After the current Santa Clarita real estate news and market update, I will be talking about hidden costs of homeownership that you will want to be aware of if you are preparing to have us help you buy a Santa Clarita home, stay tuned.
Just in case you are wondering, we are the next city north from Los Angeles. Valencia CA is the home of Magic Mountain and we have some of the most awesome paseos for those of you that love to stay in shape where the gym membership is not your only go to.
Delving into the local SCV real estate market we are seeing a relaxation of home prices. The homes that have sold in the past few months had experienced a High Point in Santa Clarita Valley real estate. The homes that are currently selling in the same neighborhoods, the same floorplans and with the same attributes are selling for close to the past sold amounts, but not quite as high as we observed the sales prices to be in the past 90 days.
Our Santa Clarita Valley real estate market peaked back June of 2018.
The listing prices were much more in line with what folks were paying for homes and real estate in the Santa Clarita Valley cities.
As you can see I ran the Average Listing prices versus the Average Sold Prices. The numbers start to widen between the two statistics within the residential real estate numbers in the Santa Clarita Valley CA.
I see some other real estate updates that have hatched recently where those who are speaking are attempting to say the market has never been hotter. And you should get out there and buy real estate before it’s too late and prices spiral out of control.
Self-serving I’d opine. We are returning to a statistically “normal” market and will know more about whether or not we will continue that trend into 2019.
Seller Tip – I don’t want to be bothered during the Holidays
Now is not the best time to formulate too many opinions about the current market because, as history shows, the holidays are typically responsible for a slower real estate market in the Santa Clarita Valley cities. Think of it this way, do you want to sell your home at Thanksgiving or Christmas? I’d venture to say no you don’t.
Most of the home sellers feel this way as well. There are options to taking a home off of the market and waiting until spring to release it to sell.
If you are a home seller and want to take your home off of the real estate market during the holidays, you need to have a sit down with your agent and develop a game plan. Depending on the activity, may depend if you are going to keep it on the market or take it off.
However, know that if you are going to take your home off of the market, or have your agent do it, you are going to have to wait 90 days before the days on the market rendering resets. Meaning, if your home has been for sale 80 days at the point you want to take it off to re-list it next year, and if you put it on the market before the 90 days has elapsed, your home is going to show as being listed for sale in the CDOM – Cumulative Days on Market, 81 days on the day it’s re-listed.
That is if you don’t have your agent wait the 90 days when the CDOM will render as 0 and follow the same track as the DOM, Days On the Market statistic.
Connor help me with my real estate
Seller tips continued
Of course, no real estate is good without a game plan. There are many ways in which to skin a cat, some are better than others. All need an expert in your corner. No offense to cats, it’s a saying from back in the day – Like that’s better than a sharp stick in the eye… I don’t remember people sticking other people in the eye with sharp sticks – maybe before my time.
Once the DOM has reset, then the listing shows are new and will not lead some savvy buyers to believe that you are “desperate” in the same of your home because of the “long time frame” it’s been listed for sale.
The adjustment period from where the Santa Clarita Valley was, where it only took days for homes to enter escrow with an accepted offer, where homes had multiple offers written on them, and when buyers were giving up a lot of their desires because the inventory was lacking, is going to take a few months to be the new norm.
Once that happens, then the market will change yet again, so stay posted please and I, Connor MacIvor, will keep you posted as to what is happening in the current Santa Clarita real estate market.
Necessities of taking a home off of the market then re-listing it to reset the CDOM number. A valid contract will have to be in force and will be provided for you by us, or your real estate agent. The property is going to have to be removed completely from the MLS – Cancelled. This is going to spur off a ton of phone calls from agents who are scraping the data in the MLS for “canceled” listings. They are going to call you and pitch you about hiring the right real estate agent. They will also ask you why you think your home did not sell then offer you some of their opinions and let you know they will be able to sell your home where your agent could not.
It’s then when you will tell them that you love your agent and that you have taken your home off of the market because you are waiting to sell during the spring, not wanting to be bothered during the holidays. They will go away after you give them that information.
How do “they” get your phone number?
If you are wondering how they have your phone number? If you are the contact person for the showing of the listing, then that answer is easy. There are data mining companies who have relations with people who are members of the Multiple Listing Service via the Boards of Realtors. They record the complete information and if something happens that a listing is canceled, expired or something else which takes the home off of the market from being for sale, the data gets gathered and sold to agents and other service providers that are willing to pay for it. BTW, If your agent is the point of contact between other agents and you, related to showings and scheduling, that may save you from these types of companies, at least at first glance.
Homeownership and those who own real estate are of public record. Some of these companies then scour the ownership records, then turn their glance to social media outlets, forums and other online platforms which may require an email address, or a place where you have given up who you are, a phone number and address – then they connect the dots and the rest is history. You are now being called incessantly by those whom you have no intention of hiring.
The cost of Santa Clarita home ownership
If you are ready to buy a home, there are other “associated” costs of owning a home that you may not expect, especially if you have been a renter for a time.
Of course, you probably expect to have to pay for your power, water, and trash. However, some of the condo and townhome communities have an HOA, Home Owners Association fee that pays for some of the utilities. Make sure when viewing real estate to ask your agent what the HOA pays for related to their members.
A lot of homes in the Santa Clarita Valley have Home Owners Associations. We live in a home that was built in 1988. Our home has an HOA. Due to it being older, the HOA is about $50.00 a month, pays for multiple association swimming pools and multiple tennis courts. It does not pay for utilities. The community also has areas that are not maintained by the city landscapers. The HOA also picks up the bill for those areas as well.
Unless stated, the HOA is not going to help you with any of your utilities or the landscaping of your residence.
Property Taxes in Santa Clarita California
Santa Clarita Valley is located within Los Angeles County. The basic property tax rate is approximately 1.25% of the assessed value. If you by a home and pay $800,000.00 for it, then your assessed value is going to be $800,000.00 unless there are other ‘exemptions’ in place or other exclusions that impact your Los Angeles County Property Taxes.
Of course, in the Santa Clarita Valley, we do have CFD’s, special assessments and Mello Roos at some of the housing that has been built since Stevenson Ranch ramped up back in the late 1980’s. Some of the new homes in the Santa Clarita Valley have mello roos that are as if you are paying double property taxes.
The way you are going to know if a home has mello roos, CFD’s or Special Assessments is by having your real estate professional have title pull the tax rolls to see what items are being paid by the current property taxes. If you miss this step, you could be in for a surprise after you take possession of the home and get the notification of “due taxes” for your home. We run this data for all of our home buyers so they know what expenses to account for.
Some types of financing will include the tax payment in your mortgage payment. Make sure, if this is a better fit for you to hit up your lender about having your loan structured in this manner. Some loan and lending types will not allow for your impounding of your tax payment with your mortgage payment. You will then have to be more responsible and save a little each month in a separate account so when the property taxes come due you can write a check or pay with a CC to the Tax Assessor.
I cannot stress enough how important this is to know. Mello Roos has been rumored by some, to be something that is hidden from prospective home buyers when they are viewing new homes and new builder communities. This is why it’s important to have me on your side as your New Home Realtor and New Home Consultant. Call me and I’ll explain the benefits and how my services when buying a new home are completely FREE for you as a new home buyer.
Lawn care – Pool service and annual maintenance
If you are a do it yourself type of person, you may be able to save money on lawn care, pool maintenance and some of the annual maintenance.
Depending on the size of the lawn, you can expect to pay about $60.00 a month for a landscaper that will cut your lawn, trim your bushes and other yard work once a week. I would find out up front if sprinkler repair is part of the service. I have heard horror stories about being charged additional money for the changing or fixing of a sprinkler. It’s common its part of the monthly fee – but you are going to have to negotiate it. The same goes for “additional” planting and fertilizer – negotiate those items as well.
For those of you who are buying a home with a pool, keeping the correct levels and cleaning the pool can be done without hiring a professional. The issue I have is I know how dangerous the pool chemicals are, I hire someone to take care of that for me and I don’t look back. The fee for a pool servicer is about $100.00 a month, depending on where you live and the size of the pool. Other things they look at if how many trees you have in close proximity to the pool, that will add to what they charge. Some pool people also have some type of “yearly” maintenance fee, that is negotiable and I negotiated that as being included in my monthly fee.
We have a concrete tile roof, those and other types of hard roofs have tiles that can slip and move with tremors, earthquakes, and wind. Over time the vibrations can cause the tiles to slip. Having a leak in the roof is serious and I prevent this by having a roofing contractor come out yearly, around Halloween, so I don’t forget, he walks the roof, cleans the gutters and ensures my roof is tight. This is about $800.00 a year to have this service completed.
HVAC filters. Every 3-4 months, I replace the filters in my HVAC units. Keeping these filters clean and replacing them often saves you money in the long run. Not only saving you money on the electricity bill because with a clean filter the unit does not have to work as hard, but as far as the long-term lastability of the HVAC system. This is easy enough to do for a person that is not very handy, that’s me. I buy my HVAC filters from Amazon.com and pay about $30.00 for a pack of four. That comes to about $120.00 a year for HVAC filters.
Fire Insurance – Earthquake Insurance – Umbrella Polities
If you own a home, you need fire insurance. Some mortgage holders, Trust Deed Financers, require a person to have flood insurance and earthquake insurance, depending on where the property is located and depending on who lent you the money to buy the home. (different entities have different requirements).
Of course, the rule of thumb is Fire Insurance. You are looking for coverage at about $800-1,000 a year. This too depends on where the home is located, past insurance claims, and other factors that only a qualified home insurance person would be able to answer.
Earthquake insurance is additional as if having an Umbrella Policy to cover “other” things or give higher limits than the property insurance allows for.
One thing I tell our clients to do early on within the escrow process is to call their insurance agent, give them the address and inquire about the cost of insurance. This can be quite revealing and in some cases can be a deal breaker. So do it early, before you start spending money on home inspections and appraisal!
I’m Connor, this has been your Santa Clarita real estate news update. I’m happy to announce we are number 1, organically for Santa Clarita real estate news on Google! It’s worth all the work for our clients!