It’s a trend that we are seeing not only in the Santa Clarita – Valencia CA areas but within the other cities in Southern California areas and across the United States.
Sellers want to sell and are getting close to reaching critical mass but are not pressing the trigger.
This is occurring in the Santa Clarita – Valencia CA Cities where we are going on a ton of listing interviews. There are two questions that are most prevalent.
- What will my interest rate be?
- Will I be able to find a home I want without settling?
Home Sellers Interest Rate Concern
The concerns over interest rates is a valid concern. Currently, rates are somewhere in the neighborhood of 4.6 for a 30 year fixed as of 5/21/2018.
By the time this seller gets it together, has their home on the market, has a buyer willing to accept their Home of Choice Terms, it could be weeks. Interest rates for home mortgages fluctuate weekly. The current trend will have interest holding steady – IMHO. I have seen first hand some slowdown by home buyers after the rates jumped a couple tenths of a point. At a .5% increase in interest rates, the 500k home buyer is reduced to 450k in buying power, for example.
Home Sellers HOC concern
In real estate HOC refers to Home Of Choice.
This has to do with the home sellers and them wanting to sell their home, get it into escrow with a home buyer who is allowing them a definite period of time to find their Home of Choice.
Once that happens – the sellers are now on the hunt. Finding that HOME of Choice is going to take the “right” home entering the market. That right home and those sellers willing to allow for you to purchase having a home to sell.
Two factors – 1) finding the right home and 2) the sellers of the home you want to buy willing to accept your offer with your contingency concerning the sale of your home.
If there are other offers that the sellers obtain during the same period of time when your’s was submitted, and if those offers for their home are not contingent on selling a home, those offers may win over yours, everything being equal.
That is why we have strategies in place where our contingent home sellers may be able to win in a multiple offer situation even with other offers submitted that are not contingent on those buyers selling a home.
Only hire knowledgeable experts to handle your Santa Clarita – Valencia CA Real estate. I’ll be here when you are ready for my consultation and representation service. I’m Connor MacIvor with REMAX Gateway – Valencia CA.