This real estate and Santa Clarita Housing Radio broadcast were transcribed by a computer. Here is that transcription – Listen to the show (above) for a much better dissertation 🙂
Speaker 1: 00:00 Insurance and you. What you need to know about housing insurance when you are purchasing real estate and also we’ll talk about other types of insurance that shouldn’t get on your residence that might alleviate pain. Good everybody, I am Connor MacGuyver local realtor here in Santa Clarita Valley serving Los Angeles County and beyond. So reach out to me when you are ready. We, of course, have the longest running real estate radio show here in the Santa Clarita Valley and most places in greater Los Angeles been at this a long time licensed back in 1998 and I will tell you lots has changed to real estate since that time. One of the biggest changes happens to be more of automation technology that type of progress being made. And those applications coming over to real estate and I think it does create a little bit more confusion to the general public because you really don’t know who you’re talking to when you’re online.
Speaker 1: 01:02 Those platforms meshes pick up the phone and say Hey Connor This is Jack I want to buy a house. Walk me through what I need to do and how we need to get started. That’s pretty clear concise and then I say OK Jack first thing we should do is find out where you are interested in buying a house.
Speaker 2: 01:20 What city suit your aces. Well, I like Valencia. OK, very good Valencia median sales price right now Valencia for a single-family residence. It’s going to be between 450 and 550000 that’s going to get you somewhere three to four bedroom. Eleven hundred to maybe 1800 square feet that will be standalone stick built home separate not attached to any others and that’s in Valencia. And then he responds and we have an engagement and we talk about qualification. I give him the intel as far as what Linders to talk about what lenders to talk to and then what to talk to them about what questions to ask to make sure he’s getting the best deal on his loan. I talked to him about how he does not pay my fee when I represent buyers of real estate. I do not take a fee from them.
Speaker 2: 02:11 I get compensated by the seller and I have access to every seller that there is. So there is no nothing that I cannot represent Jack with any house that’s for sale. I’m able to access that particular property even it’s for sale by owner we find out that most of them would love to work with an agent and have it discounted in a commission sort of way because they’re not paying one to represent them they’re just paying one that brought the buyer and so they cover all of that so we see that happening as well. So I would explain that to him and then at some point the process and the subs of the day show going to be about insurance. So at some point in the process that he would be asking me about insurance because that’s what are we going to escrow insurance is an important part to start speaking about questions as different insurance agents and shopping around is not a bad idea in that regard as well.
Speaker 2: 03:11 You would want to shop around to find yourself that agent that best serves you. You also would like to and should shop around when it comes to insurance and loans and lending and all of the other parts of the real estate process. But there’s a time to do that once you identify a property that’s the time that Jack’s going to be informed about the insurance unless he’s listened to today’s housing radio real estate show. Socketed with that just a moment give you some tips and advice on that. Let’s talk about the local inventory 539 active listings currently for sale. And again that’s incredibly low folks. We saw the lowest numbers January of this year. As far as active real estate listings that January of 2017. Now that we’re getting close to closing out August 2017 we’re still very low at 539 all Southern California 13 906 13000 969 the breakdown Valencia 128 Saga’s 117 Kinni countries 147 Aqua Dulce 65.
Speaker 3: 04:11 That’s going to include active and those properties that are under contract because sometimes those do come out fall out of escrow – in fact, those numbers I ran earlier this year around springtime about 30 percent 33 percent of the properties that enter escrow fell out at least once and that’s for a lot of times that’s for reasons beyond anybody’s control maybe the buyer was laid off. Maybe the lender made some kind of a mistake. Lots of different reasons other than the House having issues with it where the buyer said well we want to cancel escrow we don’t want to proceed. A lot of people assume that’s usually the reason why transactions cancel.
Speaker 1: 04:55 This is all of the real estate currently for sale access for this SCVnest.com and we have one of the largest blogs in fact if not the largest SCVblog.com you’ll be able to see all the real estate articles it will stop including these audio snippets on our radio show is also going to be housed there housing radio dot com and other resources well. So please check all of those out. Let’s
Speaker 4: 05:20 get back to the question of insurance and there are different types so when you are purchasing residential real estate if you have a car and you have a driver’s license you probably have an insurance company attached to that.
Speaker 5: 05:33 It’s not a bad idea to reach out to them and say listen I’m buying this house over here one two three four on the corner of walking don’t walk here in Valencia California would you mind. It’s not a real address by the way.
Speaker 4: 05:45 Would you mind giving me what it costs to get insurance on the property. There’s going to be fire insurance there’s going to be flood insurance and there’s going to be around Southern California earthquake insurance. These are things to look at the numbers do all of our clients get earthquake insurance. Now. Do all of our clients. Are they mandating it flooded insurance? No, it just depends on where the property is located in some areas if you’re close to live for example the Santa Clara River which is like a large Arroyo if you’re from where I am in New Mexico. So
Speaker 5: 06:18 it’s we call those arroyos but out here it’s a river and it’s dry for the most part except when it rains a lot of the properties that are in close proximity to that river are going to require depending on the insurance company flood insurance to be purchased.
Speaker 4: 06:32 If you go to Val Verde which is a city connected to Castaic out here again some of those properties are going to mandate flood insurance being purchased.
Speaker 5: 06:45 Stevenson Ranch because of the fires those types of things those natural disasters that come up from time to time it could be that just getting the regular good old fire insurance might be a little difficult or cost more than usual because of where the property is located. But it’s good to shop around to find out that maybe the person that you have your automobile insurance with that particular brokerage or direct insurer. Is going to be.
Speaker 4: 07:16 The best. You put your house whether any of this discount. Ask him about those bundled programs and how you see that commercial flow and progressive. Yeah, that’s really true. If you have your insurance your auto and your home with the same company usually there are discounts given. So check that out and also find out what kind of coverage they’re giving you and what their deductible is. How much money are they giving to a total fire disaster that’s going to that’s going to obliterate the entire residence? Is it going to be enough for you to be able to use that money after paying your deductible to have that entire house rebuilt? These are very good questions and you’ll see it in the paper you’ll see what they’re giving you and then you also see what they’re giving you for possessions. So you get the house rebuilt and now you don’t have any furniture inside the house because you just got tapped out. And that’s all they gave you. Now you have to refurbish the house. See
Speaker 3: 08:12 if they’re giving a lot a lot of money for those if there happens to be that type of disaster if you have a safe if you have other items guns and jewelry and you know coffee cans full of money in the backyard.
Speaker 4: 08:24 See if they’re also ensuring those items as well. So get those numbers and they’ll be able to send it to you. Quite easy and it will be in print. Usually, insurance agents do not do anything. They’ll talk to you verbally but they’ll back everything up in writing so you can see it and make comparisons.
Speaker 5: 08:42 And there are also a couple different types. Kind
Speaker 3: 08:45 of like the lenders and loan world where you have an actual direct lender where they lend you the money themselves like a mainline bank would be an example of that. Wells Fargo Chase a Citibank right. They’re lending you the money Bank of America directly to you. Verst says a mortgage broker Mortgage Brokers going to be able to pull on that same. Wells Fargo Citibank Bank of America money but they will also be able to pull on money from a lot of other sources as well. The same thing happens in the insurance world where you’re going to have that main insurer. That’s right. The policies and they’re backing up of money you know from their investors and everybody else in that particular insurance company and then you’re going to have a broker who is going to be able to pull along and basically compare you with a lot of different insurance insurers and say OK well this one the mercury is going to be the best for the car and we’re not going to bundle it because it’ll be cheaper to go with this other company over here for the House.
Speaker 3: 09:46 And then there’s also one point of contact so something does happen. Your house does God forbid burn down in a car crash.
Speaker 4: 09:53 You call up that broker with the insurance company and say hey listen, Judy, this is what happened and she’s usually able to facilitate he or she is able to facilitate all those connection points and make the introductions between all parties to get everything taken care of for you. So there is some advantage just shop around though and understand there are a couple different kinds of the mortgage insured. Regular insurers with regard to homes and real estate. Now having said that home warranty and other types of insurance usually is offered by the seller when they sell real estate. That’s
Speaker 6: 10:31 not a bad thing to check into and it’s not a smoke dreamer. Snake oil it’s a real thing. And typically those. Policies costs per year three to four to five to six hundred dollars depending on what you’re having covered. I will tell you we’ve used it quite a bit. Air conditioner breaks down. They come out ripping their 50 dollar deductible and they take care of it. They fix it. There are certain things we had a hot water year break in our house. Twelve hundred dollar deal. Fifty bucks. It was replaced. So those home warranties are important. And the guy who did a great job he put the tank underneath a little trough if you will drill a hole through the side of the house around the pipes of the tank overflows again or ruptures like the last one did the last flood of the garage and ruined a few things. This one now has the code is that little reservoir underneath it and having that reservoir having an exit to the outside of the residence.
Speaker 7: 11:35 And this one does it again. 50 bucks. Not a bad deal to spend hot water take. That would have been over twelve hundred. With
Speaker 6: 11:42 all of those items that’s home warranty if you don’t have one of those now and you’ve been living in your residence for a while it’s not a bad idea to explore. Call me up. Call Connor 661 400 1720.
Speaker 7: 11:56 And I’ll be happy to introduce you to the lady that does our home warranty. Wonderful. And she’s the ones that we-we. She is also the one we recommend to our clients. Then again 354 – 400 – 500 bucks a year.
Speaker 2: 12:08 Not bad to have that peace of mind. But even with that, you’ve got to find out what it covers. Is it going to cover the toilet?
Speaker 7: 12:16 Breaking isn’t going to cover plumbing issues. Is it going to cover any of that? Those are the questions you want to ask because there are different policies for different things.
Speaker 1: 12:24 This has been an insurance show today. CONOR MacGuyver of without. I appreciate you listening again. HousingRadio.com find it? We
Speaker 6: 12:32 have a lot of that to you or else that point you right back into the proper places within our SCVnest.com Web site and housing radio is one of those SCV blog Dot Com that’s going to be where you find our blog. Just search for real estate SCV Nestel said see Venus dot com you’ll see a boom right there. Please listen to our radio show it has a radio dot com and folks thank you very much for listening and if you have anybody interested in real estate goes without saying but I’d love to be their rep so please have them reach out to me directly. You yourself need my services I’m here. I’ll talk to you soon. Have a great day Connor MacGuyver over and out.