Latest / Connor with Honor: AI, Real Estate and Real Life / Sellers with campers and 5th wheels are winning in Santa Clarita real estate to wait out the market
Transcript
- 0:06hey well good day everybody today is August 6th, 2024 I'm Connor Macivor Today's your real estate update we're gonna be talking about the inventory we're very close to getting higher then 500 units for sale while that sounds fantastic and I have been talking about it for this last week because we haven't seen it for better than two years not a lot is going to change in the market I do not believe a surplus of inventory is going to come that's going to change the days on market time frames so you sellers out there that have been contemplating or contemplating a move but concern that you're not gonna find anywhere any place to move to IE another house to purchase maybe simultaneously having your house closed at the same time at the same time at the house that you have found for you you enter escrow and close that at the same time being a concurrent close that is something that should be a big concern to you as it is most sellers now if you have a rental strategy or if you happen to have a fifth wheel or a camping strategy that you're gonna go stay in the trailer for a few months I have clients that do that and that might not be a bad idea I just don't know how long those months are going to have to equate to to be able to see where you'll be able to buy a property at a better deal than you can today that's where the real estate market seems to be heading up and it has been doing that since of course about the end of 2011 or the beginning of 2012 that's not when the last foreclosure cycle started that was back in 0 7 but it took a while to hit that critical mass and actually go down to the bottom here in the Santa Cruta Valley and if you remember that foreclosure market that was gonna be at the end of 2011 beginning of 2012 that would have been the time to pull out that suitcase full of money you have hidden in your backyard or all the soup cans you have berries with buried with dollars in them take those and purchase a property that would have been like the perfect time now right now people are asking me I had a call the other day they have some money that they would like to invest in real estate and I said that's fine and um the caller mentioned seasoning not sure how they found me actually um and I said seasoning I said as far as the money goes and he said yes I said well seasoning has to do with the money having the either have been an account in an account for a while and also having some kind of verified origin now I don't believe the verified origin is a part but that's why I think that is in place it used to be money could you could just go buy a house cash now of course you go to the bank and try to deposit a certain amount of money they do notify the government in these sorts of things well that's that's been in lending and that's part of lending as well if you need to borrow money to purchase a house and you have gift money the gift money just needs to be I think from a verified source and I don't know the other additional requirements to have that money work lenders that's their business and of course like everything in the world things seem to change from time to time so I don't know where that is but that's one way to do it but when he asked about seasoning this is money who knows from where we didn't really get much further into it except that yes money that's in an account is required to be there in order to be used or at least from some type of verified source it can't just you can't just walk up and find a suitcase full of money and then go use that to buy a house well at least at least not here in California I believe the money has to be verified and now that I mention this I really don't know I don't recall but I'll find out for tomorrow show how about that and I'll mention that to you about verification money but that being the case I don't see where real estate is going to get into a realm where it's going to be less expensive except for the at least for the time being what's gonna be required to change the Santa Clarita market into more of a buyers market where there's less competition between buyers higher competition between real estate sellers it's going to take the market changing and morphing into more of a buyers market with more inventory in that inventory is going to have to take longer to sell currently we're anywhere about 10 days from a time of property gets listed for sale you get through that one weekend multiple offers usually start generating quite quickly it depends on the listing price but once that property is advertised and marketed put on the market there are buyers out there that are working with other agents that had been looking for residential real estate probably very much like yours so it's not a bad time to at least explore that getting the property on the market this August August what is that 13th and I've heard numbers of 17 as well there's gonna be some changes to the real estate market probably you as a buyer will notice it most in what you're signing to look at properties it's going to be required that a buyer broker agreement be signed and of course buyer broker the agent that you're working with it's not necessarily the case that they're actually a real estate broker real estate broker takes a certain time in the industry minimum number of in the regard with production so not very much or you can be an attorney and I think that blesses you into being able to take the test and I think you need four years as a real estate licensee you have a bachelor's degree I think that's reduced anyways most agents are not brokers or everybody would be a broker but a lot of agents that didn't make sense a lot of agents are not brokers so the buyer broker agreement is between you and the broker that the agent works for which I guess doesn't matter because it should be the case of course the broker would have ultimate control over this contract but it should be the case if you have some kind of a falling out or an issue you can go to your agency listen um you're not doing it for me you said you were gonna do these things you're not doing these things I want you to cut me out of that buyer broker agreement or the original buyer broker agreement you can have it specifically for a singular property so you don't maybe become committed to a real estate agent so that's where that markets gonna change for buyers for sellers you're probably not gonna see a lot going on online except if you were one that paid attention to what other sellers were offering other agents to bring buyers to their property to purchase it if you had been watching those numbers they will disappear there won't be any offering so now there's been jokes that have uh pictures that have been made that have hidden percentage signs in them or particular code that agents are gonna develop to communicate that the seller is offering a commission to the buyers agent interesting the way that took off and how wonderfully self serving it is for people in my industry I guess the same thing would work as I do with every listing I actually call the listing agent on behalf of my buyers not to check on the commission so that that'll be a new question is the seller offering compensation to the agent representing the buyer can be put anywhere from what I understand can be conveyed verbally but you wanna call and ask questions anyway it wasn't ever about that unless the seller was offering something something like maybe a flat fee in the agent had a question about it but usually it wasn't a discussion about are they offering will they pay me more only had that circumstance in last 24 years since I became licensed at 98 I've only had that happen happen one time that's 26 years in it so I've only had that happen one time where the agent part of the conversation was then wanting more would the seller entertain it and it was section out of the out of the left field question right field just out of the out of the stadium question when it came in I said well I don't know that wasn't part of the conversation because they're offering what the market offers anyway they wrote it the seller I explain to the sellers is normal they asked me if it's normal I said no first time and well they agreed to do what the buyers agent asked I think that market is going to get a lot more constrictive and it's definitely something to pay attention to with regard to the sellers of course you're not gonna see any kind of commission offering online but again I I don't think that hurts you in any way at least on the online channels also that variables not gonna be able to be used apparently as reasoning as to why something sold faster than something else for example if the commission rate was set at a higher level than normal did that property or on average to those properties sell faster than the properties that have been listed for sale and are now um have been listed for sale for less of an offering and in a commissioner concession so those of those changes I don't know if it's gonna really affect a lot on the front end I do know that in the buyers realm in a lot of cases they're gonna start to be saddled with the cost of the agent they hire to represent them so then the other part of the world everybody's been talking about how a real estate agent can express their value and if you haven't been doing that this time this whole time in some way shape or form in your business has really been one where people just come up to you and say please help me sell or please help me buy well good for you most of us in the industry have been working on our value proposition honing our craft making ourselves better at real estate making ourselves better and negotiation and while selling something really hasn't changed since the beginning of time now we have methods implements and technology that really helps us do that sort of thing because of that if you're good in this industry and you're constantly honing your craft and making it better you will be able to succeed you will be able to take your real estate business and exist no matter what the market somebody said to me the other day don't you miss the time when the market was easier and I said really it's not about easier in a foreclosure market people want to buy and sell real estate and they want a representative to represent them in a healthy real estate market people want to buy and sell real estate and want to represent a representative represent them now if it's a complete sellers market and you have a few people that say you know what I don't need to pay an agent I wanna sell my house myself absolutely welcome to this country we hope you enjoy it you can do anything you would like you can sell your house yourself and if you choose to do that that is totally up to you I can help people sell their house themselves guide give advice but at the end of the day that's kind of the same as maybe trying to do something myself maybe not a medical procedure I've heard that comparison made well that's like me doing open heart surgery to myself how can I even be awake if I'm doing that right on the other side of it though there are other things that I would not do there are people that I go for advice I I go to my tax person I'm not going to try to do my taxes a lot of folks do their taxes great they get kind of complicated it seems you know so does life the older you get and that being the case I need a tax advisor that I can call up and ask a question to where should I be with this what do you recommend I do with this or even better I have a client that wants to do this I can't get that fulfilled with myself because my knowledge is of a certain way of a certain thing or many things but not expert in all real estate really is my thing so I would hire an outside provider to do my taxes you might do the same with real estate I don't see it changing a lot for you I see the market still continue to become more expensive and I see real estate listing still being very constructive however we're about to go over 500 that's an awesome number but it's really not gonna change much in this market if interest rates do come down September or before as has been threatened the rate that they're talking about is the rate the bank gets to pay when moving money from bank to bank banks that's the bank rate and that's when they talk about the federal interest rate or the federal rate that being the case it's probably going to come down if that comes down then that usually trickles down to home buyers and if this real estate market gets into the fours or fives we're going to have a very exciting market even with over 500 real estate listings on the market for sale because like I said they've been selling 10 days just thereabouts if we have those interest rates drop into the force we're gonna see this market days on market time frames probably drop within a few days and it would only be a few days because sellers are getting so many offers they wanna hold out until they're pretty sure they've exhausted that are some smart sellers because they understand they're in competition with other listings in that particular predicament might find themselves saying oh my gosh this first offer that came in is really really good I know we're brand new on the market but if we can get this thing tied up before a neighbor list their house or before somebody else does something or the interest rates change great these are a couple different philosophies on the real estate world thank you for watching today's update we are at Tuesday we'll be back tomorrow hump day broadcast we'll talk about that foreclosure market I mentioned that kicked off back when that sub primer fell back late 0 6 God was it Marchable seven somewhere like that big lender bankruptcy the market came down like a house of cards I don't see that developing in the near future in fact they put so many restrictions on loans to get a home loan is not a walk in the park anymore I'm Connor MacIvor we'll see you soon thanks for watching Connor with honor over and out