Latest / Connor with Honor: AI, Real Estate and Real Life / AB2992 & The Future of Castaic Real Estate by the First Responder realtor at Santa Clarita Open houses by Connor with honor

Transcript

AB2992 & The Future of Castaic Real Estate by the First Responder realtor at Santa Clarita Open houses by Connor with honor · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Today's the 14th of December, 2024.
• 0:03
  SPEAKER_00: We're almost halfway through this month.
• 0:05
  SPEAKER_00: I'm going to talk about the Castic Real Estate Update today.
• 0:08
  SPEAKER_00: We're going to give an overall view of Santa Crita Valley.
• 0:10
  SPEAKER_00: Also, Assembly Bill 2992, what is it going to mean to you as a real estate buyer as we get into this next year of 2025?
• 0:19
  SPEAKER_00: There are four components to it, so I'll cover those as well.
• 0:22
  SPEAKER_00: This is specifically as I try to get that word out for buyers.
• 0:27
  SPEAKER_00: Sellers, the games have changed a little bit for you when it comes to listing and selling real estate, whereas your part of the contribution to the buyer's agent might not be something that you're going to be needing to pay as it comes into 2025.
• 0:42
  SPEAKER_00: We've already seen these changes as they were implemented late 2024, but now the governor signed in Assembly Bill 2992.
• 0:50
  SPEAKER_00: Now it's law.
• 0:51
  SPEAKER_00: So now it really has to happen in 2025.
• 0:54
  SPEAKER_00: So we'll cover that in just a moment.
• 0:55
  SPEAKER_00: Let me give you the overall view of Santa Clarita Valley.
• 0:58
  SPEAKER_00: Currently, there's 870 listings across various statuses, and I did a seven-day snapshot of all of the Santa Clarita Valley cities.
• 1:07
  SPEAKER_00: This is going to include Castac, Canyon Country, New Hall, Saga, Stevenson Ranch, Valencia, Acton, and Aqua Dulce thrown into the mix.
• 1:15
  SPEAKER_00: Today's the Castac specific update, but let's look at this.
• 1:19
  SPEAKER_00: So of those, that average list prices at just over 900 grand, 904 average days of 61 on the market before properties actually finish escrow.
• 1:29
  SPEAKER_00: And if you look at that, that time frame is 45 days, 30 to 45 days in escrow.
• 1:35
  SPEAKER_00: So that 61 usually shows somewhere between 15 and 20 on average before they actually get into escrow and finish.
• 1:43
  SPEAKER_00: Now median price right now is$825,000 of these listings in that list.
• 1:48
  SPEAKER_00: 495 current actives all across Santa Clarita Valley.
• 1:52
  SPEAKER_00: They price price ranges between 160 grand and$5,100,000.
• 1:59
  SPEAKER_00: Average price$918,710.
• 2:02
  SPEAKER_00: Average of those properties, 68 days on the market currently.
• 2:06
  SPEAKER_00: We have seven coming soon listings as well.
• 2:08
  SPEAKER_00: Close sales this past seven days, 38 have actually finished.
• 2:13
  SPEAKER_00: And those price ranges for all of Santa Clarita running$370,000, about$1.7 million.
• 2:19
  SPEAKER_00: That's what's selling.
• 2:21
  SPEAKER_00: Primary loans being used are going to be conventional.
• 2:24
  SPEAKER_00: Most people are putting that 20% down or some form of conventional.
• 2:29
  SPEAKER_00: Usually, when you put 20% down, you avoid PMI, which is property mortgage insurance.
• 2:34
  SPEAKER_00: And what is that like?
• 2:36
  SPEAKER_00: $200,000,$300,000,$400, depending on how much your financing is what that bill is going to be.
• 2:42
  SPEAKER_00: But it's extra.
• 2:43
  SPEAKER_00: So if you can put 20% down, a lot of people say that might be a better bet.
• 2:47
  SPEAKER_00: But the other view of that is the less you put down, the more money you have in reserve just in cuss in case something happens.
• 2:54
  SPEAKER_00: You'll have to wrap your mind around that one.
• 2:56
  SPEAKER_00: Talk to your family, see how they did it.
• 2:58
  SPEAKER_00: If you're talking to people in my generation, when we grew up, it was that whole 20% down thing.
• 3:04
  SPEAKER_00: It wasn't until we got into the 90s and 2000s when we started to see that actually really change quite a bit, and especially 2007.
• 3:12
  SPEAKER_00: It was like everybody could borrow money no matter what their employment, because it seemed like people made up where they worked and it was verified by people in the real estate business.
• 3:22
  SPEAKER_00: Figure that.
• 3:22
  SPEAKER_00: Crazy.
• 3:23
  SPEAKER_00: All right, so let's look at Castac particularly, looking at those numbers.
• 3:28
  SPEAKER_00: We're seeing those listings in Castac coming to such a point where uh very few listings are on the market.
• 3:35
  SPEAKER_00: Right now, if we look at uh Valverde, which is out there in Castac as well, we have an average of$441.26 per square feet.
• 3:45
  SPEAKER_00: And most of these houses are built in the 90s and early 2000s.
• 3:50
  SPEAKER_00: Also, Castaiac is something to look at with regard to the lake.
• 3:53
  SPEAKER_00: There is a lake there, so people that want to fish and boat, they have that as a local resource out in Castilla, California.
• 4:00
  SPEAKER_00: But Castac, like the rest of Santa Clarita, is moving at a quick pace.
• 4:04
  SPEAKER_00: But right now, because we're close to end of year, it's taking a little bit longer to sell homes in Castac.
• 4:10
  SPEAKER_00: We're gonna see that kick off quarter one, quarter two of 2025.
• 4:14
  SPEAKER_00: But having said that, some people are reluctant in putting their properties on the market now.
• 4:19
  SPEAKER_00: Understand you're gonna have more competition next year.
• 4:22
  SPEAKER_00: Some buyers are waiting till next year's to buy, you're gonna have more competition next year.
• 4:27
  SPEAKER_00: So, what I tell my sellers is if we put it on the market now, you're gonna have less competition.
• 4:32
  SPEAKER_00: But we have to see if those numbers make sense by where we are now and maybe where we'll be next year with a small couple, two, three points of increase.
• 4:41
  SPEAKER_00: It's just going to depend on how fast that market's going to adjust as we get into 2025.
• 4:47
  SPEAKER_00: Now, currently, buyers, when they're going out and looking at real estate, my suggestion is let's look now.
• 4:53
  SPEAKER_00: If you don't see something that you can wrap your mind around, or it's not really your home of choice, then let's just continue that same process in the next year.
• 5:02
  SPEAKER_00: The question often comes in, oh my gosh, how long's my approval good for?
• 5:06
  SPEAKER_00: Your approval is good for pretty much forever, as long as you're keeping your lender updated.
• 5:11
  SPEAKER_00: It used to be that they had a 30 or 60 or 90 day limit on whether the approval letter was actually functioning.
• 5:18
  SPEAKER_00: Now people are really in contact with their lenders, not like before, where it was basically a phone call to somebody you never met.
• 5:25
  SPEAKER_00: In this case, any lender that I would recommend.
• 5:27
  SPEAKER_00: This brings me to a hero program I'll talk about in a moment.
• 5:30
  SPEAKER_00: Hate to keep seguing.
• 5:32
  SPEAKER_00: But this talk talking to real estate lenders, getting one that's local, one that you can walk into their office and forge a complaint, if need be, is really valuable.
• 5:43
  SPEAKER_00: Now, real quick about these hero programs.
• 5:45
  SPEAKER_00: Whenever you see somebody that's a member of a hero program stating that they represent law enforcement exclusively or first responders or military, the issue is they're tied with some other part of that process.
• 5:58
  SPEAKER_00: So it's not just a real estate agent that you're hiring if they're part of this program.
• 6:03
  SPEAKER_00: They're actually tied to a specific lender and they won't be in the program if they refer people away from that lender, even if that lender is writing bad paper or overcharging these clients because the realtor wants to be a member of the hero program, more than likely they're going to be quiet.
• 6:19
  SPEAKER_00: I was working with a credit union.
• 6:21
  SPEAKER_00: They had a particular thing in place for real estate that was an advantage type program.
• 6:26
  SPEAKER_00: I don't remember what it was called, but I had to pull away because they weren't the best deal for my client.
• 6:33
  SPEAKER_00: Go figure.
• 6:34
  SPEAKER_00: But I kicked that to the curb and now I'm no longer a member of that program.
• 6:38
  SPEAKER_00: If you're using these hero programs, heroes, loans, heroes, all of these sorts of things, just be wary.
• 6:44
  SPEAKER_00: Look at the numbers and make sure you're getting a good deal.
• 6:47
  SPEAKER_00: Let's talk about assembly bill 2992.
• 6:50
  SPEAKER_00: Four things.
• 6:51
  SPEAKER_00: So as of January, there's going to be a mandatory buyer-broker agreement.
• 6:55
  SPEAKER_00: You're going to have to sign something before you look at real estate at some point in the looking process.
• 7:01
  SPEAKER_00: Most agents, if they're smart, they're going to do it up front before they show property one.
• 7:06
  SPEAKER_00: But you'll probably find those agents that might give you a little bit of slack, but you're still going to have to sign an agency disclosure stating what that agent's role in the process is.
• 7:17
  SPEAKER_00: But let's say they're doing it the way they probably most likely should, and they're having you sign this document.
• 7:24
  SPEAKER_00: What are you looking at?
• 7:25
  SPEAKER_00: There's a three-month total time frame allowed on the document.
• 7:28
  SPEAKER_00: You can go shorter than that, you can go one property, a dozen properties, maybe a baker's dozen, maybe 2530, whatever it may be.
• 7:37
  SPEAKER_00: You can also have the document specifically address a particular type of property.
• 7:43
  SPEAKER_00: Let's say you like me, and I'm an expert in single family residences.
• 7:47
  SPEAKER_00: I'm actually your expert in all references, all types of residential real estate, but let's say that's what you're looking for, or maybe my whole forte is golf homes.
• 7:56
  SPEAKER_00: You might have that buyer-broker agreement with me only for golf homes, homes that are near or in proximity to a golf course.
• 8:04
  SPEAKER_00: You can choose that.
• 8:05
  SPEAKER_00: Maybe you only want three-bedroom homes, me representing you on, and if there's a four or a two-bedroom, you'd rather have another agent.
• 8:13
  SPEAKER_00: These are all choices.
• 8:14
  SPEAKER_00: More than likely, it's going to be a large kind of over-enveloping agreement where it's going to basically be you're choosing me to be a real estate representative because you see value, maybe because I wrote a book about buying and selling real estate.
• 8:28
  SPEAKER_00: Selfish plug.
• 8:30
  SPEAKER_00: Bam, there's that.
• 8:30
  SPEAKER_00: You can get that on Amazon.com, how to buy and sell real estate.
• 8:34
  SPEAKER_00: Santa Clarita, it's the 2025 updated edition.
• 8:37
  SPEAKER_00: Maybe you like the way I speak.
• 8:39
  SPEAKER_00: Maybe you like these videos and I give you some kind of value with regard to real estate, and you say, okay, Connor's my person.
• 8:45
  SPEAKER_00: Then it's going to come down, which is Connor going to charge you.
• 8:48
  SPEAKER_00: That's going to be important to know because if I'm trying to hit every single payment that I need for the next year with my own finances and I overcharge you, that document gets sent over to the seller.
• 9:01
  SPEAKER_00: And let's say we're trying to ask the seller to pay that fee to me, the seller's going to look at that number and might kick your deal to the curb.
• 9:11
  SPEAKER_00: So what you're paying your agents is also important to represent you, that's going to be part of the buyer-broker agreement.
• 9:19
  SPEAKER_00: Now, if you're paying that yourself and you're not going to try to pull that out of the seller, then that's a whole different story.
• 9:26
  SPEAKER_00: Then that value is still there.
• 9:27
  SPEAKER_00: But understand that's going to be part of that agreement where it's going to show how much you're going to pay.
• 9:33
  SPEAKER_00: And don't forget that's completely negotiable.
• 9:37
  SPEAKER_00: You just need to have that conversation with your agent.
• 9:40
  SPEAKER_00: Don't be scared, don't be timid.
• 9:42
  SPEAKER_00: Just tell them, hey, this is what I think your value is, and see what they say.
• 9:46
  SPEAKER_00: They should be able to fight their way out of at least a paper bag.
• 9:50
  SPEAKER_00: All right, disclosure requirements.
• 9:52
  SPEAKER_00: This is something else that's going to be on there.
• 9:55
  SPEAKER_00: As I mentioned, it's going to show what your agent's going to do for you, and it's also going to establish your rights.
• 10:02
  SPEAKER_00: So you're going to see that in these agreements as well.
• 10:04
  SPEAKER_00: Most of them are going to be official-looking California Association of Realtor documents.
• 10:11
  SPEAKER_00: I say most because some brokerages are going to come up with their own type of form that fulfills these particular obligations.
• 10:20
  SPEAKER_00: Now, these are set in rules.
• 10:22
  SPEAKER_00: This is law.
• 10:23
  SPEAKER_00: So if I'm giving you a document that's missing, a piece of this, or let's say it gives them six months or a year to work with you as a buyer, I would throw caution to the wind in that regard because the way the law is written, it's a three-month limitation.
• 10:38
  SPEAKER_00: So maybe you could seek an attorney's advice.
• 10:41
  SPEAKER_00: Maybe you can talk to this agent's broker and see how they explain it.
• 10:45
  SPEAKER_00: But when they do explain it and say how they're able to go above and beyond the law, then I would follow up an email and say, hey Jack, I know we just talked about the buyer-broker agreement.
• 10:55
  SPEAKER_00: I know that you have it in place for in excess of 90 days.
• 10:59
  SPEAKER_00: I know you explained it to me.
• 11:02
  SPEAKER_00: But just so I understand, will you send me an email, please, that gives me an idea of what you explained to me just so I can have it?
• 11:10
  SPEAKER_00: More than likely you'll find out if they're actually going to come to Jesus and be honest about it, or if they're going to lie to you in an email.
• 11:17
  SPEAKER_00: Just be wary of that.
• 11:19
  SPEAKER_00: Protect yourselves as buyers.
• 11:21
  SPEAKER_00: Look for the value that your agent conveys.
• 11:24
  SPEAKER_00: Find out what they're doing online.
• 11:26
  SPEAKER_00: Are they busy posting all their vacation pictures in Maui?
• 11:29
  SPEAKER_00: Or are they actually working in the trenches in real estate, trying to give the best value by empowering and educating the real estate clients?
• 11:38
  SPEAKER_00: I'm Connor with Honor.
• 11:39
  SPEAKER_00: Santa Clarita Open Houses is my website.
• 11:42
  SPEAKER_00: Check it out.
• 11:43
  SPEAKER_00: You'll see all the active inventory there.
• 11:45
  SPEAKER_00: You'll see the book there.
• 11:46
  SPEAKER_00: You'll see my blog there.
• 11:47
  SPEAKER_00: I do these shows daily.
• 11:49
  SPEAKER_00: I also upload all the data into the blog so you can come back and see about these numbers that of which I speak.
• 11:56
  SPEAKER_00: I'm Connor with Honor.
• 11:57
  SPEAKER_00: Have a fantastic weekend, and we will see you next week coming up on Christmas.
• 12:01
  SPEAKER_00: I think what's that, 10 or 11 days left to shop.
• 12:04
  SPEAKER_00: Enjoy that.
• 12:05
  SPEAKER_00: I hope everybody's well.
• 12:06
  SPEAKER_00: We have a new president in place as of next year.
• 12:09
  SPEAKER_00: We'll see how that one's going to go.
• 12:11
  SPEAKER_00: And yes, I voted for him, and yes, that created a one heck of a thing, especially being in California.
• 12:17
  SPEAKER_00: We'll see what happens.
• 12:19
  SPEAKER_00: He is Times Person of the Year.
• 12:21
  SPEAKER_00: What are you going to do?
• 12:22
  SPEAKER_00: I'm Connor with honor.
• 12:23
  SPEAKER_00: We'll talk to you soon.
• 12:24
  SPEAKER_00: Over and out.