Latest / Connor with Honor: AI, Real Estate and Real Life / First time buyer changes, what you need to know August 2024 when buying a new home in Santa Clarita California
Transcript
- 0:00what you need to know about buying a Santa Clarita home August 21st, 2024 this isn't self serving you know the kind of videos or podcast many are put together scripted by artificial intelligence by those large language models like Czechy PT and the other ones might have never been perfect enough to match up to that but I must admit typing a few words into Chechy PT after assigning in a role gives me 3,000 words on the most perfect Google centric text that I can post on my blog however it seems that those ways are going to come to a particular point of validity where people are going to be able to figure out that the content being written is not being done by human fingers banging on a keyboard I think that's probably gonna be the places the place the world's going to be all this extra verification different levels where now you're asked if you've used artificial intelligence in the making of things on different platforms I believe that that's also going to include these agents and those roles that are gonna be established by artificial intelligence where they're able to produce all this content hopefully there'll be some kind of a fail safe where they'll be able to show that an actual human being wrote the content like this particular post and me converting this to a podcast talking about Santa Clarita real estate plus what's interesting besides that is I remember back in 2010 I was blogging about real estate incessantly and a gentleman made a comment that my blogs made his eyes bleed and I definitely sure hope he's still reading what's happening in Santa Clarita what's real what is fake I think that should be the question that arises and if you're anything like me you know how important that is when it comes to buying or selling real estate besides the phone calls which you know mean to you in person meetings and AI hasn't gotten there yet but eventually you'll probably be able to talk to somebody over the phone and it's gonna sound just like an actual human being you won't be able to tell the difference now still too early for that but I wouldn't foresee that being too far in the future these are good questions to ask you have these in person meetings zoom training I do a lot of the zoom presentations about home buying and home selling small group in nature if not to the individual or the individual and the other decision makers and the other people that are going to be impacted by real estate sale or purchase I get them all together and then we go over all of those items which is definitely important and can help from help a home buyer not get into trouble you have the right for your own real estate agent when you're buying a home and that applies in Santa Clarita Valley elsewhere you have that right you have had that right now you might have to actually pay your agent to represent you now knowing this as we get into the end of August and that's when all the changes pretty much took place and now we're gonna see how that's gonna unfold in September but people are clever so be wary when you're seeing that people are doing things online that don't seem to be the norm of course the market is changing but you as a home buyer potential home buyer previous home buyer current home buyer whatever you may be your home seller definitely make sure then you're understanding how the process works now as far as what's charged that hasn't changed much except for the fee for the agent you're selecting to represent you as a home buyer closing costs or what these things are called the the things that go above and beyond the home for sale price if you see a house for sale and it's priced at $500,000 it's actually $500,000 plus closing costs those closing costs that a buyer has to pay can come from a variety a variety a variety of sources and that includes your lender as well you can have a gift you could put on a credit card there's a lot of different ways to take care of those closing costs they usually tally up to about 3% of the sales price to give you an idea of the house for sale is $500,000 do some maybe complicated math we can do that multiplying $500,000 times 3% we get $15,000 and again that's typically what closing costs would be on that kind of a purchase as the house gets more expensive closing costs get more expensive as well why is that because they can I don't know if there's any more work as we get higher but it seems like the vendors in the real estate world seems to increase their fees as the house prices become more expensive that's something that you need to weigh out amongst yourselves and make your own considerations and determinations based on that however I think that will probably be something that's going to be talked about in the future and I think we're gonna see more flat feet commission structures maybe come into play it's too early to tell but that's definitely been a discussion I've heard on the line but of your closing cost you have the real estate lenders fee that's gonna be about 1% of the purchase price and whenever in real estate you hear the term 1% or one point a point point is typically 1% that's that's the the those two mean the same thing points don't make somebody when you use the word point that doesn't make somebody wanna pull out a calculator figure out whether being charged when you say percentages yeah people kind of wanna pull out the old calculator well get on their mobile device or phone or ask Siri or however they have access to getting more information their brains unable to calculate do the calculation with percentages so I think some of that industry likes the point term better but understand point is percent so your real estate lender they're gonna charge your money to help you get a loan that's how they make their money they're gonna charge it and rather be in a broker mainline bank their fees involved there if they're telling you that they're gonna waive your fee call the origination fee look for it to reappear elsewhere on the fees that you're paying in the documents or look for an increase in those fees after you say you can get it done elsewhere for less money so watch out for those fees the other ones title insurance that's typically set on home price and you're part of escrow so you have those fees that's about 3% in a 500 thousand dollar purchase that's gonna be about 15 thousand dollars that's gonna be a little different for those of you that are using a type of loan that doesn't require you impounding certain fees that you have to pay monthly these are reoccurring fees home insurance is a reoccurring fee the property taxes that reoccurring it continues to occur over time there are other items that are reoccurring fees but usually if you're going to have a loan type where you don't have a lot of money down comparative to a 20% down loan usually they're going to say you know what we're gonna pay these for you out of your monthly payment so it's not like you get a better deal on the monthly payment they're basically taking enough to cover years worth of insurance and six months worth of property taxes from you part of your closing cost so it's gonna increase your number so instead of 15,000 that could be higher than a 500,000 dollar purchase that being the case you wanna find out what those numbers look like and see if it makes sense for you to maybe increase your down payment amount to get away from those fees so you don't have an impounded or taken up front you get to pay it you know at the time that you want to and the way you want to but some people are very good with the impounding so their one payment every month is all in and there's nothing else to really consider besides utilities and those things that haven't been covered in the mortgage another consideration part of your fees you have your lenders fee your title insurance fee like I said you're part of escrow these are those closing costs you need to know this because if you are buying residential real estate and this hasn't been talked to you you haven't heard about this then these are fees you need to consider unless somebody is being wonderful is gonna pay everything for you which I've never seen you can get a gift for you put on a credit card sometimes you can financing into the loan but it's gonna depend on the seller it's also going to depend on if you're gonna finance into a loan if a property is going to appraise for that amount you'll know this is you get more into it but these are other options so if you're using a loan type that doesn't require to pay closing costs up front as far as the recurring things the property taxes the home insurance then usually that 3% of that $15,000 gonna be pretty close if you have a loan type that's gonna impound it's probably gonna be a little bit more your lender should give you a document that shows what their fees are as should the other people involved the real estate agents probably gonna go to ask her to get you that tally sheet and what's your charges are that fee should be reflected on some document that escrow has so you'll be able to see exactly what you're paying out the lender might be a little bit more complicated to see but there should be some kind of a breakdown as to exactly what you're paying dollar for dollar to be able to get that lender services and also to close the transaction when time comes there's gonna be a time that you're going to have to bring in these extra monies and in the future even now the extra money could include the money needs to be paid not really extra the money that needs to be paid could also include your real estate agents fee that's definitely something to look at and know because needing to pay that you got to find out what that amount is and if in fact your real estate agent packs the gear to serve at the level in which they're asking asking for compensation in your representation now of course I'm glad that real estate isn't becoming more confusing but it seems like it is then you have the typical other stuff what are the mello roos taxes where the mello roos properties located can they be increased or will they ever end how much is the homeowners association fee if the property has one where can I find homes that don't have any HOA fees are there benefits to having an HOA and can those fees go up and if so how much can they increase over time just watch out for the small print actually watch out for all the print to make sure all your questions all of your questions are being answered and if you are getting an impatient look from your realtor because you are one of those they think ask too many questions they may suit you to find another agent one who better understand you and wants to ensure they retain you as their client listen most know some real estate agent most love the agent they slept but some agents no longer pack the year to serve in real estate be prepared to talk to another when you're ready and thank you for listening and reading my blog I'm Connor with honor over and out