Are the Santa Clarita real estate investors creating a housing bubble?


    There are a lot of investors out in the current real estate market snapping up properties that are placed for sale. The Santa Clarita Real Estate sellers find it hard to resist their cash terms.

    In comparison with any other types of buyers – the Conventional 20% or more down, there is still the necessity for appraisal and a loan to have to be worked out. There is still a level of review and there is still not a 100% chance of it closing in accordance with the Sellers Wishes.

    The less than 20% down buyer. This one may be anywhere between 3 and 15% down. The lower the down on this type of conventional loan the better the borrowers credit profile has to be. There is PMI attached, Property Mortgage Insurance, with each of these, less than 20% down loans, there is still the need for the appraisal and even more levels of review. Compared to Cash and the “no appraisal” issue that most investors employ – these are less attractive to sellers.

    We then have the FHA/VA buyer. Time Frames on both of these loan types, with rigid appraisal guidelines, can cause sellers to totally dismiss anyone offering on a home with FHA or VA financing. This is especially true when competing with a cash buyer. Most cash buyers don’t care about about appraised value and because they usually have waived having one done at all. Levels of Review – A bunch with VA and FHA – a lot of eyes on these home purchases – the greatest chance of the Sellers not getting what they want in the end.

    Without the appraisals in place – investor buyers can offer more than “appraised” or fair market value and buy homes. Those numbers are recorded as housing prices. When enough of these record – you watch as prices increase. Today, we have been watching this happen for the last several months in the Santa Clarita Valley Cities. click here to see where the home prices are at today in the Santa Clarita Valley

    What happens when the appraisal waiving investors quit buying and the appraisers start doing their job again? We will all hear a small “Pop”. It won’t cut home values at the almost 50% level we had seen in some of the Santa Clarita Valley cities. However, it will cause a decrease in real estate prices if we have the inventory to sell. click here to see the current levels of Santa Clarita real estate inventory in the specific Santa Clarita Cities

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    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. SCVnest.com/blog is where you will find over 10,000 real estate articles. Go to SCVnest.com/radio to listen to their latest real estate radio broadcast.

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