We get this questions a lot: Sell Now…or Wait for the Election:
Our response is: As you know the election will be happening soon and regardless of your political preference, the election will cause a slowdown in the real estate market as it often does. The primary difference with this election is it is severely based on recovery agendas due to the economy issues. That too will provide a bit of uncertainty in the real estate market. As a realtor I can assure you that it will affect the housing market but what I cannot assure you of is if it will be good or bad.
Here is what is certain right now, the inventory for homes is VERY low, the buyers are knocing down doors again and the interest rates are still at the lowest in history. That all means that right now, in September is one of the very best times to sell your home!
There was a great article in the LA Times about how agents use over priced properties as “set up homes” to make their listing sell quickly. Do agents actually do that?…YES WE DO! There are several unrealistic sellers in today’s market that have put their listings on the market well over market value. Any experienced agent is aware of these properties and to illustrate how good our listings are or the property we want to sell is we will first show buyers 2 or 3 “set up homes.” Properties that are priced well will stand out when compared to those that are well over priced.
If you were in the market for a new car and went to see a BMW 5 series, which was priced for $85,000 (market value $55,000), then you saw a Mercedes E class for $80,000 (market price $53,000) and lastly you saw an Audi 6 series for $55,000 (market price $50,000) and when you realized all cars had mostly the same features, which car would stand out as a deal?…the Audi and the others set up this realization.
“Set up homes” normally get very good activity because of their location and condition but normally never get any offers until they drop their price to a realistic amount. Until they face reality, many sellers do not understand that their properties are being shown to help sell other homes in the area. “Since no one seriously expects them to sell at their original asking price, agents are happy to exploit the overpricing to facilitate other sales.”
We will not represent a seller if they are not in touch with reality regarding the value of their property because it is a waste of time money and energy for us and for them. Several agents will not tell the sellers the truth about values in order to get the listing. If a seller hears from 3 agents their house is worth $750,000 based on the market comparables and another agent says it is worth $900,000 with no supporting eveidence but they know that is what a seller wants to hear But we will use these homes to help sell our listing that are priced more accurately.
If you are thinking of selling your home, don’t be a “set up home” that help other properties sell…be in the game and price competitively. In the long run you will get a higher value for your home and walk away with more money in your pocket, which I believe is every sellers’ goal.
Hands down Playa del Rey has the best views in all of Los Angeles! Let me tell you why…I have sold and shown property all over LA; Malibu, Pacific Palisades, Hollywood Hills, Santa Monica, Marina del Rey, Beverly Hills and these areas all of great view but nothing compared to area 31 (on the Multiple Listing Service Playa del Rey’s area is 31). Malibu has great mountain and ocean views but at night you are looking at pitch black. The Pacific Palisades also have stunning ocean views during the day, mountain and city views but again at night the Pacific is black and the city views are looking south, which is nothing spectacular. The other areas I mentioned all fit into one of these categories above but Playa del Rey has it all and MORE!!! The reason the PdR (shorten version for Playa del Rey, which is what the locals use when describing the area) has the best view in all of Los Angeles is because: First you look out to the Ballona wetlands, which is one of the only protected natural areas in west LA. This is nature at its best with beautiful wild flowers, soaring birds and native landscaping. Beyond the wetlands is Marina del Rey so you can watch the sailboats coming and going all day. Gaze at one of the boats sailing into the vast ocean it is hard not to follow the coast up the Queen’s necklace, past the famous Santa Monica Pier and into Malibu. As you follow the mountain range east, which now becomes your backdrop you can see Century City, The Wilshire Corridor, The Hollywood sign and into Downtown. The city lights sparkle and you realize you have entered a magical destination when you can see all of this from Playa del Rey. If views are on your criteria list then you must come see our listings in Playa del Rey!
The media says it is a buyer’s market but I can tell you that it seems to be shifting back into a seller’s market…The inventory is so low right now and houses that are priced right have multiple offers and often sell for over market value. Buyers that submit low ball offers aren’t even getting countered and often time qualified buyers that submit a full price offer are losing out to all cash investors who have come off the sidelines and are in the game. When a house comes on the market that you, as a buyer likes we have to act FAST! It is important to have all your ducks in a row so that when you see a listing you like, you are ready to pull the trigger and submit an offer. I can promise you that more often than not you are not the only buyer that loves the house and it will be in escrow soon. March had a 24.6% jump in home sales from February, making it one of the most active months in the last year for home sales! If you are thinking of buying it is time to jump in and if you are thinking of selling don’t miss this window of opportunity!
There are investors that will do 97% conventional financing!
- Single Family Residences
- 3% down (NOT FHA)
- Loan amounts up to $417,000
- Credit scores at 720+
- Income to debt ratios up to 41%
- 2 months reserves
- No Upfront Private Mortgage Insurance
- Low Monthly Mortgage Insurance
Let us know if you are interested in this program and we can have you talk to our lender.