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Navigating New Commission Rules: What Santa Clarita Home Buyers & Sellers Need to Know · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Everybody, it's Connor with Honor.
• 0:01
  SPEAKER_00: This is going to be your updated Santa Clarita real estate show, and today is our daily show for the 18th of April 2024.
• 0:08
  SPEAKER_00: There's a few stories on the wire.
• 0:10
  SPEAKER_00: We'll talk a little bit about that in just a moment.
• 0:12
  SPEAKER_00: I did put together some interesting information to be able to display that to you and give you some ideas as to how the Santa Clarita seller's market is going currently.
• 0:22
  SPEAKER_00: So, right now, as of today, we have eight coming soon listings into the Santa Clarita Valley that have posted within the last seven days.
• 0:30
  SPEAKER_00: 77 homes have hit the market.
• 0:31
  SPEAKER_00: 46 properties have had experience have had price adjustments.
• 0:35
  SPEAKER_00: In this case, the majority of those are reductions from their actual listing price.
• 0:39
  SPEAKER_00: 15 properties have come back on the market, not actually completing escrow.
• 0:43
  SPEAKER_00: So they've been canceled.
• 0:45
  SPEAKER_00: Active under contract properties are 41.
• 0:48
  SPEAKER_00: That's basically properties in escrow.
• 0:50
  SPEAKER_00: Plus another 52 also in escrow, but no longer accepting backup offers, which shows that those properties more than likely are going to make it the entire way.
• 1:00
  SPEAKER_00: That's usually what happens and why agents change that particular status.
• 1:04
  SPEAKER_00: So 55 deals have been actually closed in the past seven days.
• 1:08
  SPEAKER_00: Seven properties didn't sell within contractual time frames.
• 1:11
  SPEAKER_00: Just a quick bit on that.
• 1:13
  SPEAKER_00: What ends up happening is whenever you're listing your property for sale with an agent, typically they're going to give you this spiel about how long they take the listing for.
• 1:23
  SPEAKER_00: And some sellers freak out whenever they hear the six-month or eight-month or ten-month rule.
• 1:28
  SPEAKER_00: But what you need to understand, if you are going to sign up with a contract that long, that's fine.
• 1:33
  SPEAKER_00: Just ask them if they'll put in writing that you can get out of it if you happen to change your mind.
• 1:38
  SPEAKER_00: Now, I'll throw this out there.
• 1:40
  SPEAKER_00: If you're in escrow with a buyer, usually you need other people's approval to get out.
• 1:45
  SPEAKER_00: And the buyer would be the most important one.
• 1:48
  SPEAKER_00: But that being the case, if you're not in contract with anyone, it depends on the agent.
• 1:55
  SPEAKER_00: Me personally, not have a problem.
• 1:56
  SPEAKER_00: I put those escape clauses in contracts all the time for both buyers when they're signing a buyer broker agreement and also sellers when they're signing a listing agreement.
• 2:06
  SPEAKER_00: It's just a way to work and it seems to work well.
• 2:09
  SPEAKER_00: All right, so those are those, those, uh that's what's happening in that part of the market.
• 2:13
  SPEAKER_00: The seven, so those seven properties didn't sell.
• 2:16
  SPEAKER_00: Seven sellers, another number seven, have actually taken their houses off the market, maybe regrouping, seeing what's going to happen here in the near future.
• 2:25
  SPEAKER_00: In addition, just so you know, when you're online and you see two numbers for days on market and then something with a C DOM or continuous days on market, these are different numbers.
• 2:37
  SPEAKER_00: The continuous only gets broken when there's a 90-day break between the listing being on the market and canceled or no longer for sale.
• 2:48
  SPEAKER_00: That's when it comes new after 90 days.
• 2:51
  SPEAKER_00: So if you're a seller and you're thinking, gosh, I went with this agent and they're horrible, and I'd really like to try to find somebody else.
• 2:58
  SPEAKER_00: When is it going to be where my property is not going to show up anymore as having some historical listing period?
• 3:05
  SPEAKER_00: And that's going to be 90 days.
• 3:07
  SPEAKER_00: But again, check there might be ways that you can discuss this with the brokerage, the agent, maybe trying to have things reset with the board.
• 3:15
  SPEAKER_00: I've never even gone down that road, but it's definitely worth asking the question, as are a lot of things.
• 3:21
  SPEAKER_00: All right, so finally we have the luxury market adjustments.
• 3:24
  SPEAKER_00: This is headline news.
• 3:25
  SPEAKER_00: Nationwide, luxury home sellers are reducing prices significantly with the highest level of cut since 2017.
• 3:32
  SPEAKER_00: The trend is evident in markets that soared during the pandemic, such as Austin and Phoenix.
• 3:38
  SPEAKER_00: And now these markets are experiencing a correction phase.
• 3:41
  SPEAKER_00: For Santa Clarita, this could mean more reasonable pricing in our higher-end properties soon, aligning with the broader market cooling.
• 3:50
  SPEAKER_00: So, number two on the update for today, which is relevant in, I've connected it with the nationwide and world news.
• 3:57
  SPEAKER_00: We have number two, home sales decline.
• 4:00
  SPEAKER_00: March saw a notable decline in home sales, the largest in over a year, influenced by rising mortgage rates, which ended up deterring buyers.
• 4:08
  SPEAKER_00: The average mortgage rate is nudging back towards 7%, which could slow down spring buying season, a key period in real estate.
• 4:16
  SPEAKER_00: Santa Clarita residents might see similar trends, with potential buyers wanting more favorable conditions.
• 4:23
  SPEAKER_00: Right now in Santa Clarita, while that's a great nationwide story, coming to our market, it's still very much a seller's market.
• 4:30
  SPEAKER_00: And when a property gets listed and put out there for sale, a lot of times it doesn't last but a few days before it actually has accepted contract by a buyer and an escrow.
• 4:40
  SPEAKER_00: Here's a question for the buyers out there of the world that are looking to purchase real estate.
• 4:45
  SPEAKER_00: You've heard about these commission changes.
• 4:47
  SPEAKER_00: I've gotten calls by potential sellers that want to know more about this.
• 4:51
  SPEAKER_00: Do they have to pay an agent representing the buyer or not?
• 4:55
  SPEAKER_00: And I have the same walk and talk with them I do with my buyers on the buyer's end of it.
• 5:01
  SPEAKER_00: If you're looking to purchase real estate and you have the wherewithal to pay an agent to represent you, then really you got a carte blanche access to every single listing out there for sale, no matter what.
• 5:15
  SPEAKER_00: If you don't, if you're the traditional buyer that seems to have been in the market for a very long time, a buyer that is probably about to extend themselves a little far when it comes to purchasing real estate.
• 5:30
  SPEAKER_00: What I mean by that is buyers, even though I tell them, let's try to do it with as little money as possible, it seems like they get that pre-approval and we get all the way to the end of it, even with the advice not to do that.
• 5:44
  SPEAKER_00: That being the case, however, usually they don't have that additional funds.
• 5:49
  SPEAKER_00: If they do, they're gonna use it for down payment or something else.
• 5:52
  SPEAKER_00: But a lot of them don't even have it to be able to supply a commission to an agent they choose to represent them.
• 5:58
  SPEAKER_00: Their choice in that particular case, they're gonna have to work with a seller's agent.
• 6:02
  SPEAKER_00: And then is the seller's agent actually asking for compensation from the seller for them to be able to handle both sides because you do have additional liability as well.
• 6:13
  SPEAKER_00: Thank you very much for the way things are.
• 6:16
  SPEAKER_00: That's uh that's that.
• 6:17
  SPEAKER_00: Something to look for, look at if you're a real estate buyer.
• 6:20
  SPEAKER_00: Finally, number three, we talked about the economic indicators and the local uh indicators and the local impact.
• 6:26
  SPEAKER_00: While luxury markets are adjusting, the general housing market is facing mixed signals.
• 6:31
  SPEAKER_00: With changes in the real estate agent commission rules looming in July, both buyers and sellers are kind of in a holding pattern.
• 6:38
  SPEAKER_00: Decipher the impact on transition costs.
• 6:42
  SPEAKER_00: This uncertainty could lead to a more buyer-friendly environment in Santa Clarita, maybe echoing national trends.
• 6:48
  SPEAKER_00: Now, of course, in conclusion, Santa Clarita Real Estate is definitely reflecting the national trends with a mix of opportunities and challenges.
• 6:56
  SPEAKER_00: Luxury home sellers are adjusting expectations, which might filter down to more accessible segments.
• 7:02
  SPEAKER_00: Meanwhile, overall market activity is slowing down due to economic uncertainties and impending regulatory changes.
• 7:09
  SPEAKER_00: I do appreciate you watching.
• 7:11
  SPEAKER_00: Stay tuned for more and remember whether buying or selling informed decisions are the best decisions.
• 7:18
  SPEAKER_00: I'm Connor with Honor.
• 7:19
  SPEAKER_00: I bid you farewell and we will talk to you soon.
• 7:22
  SPEAKER_00: Connor with Honor overnight.