Latest / Connor with Honor: AI, Real Estate and Real Life / Pricing a home and using the online syndication sites as a resource may have you miss your sweet spot

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Pricing a home and using the online syndication sites as a resource may have you miss your sweet spot · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Well, we moved into September.
• 0:02
  SPEAKER_00: We're pushing this month to see what's going to happen with regard to the inventory.
• 0:08
  SPEAKER_00: But today, September 5th, 2024, good day, everybody.
• 0:11
  SPEAKER_00: I'm Connor McIver.
• 0:13
  SPEAKER_00: Let's talk about what's happening in real estate in the Santa Crita Valley cities.
• 0:17
  SPEAKER_00: Now, first and foremost, 521 active listings on the market for sale.
• 0:22
  SPEAKER_00: These are current listings.
• 0:24
  SPEAKER_00: We were stuck in the high 400s for quite a while, several months, moving between, you know, from 500, breaching 500 maybe once, once or twice.
• 0:35
  SPEAKER_00: Now we're steadily above 500 units for sale.
• 0:39
  SPEAKER_00: The market is continuing its pace.
• 0:41
  SPEAKER_00: The Fed is going to be meeting September 17th and 18th, apparently.
• 0:46
  SPEAKER_00: Rumor on the street is those interest rates are going to come down.
• 0:49
  SPEAKER_00: However, we have been promised this for quite a while.
• 0:53
  SPEAKER_00: So right now, as of today, we have a total of 521 active listings in the Santa Clarita Valley market.
• 0:59
  SPEAKER_00: As far as the breakdown goes of the latest market activity, it's going to be as follows.
• 1:04
  SPEAKER_00: So we have 12 coming soon listings.
• 1:06
  SPEAKER_00: These are properties that are going to be hitting the market.
• 1:09
  SPEAKER_00: So something to check out.
• 1:11
  SPEAKER_00: If you're within the online systems, you're going to need to team up with one of those local agents that uh we all know and love.
• 1:18
  SPEAKER_00: Andor myself, of course, because I'm also a local agent, to get those listings as they're coming soon.
• 1:25
  SPEAKER_00: So you'll be able to see them once they know the coming soon variety.
• 1:29
  SPEAKER_00: And while usually a heads up is good, it doesn't leave much much of an advantage except it allows you through your agent to do some due diligence and research, and that might actually be of assistance, so you don't have to do a lot more research and due diligence right at the time that you're getting ready to look at it.
• 1:52
  SPEAKER_00: So you can at least pull it, see if it has mellows, see what the HOA looks like if there happens to be a homeowner's, see if it fits the criteria as far as the real estate that you're looking for, and then you now already know it's going to be coming on the market, so your agent can then do a follow-up with the seller's agent and find out where they are in the process, what their motivation is, if they can get that told to them, that's really a perfect place to be if they'll give them that information.
• 2:20
  SPEAKER_00: And then once they find out if in fact they maybe they have some kind of a hurry, and maybe your buyer is unencumbered by any kind of a contingency they want to put in place regarding maybe having a house that they need to sell or some other event that has to transpire prior to them being able to close, besides the loan, of course, if they're going to get a loan.
• 2:41
  SPEAKER_00: That being the case, that might be incredibly helpful.
• 2:44
  SPEAKER_00: So we have 63 new properties have been added to the market.
• 2:48
  SPEAKER_00: This week, 79 properties have had their prices changed.
• 2:52
  SPEAKER_00: Um most of reductions in listing price.
• 2:57
  SPEAKER_00: It could be a sign that sellers are were a little bit too aggressive in their pricing.
• 3:03
  SPEAKER_00: In addition, I did uh release yesterday that were talking about errors that are admitted to by the syndication sites, Redfin, and um any of the sites that you go to that give you a value that say, all right, this you this is my address, and then they give you the value of what they believe the property is worth.
• 3:22
  SPEAKER_00: There wasn't a lot of uh research done.
• 3:26
  SPEAKER_00: They're pulling MLS data just of closed listings, but beyond that, there are many other factors to look at, and even their variables go from one and one to two percent error, then you have properties that don't have any real comparables, that's 7 to 9 percent as far as an error goes in some of the systems that we see out there.
• 3:47
  SPEAKER_00: And while 2% or 1.5% doesn't seem like a lot, when you're talking on the scale of a hundred hundreds of thousands of dollars, if not more, then that's a that's a big change, folks, to leave on the table.
• 4:03
  SPEAKER_00: And sometimes those systems are overzealous in their estimates.
• 4:08
  SPEAKER_00: So then when somebody goes onto the market, they lose time because if they would have been priced more aggressively, that property would have gone into escrow, maybe with multiple offers in a much shorter period of time.
• 4:22
  SPEAKER_00: Now, because of the error in pricing, now that whole listing now has to go through that price change, which could take two, three, four weeks, depending on sellers, and also depending on how uh closely monitoring the market, the agent that that particular seller has chosen happens to be.
• 4:45
  SPEAKER_00: Back on properties, uh back on market properties 23.
• 4:48
  SPEAKER_00: We see 23 properties that have entered back on the market for sale.
• 4:52
  SPEAKER_00: And this being the case, I'll give you some information here of what I've seen.
• 4:58
  SPEAKER_00: As far as the properties that fall out of escrow, this happens somewhere between 20 and 30 percent of the time in most markets.
• 5:05
  SPEAKER_00: That's around our current number here as well.
• 5:08
  SPEAKER_00: The reasons why listings fall out of escrow isn't necessarily a case that the buyer has discovered something they can't live with, or something that the seller's unwilling or unable to remediate, usually unwilling.
• 5:23
  SPEAKER_00: And then sometimes the buyers say, Well, we can't move on unless this is remediated because the question mark comes in as to what this is going to cost after it's all finished, because if you find a little bit of something in a property, give an example, a little bit of mold, so how much more is there?
• 5:41
  SPEAKER_00: So they get in and they look at it as a real estate buyer, and now the price tag becomes too expensive.
• 5:47
  SPEAKER_00: Now, as a real estate buyer, you're not gonna be fixing the seller's property before it's yours, usually, and that's almost all the time.
• 5:56
  SPEAKER_00: I it would have to be a very odd thing for a buyer to need to do something that they're gonna pay for before the property is actually theirs and actually closes.
• 6:06
  SPEAKER_00: You have a lot of liability issues as well, you have access issues, but let's say all of that works out legally.
• 6:14
  SPEAKER_00: This is just I I could just imagine complete and total quagmire.
• 6:19
  SPEAKER_00: I don't know if those are good options for buyers, but at least understanding that these houses that are falling out of escrow, going back on the market, typically have to do with some kind of something that occurred on the buyer's financial end where they were qualified and something had occurred.
• 6:38
  SPEAKER_00: They went out and financed something, paid off a credit card, believe it or not, that causes issues, or done something before asking the lender.
• 6:46
  SPEAKER_00: Great example, wonderful clients moving towards escrow.
• 6:51
  SPEAKER_00: I've told them every change in your financial picture, make sure you let the lender know and CC me on the email when you're letting the lender know.
• 7:03
  SPEAKER_00: Client is interested in opening or establishing an LLC.
• 7:09
  SPEAKER_00: Now, of course, that's going to change, it could change their credit profile in some way, depending on how it's all structured.
• 7:16
  SPEAKER_00: And these are financial things that you'll want to always talk to a professional, financial advisor about.
• 7:22
  SPEAKER_00: But you're an escrow, you're in the process of purchasing a residence, a primary residence when to live.
• 7:29
  SPEAKER_00: So there's uh this is a bigger than even an investment property, I would dare to say, because this is something that you're gonna be investing your time, your emotions, your feelings, and it's going to be where you're going to habitate and live with the people that you deem closest to you.
• 7:47
  SPEAKER_00: Right?
• 7:47
  SPEAKER_00: That's who we live with for the most part.
• 7:50
  SPEAKER_00: So you're you're deem this, so you have these people with you, so there's gonna be a lot built on that.
• 7:55
  SPEAKER_00: That process is incredibly important and needs to be adhered to and given its due weight and respect, not just jumping into it.
• 8:03
  SPEAKER_00: Sometimes buyers move forward and they make these financial changes without making letting anybody know, and then the credit companies do a cross-check yet again during escrow for the real estate buyer.
• 8:19
  SPEAKER_00: So they get their credit run again, they get it hit by by some kind of a search, and then things have changed, FICO score has changed, and maybe they were right teetering on the edge, and now all of a sudden it's changed, so maybe changed so dramatically to a point where they're unable to be financed, and then whatever the issue was that came up, it's unable to be remediated.
• 8:43
  SPEAKER_00: There are more ways to skin a cat, there are ways to make these problems fix or repair, but it takes savvy lenders and savvy agents to be able to get to the bottom of it.
• 8:57
  SPEAKER_00: But kudos to the client that sent the email and asked the question, and the lender said, What?
• 9:03
  SPEAKER_00: Well, the lender said, Yeah, probably not.
• 9:07
  SPEAKER_00: Let's wait until it's all finished.
• 9:09
  SPEAKER_00: Because while maybe nothing would happen, there is no for sure answer.
• 9:16
  SPEAKER_00: They can't get a blessing from the decision maker that LaMoney, all the way at the very, very top where it's going to go through, even when they open up any kind of an LLC or the LLC that they're going to be deciding to open up and the way that it's going to be structured, sure we guarantee it 100%.
• 9:34
  SPEAKER_00: Without that, and that would, yeah, you can trust it 100%.
• 9:39
  SPEAKER_00: I don't know if that even exists, but let's say it did.
• 9:42
  SPEAKER_00: Well, that would be the only case.
• 9:43
  SPEAKER_00: Other than that, I believe it's very important for real estate buyers to make sure they understand what's happening in the market and honor that purchase.
• 9:52
  SPEAKER_00: Don't go changing anything unless they let their lender know.
• 9:55
  SPEAKER_00: Alright, so moving through, we have this interest rate update, and I talked about this.
• 10:00
  SPEAKER_00: It's a game changer with current market dynamics.
• 10:02
  SPEAKER_00: Recently, we've seen interest rates hovering around the 7% mark.
• 10:07
  SPEAKER_00: That's going to be for a 30-year mortgage, and the rates are higher than what we've been accustomed to, of course, for the last few years.
• 10:14
  SPEAKER_00: But remember, they're still relatively moderate when viewed in that broader historical content.
• 10:20
  SPEAKER_00: Ask your parents if uh you're you're in if they're still alive and you're in your 50s, you know, ask them what they look like.
• 10:26
  SPEAKER_00: I remember double digits, and I believe it was close to 20% back at that day.
• 10:33
  SPEAKER_00: Now, yes, of course, houses were less expensive back in the day, but financing was still difficult.
• 10:39
  SPEAKER_00: You know, the the rates of people, the wages were quite a bit lower.
• 10:44
  SPEAKER_00: As well, everything kind of makes that adjustment.
• 10:47
  SPEAKER_00: What does this mean for you as far as that moderate goes?
• 10:50
  SPEAKER_00: Well, higher rates can definitely afford affect affordability, but they also prep represent an opportunity to negotiate more effectively with motivated sellers who want to move their properties faster than maybe general.
• 11:03
  SPEAKER_00: And sellers, as far as you're concerned, if you're considering selling, now might be a great time to list because inventory remains very tight.
• 11:11
  SPEAKER_00: And while rates are higher, there are still many buyers that are actively looking.
• 11:15
  SPEAKER_00: This competitive edge comes from presenting your home as the best value on the market.
• 11:20
  SPEAKER_00: Talking about September 17th and 18th, wouldn't that be something?
• 11:25
  SPEAKER_00: Your house is on the market, and then the interest rates drop to a considerably low number, because also this is an election year, and it seems every election year the people that are in power try to make the people happier with them, even if they've been a failing administration.
• 11:48
  SPEAKER_00: And not that that is the case this time, so I'm being incredibly vanilla about this, but they probably want to try to help.
• 11:56
  SPEAKER_00: It wouldn't be a shock to watch rates drop in the fours, because that would kick off a frenzy and maybe pull the media to look at something else, and well, now they've helped, and now the market is stimulated, because so many professions are dependent on real estate, contractors and inspectors and appraisers, and that whole financial mechanism is very dependent on the real estate market.
• 12:20
  SPEAKER_00: You look at new housing, then you got contractors, and you have, you know, supplies as far as those types of resources being in high demand that helps out everybody in the economy.
• 12:32
  SPEAKER_00: Definitely want to look into this.
• 12:35
  SPEAKER_00: If you're thinking about making a move in this market, whether buying or selling, let's talk.
• 12:39
  SPEAKER_00: I'm here to navigate these waters with you, offering insights and strategies tailored to your needs.
• 12:46
  SPEAKER_00: Please uh keep checking back for more.
• 12:48
  SPEAKER_00: If you are ready, give me a call.
• 12:51
  SPEAKER_00: I'll be there to help.
• 12:52
  SPEAKER_00: I'm Connor with honor.
• 12:53
  SPEAKER_00: Thanks for watching, and we'll talk to you tomorrow.
• 12:56
  SPEAKER_00: Over now.