In real estate – we have back up positions too. They are a fail safe if the first offer accepted falls apart. There are different percentages of chance that an offer won’t make it to the finish line depending on the housing market.
Back before the last fall in real estate, the chances of an accepted offer not being accepted were rare. That is because the guidelines were much less taken seriously and much looser. (2004-2006)
Today, that is not the case. We see that 25-35% of the real estate transactions don’t make it to the finish line with the first offer accepted. (2008 to present)
There are reasons for this, most having nothing to do with the seller and the home being purchased. These “falling out” events come about when the lender cannot get the home buyer approved for some reason.
HousingRadio.com Transcription Start:
(this transcription has been completed by computer – it’s not great, but gives the gist of the show. listen to today’s real estate broadcast to get the full expansiveness 🙂 )
ValenciaRealtor: 00:00 Good everybody, Connor, MacIvor here. Welcome to housingradio.com. We did take a few siesta moments to at least some of the radio show yesterday. Got a couple of calls and list properties out in Castaic CA. Stick at, of course, helping you folks comes before any radio show. How’s the radio.com, the longest running podcast slash radio show here in Santa Clarita Valley? I remember when the owner of the local station out here hit me up a while back to put together some kind of a format and now they have lenders taking over, which I think is best. I want to focus on one thing and one thing only and that’s protecting and serving my real estate clients above and beyond all else without any other special interest or anything, so that’s number one. So I don’t want to be having to use particular lenders or first certain lenders.
ValenciaRealtor: 00:47 I wonder for the best in the business, I want to make sure that my clients are getting the best information possible and using those best resources without having to be forced to use particular vendors or resources. One of these, they will tell you today is number day 58 of 2018, where the last day of February, I believe. Today’s the last day of February, 20 sevenths. Let me just punch that up here. I’m sure you know, but just for funsies, we’ll uh, we’ll do that. Sorry, 28 days this year in February and not a leap here. So we will experience one more day Wednesday which will be tomorrow. Let’s talk about the real estate news. Those interest rates ever. Everybody panicked. So sellers are starting to make decisions based on those interests rates that we foresee coming and that’s going to be higher than where they are typically are where they have been for a very long time in the forest.
ValenciaRealtor: 01:41 We see these, these interest rates probably going into the [inaudible], potentially sixes maybe in 2019. They’re not going to go up that quickly because that will hurt the market. However, one of the things we advise all of our clients to do, keep an eye on the stock market and watch how it’s moving around. When it starts to show signs of instability, he going up and going down and losing a lot and then getting a little. That starts to make people nervous, so that’s when a lot of these big money people start going out there, investing in hard items, tangible items, things they can touch. That includes real estate, so your real estate, your gold, your silver, your precious metals. Those are all going to become more attractive to investors for those long-term strategies and even short term in some cases Susi the market kicking off.
ValenciaRealtor: 02:31 However, that would be great news if we had a lot of inventory, we don’t, so all that’s going to do is stimulate the market and becoming a deeper seller’s market. If in fact, that happens right now, we do see a great seller’s market for those that are looking to put their property on the market for sale. The dilemma comes to our current real estate sellers. Are we going to be able to find something that was both discussions yesterday about Hashtag listings? The sellers were very excited, but one of them purchased 10 years ago and they’re great on the equity stance, not only of what they paid in, but that was somewhere near the peak of the last real estate cycle and we are there is very, very happy with those numbers. However, now to purchase something else, that’s going to be the trick now where he’s going in that million dollar price range from about three quarters of a million to a million and a quarter, he’s probably going to be okay because those properties in that price range, at least in Santa Clarita Valley Valencia, they take a little bit longer to sell, so you can see the days on market timeframes.
ValenciaRealtor: 03:38 As you get more expensive, those properties move a little bit slower, which would make sense not that many people up in that price range. However, you look at 450 to $650,000. Those properties don’t take very long to sell it all, especially now because of the lack of real estate inventory that we’ve seen that for quite a while here at the Santa creative value. In fact, we have not seen these numbers as low as we have regarding inventory since back in 1999, so it has been a long time currently as of this morning, the 20 seventh day, not the last day of February. As we find out 300 eighty-seven active Valencia real estate listings. That is going to be all of the listings in Santa Clarita Valley, pulled from Scv Nest Dot Scv and ESD.com. You will see that. That’s it. That’s all the action. If you look at overall including those properties in escrow that are in some kind of process, either active backup, which means they’re accepting other offers on the property, which most sellers should do unless the agents being a little bit lazy, but we can talk about that on today’s real estate radio show.
ValenciaRealtor: 04:51 At least keep that property active. I like a couple of backup offers if at all possible, just because that’s going to not only make myself seller happy, but it’s going to make me happy. Just in case that first buyer, the one that came in hot and heavy at the beginning starts to change their mind or sometimes in some cases more inventory starts to come on the market and that’s going to happen as it always does this time a year, probably not in the numbers we typically see just because of the question about am I gonna find another property and also I don’t know if I can give up this interest rate, but we’re still gonna. See the market stimulated here in the next few months just because school is going to be letting out. People are going to be planning a little bit of summer vacation, but then they’re going to be looking at it, you know what?
ValenciaRealtor: 05:37 We needed a bigger house or you know what? The kids are going to be gone to college this year. The last one is flying the coop. We’re going to need to downsize or we’re gonna need to liquidate and get out of the state. Whatever it may be. We’re going to see that trend occurs. We do every single year, even in the low point or a horrible market. People still have to move out of necessity to make their family happy themselves, happy and so on, just because it makes fiscal sense. All of those listings that are in process 611 all over southern California. <Unk> 48, not a big shock. That’s all the active listings here in southern California. All the numbers pulled from ScvNest.com, so we’ve got a scvblog.com. We have written some articles. We have put together a resource page summit real estate news dot [inaudible] summit real estate news.com, and what you’ll see is we put together that page where we talk about everything that is the summit’s so you’ll want to check that out if you’ve never listened to the radio show, never been here before.
ValenciaRealtor: 06:39 We do this for all the very special communities. We happen to live there and that’s sent, excuse me, summit real estate news.com. You’ll be able to see all the current inventory that is just the summit. That’s going to include your window mirrors, your Chelsea’s your Stratford collection officer. San Marino is. There are four different types of living, if you will, in the, in the Valencia Summit. Also, we do talk about the sales systems and how to keep safe. Right. Then it goes for the neighborhood. One of the things we’ve put together recently happens to be something on the, the video doorbells systems who seen that ring? You know, we have those. A lot of the neighbors have. Those were all part of neighbor woods, which is a resource. You have to be careful, you know, giving up who you are on these things when you get the links.
ValenciaRealtor: 07:29 Because of a lot of, uh, agents such as myself and other vendors, they’re going to get your personal information. It might, you know, give you a call. Hey listen, I’m a building contractor. We were going around in the area checking out roofs and stuff. Be careful with that because you’ll eat. Really don’t know who they are. I would ask for a neighbor’s advisor even on one of these apps that they do send that information. You can hit up your neighbor, say, Hey, who do you like for roofs? We haven’t delighted a guy named Steve. He does that for ours. If you’re interested in that, I have to do is reach me up not just about real estate. When I say, hey Connor, who would you, uh, who’d you recommend or to replace? Doors. We like a Mike’s Windows and doors out here. He does a great job moving a Qms, uh, the Mayflower system.
ValenciaRealtor: 08:12 Affordable beauty, moving quality, and storage, affordable quality. Moving and storage. The AKC current. We liked him. Good. Good group. They moved us a few times. What’s a lot of our clients? Just good stuff, right? That’s what it’s about being a member of a community, but you can see that on that particular system when you go, and again, that’s going to be a pulling up Scv blog and then you’ll see the wing mirrors. I do these specific tracks to give information about what’s going on in real estate. Let’s talk about the show topic that I was going to get into with regard to the additional offers on real estate and kind of run you through what’s legal and what’s not. From the standpoint of a home buyer, you’re going to be online looking for real estate listings and again, finding listings online. Not a big deal.
ValenciaRealtor: 09:01 Everybody seems to have the syndication fee. That’s just the question I want to ask yourself is who owns this site and what’s their intention? If their intention is to take your personal and private information and sell it to a whole bunch of agents willing to pay for it, that’s probably not the best place to be. Searching Scv, [inaudible] dot [inaudible], CV and s, t dot [inaudible], like a bird’s nest senate creative values with a stands for SCB nest.com. That’s going to be that local resource. Mine I don’t sell or resell or trade or give up. I would like you to work with me, but if you have your own. I understand they don’t have the systems in place. I get that too. At the end of the day, it’s going to be your choice, but none of your information goes anywhere. It’s an SSL side. It’s encrypted, so any of the member’s information moving back and forth, that’s not going to be gone.
ValenciaRealtor: 09:50 Going anywhere else except into my hands and I don’t do anything with it except potentially reach out or you’ll reach out to me and say, hey Connor, I want your help and we’ll set up a meeting, but at the end of the day, when you’re searching on any one of the real estate websites, you’re going to run into active listings, which should be those that are completely active without offers. Now there is a particular timeframe. The agent has a couple of days to be able to change the status, so. So let’s say we get a contract today on one of our properties. We go back and forth. We negotiated out with our seller and the seller then agrees to it. I have a couple of days in which to go into the multiple listing services and change it. Now what I like to do is I’ll do it right away just because I don’t.
ValenciaRealtor: 10:36 I know how it feels to take my buyer to a home where I have been unable to speak to that agent because they’re not doing a good job at being an agent. They should be answering that phone. They should be returning the phone calls to the other agents that are selling their seller listings and they should be keeping the system updated as often as possible, but you take somebody out is show him a house and they really like it and they say, let’s go right to the offer and we get an idea on price and everything else. We put it all together and we send it over to the other agent. Only defined that that property happens to already have an accepted offer on it. Now legally they’re okay, but at the end of the day, that’s why we have to call around and I always tell the new agents that we trained that you really need to call it ready to talk to that agent, but every once in a while you’re not going to be able to because of either arrogance or ego or just not available.
ValenciaRealtor: 11:31 Because you know agents could the second goal in the hospital too, they’re not going to be able to answer that question, but again, I informed my buyer, we don’t know for sure if this still is fully active because I haven’t been able to track down that agent and buyers. Get that for our real estate seller out there. It’s important that your property gets put into the proper category. Now, back to the backup offer and the contingent knack, or excuse me, the ones that are under contract and active, those are going to be the ones that are accepting the backup offers and we want that one. Once that property to be shown, and it’s going to depend on price range, it’s going to depend on what other properties are out there. A lot of properties do happen to fall out of escrow right now, less than about a third actually fall out.
ValenciaRealtor: 12:16 Then recover and go back in and ended up selling the chances they fall out a second time or very rare, but that first time, not too bad. Those odds aren’t too bad. So if you are a real estate buyer, and as we inform our sellers in happens, usually not because of anything the seller does, the buyer might have gone overzealous, maybe the buyer had a very pushy agent and talk them into it. I can’t imagine, but I do hear the stories, so those times that happens, in addition, the agent could have maybe pushed the seller into accepting an offer that maybe, not have been as good a type of property and again shouldn’t have happened, but that is some of the things that do exist out there in the world of sales. In any profession, you’ve got a certain percentage that isn’t very good and is in it for themselves.
ValenciaRealtor: 13:03 Things to watch out for the best thing you can do, interview multiple agents and find out who’s the best fit. Don’t fall for the fancy web. Two Point, oh, bs. That seems to be floated around out there by every real estate trainer in the world. Look for somebody real, somebody from the hip that explains to you factually how it works so you’re not surprised at least too much. There’s always something seems to fly out of left field occasionally, but again, something to look for, find those agents that are the best representative of who and what you are and you’ll be able to, while you’re sitting in front of them and they’re talking, they’re speaking, they’re explaining the process that is listening to you. That’s really, really important. You’ll be able to make great decisions. I’m Connor Mc, I everything you’ve done listening to housing, radio.com. If you have any friends, family, sphere of influence, people, anybody that needs my services and real estate here and not just Santa Clarita folks, we do a lot of driving around southern California. I could’ve learned French five or six times by now with all the driving. Anyway, reach out, have him reach out to me. I’m here personally, Scv Nest. That Cop. You’ll see. That system does pull on resources all over southern California. They’ll be able to see all the listings. Thank you so many folks in the summits and other parts of Valencia. Of course, all the rest of you folks listening in. It’s always a pleasure. I’m Connor with honor IVR. We will talk to you soon. Over and out.
HousingRadio.com Transcription End
I’m Connor MacIvor – serving the real estate needs of our exclusive clientele is what makes me really and sincerely happy. Please advise when you are ready for my services and I’ll take great care of you and those whom your recommend.