Archive for November, 2008
Don’t Be a Deer Caught in the Headlights- A Real Gameplan for you to Survive in our LA Real Estate Market
November 23rd, 2008 Categories: For Buyers, For Sellers, Real Estate
Los Angeles is full of abnormalities.Â
No, I don’t mean just the locals. I’m also talking about the real estate market. We’ve got neighborhoods that are doing well next to those that have hit the skids. We have homes that will go into multiple offers but others down the block that have sat on the market for months and months. To really figure out what to do in this market, you just have to go back to common sense.
If you are planning on selling within 2-3 years, I’d suggest selling now- but price it right. The reason is that when looking at the Westside, we’re still building inventory and homes are not moving off the market to keep up with the supply. That means there are a lot of choices for buyers out there and no sense of urgency. No urgency means no energy to write an offer. Furthermore, that means the prices are still going to go down and then the market is going to need to recover and come back to the prices of today. The ONLY homes that are selling are those when the buyer feels like they’re getting a deal. How to price? Look at all your competition and price below them- we’re not talking 5% below. To sell now, you must price between 10-15% below. You must set your home up as a good deal.
If you want to be in your home for say, 3-5 more years, then it may be more prudent to wait to sell until we’re on the next upswing.
For people thinking about buying, should you buy now when the prices may still come down? If you think there could be a definite possibility of moving again within 1-2 years, consider waiting. If you’re looking for a home where you want to stay put for awhile, concentrate right now on finding the right home, whether you find it now or 6-9 months from now, and make sure to get a great deal that you’re happy with. You’d really be crazy to not be looking right now with the prices the way they are and great interest rates. Homes aren’t cars-you can’t go to the dealership down the street and get the same thing. When you find one you really like, grab it- just make sure you get it at a great price.
Real estate continues to be one of the best long-term investments you can make. Â Â You’ve got an asset that’s going to appreciate over time, you can take advantage of serious tax benefits to owning and you can live in the asset (take that, stock portfolio!). That’s hard to beat. Just remember to buy smart!!
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Movin’ on Up: Los Angeles Buyers are Seeing Opportunity
November 3rd, 2008 Categories: For Buyers, For Sellers
Here’s something that I’m hearing a LOT lately from people all throughout the Westside and Valley:
“We’re thinking that since we don’t want to stay in this home forever, this may be the time to move up. Prices have come down and now maybe we can get a bigger house or go to a better neighborhood. But we don’t know what to do because our home has also gone down in value. Do we wait to sell? Do we lease out our home until the market comes back?”
This is a very common situation that many Angelenos are finding themselves in right now. For people wanting to move up, prices definitely are looking more agreeable. Yes, when you sell, you most likely are not going to get the summer of 2007 price- BUT you are going to get a much bigger discount on your next home.  You’re basically rolling your equity in your current home into the next property. If you need to sell to buy, sell NOW. Time is of the essence. You can always do a lease-back or some kind of short term lease. But if you need that money and need it soon or semi-soon, you may want to give serious thought to selling NOW. I mean it, please take action and get on the phone and call your agent or call/email us.
As far as leasing goes, it may be an option to consider if you don’t need the money out of the home to buy your next one. You have to decide, though, if you want to be a landlord for the next couple of years. Prepare yourself by really knowing the numbers in your neighborhood. Find out how much it would sell and how much it would lease. Give some serious thought to if it’s worth it. (And I insist, please really think about it.)
If moving up is what you’re considering, this is YOUR market!
There are major opportunities out there!
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