L.A. real estate news and insights.
On this episode, I answer the following four real estate questions:
1) My low ball offer was flat out rejected by the home seller. Can I still submit a new offer?
2) Are real estate taxes included with my monthly mortgage payment?
3) What is the difference between a list price and sale price?
4) The buyer for my home is not removing their inspection contingency. Can I cancel the deal?
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Home buying demand has gone down during the stay-at-home order. Instead of 6 offers on a property, sellers are getting 1 or 2.
But the local news is starting to sound a bit more optimistic and there seems to be a light at the end of the tunnel.
In a few short weeks, I believe a buyer surge is coming.
Your friend who mentioned to you that they are thinking of selling their home should start preparing now for that buyer wave. I can help your friend prepare for the sale of their home.
We can immediately work on figuring out what makes their home so special, the properties unique selling proposition, and who the ideal buyer for the property will be. We can hire a professional photographer and videographer. We can also start running an aggressive pre market social media campaign.
However, I need your help to make this happen.
Tell your friend that you know a awesome real estate agent that can help them out. Give them my cell number, 818-445-7953, and have them text me. I'll take it from there.
My team and I are ready for the surge and can't wait to dominate the real estate market!
Let's put in a low ball offer!
Asking price is $525,000.
Are you constantly being outbid when submitting an offer on a home?
Having a lower asking price is a widely used strategy by real estate agents to get multiple offers on their listing.
If you are seeing this a lot in your search area, adjust your budget!
Let's say your budget is $800k and you notice you have been outbid now a couple of times by buyers offering $25K above the asking price.
Adjust your budget down to $775K.
That way you can now be the one to submit an offer above the asking price.
You will now be the one who is outbidding all the other buyers by $25k.
Of course, have your agent do a market analysis on the property to make sure whatever amount you are offering is fair market value for the property.
After reviewing the buyer's purchase agreement, you will most likely find that the buyer's purchase contingencies will all be removed by day 21 of the escrow period.
After all, contingencies are removed, it is fairly safe to start moving out.
I say fairly safe because a buyer could still back out of the deal after their contingencies are removed.
Most buyers don't do that because if the contingencies are removed, you as the seller can go after the buyer's deposit.
The buyer's deposit is usually 3% of the purchase price.
So if the home is $1,000,000 the deposit is $30,000.
Most buyers would continue with the purchase rather than lose $30K... but you never know.
In my opinion, it's reasonably safe to start moving out once all contingencies are removed.
