L.A. real estate news and insights.
When you list your home for sale with an agent, the first thing you need to do is determine how long you are going to give that agent an opportunity to sell your home.
The length of time is determined by you and the agent.
Nothing is set in stone.
You can do a year, 6 months (this is average), you can even do a 1-day listing agreement.
I have done plenty of 1 day listing agreements.
I use that when I want to show a home 1 time to 1 of my buyers.
If the buyer refuses to send cash as their deposit, find another buyer.
Remember, the deposit is sent over within the first 3 days of opening escrow.
If the buyer is this difficult to work with just 3 days in, imagine how hard it will be for the rest of the 30 day escrow period.
As soon as you accept an offer for someone to buy your home, the buyer has to send over an all-cash good faith deposit.
This deposit is typically 3% of the purchase price of the property and is held by the escrow company in an escrow account just in case the buyer breaches the contract and you want to try to collect for damages.
If the buyer wants to send over anything but cash as their deposit, say no!
I have heard of buyers trying to use necklaces, #Rolex watches, and all types of other items for their deposit.
There are a few problems with this.
1) Will the escrow company hold a physical item as a deposit?
2) What is the true appraised value of the item?
3) Is that item real and authentic?
Because so many problems can arise out of this, only accept cash as your deposit.
If the buyer refuses, find yourself another buyer.
Every year in December, a lot of my buyers that have been looking for a home take a break from the property search.
They are busy with the holidays and parties and family.
But come January 1st, their new year's resolutions of owning a home kicks in and their search gets ramped up again.
As a home seller, you should understand this pattern and take advantage of it.
You can do that by putting your home on the market in January and getting that initial wave of buyers to come check out your home.
If you wait until February to put your home on the market, you miss the buyer rush and your home could stay on the market longer.
If you are going to list your home, be smart about it, and list your home for sale in January.
That means you need to start to prepare for that today!
A laundry room is the most popular specialty room (anything other than a bedroom, bathroom or kitchen) among all buyers according to the new report "What Home Buyers Really Want (2019 Edition).”
Millennial homebuyers in particular love a separate laundry room with 86% of them reporting that it is desirable (36%) or essential/must have (50%) room.
You already put down a huge down payment when buying a house... you are tapped out.
But then, SURPRISE… here comes a supplemental tax bill in the mail!
It's terrible, but it's part of the home buying process and you have to pay it.
I know the pain... I had to pay that bill myself when I bought my home.
Keep in mind everyone pays a different tax amount, so make sure to ask your real estate agent (or me, wink wink) what the tax amount will be for the home you are interested in buying.
That way there are no surprises, and you can budget for that bill and your down payment.
Under current California law, after there is a change in ownership of a home, the property is reassessed.
The supplemental bill is paid by the buyer of the home and covers the difference between the previously assessed value taxes and the newly assessed value when you purchased the home.
Think of it as a catch-up bill.
For example, the home you just purchased was last sold back in 1970 for $50K, you now bought that home for $750K.
The supplemental tax bill covers the difference between the $50K and $750K.
The tax in this example is going to be around $5,000.
You may see the supplemental bill within a few months of buying your home.
You may also receive a supplemental tax bill for changes that add property value, like adding square footage or special features like a swimming pool or fireplace.
Every price point is different, obviously; but I am hoping that this example gives you a general idea about what has been going on with home prices so far in 2019.
As usual, I do expect a slowdown in the 4th quarter of the year (October, November, December)... that happens evey single year.
The market will then pick up again in January.
I don't care about the article you just read discussing recent home selling data... this is what's really happening... this is how deals are going down in the Los Angeles area RIGHT NOW!
Below are the number of offers I have received on my personal listings over approximately the last 30 days.
The stats below will give you an inside look at the current market in the LA area.
6 offers - 4610 Densmore Avenue #9, Encino. Sold $15k above asking price.
3 offers - 7288 N Figueroa St, Los Angeles. Initially was in escrow for $35K above asking price, but because of extensive repairs needed to the home discovered during the inspection period, this property was sold $5k over asking price.
3 offers - 4610 Densmore Ave #11, Encino. Sold $10k over asking price.
5 offers - 3640 Emanuel Drive, Glendale. Still in escrow and can't disclose the exact price... but we are well over $1.1 million.
I can't speak on the activity other agents are getting, but I hope this info helps you to navigate LA's real estate market.
