in Valencia typical 3 + 2 configuration that's the average type of property when that property hits the market and it's priced at a good value at market rate that property goes in about 35 days so it doesn't take very long and if we have a 30 day escrow time period which is usually what when a real estate buyer buys a residence usually depending on other circumstances if they have something to sell if the transactions contingent if it's a particular loan type that requires more time versus a conventional loan which Islander typically can close pretty quickly 30 days or maybe less in some cases other types of loans may have more moving parts example of Veterans Administration loan for a veteran there could be sometimes that that takes a little bit longer because when they're ordering these different providers that have to go out and access the property appraise the property these are particular types and specialized appraisers because they are assigned to work with the Veterans Administration when there are a lot of VA loans closing of course that markets extremely overwhelmed and busy to get them scheduled is going to take an increase of time but thirty five days is pretty incredible and that means from beginning the day that that property goes on the market active till it sells 30 it sells 35 days cast a 42 up seven days from Valencia but very very nominal then you look at Saugus and New Hall they're all right about that 30 to 40 day Mark as far as how long it takes for property go from being listed for sale to finish with those when you monitor other types of activity in the market such as properties that are having their prices changed right now we have a lot of property 60 to 70 every seven days that are experiencing some kind of a price change so of course you're gonna ask what are they going up or coming down majority of those are reductions in price not huge numbers I'm not seeing massive reductions but what you know the three in the four and maybe up to 10,000 dollar reductions depending how long the property has been on the market and that's also gonna carry with it maybe an emotional cellar queue so if the seller doesn't get any offers on their property a lot of the time they're wondering if there's something wrong with their house maybe they're looking at the residence is being a certain way and other people see it nowhere near as much as the seller loves it do these people that are looking at the residence so there's some confusion so the seller starts to do this blaming thing and I've watched this happen and I have to say this is just what this market is bearing at the time for your residence and of course eventually everything works out but when a seller is doing a price reduction you have to look at a few things you have to see where your priced you have to find out if did you actually bite off a little bit more that you could chew did you get a little bit too happy in the beginning and price your home above and beyond what comparables are or maybe you were fortuneing or having some kind of a premonition or maybe of things to come maybe you think okay well my house is worth this much now at 900,000 for example but the way the markets going with the limited inventory I bet I could probably get 930k so you talk to your agent your agent it's gonna depend on the agents some agents might say I'm sorry I'm unable to take your listing because it's going to be something that's gonna sit on the market a long time because I know it's not gonna sell at 930k and then they you know they disappear into the the wild yonder and then other agents will say sure let's give that a try you know whoever you hire you hire I don't know if you like you know a or B or some version in between you know two extremes right somebody saying oh sure whatever if you want $1 billion for let me put it in for $1 billion in the Multiple Listing Service but higher who you will having said that those setting that price at the beginning is important and then if you are gonna reduce the price you wanna see where you are
- 7:43and yes if you did the 9: 30 thing when it should have been 900 then dropping it maybe more closer to 900 will be beneficial that would you know be a pretty substantial price reduction I'm not seeing a lot of that I'm seeing you know the 2 and the 3 and the 5,000 dollar price changes as were in this particular market and when those prices change then that days on market time frames really starts to hold true so if there was an overpriced house of Valencia California and it was on the market 30 days and then they did a price reduction and put that property where it normally would be what a good value would be then we have them that 30 35 day time frame picking up after that so it still holds true even in the market where properties haven't sold because they were priced too high out of the chute so that's what's happening there also you're gonna see a big change that I was talking about before with regards to concessions right now if you look on the Multiple Listing service on most of the online sites even SantaClaritaOpenhouses com you're going to see an offering of commission that's going to be removed because of a lawsuit now the question is going to be now that you're if you wanna sell your house after August what is that gonna look like first you have to decide a couple things well first you have to decide if you're gonna try to sell it yourself or try to get an agent to sell it for you so if you do decide instead of diying it to actually contact a local agent have them come over and interview them which I think you should do anyway I that you don't wanna cut out any potential potentiality when it comes to selling your residence in addition there's some online systems that I think are interesting before I get into commission and what they do is they say we're gonna help you sell your house very simply you're not gonna have to do anything you're not gonna be messed with and even there's some websites that have sports characters on on on the stage and somebody brings up they're gonna have to sell their house to move and they go I'm not selling my house to schedule buyers and look at contracts and do negotiations so then all that comes up and then somebody jumps up from the audience so you can use this to sell your house well I guess we're selling that commercial those commercials I don't know what it's worth to be inconvenience and when I said that with my sellers and they're talking about a company like that usually there's provisions built into those listing contracts that those properties are sold at a further market discount and I've seen this so for property in that program doesn't sell in a particular timeframe there is a mandated mandatory price reduction a price changed at a certain percentage point then you have other websites and other corporations or companies out there with regard to real estate that say they're gonna buy your house from you so you can avoid all the stress and all the heartache and all the I don't know you have to answer the question yourself if you have a good agent usually they're gonna be worth their waiting gold because they shield you from a lot of the nonsense if I have something happening in a transaction and I don't have to tell my seller at that particular point because my experience leads me to believe it's something that No. 1 isn't in writing whatever is in writing it's conveyed but somebody talking about something that really for example if I'm getting feedback on a seller's house and somebody's telling me that they don't like the house because of where it's located my seller can't fix that see and taking that to them you know I'm sure they know that I'm sure that was part of our discussion if there's you know these massive power lines floating over the exact top of their house and everybody that walks in their hair stance on in I'm sure we've already had that conversation but there's no point to to bother them with nonsensical verbage out of somebody's mouth that really they don't need to hear their opinion so protecting my cellar as we move through that process if something comes up that is going to affect their real estate transaction absolutely but I don't know how much inconvenience thinking back since I've been doing this since 1998 reflecting it's really not that inconvenient showings especially in this market don't take long and when they do they can be coordinated over an open house on a weekend right it doesn't have to be open all the time or maybe if you only wanna show it after 6 let's say 6 to seven PM and that can be done too if somebody is out there wants to buy your house they're gonna make arrangements to come see your house I promise you that so back to the commission's concessions thing you're going to be not seeing any more public offerings for buyers agents online you're also not gonna see what those agents are paying to have or those sellers are paying to have their hire that listing agent to list the residents my recommendation is find yourself a local real estate expert before they show you houses very very soon they're gonna be required if not already it's gonna be put into the rules they're gonna have to have a sign buyer broker agreement with you that's a new thing for a buyer so now if you're gonna try to find that explanation you start to go to your relatives and friends they're gonna say well I never had to sign anything to see a house I just made a phone call went out with the agent they showed me five or six houses and I selected one well that's the old time now is new so they're not gonna know a lot of information about this buyer broker contract or this agreement you're gonna sign on there it's gonna have what you're going to pay your agent to represent you if anything but that's part of that agreement so you need to understand that going in and that should be explained for the sellers out there of course you're hiring your agent to list your residence that's fine and then you're gonna be paying them a particular commission to do so there's gonna be part of that discussion that's gonna say hey Jack are you willing to pay a buyer's agent to bring a buyer into your residence and have them represent the buyer I'm representing you as a seller and will be done or are you going to pay me to represent the buyers on the other side exclusively not offering a commission to other agents that are working with tons of buyers in the market one agent might have so many buyers but 10,000 agents in a local market are gonna probably have a lot more buyers than that one what is that worth to you and then on the other end of that those buyers cause they are a working part of this transaction the buyers have a choice too what are they willing to pay an agent to represent them and be on their side during the transaction if anything or are they gonna be settling up with the real estate sellers listing agent to also represent them you have the seller you have the buyer and you have a single agent in between that's called dual agency that agent is allowed in California to represent both the seller on the listing and the buyer of the same listing there are other states that outlaw that practice known as dual agency California if they will in the future I don't know that has been something that's been talked about probably just about longer than they've been talking about interest rates coming down before this election I'm Connor with honor I hope this helps muddy up the water just a little bit and making it hopefully a little bit more clear than MUD when you're ready reach out to me I do appreciate you watching today and I bid you farewell we'll talk to you soon we'll be back tomorrow with tomorrow show I'm Connor with honor over and out