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Navigating the Real Estate Market in Santa Clarita and Greater Los Angeles: A Comprehensive Guide · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Good morning, Connor with Honor.
• 0:01
  SPEAKER_00: I hope everybody's having a fantastic 6th of March, 2024.
• 0:05
  SPEAKER_00: Today we're going to talk about your Santa Clarita real estate update.
• 0:08
  SPEAKER_00: This is the foreclosures for Santa Clarita, Greater Los Angeles, Antelope Valley Show, of course, distressed properties, real estate-owned properties.
• 0:16
  SPEAKER_00: People want those because they see that those sometimes give them better deals.
• 0:20
  SPEAKER_00: Unfortunately, a lot of times the owners of them, the banks, aren't as nimble and they're looking for a very quick close.
• 0:28
  SPEAKER_00: But I'll give you more information on that and also talk to you about those numbers as they relate to what's currently on the market in the distressed property realm, both in the Santa Clarita Valley and also Greater Antelope Valley.
• 0:39
  SPEAKER_00: So I'll be able to cover that in just a moment.
• 0:42
  SPEAKER_00: A couple of different things that are being talked and being talked about online pertaining to people selling and buying real estate.
• 0:49
  SPEAKER_00: And of course, I do these shows every single day, talking about what's happening in the market, scouring the local news, and then also looking at inventory, seeing what's currently out there listed for sale, and then bringing that to my clients.
• 1:02
  SPEAKER_00: And today is no different because we've discovered that we are still increasing in the amount of listings that happen to be on the market for sale, both in the Admiral Valley and Santa Cruita Valley.
• 1:14
  SPEAKER_00: And that is something that buyers will be a little bit happy with, but unfortunately, those buyers out there have a ton of competition.
• 1:22
  SPEAKER_00: So while they might be happy, their results on the other end of it, whether they win that bid or not, might not be as happy of a place as they want.
• 1:32
  SPEAKER_00: So right now we have currently in Santa Clarita Valley 311 active listings.
• 1:37
  SPEAKER_00: Yesterday it was around 317, 320, I believe.
• 1:40
  SPEAKER_00: So those numbers do morph and change, but we've been consistently over 300 for the past few days.
• 1:45
  SPEAKER_00: Been monitoring the market prior to that.
• 1:47
  SPEAKER_00: We were at 250 to 270, so the inventory was quite low.
• 1:51
  SPEAKER_00: The real estate news online, they talk about the spring market having kicked off, and there's higher percentage numbers and people going into escrow and home selling.
• 2:01
  SPEAKER_00: And that is absolutely true.
• 2:03
  SPEAKER_00: While the market hasn't changed much, we're still very much in a seller's market.
• 2:08
  SPEAKER_00: With that extra inventory, what should happen is there could be, well, should, there could be a relief with the more units, the more houses, the more condos, the more townhomes we put on the market for sale.
• 2:20
  SPEAKER_00: The problem with that is we don't have a lot of that inventory even promised to be coming because the sellers don't have a place to go.
• 2:28
  SPEAKER_00: And also the sellers haven't done a lot of their homework to try to figure out if there might be another option.
• 2:34
  SPEAKER_00: And this is what's holding the sellers back currently.
• 2:37
  SPEAKER_00: A lot of them are at the two and the very low 3% interest rates for the residences, the real estate that they own, because they refinance when the rates were that low.
• 2:47
  SPEAKER_00: In order for them to move, they're going to need a place to go.
• 2:50
  SPEAKER_00: In order to go to a place, they're going to have to solve that mental dilemma that they could be having about them being uncomfortable where they are versus being happy with that interest rate versus being comfortable where they go somewhere else and uncomfortable with the new interest rate.
• 3:06
  SPEAKER_00: There could be other ways as well.
• 3:08
  SPEAKER_00: Some of the people that are out there purchasing real estate are trying to look for those assumable mortgages, the ones that are at the 2% and 3% that they can pick up and assume that actual mortgage level that that current owner of the property has.
• 3:21
  SPEAKER_00: Something to consider, maybe look for.
• 3:24
  SPEAKER_00: There's going to be even more talked about that particular system in the future.
• 3:28
  SPEAKER_00: I know a lot of people are trying to even develop their own startups that promise these ultra-low interest rates with maybe some kind of equity share in the property that you are buying, looking at that as good leverage over time.
• 3:42
  SPEAKER_00: We see that playing out as well in the financial markets.
• 3:45
  SPEAKER_00: Just be careful because that is super new, and I wouldn't want to see any of my clients getting involved in something that could that has a lot of fine print that hasn't even been worked out yet.
• 3:56
  SPEAKER_00: So do yourselves a favor, make sure you get good advice on that.
• 3:58
  SPEAKER_00: And if somebody's offering you a steal, make sure that that steal is really a steal and you're not getting stolen from.
• 4:06
  SPEAKER_00: Also, uh, the question gets out there do I have a neck?
• 4:09
  SPEAKER_00: Yeah, there's the neck right there.
• 4:11
  SPEAKER_00: I do have a neck, neck under there.
• 4:13
  SPEAKER_00: Just to let everybody know, people were thinking that because of the beard, I didn't actually have a neck.
• 4:18
  SPEAKER_00: But there's the neck.
• 4:20
  SPEAKER_00: Yep, it's there.
• 4:21
  SPEAKER_00: Not a it's big, but it's not uh one of those hourglass shaped necks that everybody likes.
• 4:25
  SPEAKER_00: All right, let's talk about foreclosures and short sale and probate and those types of properties.
• 4:30
  SPEAKER_00: Now, so I ran all the inventory currently, and I pulled it from Santa Clarita Valley as well.
• 4:36
  SPEAKER_00: So I looked at everything that happened to be in the foreclosure world, and I did that search.
• 4:43
  SPEAKER_00: Let me do it again here because I definitely cut it off.
• 4:46
  SPEAKER_00: So we're gonna look at this everything condominium townhome, single family residences, and I'm gonna look at notice of default file properties.
• 4:54
  SPEAKER_00: These are properties that typically haven't had a payment made for some time.
• 4:59
  SPEAKER_00: Back in the day, the last foreclosure cycle in 2007 to about 2011 or 12, as the majority of the foreclosures hit the market in that time, and our market bottomed out in Santa Crita Valley at the end of 2011, the beginning of 2012.
• 5:13
  SPEAKER_00: We saw majority of the properties listed for sale were real estate-owned bank bank-owned foreclosures, real estate owned.
• 5:20
  SPEAKER_00: We saw a lot of notice of the fault properties and short sale properties, HUD-owned properties, the housing and development owning those distressed properties as well.
• 5:29
  SPEAKER_00: We saw, so I'm going to click all those.
• 5:31
  SPEAKER_00: Short sales, probate listings.
• 5:34
  SPEAKER_00: People wonder if they can get a good deal on those.
• 5:36
  SPEAKER_00: Absolutely, that is possible, but most probate listings have an appraisal, appraiser that actually goes out to the property to establish that current value.
• 5:47
  SPEAKER_00: And a lot of the times, as the offerings on those properties are less than what that appraiser requires, sometimes it needs to go back to the court to get more, uh, have more people discuss what they're going to do and what strategies they're going to do in order to sell that property for less than what the appraiser said.
• 6:03
  SPEAKER_00: Now, you could always need court approval with a probate sale.
• 6:07
  SPEAKER_00: It always might have to go back to court.
• 6:09
  SPEAKER_00: It's just going to depend on how that particular probate is structured and what instructions the court has given as far as having that property liquidated.
• 6:18
  SPEAKER_00: So I did include those as well.
• 6:20
  SPEAKER_00: And auction properties, of course.
• 6:22
  SPEAKER_00: That was a little bit of a scam when things started moving forward.
• 6:25
  SPEAKER_00: Bankruptcy properties as well, something to maybe consider.
• 6:28
  SPEAKER_00: Uh third-party approval, no, trusts, no, conservatorship, no.
• 6:32
  SPEAKER_00: All right, so of that, and then we're going to punch in, of course, our cities, Castac, Canyon Country, Newhall, Saugus, Stevenson Ranch, and Valencia.
• 6:44
  SPEAKER_00: Just like that.
• 6:45
  SPEAKER_00: All right, so currently I'm popping eight.
• 6:47
  SPEAKER_00: Eight distressed properties.
• 6:48
  SPEAKER_00: You got one on Boquet Canyon, one on Robin, one on Onley, one on King's Crest, one on Barrel.
• 6:53
  SPEAKER_00: That's in Castay, one in Vermont, on Vermont in New Hall, another one Avenue of the Oaks, number D in New Hall, one in Canyon Country.
• 7:00
  SPEAKER_00: Now, these are, these aren't, none of these are actually bank-owned foreclosures.
• 7:06
  SPEAKER_00: We have three probates plus trust approval, plus notice of default probate, notice of default probate, probate, notice of default, and also a short pay.
• 7:17
  SPEAKER_00: So in these circumstances with short pays, it's the case of an owner of a property wanting to have the bank approached and the bank asked if they will be allowed to sell the property for less than what they owe.
• 7:31
  SPEAKER_00: It was the last foreclosure cycle that we had a lot of staff online at the banks in order to take care of the short sales.
• 7:40
  SPEAKER_00: So they actually had assigned case workers, they had people that would actually work the short sale, they would talk to me, they would talk to my staff, and as we coordinated the short sale for our real estate seller, it all worked out great because we had full approval from all of those entities.
• 7:55
  SPEAKER_00: Now, usually the REO department, if they're even in existence at most of these banks, it's probably down to a skeleton crew, they're going to be handling that.
• 8:04
  SPEAKER_00: And they'll be the ones that either approve or deny the short sale.
• 8:09
  SPEAKER_00: But for you as a real estate buyer approaching a short sale, you never know until it's finally finished if in fact you're going to get that approval and going to get that blessing.
• 8:19
  SPEAKER_00: And in addition, the bank sets the price.
• 8:23
  SPEAKER_00: So while you might see sticker price, I hate to use the car analogy, but listing price on a property at$800,000, that could be a couple different, the couple different ways to look at that.
• 8:35
  SPEAKER_00: That could be the agent being smart, putting in another disclaimer stating that the bank, the price of this property is subject to the lender approval.
• 8:45
  SPEAKER_00: So they'll put it any price they want.
• 8:46
  SPEAKER_00: They could put it on the market for a dollar.
• 8:48
  SPEAKER_00: While that's incredibly unrealistic and doing the seller and even the bank a huge disservice, that could be a strategy.
• 8:55
  SPEAKER_00: So understand going in when you're looking at short sales or notice of default properties in the foreclosure world in order to try to get a leg up or an advantage, maybe that's your investment strategy.
• 9:05
  SPEAKER_00: Make sure you understand that, in fact, the bank decides on what that actual sales price will be.
• 9:11
  SPEAKER_00: You can write them an offer at what they're asking.
• 9:14
  SPEAKER_00: Make it as clean as possible all day long.
• 9:17
  SPEAKER_00: But at the end, the bank's going to come back and say whether or not that amount has been approved.
• 9:21
  SPEAKER_00: And remember, I talked about probate sales.
• 9:24
  SPEAKER_00: Short sales are a lot different.
• 9:25
  SPEAKER_00: A probate sale is a property that just didn't have any assignments on it, typically like a will or a living trust.
• 9:31
  SPEAKER_00: So they need proper guidance from the court in order to sell and move the monies from these sales to the different entities.
• 9:40
  SPEAKER_00: You know, maybe it's some people that they owe, maybe they just want their grandkids getting the money, maybe they just want one of the kids because they had a favorite getting the money, whatever it may be, that's that purpose.
• 9:50
  SPEAKER_00: But moving into the short sales, that's going to require bank approval.
• 9:54
  SPEAKER_00: And the regular real estate-owned properties also require bank approval.
• 9:59
  SPEAKER_00: But more than likely, they're going to be handling those short sales as well.
• 10:02
  SPEAKER_00: Probate department, if the banks really, it's the contract on the end, the court approval that really does it, and the bank really could care to last as long as if there is a loan on the property, everything gets satisfied.
• 10:14
  SPEAKER_00: A lot of the probates, believe it or not, because they're usually involving the older folks.
• 10:18
  SPEAKER_00: And maybe the older folks, those generations that pay off their houses were a little bit more savvy than the rest of us, paycheck-to-paycheck types.
• 10:25
  SPEAKER_00: But that might be something to at least understand.
• 10:29
  SPEAKER_00: So when you do want to approach the distressed property, as far as a short-sale notice of default, those types of listings, at least you kind of that mechanism works.
• 10:38
  SPEAKER_00: Now, what we want to do is talk about how we get into that, but let me look at the Antelope Valley.
• 10:44
  SPEAKER_00: So that was what's happening in Santa Clarita Valley as far as those numbers go, and it's not very many.
• 10:49
  SPEAKER_00: So we got eight total distressed properties, none of which are actual foreclosures.
• 10:54
  SPEAKER_00: Then we move in the Antelope Valley.
• 10:56
  SPEAKER_00: We have nine in all of the Antelope, and we have those properties.
• 11:00
  SPEAKER_00: Let me let me look at the list real quick so we can kind of show you, and I can tell you exactly what they are.
• 11:05
  SPEAKER_00: So these are properties that are listed with issues as far as what they are uh probate, notice default.
• 11:15
  SPEAKER_00: So right here we will show that.
• 11:17
  SPEAKER_00: The first one here is we pull them up, they're running.
• 11:20
  SPEAKER_00: So we have notice of defaults, one bank-owned property, and the rest of them are notice of default short sales and probates.
• 11:27
  SPEAKER_00: So as far as the market goes, the market indicates super healthy because we have very limited distressed properties on the market.
• 11:35
  SPEAKER_00: However, back in the day when I started real estate in 1998, the market was super robust and healthy, and that continued to 2007.
• 11:44
  SPEAKER_00: In 2007 is when the foreclosure market started, and then there were these things called short sales or short pays that a lot of other agents that have been in the business a long time, most of them are not anymore, but they knew a lot about it.
• 11:57
  SPEAKER_00: So I was able to pick up training for them and understand the concept.
• 12:00
  SPEAKER_00: And then I was able to handle the short sales.
• 12:02
  SPEAKER_00: So whenever this next cycle comes, that'll be something else I'll be able to help with as well.
• 12:07
  SPEAKER_00: When you're ready, let me know.
• 12:08
  SPEAKER_00: I try to prepare everybody to understand what's going on in the inventory, how to best approach real estate as a whether an investor or just a first-time buyer or a multi-time multitude time buyer or those people that are looking to sell their real estate in the best possible way.
• 12:24
  SPEAKER_00: When you're ready, let me know.
• 12:26
  SPEAKER_00: If you need me, I'm here.
• 12:28
  SPEAKER_00: Connor with honor over now.
• 12:29
  SPEAKER_00: See you tomorrow.