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    Where Does The Market Go From Here?

    Written by Richard Schulman  |  November 3, 2009 12:47 PM Market Conditions in Los Angeles
    2 comments | 64 views

    So the tax credit is essentially expired - for now.  Where will the market go from this point?  

    The answer really depends on three factors.

    Interest Rates - Rates are still really low.  If rates climb significantly - 1 point or more, I would expect price and volume to be affected.  Anything less than that has not had, in my experience, a tangible impact on pricing or demand.

    Supply - Probably the key element in the equation because it directly impacts the next factor.  Right now supply is low.  The problem is especially pronounced at the lower price ranges.  When you look online at Trulia, Realtor.com and Zillow keep in mind that as much as 95% of the "active" inventory is actually short sales with multiple offers waiting for bank approval.  I have a short sale that is 18 months in the making right now.  At the higher ranges there is lots of supply, but the homes are over priced and the owners are generally unwilling to sell at a market clearing price.  The key to this will be if and when bank release some inventory. 

    My guess is that there is not that much inventory in the quality areas to affect demand, and if there was, the banks would slowly release properties so as not to create a panic.  There is likely a large supply of inventory for outlying areas. 

    Market Perception - Markets are driven by fear.   If you fear that houses will double in value next year, you will pay a lot to buy one.  If you fear they will crash in value, you wouldn't buy one.  Right now most buyers probably fear that prices are going up, so they are motivated to purchase.  Some still fear the opposite, but supply is so low, it only takes a small segment to affect the market.

    Predictions:  Expect lower end properties in the LA Area to sell for the same or slightly more next year.  Expect further, but reasonable (+/- 10%) drops in higher priced homes ($500,000-$1,250,000) and expect lots of uncertainty above that.

    Check back in a year to see if I'm right.


    If you need help buying or selling a home, or know someone who does, please contact me at 310-482-0173.

    Richard Schulman
    Keller Williams Westside Realty
    #1 Listing and Selling Agent
    310-482-0173
    schulmanrd@yahoo.com 

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    Last Chance For Free Money

    Written by Richard Schulman  |  September 18, 2009 12:48 AM Home Buying in Los Angeles
    No comments | 89 views


    The tax credit for first time home buyers expires November 30th.  While that seems that is far away, here is why it is not:

    This is for escrows closed by November 30th.  If you are doing conventional (non-FHA) financing, this is a 30-35 loan period, from the day you open escrow.  If you are going FHA, it could take up to 45 days to close your loan!  This may be extended due to huge loan volumes and the Thanksgiving Holiday.

    If you work backwards, you realize you need to be in escrow by October 15th at the latest to comfortably hit this deadline.  As you may know from bank-owned properties it can sometimes take 5-15 days to get a contract signed and an escrow opened.  Even a regular sale can take a few days to open an escrow, so you need to write your offers even earlier.

    If you have any questions, let me know.

    Richard Schulman
    Keller Williams
    310-482-0173
    #1 Listing and Selling Agent, KW West LA
    schulmanrd@yahoo.com
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    Want to Sell Your Home For Free?

    Written by Richard Schulman  |  June 18, 2009 10:56 PM Home Selling in Los Angeles
    No comments | 127 views

    Want To Sell Your Home?

    Take Advantange of This Once in a Lifetime Offer:

    I Will List and Sell your Home For Free

    Thats 0% Commission.

    Who Am I? I am a high selling agent for Keller Williams Real Estate. Last year I closed 28 transactions.

    What's the Catch? No catch! This is limited to one free listing.

    How Do I Benefit? Why Am I Doing This? I benefit by getting exposure to potential buyers and other sellers. And you benefit by having an experienced real estate agent selling your home. So it's a win-win situation.

    Contact me for more details.

    Richard Schulman
    REALTOR
    (310) 482-0173
    schulmanrd@yahoo.com

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    Profiting in a Real Estate Recession: A Free Workshop

    Written by Richard Schulman  |  June 18, 2009 10:53 PM Home Buying in Los Angeles
    No comments | 125 views
     

    Profiting in a Real Estate Recession

    Come to a Free Real Estate Workshop About Opportunities in Today's Market

    Sunday, July 12th
    10am-12pm
    Westwood

    ∙ How to Find the Best Deals
    ∙ Unique Opportunities for First Time Homebuyers
    ∙ Squeezing the Bank
    ∙ Analyzing Properties for Rental
    ∙ Market Conditions
    ∙ Loans and Down Payments
    ∙ How to Purchase Multiple Properties

    Contact me to RSVP and to get directions.

    Richard Schulman
    REALTOR
    (310) 482-0173
    schulmanrd@yahoo.com

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    CONSTRUCTION COSTS AND THE HOUSING RECESSION

    Written by Richard Schulman  |  May 12, 2009 6:46 PM Remodel & Renovate in Los Angeles County
    No comments | 159 views
     

    Three years ago you walked into an open house, saw a 2 bedroom condo that was a mess and KNEW it would cost $50,000-$75,000 to remodel it.  Well, those numbers have burst as well.   


    We are seeing full remodels done as $5,000-$10,000 per bathroom and kitchens done as low as $10,000 for remodelling "down to the studs."


    New construction costs are as low as $135 per square foot, and I have a client gutting a 1,600 square foot house, adding on 75 square feet for under $80,000.


    How are costs so low?  A few reasons.  Demand for remodelling is way down from its peak, leaving an oversupply of materials and labor, pushing costs down.  Also, I have worked out bulk deals with suppliers of materials and contractors.  I promise them a large volume of business and they cut their prices for me and my clients.   


    For a referral to a licensed contractor who can do anything from a small project to ground up construction, let me know.


     
     
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    Free Foreclosure Class - This Saturday

    Written by Richard Schulman  |  May 6, 2009 3:56 PM Foreclosure in Los Angeles County
    No comments | 127 views

    Saturday, May 9th
    10am-12pm
    West
    wood

    In the class we will go over strategies for buying foreclosures, analyzing deals and identifying opportunity, as well as reviewing current market conditions. There will have a lender on hand to discuss financing options.

    We will explore such things as:
    ∙ How to Find the Best Deals
    ∙ Buying Properties with 3.5% Down
    ∙ Winning Multiple Offer Scenarios
    ∙ Squeezing the Bank
    ∙ Analyzing Properties for Rental
    ∙ Calculating Return
    Market Conditions
    ∙ Loans and Down Payments
    ∙ How to Purchase Multiple Properties with Low Down Payments

    Contact me to RSVP and to get directions.

    Richard Schulman
    REALTOR
    (310) 482-0173
    schulmanrd@yahoo.com

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    What is a short sale?

    Written by Richard Schulman  |  May 5, 2009 9:38 PM Home Buying in Los Angeles
    No comments | 151 views
    What is a Short Sale?
     
    A Short sale, or short pay off is when the seller of a property attempts to sell it for less than is owed.  The seller must coordinate with the broker to obtain an approval for a sales price that a buyer will pay, and that the bank will approve.  The process takes several months to complete. 
     
    Keep in mind when you see a short sale the price is not the price that the bank has approved, but the price the seller's agent picks to generate offers.  Often times this number is intentionally low to solicit multiple offers to show to the bank.
     
    For buyers I recommend avoiding short sales unless you have time to wait.  The average approval time is 2-6 months.
     
    For sellers a short sale can damage your credit less than a foreclosure.  If you are in negative equity situation, and would like an evaluation to determine your options, please do not hesitate to contact me.
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