Suziesimon12, Home Buyer in Hollywood Hills, Los...

is it bad to buy a house that has been bought and sold 4 times since 1994?

Asked by Suziesimon12, Hollywood Hills, Los Angeles, CA Mon Nov 29, 2010

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Myra Gouger’s answer
The national average for people to stay in one home is 5 years. So, no it isn't bad to buy a home that has been bought and sold 4 times since 1994. People get job offers in another state; they get transferred; they retire; they want to be nearer their children and grandchildren; they move back to take care of parents; they get divorced; they become widowed; they upsize; they downsize - in short any of a number of reasons could have created the reasons for the sales none of which have anything to do with a home itself. Just do your due diligence with a home inspector when you are in comtract and it should be quite fine. Hope this advice helps.
1 vote Thank Flag Link Mon Dec 6, 2010
I agree that it does not matter - in fact, the sales data will be helpful. There is no better comp for a home than itself. Unless the prior owners were running from some condition in the home or area, I would not eliminate the home from consideration because of the turnover. Some homes move, and some homes tend to be good relocation targets.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
2 votes Thank Flag Link Fri Dec 3, 2010
The sale of a home can be attributed to so many reasons, I've found most of them are personal reasons. As long as you give the purchase of a home its due diligence, you should be fine. Check out the home's insurability, and get yourself the home inspections you feel comfortable with, and you should not have to worry about how many times it has been bought or sold.
Good luck!
1 vote Thank Flag Link Mon Nov 29, 2010
From 94' to 2010 is a lifetime in real estate. The average person in the United States moves every 5 or 6 years.
The big three D's can offer a clue... Death, Divorce and Debt as to why a house changes hands. Also ask your Realtor to obtain a title report, maybe this time the seller is in financial trouble and simply needs to dispose of the property and that has nothing to do with the house itself. There are many excellent opportunities in Real Estate today by distressed sellers, ask me, I specialize in foreclosures and wrote the book, Defeat Foreclosure in 2007 when i predicted real estate values would drop by 35% to 40%... I was not far off of the mark was I?
1 vote Thank Flag Link Mon Nov 29, 2010
The average property will be sold approximately every 5 years or so. There are many reasons people move or may want to sell their home, such as job transfer, relocation, etc. I would highly recommend getting a home inspection for any property you are considering buying, it will help let you see if there are any major defects in the home. I commend you on being a knowledgeable buyer, if you like the home, then it is a good fit for you, if you are second guessing it, there are others to choose from.

Good luck!
Heather Paul
Coldwell Banker
(424)625-1037
0 votes Thank Flag Link Mon Jan 17, 2011
Hi suzie's Mom,

Well..I would ask the question...Why? Finding out will be the job of your buyer agent. It might be nothing more then people who have purchased the home who are in jobs that transfer them often (Military for one)., or it could be a Red Flag of something with the house..right now you need information so get that from your Buyer Agent.
0 votes Thank Flag Link Wed Dec 8, 2010
Suzie:
I tend to agree with some of the agents who answered you. First and foremost, the average for turn around is every 5 years. If you are serious and put in an offer, get a reputable Home Inspector and an Appraiser.
Good luck.
0 votes Thank Flag Link Mon Dec 6, 2010
Great answer Myra.
Couldn't have said it better myself.
Good Luck and find that perfect home inspector to put your mind at rest,
Chris Gubb
Tarvin Realtors
Ridgewood,NJ
201-362-6344
0 votes Thank Flag Link Mon Dec 6, 2010
That's 16 years so an average of every 4 years which isn't really that often but depending on the neighborhood it might stand out. There are many reasons someone might sell their home. But it might mean you want to look into it further. There very well could be something that someone doesn't notice about a home until it's purchased that causes them to move (noise from sirens or traffic etc.). The house could be a starter home and just too small for the buyers.

Short answer is that on the face of it not necessarily but you are right to wonder why this would happen so try to find out more about the home and play devil's advocate (a good idea anyway) before proceeding.
0 votes Thank Flag Link Fri Dec 3, 2010
it isn't bad, but then again, what are you looking for in buying such a house?
0 votes Thank Flag Link Fri Dec 3, 2010
Not at all. During the upturn in the housing market, many homes sold and were flipped several times every few months. As long as you do your proper due diligence, all should be fine. Always happy to assist.
Sincerely,
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills East
9388 Santa Monica Blvd, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0670 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
0 votes Thank Flag Link Tue Nov 30, 2010
Hi Suzie,

Short answer, not at all! There are many reasons why people move and often times it has nothing to do with the house but a change of job, life change etc.

I just sold a home in Pacific Palisades where the buyers purchased two years ago, remodeled to their taste and sold it to be closer to their elderly family. The buyers of this home had the same questions you do: "Why would someone purchase a home, remodel and sell in such a short time? Something must be wrong with the home." In actuality it was an exceptional property.

If you need help navigating the Hollywood Hills, I have extensive knowledge of homes in this area and will point out the benefits/draw-backs to each home.

Best Regards,

Grant Linscott
Keller Williams Realty
323.333.6222 cell
grantlinscottproperty@gmail.com
0 votes Thank Flag Link Mon Nov 29, 2010
4 times in 16 years is not odd or bad at all…While the real estate bubble was forming, many homes turnover more than that….some every year it seemed…There was a home I knew of that it was being turned over what seemed like every six months in a span of 5 years but I suspect that it was being used by fraudsters using straw buyers or some illegal venture.

What you should do is get a professional home inspection from a very reputable company, get a termite inspection, roof certification, ask the neighbors about the history of the home, read your preliminary title report and seller transfer disclosure statement. f you suspect foul play…get a police report on the home, they can tell you how many times the police have been called from that house or if a crime has ever been committed there.

Aida Pinto
Real Estate Broker
Realtor since 1987
(562) 916-3237

Websites:
http://www.ShortSaleDiva.org
http://www.ReoLicensedSpecialist.com

Blogs:
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0 votes Thank Flag Link Mon Nov 29, 2010
No, How many time a home or product has sold is not relavent. What if a guy buys a home at auction for $1. Puts $1,000 into it and sells it for $5,000. That new owner then spruces up the yard and sells it for $10,000 and the buyer takes it ,rents it out for $1,000 a month and sells it for $20,000 but the home appraises for $75,000?

If you can get a home that apprases for $75,000 for $20,000 do you care how many times it sold?

The appraisal is everything because the true value compared to what you are paying is all that matters. You buy things every day that are sold four or five times by the time yoou get them. Milk goes from the cow to the farmer in exchange for food and shelter. The farmer to the milk producer for$11.00 for 100 gallons and the milk producer to your local store for $1.00 a gallon and to you for $2.50 a gallon which is the market price.
0 votes Thank Flag Link Mon Nov 29, 2010
Your realtor can order an insurance claims report which may provide additional insight.
0 votes Thank Flag Link Mon Nov 29, 2010
it would definitely be good to find out as to why the high turnover, before you proceed in bidding for it
0 votes Thank Flag Link Mon Nov 29, 2010
Suzie just because a home has changed hands several times in 14 years does not necessarily mean there is a problem with the home. Sometimes certain homes change hands regularly with no fault to the home at all. Owners might have job changes, more children than expected, financial changes, etc. I have seen a few homes here in Marin change hands more often than I can even believe is possible because the homes can be quite nice. This is not to say that there might not be a problem with the home, neighbors, etc. but if that is the case the sellers are absolutely supposed to disclose that information.
Good luck!
0 votes Thank Flag Link Mon Nov 29, 2010
Suzie,

Some areas in LA County are more geared towards families with children where people buy and stay longer, i.e. suburbs, and some areas are more dynamic like West Hollywood and Hollywood Hills. average 4 years between sales in the area you are looking at is not unusual. However it would be a good idea to look at the chain of title and see what has gone on with the particular home you are looking at since you seem to have a concern.

If you need help, please call me @ (310) 383-4212
0 votes Thank Flag Link Mon Nov 29, 2010
Hi Suzie, if you want to send the address, I can do a little research and see if anything comes up.

Cricket
0 votes Thank Flag Link Mon Nov 29, 2010
There are numerous reasons why a house could have sold that many times in the past 16 years. I would definitely check with the local police depratment and see what crime is like in the area as well as the sex offender registry. All reasons which could cause people to want to resell so quickly. However, it really could have just been coincidental and the buyers had personal reasons for having to sell. Also, be sure it's the home for you and you can picture yourself living there happily.
0 votes Thank Flag Link Mon Nov 29, 2010
Lots of homes have been sold numerous times in the last 15 years. The bubble market encouraged quick selling to make profits, house flipping, etc. Just inspect and investigate the house thoroughly, read all the seller's disclosures and you will know everything you need to.
0 votes Thank Flag Link Mon Nov 29, 2010
Not necessarily. You certainly should research and find out more about the house, look into the sales history, and find out as much information about the home as possible. A good agent can help you do this. Also, if you were to get in escrow on the property, you would complete several inspections of the home, which would likely identify any flaws or defects. You can always back out of an escrow (provided you have the appropriate contingencies remaining) if the property inspections don't measure up to your expectations. You can also ask for credits to help repair any problems that are uncovered during inspections. Also during escrow, sellers are required to provide disclosures of any known defects or problems with the house. Feel free to contact me and I would be happy to help you further investigate!

Best,
Richard Schulman
Keller Williams Realty
#1 Buyers Agent KW Los Angeles
(310) 482-0173
schulmanrd@yahoo.com
0 votes Thank Flag Link Mon Nov 29, 2010
The fact that a home has been sold 4 times doesn't make it a bad investment. There may be evidence that shows that each sale was for a substantial profit or there may be other reasons for the sale. If you are interested in the property and you have successfully negotiated an offer remember to get through inspections of all aspects of the property. If it is a hillside property, check on geological reports and structural investigations to determine the structural integrity of the property.
0 votes Thank Flag Link Mon Nov 29, 2010
Hi Suzie,
The question is, are YOU concerned about buying a home like this? Something has made your antennae go up; I'm a firm believer in listening to you intuition, and acting on it.
I would do some in-depth research about the situation. Talk to the previous listing and selling agents to get a clearer picture as to why the home was sold. Is it a marginal location? Is it the smallest/ least expensive/ lowest priced/ lowest quality for the neighborhood? Is it a starter house, making it a home that first time buyers choose for the short term, then move on? Is it a "fix and flip" home that is continually being refurbished, then sold for a profit? Is there a neighborhood nuisance problem, like barking dogs or a nearby school?
Look at the track record, and then discuss your concerns with your Realtor. Be sure you get a full set of disclosures, and ask for any and all previous reports on the property. If you do your due diligence, including thorough inspections, you should be fine. On the plus side, the home has a proven track record for selling, which will be good when you are ready to move on.
Best of luck,
Deborah Bremner
The Bremner Group at Coldwell Banker
REALTOR, 00588885, ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
(D) 818.564.6591
http://www.thebremnergroup.com/news/
0 votes Thank Flag Link Mon Nov 29, 2010
It would be important to ask why the current owner is moving and why the previous owner moved. Also, what kind of condition is the house in. It is possible that one or two of those sales over the last 16 years were "flips," where the home was purchased as an investment, remodeled, and re-sold.
If the house is in good condition and has been fully inspected, the number of times it has sold should not affect your decision.
0 votes Thank Flag Link Mon Nov 29, 2010
No, not at all. Unless of course, you are aware of some reason why all the previous owners left. Circumstances change all the time; job relocation, loss of job, baby on the way, kids grow up and move out, etc.... If it's a home that would fall into the first time buyers market, then that also may have something to do with it. As with any home, I would do my due diligence and get the proper inspections before completing my purchase. If all checks out ok, I say go for it!
0 votes Thank Flag Link Mon Nov 29, 2010
Thats a new owner every 4 years and people in the LA area do tend to move more often than in many other areas. I wouldn't be overly concerned about it but would ask the right questions:
1. Why are the current owners selling
2. Why has the home been sold 4 times in the past 16 years (listing agent may not know details of previous sales)
3. Have there been any foundation or structural issues (since it's in the Hollywood Hills and potentially a hillside home)
4. Do you have a copy of a previous geological and/or structural inspection report
Web Reference: http://www.MrWestside.com
0 votes Thank Flag Link Mon Nov 29, 2010
As long as you review a preliminary report and purchase title insurance from a title company you should be ok. Although you may want to have your realtor investigate a little more about these transfers. Maybe they were transfers between family members? Maybe foreclosed then purchased as foreclosure by investor and sold to another investor for quick profit then sold to regular buyer? These should not affect you now. However don't forget to do your other typical inspections and investigations on property such as a home inspection.
0 votes Thank Flag Link Mon Nov 29, 2010
No its not bad. You also have to realize the market has made many many changes since that time. I would also check out the neighborhood and ask questions. Also request a natural hazard report with a clue report. This will show various activites that may have happened ie deaths etc...
0 votes Thank Flag Link Mon Nov 29, 2010
No, it's not bad, ask the owner what the circumstances were why the seller he bought it from had to sell, then why the current owner is selling.

Study the neighborhood, talk to neighbors, get a home inspection & go from there.

EmilyKnell1@yahoo.comj
562-430-3053 cell
0 votes Thank Flag Link Mon Nov 29, 2010
No home owners move on with their lifes... YEAH you apparently may have located a home which many home buyers love to owner.

Many homes owners reside in their residence for approx. 5 years - or +

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Mon Nov 29, 2010
I think I would want to investigate why it has gone on the market so many times. Study carefully the condition of the property and take a good look at comparable sales in the community to make sure the price is consistent with current market conditions.

Most of us move an average of once every 6 years, so if you take that into consideration the sales rate is a little higher than average, but remember that is an average, so be sure to look at those comps!
0 votes Thank Flag Link Mon Nov 29, 2010
That wouldn't worry me...all else being equal.
0 votes Thank Flag Link Mon Nov 29, 2010
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