Daily Santa Clarita Radio Show:
Hey everybody – thanks for checking out our REMAX Realtor blog and you have found us on our Real Estate Daily Broadcast. Today we are going to get into our Friday Finale Broadcast – showing you the current price changes in real estate and how they may affect you as a buyer or seller.
Intros – Who is Paris911?
Paris MacIvor, is the “paris” part of our brand. (and yes, she is a real person, not someone that is made up 🙂 )
Connor MacIvor, he is the “911” component of our Paris911 team of Realtors. He was (I’m speaking in the third person), a LAPD Cop for a long time, resigned, stayed on as a reserve officer for the lapd and finally dropped it back in May of 2013.
So – We are The Paris911 Team. Every once in a while I like to get into how we formed our team name.
In the real estate News:
Money continues to get cheaper with interest rates still hovering around the 4 percent mark for most of the 30 year mortgages and loan types.
This is good news for buyers of real estate today. There is also information related to being able to borrow money for a 15 year term and being able to get 100% financing.
When I asked a local lender if they offer a product like this, they said they did not, but some lenders do.
That is why it’s important to shop around to find who will best serve you. Also, although the 15 year term may sound like just what the doctor ordered, it may not be.
The Buyers Nightmare…
They were “internet savvy” and went online and used a company that was selling them a loan for a song(really cheap).
The lending company, which I’m sure you have heard of, is based on the east coast and does a lot of Television and Radio Ads.
During the negotiation for the purchase of the home, the seller was adamant for the buyer of the home to pay a Per Diem Fee. This equates to the buyer having to pay a penalty for every day “late” which the home does not close, as it would be the lender’s fault.
The escrow term was 30 days and the real estate buyers were excited. They contacted their lender on the east coast, sent them all of the executed contract pages, and their lender said “no problem, it’ll be done, 30 days no sweat, we do this all of the time…”
Apparently the real estate buyer received all of that confidence verbally and not in writing.
So the escrow progressed, the lender needed items, which is typical, the buyers performed, sending them what they needed in a timely manner.
The inspections took place, the buyers were happy, the seller was given a request for repairs, that went as planned – buyers were still happy.
The appraisal came back at value – buyers and seller were happy.
Loan Documents were sent – Buyers, signed, they were happy.
The 30 day mark came and the deal did not close. The lender went dark, the “personal” lender the buyers were working with was on vacation.
They asked to speak with someone else, and did, the person was inept. The “inept” person was told of the scenario and he said he would have to get a manager to call them back.
The per diem, agreed upon, was $150.00 a day. The next day, no call back, the buyers called back the lending office that was located on the east coast. The buyers were in Santa Clarita California.
The manager was out to lunch. (at 10am East Coast Time). They asked to speak with a supervisor and they were told the supervisor was in a meeting and would have to call them back.
15 days passed. Each one being just like this one. On day 16 they called and the “personal” lender they had been dealing with was back.
The personal lender told them he does not know what happened and the deal should have gone through, but at this stage, new loan documents were going to have to be printed and re-sent because the old ones expired 🙁 …
It happens more than you may know. Be guided by your real estate professional.
I’m Connor MacIvor – Whew…
Santa Clarita price changes
One of the things that we always advise our clients is to let us run the properties that have the most dramatic price changes – maybe they will consider going lower.
In addition to that, maybe those homes that have had the longer days on market time will be more negotiable in the “discount” arena.
The price changes were across the board. Not just limited to the Santa Clarita Single family residences, but applicable to Condos and Town homes in all of the Santa Clarita Valley Cities.
Back in the last Foreclosure and REO market, a real estate agent could set their watch by the 30 day mark when foreclosures would have their prices changed. It was awesome. Exactly at the 30 day mark, if the foreclosure/bank owned home did not sell and was not in escrow, the agent with the listing was mandated to do a price reduction.
The price reduction amount was always dependent on the asset manager handling that particular asset. Some experienced considerable discounts, some – not so much.
Another interesting thing that occurred was if the “price reduction” amount that the listing agent suggested was above the “AM’s approval level”(asset manager), the bank would order another real estate agent respond to the property and do BPO(broker price opinion).
That was just in case the banks hired realtor was running them around the proverbial tree and lying to them.
Email Question of the day
Debbie wants to know, “Connor, how do I know the fee’s that my lender is charging me?”
Hey Debbie, thanks for your question.
Here is how. Make sure you get something called a “Good Faith Estimate” from the lender you are working with.
Get one with each variation of loan program they are discussing with you.
If they are talking about a 20 percent down conventional loan – get one corresponding to that.
Maybe it’s a 3.5 percent down FHA loan – get one for that.
VA – or 10% down – of 3% down – get one for those too.
Some lenders will tell you they cannot produce a good faith estimate (GFE), because you don’t have a home that you have identified yet.
That is not true, it’s just that the good faith estimate is based on a specific purchase price and type of home.
Some homes, condos and town homes have HOA fees (home owners association), some homes have extra taxes, etc – so the GFE don’t be dialed in exactly – but it will be pretty darn close.
Just throw the lender a number and have them get it done!
If you have a question – fire it off to me at email@example.com and I’ll answer it and may put it on our daily Santa Clarita real estate radio show.
Real Estate Tips:
I have two tips that came to light during our daily Santa Clarita real estate radio show.
1. Get it in writing – it may seem redundant – but getting something in writing that was promised to you verbally will give you less stress.
2. Work with someone you can visit in “person”. It may be necessary for you to drive to their offices and confront them if things go not as expected. 🙂
If those you have hired are on the east coast, and you are on the west coast – good luck with that!
Tomorrow’s Show – Sold Saturdays
Enjoy today show – reach out me when you are ready for our help and we will take great care of you.
Don’t forget to check out our youtube channel for a lot of great videos that will help you make better real estate decisions and choices.