Wednesday, July 29, 2015
Thursday, July 23, 2015
Mortgage lending has changed and loosened up in the last two years on condo units like this. The unit sold this time to a buyer with a Veterans' Administration loan. The VA part itself amazes me. Most lenders, myself included, will run like hell away from offers with VA loans. No shade to veterans, but VA loans have always been exceedingly restrictive, have taken a long time to close, and have required lots of extra stuff from both sellers and buyers. But this isn't your father's VA loan program -- it went through without any problems (well, okay, the appraisal took a long time) and closed on time. Thank you to the buyer's excellent agent Adam Martinez for talking us into taking his buyer's offer!
Wednesday, July 08, 2015
Here is the Steve Lopez link and here's the link for my last post. Steve bemoans the current real estate market, with its high prices and cash buyers. He isn't wrong, and yes, the middle class is being priced out of most of the local r.e. market. And yes, buyers who need a mortgage loan are often being beaten out by cash buyers. However, his example was South Pasadena. Home prices have always been crazy there, because the public schools are so. damn. good.
Monday, July 06, 2015
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!