When we talk to a client, usually the first thing they say is they’re looking for really good deals. And that makes perfect sense. The media has made it sound like the market has gotten so bad, a person could offer $500,000 on $750,000 houses and the desperate seller would take it. This is not nearly the case.
Let’s begin by saying the Real Estate market in Los Angeles is already at its low. Prices are off in many parts of greater LA 30-40% – so right there, there is already a deal to be had. And if you factor in today’s interest rates, it’s not even funny how much you will save if you buy soon as opposed to maybe a year or so from now. So if you’re looking for a deal below that 30-40 percentage, it’s important to know what a deal will look like. A deal will look like a house that needs a lot, a lot of work. Not just new paint, maybe some new walls. Not just new faucet fixtures, maybe new plumbing. It’s worth thinking about.
Now if you just want to move to a move-in ready property, you should think about some other things. That you’re going to pay a higher price to get a property where most elements are in good shape. And if the seller has priced the their property competitively, there’s not going to be too much give in the price. Now that’s not to say these houses are going to be perfect either. Remember, unless you’re buying new construction, you’re buying a used home. And sometimes, while the home may have been kept up pretty well, it may not have been fully updated. What does this mean? Well, an article in today’s LA Times, “First-time buyers turn fussy about ‘Move-in Ready’ Homes,” addresses just this dilemma, saying that buyers are passing up great houses because of reasons such as:
The kitchen appliances are by different manufacturers.
•There are no granite counters — despite the fact that the house is a modest-priced starter home.
•A carpet needs replacing or the color doesn’t match their furniture.
•Wall colors are “wrong,” such as white, when for today’s tastes, they should be a warmer hue.
Try not to get road blocked by these elements – they’re easy fixes and really, shouldn’t be the reason you shouldn’t buy a home if everything else fits you needs. In another post, I spoke about “Knowing Thyself” and that includes know if you want a deal that’s going to be a real fixer or something that’s ready to move into and more money