Monday, July 06, 2015
Think it's easy to buy L.A. real estate with $1+ million in cash? Think again.
It's not that bad here, I said. I was wrong.
In the course of one week, we made three offers on properties in Studio City, Sherman Oaks, and Glendale. All of the offers were all cash. All were over the purchase price -- some significantly -- and all were $1.4 million or thereabouts. Yes, million. You'd think sellers would be crawling over themselves to take these wonderful, beaucoup-bucks cash offers, but you'd be as wrong as I was.
The first property went for significantly over the asking price for all cash. We offered $50k over asking on the second property but seller terms were a little grab-y and it went into multiples anyway. My buyers offered significantly over the list price, all cash, on the third property. Plus gave the sellers a free 60-day rent back (unheard of in a normal market). The sellers dithered. And dithered. And finally accepted on a Saturday afternoon. We buttoned up the deal. And the sellers changed their minds Sunday morning. Ugh.
My poor clients were very philosophical about all of this, and went on vacation to lick their wounds. And in the meantime, they've decided the Bay Area is not so bad after all.
As for me, sure; these are not great experiences for a Realtor. Yes, there's the income issue. But also, it takes just as much work to not get an accepted offer as it does to get an accepted one. Sigh. Onward!