Latest / Connor with Honor: AI, Real Estate and Real Life / Halloween update 2022 Santa Clarita real estate by Connor with Honor Real Estate One Group Success

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Halloween update 2022 Santa Clarita real estate by Connor with Honor Real Estate One Group Success · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Connor McIver, Connor with Honor, local agent here in Santa Clarita Valley.
• 0:04
  SPEAKER_00: Today is the 31st of October.
• 0:07
  SPEAKER_00: Real estate update for those of you that want to know what's going on in the world.
• 0:12
  SPEAKER_00: Lots of rumors out there, so try to control that feeling that you have and that angst and anxiety, especially if real estate is something that you're trying to grab onto or let go of, no panic at this point.
• 0:26
  SPEAKER_00: And also remember that most markets are very relative to one another.
• 0:29
  SPEAKER_00: If in fact what that means is basically if you're selling some place that has a depressed real estate economy, typically where you're buying is going to also have a depressed real estate economy.
• 0:41
  SPEAKER_00: And numbers show, especially if you're looking at, let's say, the Los Angeles, California market, including where we're headquartered in Santa Clarita Valley, and you look at that in comparison to a smaller market somewhere in Arizona, Utah, where people are going, Tennessee, Idaho, and of course those prices have gone up because California folks have migrated, moved, relocated out there.
• 1:04
  SPEAKER_00: But in a, you know, at the end of the day, price per square foot is still gonna be considerably less where you're going.
• 1:09
  SPEAKER_00: And if our economy out here is depressed, then typically you're gonna run into that wherever you're gonna go.
• 1:15
  SPEAKER_00: Now, if you go to a a high influence market, so from Los Angeles, for example, to Manhattan, yeah, we there's there's gonna be uh it's gonna probably be a wash, maybe even price per square foot wise, maybe even more expensive depending on how much land, and you know, if you're going up instead of out, that tends to make real estate a lot more expensive.
• 1:39
  SPEAKER_00: So as far as real estate listings go and real numbers and those numbers change daily.
• 1:44
  SPEAKER_00: But in Santa Clarita Valley, we're getting back to what's known as more of a normal market where properties aren't selling within a few days or even a few hours, as we saw back several months ago during 2021, and of course the first quarter, first half of 2022, the market started to make an adjustment.
• 2:04
  SPEAKER_00: And that adjustment includes price changes where sellers are still holding on to those old fonts, talking to their neighbors, neighbors that sold at the height of the market, the sellers that are out there are still expecting to hopefully sell their house for something very similar to what their neighbors' home sold for.
• 2:22
  SPEAKER_00: But hate to be the bearer of bad news, but in most cases that's not happening.
• 2:27
  SPEAKER_00: And also the appraisers are starting to reflect that in the appraisal amounts that they're given to properties instead of them being ultra high, because we don't have that influx of cash that we saw back when the market was super hopping.
• 2:41
  SPEAKER_00: And the influx was people coming in, offering a certain amount of money for the home, but because of the high competition, they said, you know what we're gonna do?
• 2:49
  SPEAKER_00: We're gonna go ahead and give you an extra 80, 100, 120, 150, whatever the number is, that much in cash.
• 2:57
  SPEAKER_00: And that being the case, we don't care if it appraises for that amount.
• 3:02
  SPEAKER_00: We just want to make the offer.
• 3:03
  SPEAKER_00: So thereby they would then waive their appraisal contingency or the fact that the house needs to appraise for a certain amount of money before they're able to purchase it.
• 3:13
  SPEAKER_00: In that case, there were people giving up their rights to have inspections, there were giving, they were giving up their rights to do any kind of recon on the property.
• 3:23
  SPEAKER_00: So basically, once they went in, and whenever you make an offer on real estate, you are doing so by giving or promising a deposit amount of money.
• 3:32
  SPEAKER_00: Back in the day, that used to be real money, or actually a check was written at the time you wrote the offer, and that check was taken by your agent and deposited into an escrow account.
• 3:41
  SPEAKER_00: That's how it used to work.
• 3:42
  SPEAKER_00: So then it went from that to just a copy of a check, and then from the copy of the check, now it's the check has to be deposited within a few days within escrow after you have an accepted offer.
• 3:54
  SPEAKER_00: Now, that money, if you remove all of your contingencies as part of your offer, stating, hey, I, Connor McIver, will buy your house, and I don't care what it appraises for, I don't care how the inspections look, I don't care about anything.
• 4:07
  SPEAKER_00: I just want to buy it.
• 4:09
  SPEAKER_00: And that being the case, this 3% escrow or earnest money deposit that gets deposited in escrow, that will become your property if I cancel for any reason.
• 4:20
  SPEAKER_00: Period.
• 4:21
  SPEAKER_00: Any reason, anytime.
• 4:23
  SPEAKER_00: Typically, in a real estate transaction, how it's supposed to work, well, contractually, how it works is you have a certain amount of days as a home buyer to do your investigations, to review what the seller even put together, known as disclosures, saying, Well, this, you know, we painted this room or we had this pipe break upstairs that flooded the house, so we did this, this, and this to remedy it.
• 4:43
  SPEAKER_00: Please make sure you look at that.
• 4:45
  SPEAKER_00: Because with those issues, with that massive water intrusion in some cases with the flooding, what do you have growing if it wasn't fixed or dried out?
• 4:55
  SPEAKER_00: Mold is a problem and can be a problem, so that's why it's very important to have those investigations done.
• 5:04
  SPEAKER_00: But again, the market was so hot people were doing that.
• 5:07
  SPEAKER_00: I think we're gonna see a little bit of fallback from people going out there purchasing residential real estate, waiving all of their contingencies out of the chute, making offers for a lot more than the properties are worth because they out of desperation, and you know what, to be completely frank, you love the property, you're good with the interest rate, you're good with the payment, you're good with that offer.
• 5:29
  SPEAKER_00: Most people are gonna continue to move forward because eventually, even if the market becomes depressed now, eventually that price is gonna be there for you, and then eventually it will continue to gain in value.
• 5:42
  SPEAKER_00: That is the way real estate works.
• 5:44
  SPEAKER_00: That's why it still is a good investment for people.
• 5:48
  SPEAKER_00: Plus, you're paying for your own way, you're not providing somebody else money for their mortgage so they can then earn and reap the benefits of that home purchase that you're renting from them.
• 5:59
  SPEAKER_00: You're actually buying it, so now that equity becomes yours, and you get all the write-offs associated with it, so on and so forth.
• 6:06
  SPEAKER_00: That's where the market was.
• 6:07
  SPEAKER_00: Now we have a different market where we do have um not as much competition.
• 6:13
  SPEAKER_00: We have properties taking longer to sell.
• 6:15
  SPEAKER_00: The buyers out there have a lot more choices now, so we're seeing more cancellations because the buyers, whether right or wrong and ethically, could pose an issue, but they make an offer on a property, offer gets accepted, and they get close to getting an escrow, but then something else pops on the market they like better.
• 6:34
  SPEAKER_00: Well, what do they do?
• 6:36
  SPEAKER_00: Do they cancel with the other property?
• 6:38
  SPEAKER_00: Unfortunately, I've had a couple sellers very miffed, but I go in and explain this process.
• 6:43
  SPEAKER_00: I have a couple of sellers that have gotten very miffed when those buyers have canceled escrow, represented by somebody else, of course.
• 6:51
  SPEAKER_00: I don't like the dual representation model California allows.
• 6:55
  SPEAKER_00: And represented by somebody else, they go out and they look at other properties, and of course, what happens?
• 6:59
  SPEAKER_00: Well, they find something else, write the offer, get accepted, and then they come back and they say, you know what, we're gonna go ahead and cancel with the property that we're in escrow with now.
• 7:10
  SPEAKER_00: And usually they don't come to Jesus, if I may use that term, as far as what the truth is, they usually say, Well, the buyer changed their mind, or maybe the buyer lost their job, or they make up some nonsense.
• 7:22
  SPEAKER_00: And at that time, because they haven't removed their contingencies, because that's where the market is, because they haven't removed their contingencies, they thereby get their entire deposit back.
• 7:33
  SPEAKER_00: And now the seller's property goes back on the market as having fallen out of escrow.
• 7:38
  SPEAKER_00: Is it good for a seller?
• 7:39
  SPEAKER_00: No, it's not very nice.
• 7:41
  SPEAKER_00: Is it nice for a buyer to do that, to play that?
• 7:43
  SPEAKER_00: No, it's not.
• 7:44
  SPEAKER_00: Buyers need to go in having it explained that if you want to buy a house, these are the things that you need to put into place mentally and of course monetarily.
• 7:56
  SPEAKER_00: I'm Connor McIver.
• 7:58
  SPEAKER_00: When you're ready, just Google Connor with honor.
• 8:00
  SPEAKER_00: You'll pull up my podcasts, my YouTube videos, all the different systems out there I have in place to keep my buyers and sellers updated.
• 8:07
  SPEAKER_00: Thank you for the day.
• 8:08
  SPEAKER_00: Enjoy your Halloween.
• 8:09
  SPEAKER_00: If you're taking your kids out, be safe.
• 8:11
  SPEAKER_00: Look over the candy.
• 8:12
  SPEAKER_00: There's a lot of creeps out there.
• 8:13
  SPEAKER_00: Uh that comes from my law enforcement background.
• 8:15
  SPEAKER_00: I don't want to see anybody hurt this year.
• 8:18
  SPEAKER_00: And, you know, maybe keep it safe.
• 8:19
  SPEAKER_00: Maybe have a party at home.
• 8:20
  SPEAKER_00: Maybe the door to door thing isn't something that's going to be done.
• 8:23
  SPEAKER_00: You know, COVID and all that other stuff.
• 8:25
  SPEAKER_00: I'm Connor with Honor.
• 8:26
  SPEAKER_00: Thank you very much.
• 8:27
  SPEAKER_00: Please share this with your friends, family, relatives, and those of you that know that I could that could use my services.
• 8:33
  SPEAKER_00: Be well.
• 8:34
  SPEAKER_00: I am Connor with Honor.
• 8:35
  SPEAKER_00: Overnight.