Buyer Mistakes ~ May 2024

Buyers face challenges in any market – and today’s is no different. With higher mortgage rates and rising prices, plus the limited supply of homes for sale, there’s a lot to consider.

But, there’s one way to avoid getting tripped up – and that’s leaning on a real estate agent for the best possible advice. An expert’s insights will help you avoid some of the most common mistakes homebuyers are making right now.

Putting Off Pre-approval

As part of the homebuying process, a lender will look at your finances to figure out what they’re willing to loan you for your mortgage. This gives you a good idea of what you can borrow so you can really wrap your head around the financial side of things before you start looking at homes. While house hunting can be a lot more fun than talking about finances, you don’t want to do this out of order. We won't take you house hunting without one.

Holding Out for Perfection

While you may have a long list of must-haves and nice-to-haves, you need to be realistic about your home search. Even though your ideal state is you find a home that checks every box, you may need to be willing to compromise – especially since inventory is still low. Plus, a home that has everything you want may be too pricey.  I always tell Buyers to make a list of 10 wants/needs. Expect to get about 7 of them.

Buying More House Than You Can Afford

With today’s mortgage rates and home prices, there’s no arguing it’s expensive to buy a home. And while it may be tempting to stretch your finances a bit further than you’re comfortable with to make sure you get the house, you want to avoid overextending your budget. Make sure you talk to your agent about how changing mortgage rates impact your monthly payment. 

Not Working with a Local Real Estate Agent

This last one may be the most important of all. Buying a home is a process that involves a lot of steps, paperwork, negotiation, and more. Rather than take all of this on yourself, it’s a good idea to have a pro working with you. The right agent will reduce your stress and help the process go smoothly. 

Bottom Line

Mistakes can cost you time, frustration, and money. If you want to buy a home in today’s market, connect with a local real estate agent so you have a pro on your side who can help you avoid these missteps.

We're always here for ya!

Santa Clarita Home Sales Activity ~ May 2024

Well, yes, it's that time again! Sharing with you sales data about my home town! Well, and some of you or your friends' home town as well!

Acton, Agua Dulce, Canyon Country, Saugus, Newhall, Valencia, Stevenson Ranch, Castaic, & Val Verde.

We have 16 in the Coming Soon category. 400 Available for sale. 365 that are under contract (in escrow). 252 Sold in the last 30 days (actually closed escrow).

Some interesting comparisons for you. Last month, following the pattern as above: 13,399,343,251. But, even more interesting was a Facebook memory from 2011 ... we had 1279 homes availalbe for sale!

But, notice, the number of homes actually closing escrow? Let's see if any of you remember me noting what our somewhat regular number of homes were selling per month? I'll wait and see if you reply!

We've got quite a bit going on. Multiple offers are happening for the most perfect homes. Buyers are offering over list price yet again. And then, we have some that are languishing. For several reasons you'd think. But, the only thing to get a buyer to buy your home is PRICE IT RIGHT. And, if you didn't start right, every mistake can be corrected. Do a price adjustment now. The longer you sit, the buyers think something is wrong with the house, or wrong with the Seller. If you really want to sell your house, listen to us. We've sold a bazillion more homes than you ever have or will. 

And, obviously, I'm not the only one that thinks this way. 

This picture is from a well respected Real Estate blogger.

Hidden Rooms? Oh Yeah!

So, in case you didn't know, Santa Clarita has a SpeakEasy. You know, a 'hidden' bar. Well, it's definitely trying to be a bit upscale for the hood! So, that's pretty cool.

Needless to say, when I spotted an article about hidden doors on Houzz, I was intrigued! 

"Concealed butler’s pantries are grown-up versions of secret forts beneath staircases and real-life equivalents of magical lands accessed through wardrobes. It seems a lot of us are looking to add magic to our lives, because these and other sneaky spaces for adults and kids alike — including a speakeasy behind a bookcase and a shortcut disguised by paneling — keep popping up in the Houzz photo feed. Click on the link below👇 to see a variety of examples full of whimsy and functionality."

25 Hidden Doors & Secret Spaces - HOUZZ

Here's a few I spotted on the good ole internet too!

That's one BIG door for a hidden room!

Well, yeah, cool, but I'd rather have something more exciting than a closet behind a hidden door!

I'm curious what is behind the door, behind the door!

Aren't you???

There are TWENTY-FIVE in the full Houzz article. Make sure you have a few moments to scroll through them, and let us know which you think are too cool to pass up!

C.A.R. Market Minute Write-Up

Long, but a good read for those that want to be informed.

May 06, 2024 – The Federal Reserve's Open Market Committee (FOMC) met last week and decided to leave the fed funds rate unchanged, citing a strong economy and inflation that has failed to make any progress over the most recent couple of months. On the other hand, the most recent jobs data came in well below expectations at 175k, suggesting that the labor market cooling trend may have already started. With a weaker-than-expected jobs report and the Fed hinting that a rate hike is unlikely, mortgage rates ended last week at the lowest levels since early April, and provided hopes that rates may start to creep down as we approach the second half of the year.

Federal Reserve leaves rate unchanged as inflation progress stalls: The Federal Reserve kept the fed funds target range steady at 5.25% to 5.50% after its March FOMC meeting, due to lack of progress in inflation easing in recent months. The central bank also suggested, however, that it will likely hold rates at their current level longer rather than raise rates again. Fed chair Jerome Powell acknowledged that the inflation fight has experienced setback in the past few months but expected inflation to resume its declining trend later this year. At the conclusion of the meeting, the Committee also announced that it intends to slow the pace of quantitative tightening, the ongoing reduction of its $7.4 trillion asset portfolio, starting on June 1. By significantly curtailing the selling off of its assets, the Fed is hoping to keep normalizing the size of its balance sheet without creating money market stresses and putting too much upward pressure on interest rates.

Latest jobs report shows hiring slowdown: The employment situation in April came in softer than expected and started the second quarter with signs that the labor market could finally be cooling. Nonfarm payrolls added a seasonally adjusted 175k jobs in April, the slowest growth pace in six months, and was well below the consensus expectations of 240k gain. While last month’s jobs numbers were sharply below the upwardly revised 315k increase in March, they were in line with pre-pandemic levels and on par with the neutral rate of job growth to keep up with population growth. Meanwhile, the unemployment rate inched up to 3.9% last month from 3.8% in March and remained below 4% for the 27th consecutive month. Wage growth recorded its first sub-4% print in nearly three years with average hourly earnings rising 3.9% year-over-year, another signal that suggests a slowdown in the job market is forthcoming.    

Consumer confidence deteriorates for the third straight month: Consumers’ attitude towards the economy dipped again in April, with the Conference Board’s Consumer Confidence Index declining to 97.0 from a downwardly revised 103.1 in March. Elevated price levels and political/geopolitical conflicts remained the utmost concerns for consumers, as their confidence level dropped to the lowest level since July 2022. The Present Situation Index, which measures consumers’ current assessment of business and labor market conditions, fell 3.9 points to 142.9, while the Expectation Index slipped 7.6 points from the prior month to 66.4. Less optimism in the labor market was likely another driving force for the decline in consumer confidence last month, as 14.9% of consumers viewed jobs as “hard to get,” an increase from 12.2% in March. Consumers were also more downbeat about their short-term job outlook, as 11.7% expected more jobs to be available, a decline from 14.3% in the prior month. The rising trend in interest rates before the latest FOMC meeting might also have been a contributing factor to the decline in optimism in recent months. 

Productivity slows but remains solid in Q1: U.S. worker productivity growth stalled in Q1 2024 as hirings surged and hours worked picked up. The index, which measures hourly output per worker, inched up at an annualized pace of 0.3% from the prior quarter after jumping 3.5% in Q4 2023. When compared to a year ago, productivity remained solid though with an increase of 2.9%, the strongest gain in three years. As a result of slower growth in Q1, unit labor costs (ULCs) jumped 4.7% from the prior quarter at an annualized rate. The increase on ULCs, however, was much more modest when compared to a year ago, with an increase of just 1.8% year-over-year. With the annual ULCs showing continuous signs of easing, inflation could resume its downward path in the short term if productivity growth remains positive.

Residential construction spending slows across the board in March: Construction spending in the U.S. fell for the second time in three months, with total outlays declining on a month-to-month basis by 0.2% in March. While the overall spending continued to increase on a year-over-year basis by 9.6%, the monthly dip was a surprise as economists polled by Reuters projected a 0.3% gain for the month. A pullback in residential spending and a further slowdown in private nonresidential spending were the primary factors that weigh on the headline number. With the resurgence in mortgage rates in March, residential spending fell across the board with single-family, multifamily, and home improvement all declined month-over-month in March. Despite weaker total outlays in March, acute housing shortage and recent decline in mortgage rates should continue to provide support to home building activity, and spending on single-family constructions is expected to improve gradually in the second half of 2024.

The A,B,C's Oh, and D's of the NAR Settlement for Buyers

 Do You Know the “ABCs” of the ABCD Form?

(Copied in it's entirety from California Association of Realtors....

so none of my opinions are here, well one is at the bottom.)

The Anticipated Broker Compensation Disclosure (“ABCD”) is an excellent way to inform the buyer about the buyer broker’s compensation and can help to confirm the parties’ negotiations and discussions about compensation.  The ABCD form contains three sections that each serve different purposes.  Specifically, the ABCD form will : 1) Inform the buyer that the broker expects to be paid for the broker’s efforts; 2) Identify any compensation offered to the buyer’s broker from the seller’s broker through the MLS, or via a Cooperating Broker Compensation Agreement; and 3) Confirm and provide documentation to the buyer of any payments actually received by the buyer’s broker from third parties, in the event the buyer closes a transaction. 

Recently, C.A.R. has received several questions from members about using buyer representation agreements.  In addition to using the Buyer Representation and Broker Compensation Agreement (“BRBC”) in transactions, the ABCD form is a very good way to disclose the details of buyer broker compensation and to help the buyer become informed about compensation issues.  The ABCD form may also be a useful way to initiate and support the discussions and negotiations conducted between the buyer’s agent and buyer.

The ABCD form was released in December 2022, along with the release of the BRBC.  C.A.R.’s Standard Forms Committee recognized that on the seller’s side, it is normally easier for a listing agent to disclose and confirm the listing agent’s compensation via a listing agreement or single party compensation agreement.  Accordingly, at the beginning of the relationship between a seller and their agent, the seller knows the compensation they are paying their agent and the closing disclosure will show the amount of broker compensation that is a seller expense.  In comparison, on the buyer’s side, there are various ways to structure a buyer broker’s compensation– the buyer’s agent might use a buyer representation agreement, a Cooperating Broker Compensation Agreement, obtain a Single Party Compensation Agreement from the seller, or rely on an offer of compensation in the MLS. Because of the variety of methods in which a buyer’s broker can be compensated, which may include an agreement between the buyer’s broker and someone other than the buyer, the C.A.R. Standard Forms Committee decided to create a document where the buyer is advised of, and acknowledges, key information related to the buyer broker’s compensation.  Here’s a description of the ABCD’s three sections:

Section 1 has information about where the broker’s compensation can come from.  It is intended to be given to the buyer up front (early in the agency relationship) so the buyer can review it, ask questions to attain a better understanding of how their broker might be paid, and acknowledge receiving this information.

Section 2 has a chart to list various properties that are being shown to the buyer and what the expected compensation is and what the source is.  It also has a place for the buyer to initial at the time that property is shown.

Section 3 is a place for the broker to disclose the final amount of compensation earned in the transaction after close of escrow.  It has a place for the buyer to initial to acknowledge receipt of this information.

In conclusion, though there are alternative ways for a real estate licensee to inform their buyer client about expected compensation and the final amount of compensation (e.g., by providing the buyer with the non-confidential print-out from the MLS showing the compensation amount; by providing the buyer with a copy of the buyer broker’s contract with the listing agent or seller; and/or by providing copies of escrow documents showing the buyer’s agent’s compensation on the buyer’s closing document), using the ABCD may be much simpler and more effective in your practice.

Now, it's my turn to opine.... everyone deserves to get paid for what they do. This just puts it in writing for all to see/know. I'm very satisfied with this. Very much so.

Your Monthly Sales Info For Santa Clarita Valley - April 2024

Good Morning & Happy Friday. Well, Happy Birthday to my Hubby today.💓 Fortunately he's gone fishing alllllll day today so I can actually work & bake him a cake before he gets home!

Today I'm sharing the sales infor for Santa Clarita. Acton to the East, Stevenson Ranch to the West, Castaic to the North, Newhall to the South. All the little areas in between.

As of this moment, we have:

Coming Soon - 13 / Available for Sale - 399 (that's actually 10% higher than last month) / Under Contract - 343 / Closed Escrow in the last 30 Days - 251.

So, yes, if you've been watching, the inventory is creeping up a bit. A couple of stories to share. Well, tid-bits of info from the three of us. Homes that are perfect are still flying off the shelf. Homes that are extremely desirable, for whatever reason, selling quickly. Homes that need a bit of updating are taking longer. And, unfortunately, the only way to light a fire under a prospective buyers butt, on a home that is languishing on the market, is to drop the price. Drop The Price. Yep, that's what you gottat do. Buyers are asking why a property is still on the market after 30 days? What's wrong with it? They are still used to things moving quickly. If it's not, it isn't priced right to bring in the right buyer.

There is a buyer for every home, we all know that. 

Even for this one!

But, no matter how much a buyer likes your home, if it's not priced where they think it's fair, they aren't going to make an offer to buy it. 20+ years of experience with this, trust me. Trust US. We know more than you, by far.

Off my soapbox now....til next blog post! 

Swedish Death Cleaning - April 2024

Anyone that has worked with me on selling a home is used to this phrase "You Gotta Pack It Anyways" when we are doing pre-marketing considerations.

Most people have heard of Marie Kondo and her method of decluttering. But, have any of you heard of “döstädning”? Swedish Death Cleaning? It is a philosophy that encourages reflection and mindfulness about our belongings and the legacy we leave behind.

I've had to sell a home after my moms passing. Fortunately she had already completely done a döstädning when she moved into an assisted living facility a few years earlier.  But, she had actually started years before that!

My siblings and I, as well as our children, are lucky that none of us ... mums included ... would be considered among the people that like 'things'. A lot of things, as some people do. Our family is defintely more along the lines of minimalism. 

But, let's say you are getting up there in years. You know, starting to get those senior citizen discounts? Now's about the time you really need to consider the process of clearing out the things, the clutter, the items that won't be sentimental to your heirs. 

"In a culture that often celebrates accumulation, Swedish Death Cleaning champions minimalism. It’s not about ruthlessly discarding material things but rather about curating a collection of items that truly enrich one’s life."

"Beyond physical belongings, Swedish Death Cleaning also entails organizing important information for your loved ones. This includes not only financial documents and passwords but also personal reflections and wishes." Mike & I really need to do this! "Consider creating a digital or physical legacy box containing these vital details, ensuring that your loved ones have access to them when needed. Reflecting on one’s life and documenting personal stories can also be a therapeutic process, allowing for introspection and closure." My mom left us a journal of her final years. 

And, if you're realizing that maybe this is something you should consider starting now and continuing regularly, here is a Sweedist Death Cleaning checklist for you:

*Start with sentimental items, gradually expanding to include less emotionally charged belongings.

*Curate a collection of items that truly enrich your life and align with your values.

*Organize important documents and information for your loved ones.

*Cultivate habits of minimalism and intentional living.

*Regularly assess your belongings and declutter as needed.

*Consider the happiness and well-being of yourself and others when deciding what to keep.

*Share your belongings with others through donations, gifts, or meaningful gestures.

Margareta Magnusson discusses death cleaning.

If you need some help, to start the döstädning process, we'll be glad to assist.

And, you'll be glad you started now,

 if you're thinking about selling your home anytime in the near future.