Inventory Super Low | Fed governor says he’s still leaning toward a December rate cut 🦅 🌎 ⚓️

 




 

Fed governor says he’s still leaning toward a December rate cut 🦅 🌎 ⚓️


Introduction and Market Overview

Alright, let's go. It's a little chilly today. The Fed reports that they're leaning towards another cut in December. That's awesome news. Also, can you negotiate closing costs? We'll talk about that as well as the REO of the week or distressed properties of the week in homes for sale near Apple and homes for sale in Mountain View, as well as the 40-day market report.

Let's get moving.  

Economic Factors and Housing Affordability

It doesn't matter that the Feds are talking about another cut. They're saying that the economic data right now is still not coming down to the 2 percent inflationary rate that we're expecting, and the economy might be stalling a little bit.

So to pump it up, they might be dropping the rates a little bit just to see if we can tweak it. The jobs report has been pretty. Meek to say the most They're promising jobs, but they're not delivering and it just hasn't come to fruition That is hurting the economy, and ultimately that hurts us It hurts you and me and I don't care if you make five million dollars a year or fifty thousand dollars a year It hurts us in the pocket because everything gets more expensive Aggravatingly so on the higher end if you're a high-income earner, but if you're a low-income earner, it makes it almost dubious and unimaginable.

So if you're in a low-income area, how can you afford to buy a house? It's not really that easy. And that's one of the vehicles that you can use when you're poor or a low income. Employees to get out of poverty. 

Importance of Home Ownership

We need to teach people how to buy houses how to own houses and why it's important because you can build wealth with real estate.

You can build wealth in the stock market. You can build stock, building your own business. You can do all that other stuff, but owning a house, everybody has to live somewhere. It's the easiest way to do it. Buy a house and then when you die, your kids will have a legacy jump up and step up and become more prevalent as a son of an immigrant.

Mwar-torn me from war-torn Europe, and moved to Canada, had me. And when we moved to California, we were super poor. The first thing we did was buy a house. Years later, when you own a house, it allows you to be more. Economically stable.

It's the same thing as super-rich, not super-rich. I want my kids to have me as a stepping stone. What legacy I provide them, maybe a couple hundred dollars, but it's a stepping stone for them to gain more wealth and intelligence and that's the American dream, right? That's why real estate is very important for all of us.

Hopefully, we can drop the price. It's not going to help us here in the Silicon Valley. If you go to Fresno or you go to Las Vegas, I just got back from Vegas and looked at houses out there. If you go to St. Louis where people make a nominal income, can still afford to buy a house.

It's possible. There are houses out there that are affordable for those people. 


Negotiating Closing Costs
Can you negotiate closing costs? Yes. And the best way to do it is to shop around. And my lender people hate me when I tell you this. Should you go to Quicken? Not always. Quicken is not always, or Rocket Mortgage.

Are they the best? No, they For when you buy a house? Because they don't care if you close on time. It's the same thing with the big banks. Wells Fargo and Bank of America have been pretty good, but the other ones, starting with C are deplorable. They don't give a shit about your contractual timeline.

They'll close when they're ready to close. So just stay away from big banks. I always suggest working with a broker and yeah, you might pay a little bit more in fee, but you're going to get better, more in service and knowledge education and a better transaction because brokers communicate with the buyer's agent, the buyer.

And the listing agent, for example, I'm working with a deal right now and I haven't heard nor heard from the bank. I know we're closing the buyer's agents telling me we're closing, but I haven't heard from the lender. That is just poor service.e 

So anyway, can you negotiate closing costs? You can't, there are no recurring and nonrecurring closing costs and recurring closing costs and taxes. And if you have impounds or HOA, all those things are closed and they want to have that stuff up on top for the next six months. So if you.

Buy a house. They want to have you prepaid for insurance and taxes there are lender fees. There are escrow fees. There's Agent fees, there's all sorts of things and yes, you can negotiate those. Some agents or lenders won't negotiate.

They're like, no, I'm not going to worry about that. If you want to go and negotiate, go somewhere else. So what do you do? You can shop around. Same thing with insurance. You're going to have, home insurance, maybe fire insurance, maybe earthquake insurance, right? So where can you get all that wrapped up into the best deal?

You can go to a broker. I have a guy in Southern California and, he shops around for me, he could shop around and take deals and make sure that you're getting the best insurance rates. So can you negotiate that? Not necessarily because every insurance company has its own.

They're cost. That's it. It's not like a car where you have a little bit of margin. You can negotiate that. Sometimes it is, sometimes it's not, but a broker is going to tell you what it's going to cost and you can shop around. You need to understand that, right?

Real Estate Agent Fees and Shopping Around

You can shop around for agents. If somebody comes up to me and says, will you give me this? I'm like, no, because I'm so busy. Sometimes if it's a friend, I'll hook them up. I'll do something good for them. Do I treat everybody equally? It depends on how they approach me. If you come up and the first thing you want to do is ask for a discount. You don't know my value, why would I want to work with you? I don't even know if I want to work with you. You might be one of those red flag types of people who are going to be a pain it really depends on whether I want to work with you or not. There are escrow fees and those are pretty line-item-type stuff, right? There are also lender fees, like processing fees and this fee and that fe, es and a lot of agents charge you erroneous fees you have to be able to understand what those fees are. So before you start shopping around and working with an agent, you have to ask them, what fees do you charge? I don't charge fees. I take it all out of my commission. I get charged fees from my broker because that's just the way the business is.

I don't believe in that, but other people will charge you a transaction fee and a broker fee. So those are things you have to watch out for. If you're making a purchase, if you're doing a refi, you don't have to deal with me. So just be careful with that. If you want to talk more about what fees you can and can't negotiate, give me a call. I'll walk you through it. If you're thinking about selling your house, 


Download this inspection checklist, it allows you to walk through the house and get everything fixed up before you bring in an inspector or buyers your house sells for more.

It goes through a lot of different things, but no way should this ever take. Place of a third-party professional inspector. Their job is to look at every possible thing in your house and disclose it. Taking the liability off of you. And by the way, if you do repairs on your house, disclose it. I'd rather have a buyer go, Oh my God, there are so many repairs you did. I don't want this house. While that buyer really isn't a buyer, they're a pain I'd rather scare buyers away because especially here in Silicon Valley, the buyers complain about you doing repairs before you put your house on the market.

Or anything else, right? I don't want those buyers. They're going to be a pain and, as long as you disclose everything, you're going to be fine. There you go. 

Bank Owned Property of the Week
Bank-owned property of the week. There are no disclosures with bank-owned properties, this is in Cribari court.

In the villages, a retirement community on the East side of San Jose. This is a single stotwo-bathed1200-square-foot1 building square foot built in 1969 condominium. And this one has a carport.

The negative thing is, that everything's taped off. What's going on? What are they hiding? I bet they were painting stuff. That's what they were doing. And they took pictures. So this is bank-owned. That means you're buying it as is. They're not going to do repairs. Give you disclosures and you're probably not going to get a great deal.

They might tear out this Youpet for you. You can ask for, concessions, but don't expect it because this one has been on the market. That's not even on the market yet. It's a new listing. It's not even on the market yet. So there you go. Oh, the other positive villageoutis the villages, it's a retirement community.
They have a ton of fun things to do for you as a senior 55 and older, they have a golf course, obviously, but they have Over a hundred different clubs. So if you're into knitting, sewing, quilting, horseshoe, pickleball tennis, hiking, equestrian, woodworking, you name it, they have it. There's also a security guard center right here as you get in.

And then they have people that drive around and make sure everything looks safe and sound. It's a thousand dollars a month. There you go. Is this a good buy? 

These go for about 500, 000, but in the condition that it's in, maybe fresh paint or cracks it's a good deal. 

Homes for Sale Near Apple and Mountain View

Home near is Apple. This one-bedroom, three-bedroom, one-bath 1100 square feet, 7, 000 square feet.

So what this is right here is a house that is awesome because you're going to be able to tear it down and put one of those McMansions on it. Just popped on the market nine days and it's right off a busy street. Apple is right there. And then Velco is right here. And then it's the first house. It actually faces Wolf Ave. Don't let that scare you. There are tons of people buying houses there on busy streets. Okay. 

This is Mountain View home of the week. The reason why I picked it is because it's within walking distance of Castro Street.

And it's a nice little house. The HOA is 87. Two bedroom, two bath, 1, 400 square feet, 5, 800 square foot lot, 1938. I believe this one's historical. So there's not much you can do as far as building it. Up, but that's a really awesome neighborhood right here.

It's quiet, with tons of family, and tons of people moving and walking all the time. It's just a great neighborhood to live in. And there are 21 pictures. Let's go take a look. So semi semi--updated the tile floors, are a little dated. This is the 1990s early two thousand. That's a lot of kitchens for a smaller house. But it's classic looks like they built up and put something into an attic to make a third bedroom this looks familiar.

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Inventory Super Low

We talked about inventory being massively low. Single-family homes for sale, 300 homes for sale. We need to be about a thousand for sale to make it a balanced market. Granted, it's December. Granted, it's cold out. Granted, people aren't thinking about buying a house right now.

Inventory is very low. It's dangerously low. A month ago, we were at 442, we peaked at 533 in June. So it's a good time to go out and buy if you're being picky, you're not gonna find the right house. But inventory is low. And look at Santa Clara County, single-family homes for sale, 553.

That's lower than what we need for single-family homes in San Jose alone. You need to be about 2000 we have 142 homes on the market over 42 days. This is Santa Clara County. So roughly 20 percent ish, 25%. And 90 days on the market. We have 59. Okay. These are houses that have been on the market longer than 90 days.

They're all over Santa Clara County, especially in Gilroy. That's a great place to find a good deal. Bank-owned properties. 66 in the Bay area and 203 in California. Thanks for watching.

I'm Vito with Abitano. We'll see you out there.


Vito Scarnecchia Real Estate Broker, Veteran, Dad DRE#: 01407676 We’re Hiring! 408-705-6817 Vito@abitano.com Website: abitano.com https://www.onereal.com/vito-scarnecchia-1 update your home value: https://hmbt.co/bT7qRJ RELOCATION@ABITANO.COM FREE DESKTOP APPRAISAL https://www.propertyrate.com/agent/vitoscarnecchia If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents! Book appointments here: https://calendly.com/abitano/15min Home Buyers Course YT YouTube.com/SanJoseLiving IG https://www.instagram.com/abitanogroup/ FB https://www.facebook.com/vito.scarnecchia/ LI https://www.linkedin.com/in/vito-scarnecchia/ Blog http://blog.abitano.com/ POD https://spotifyanchor-web.app.link/e/oxdH1Hwfcvb Professional Photography by Kim E https://photosbykime.com / Local Real Estate Market and Home Value Report https://hmbt.co/bT7qRJ Financial Intelligence https://docs.google.com/forms/d/e/1FAIpQLSc0R5pjHIAPguZ5GDEB-fTbGJXKpWK3coK9Khymv_GTWkMnyQ/viewform?usp=send_form https://www.onereal.com/vito-scarnecchia-1 Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg



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