Home Selling in 90016>Question Details

Cat G., Home Seller in Los Angeles, CA

How can I find a cash buyer for my (very cheaply priced) LA condo?

Asked by Cat G., Los Angeles, CA Thu Jun 5, 2014

I'm asking $155K in an area where other 1 bedroom condos go for $200K and up. But mine is non-warrantable. HOA has too many renters and HUD owns more than 10% of units, but the reserves in the HOA are fine and there's no litigation going on. I have a realtor, I just worry they aren't working enough to move this thing. We need a cash buyer. We do know a lender who will loan to a strong buyer with 50% down. Besides putting it on the MLS and redfin, how can we get attention of cash buyer investors, and do you think $155K for a condo walking distance to the La Cienega/Jefferson train station would fetch a cash offer? I last rented it out for $1125/month.

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Answers

13
Congrats! I hope it works out for you.
1 vote Thank Flag Link Wed Jun 11, 2014
Cat,

Just wanted to see if the price change has helped you at all? Just curious.

Regards,

Jim Malmberg
1 vote Thank Flag Link Tue Jun 10, 2014
We got an offer!!! :D At the asking price! They have a private lender that is willing despite the non-warrantable HOA stuff. Crossing my fingers that this works out....
Flag Wed Jun 11, 2014
That's a pretty good price, however, cash buyers are often investors looking for income property. The highest demand property in the condo market is (2) two bedroom (2) two bathroom over 1,000 square feet.
Your property is a bit smaller so it will not have as "large a buyer pool' as the what we know is the highest demand size.
1 vote Thank Flag Link Fri Jun 6, 2014
OK, the change in price should move you up in the automated listings. Good luck with it! I really hope it works out for you.

Regards,

Jim
1 vote Thank Flag Link Thu Jun 5, 2014
Glad everything is working out!
0 votes Thank Flag Link Mon Sep 29, 2014
0 votes Thank Flag Link Fri Aug 29, 2014
Congratulations! I am glad that everything is working out!

Von
0 votes Thank Flag Link Wed Jun 11, 2014
Yes! We are in escrow! I hope the next 30 days go well, we are keeping it in our prayers.
Flag Sat Jun 14, 2014
Unfortunately, you are at a tough point in the process. It is really important for agents to keep properties active and to have a lot of activity going on with them. It's a numbers game. But when a listing sits on the MLS for a long period of time without selling, it can indicate problems. The first things that come to mind with most of the agents I know are that you may have a problem with the property itself, the seller may be unreasonable, or that the price is too high.

There are a lot of agents out there who will shy away from properties that have been on the market for too long. And buyers, who often get automatic notifications of new listings or changes in existing listings, will probably not see your listing again unless something changes with it.

Are you still getting people to come through the property? And how difficult is it for someone to get into if they want to see it? Somehow or another, you really need to start creating some new interest. But again, that's really your agent's responsiblity.

If the agent isn't an independent broker (meaning that he/she is an agent and not a broker him/herself), then I'm very serious about having a conversation with the listing broker. That would be his/her boss. It is probably time for you to stir the pot a little.

Regards,

Jim
0 votes Thank Flag Link Thu Jun 5, 2014
It's been on the market for 97 days but not because there's a problem with the property. The unit itself is fine. We lost some time because I had bratty tenants the first month who wouldn't let anyone in to see it. (The tenants are gone now). Then we were up against the holidays. Then we wasted about a month in an escrow that fell through. We just lowered the price to $155K yesterday.
Flag Thu Jun 5, 2014
Cat,

The database that I was referring to is one that your agent typically builds up. I've got several thousand contacts in mine... for various things. Some of them are clients. Some of them are people I network with. Around 1,500 are local agents that I mail to announce open houses, price changes, new listings, etc... And some of the contacts are investors.

On top of that, I've got other agents in my office that I can have go through their own databases. We're very big on using CRM tools to stay in contact with people and make announcements.

I'm just curious here. Did your agent bother to knock on any other doors in your complex or try to contact other owners in the building to see if they had any friends or family that would be interested in seeing the property? Did she bother to invite them to the open houses? If it was me, I'd still be having open houses even if the property had been on the market for several months. If I couldn't sit them, I'd have other agents in my office doing it. You will never sell it if nobody is showing it.

Regards,

Jim Malmberg
0 votes Thank Flag Link Thu Jun 5, 2014
If my agent did do any work like that, I heard nothing of it. I think you are much more diligent in your efforts.
Flag Thu Jun 5, 2014
The fact that a deal fell out of escrow because of the lender issues is something that should not have happened in the first place. Your agent should have advised that this purchase is not likely to go through (and the buyer's agent should have advised similar to their buyers).

This to me is a red flag that your agent may either not know how to market a cash property like yours or is just being lazy and didn't gather all the facts when taking your listing. You should speak to their broker about this and see if they can help make amends.
0 votes Thank Flag Link Thu Jun 5, 2014
Tristam, yeah I'm pretty unhappy with how things have gone :( All this wasted time. Nobody told me that lending on condos had gotten so tough, I expected me realtor to know about potential road blocks. If someone out there IS good at selling properties like this, and isn't too far away from the Culver City area.... I am taking names and recommendations.
Flag Thu Jun 5, 2014
Cat,

Sorry, I completely missed the line about having a Realtor in your original posting.

Has your agent done any open houses? What has he/she done to drive turnout at those open houses? What about database mailings to investors? And how about working with some lenders that can provide workable scenarios for potential buyers? That's something that should be provided to every client who sees the place.

If you don't think that your agent is doing what you want, then you may want to speak with the broker. An agent is supposed to do more than just get your place in the MLS and supervise the paperwork.

Regards,

Jim Malmberg
0 votes Thank Flag Link Thu Jun 5, 2014
Thanks Jim. I have no idea what she's doing to try to move this thing... it just isn't getting moved. She had two open houses several months ago, when we didn't know the situation with the HOA and she priced the place much higher at $179K based on comps. What are database mailings to investors? I had no idea there was such a thing.
Flag Thu Jun 5, 2014
Cat,

You're best bet is probably to list it with an agent. You'll get a lot more exposure. A good agent will also come to the table with a marketing plan that most individual owners can't compete with and a mailing list of potential buyers.

Non warrantable condos really shouldn't be a huge issue if the building and the unit are in good condition. We have a shortage of property throughout the Los Angeles area right now and there are buyers who won't be put-off by this issue.

I'm assuming that the reason you are attempting to sell it yourself is to save the commission. You may be better off paying it if your agent can sell your place for more than you can on your own. In the end, you could wind up pocketing more money.

I'd be happy to provide you with a free property evaluation without any obligation. Let me know if you are interested. Best number to reach me at is 818-728-1100. I have several meetings this morning but should be free by around 1:00 PM. You can also reach me by email at jim@jimmalmberg.com.

Best regards,

Jim Malmberg
(818) 728-1100
jim@jimmalmberg.com
http://www.JimMalmberg.com
CA BRE# 01815608
0 votes Thank Flag Link Thu Jun 5, 2014
Hi Jim, I'm not selling it myself. I mentioned in the description that I have a realtor, I just don't think she's interested in moving this anymore. She didn't know Fannie and Freddie had new restrictions on condo loans, she didn't check over my HOA.... She originally listed us at $179K and we lost a lot of valuable time. We even almost closed escrow with buyers who had a traditional loan, but they rejected the HOA, and all my realtor could say was "Oh, some credit unions are pretty picky." I had to google and learn myself that the condo was non-warrantable. My neighbor who is a real estate lawyer told me this is really unacceptable of an agent who thinks they deserve a 6% commission. I just feel like I have to do more of the homework than I should be doing. By the way, building and unit are in good condition. It's a great place to live next to Culver City, it's just that there's too many renters and HUD properties in the association for a normal bank to lend.
Flag Thu Jun 5, 2014
Hello Cat,

I represent cash investors. Feel free to contact me.

Von
0 votes Thank Flag Link Thu Jun 5, 2014
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