So frustrated. All the condos I look at are multiples that end up going over the asking price. When is the?

Asked by Interrupted Hour, Los Angeles, CA Sun Mar 30, 2008

market going down? I'm giving up the search for 6 months. Only the junk and places like the valley seem to be dropping.

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Laarni G. Om…, , Orange County, CA
Sun Mar 30, 2008
Hi Interrupted,

Although the media keep harping about the real estate bubble, your part of the world is not really affected by it. In fact the inventory remains stable and if the condo or any property is priced right, you can expect a multiple offer. A word of advice, when you see something that you really , really like, do not hesitate to offer full price or go over just a little bit. I am working with a client since November in the West wood area and we are experiencing the same thing you do. The only difference I see, is we are both persistent to find the
right property for her.
Good Luck,
Laarni
1 vote
Monique & Joe…, Agent, Beverly Hills, CA
Sun Mar 30, 2008
Hey Interupted,

Your looking in the Miracle Mile. Prices for the Miracle Mile as of February 2008 the median was $849 with 34 sales vs 41 sales with a median of $895 for 2007. What you may be seeing is a lot of people underpricing their properties to get a lot more activity. Smart. To avoid being stuck in the multiple game you might want to shift your focus on properties/condos priced at market that aren't moving and offer what they should be listed at or under market. Prices have gone down for condos. Don't get to frustrated. I've seen properties priced well sell the same day. It's all really about strategy and the old saying the early bird catches the worm.

Don't give up just yet.

Monique Carrabba
The Reavis Group
The Miracle Mile Specialists
1 vote
Ray Calnan, , Los Angeles, CA
Sun Mar 30, 2008
Hi Interrupted Hour,

One thing that has not yet been mentioned is that even in areas that have declining prices, there is strong demand in certain market segments. For example, if you are looking for a 2 bed and 2 bath condo in the under $400,000 range you would have a lot of other people looking with you. That means there is ample demand in this market segment. You should also be aware that in many cases people are pricing their homes better now than they did a year ago. That means that they are pricing low enough to attract many buyers who realize that the property is under market and are therefore willing to bid it up.

Many buyers that I have recently worked with have initially come to me saying that they want to offer 20% less than the asking on any property. This requires me to educate them on how things work and the impact of other buyers in the market. After this discussion, my buyers understand that you can’t make a statement like that and apply it everywhere. You need to evaluate each home that you are interested in and determine what other buyers in the market are willing to pay and then decide if you are willing to pay that too.

If you continue to focus on finding properties that are listed way under what they should be, then you should expect that they may get bid up and prepare for such an event. I would not simply drop out of the market and wait, because if you are buying long term, then it is never a bad time to buy. Secondly, the lower higher conforming limits and lower short-term interest rates will eventually increase 30-year fixed rate loans and bid up the prices of homes. How long this will take is the question of the year, but it will eventually happen.

I wish you luck in your search and must agree with some of the statements in the previous posts. You must have someone on your side helping you. In our market, the seller pays the commission and having an agent represent you means that the listing agent gets the total commission, so how does that help you?

Good Luck,

Ray
1 vote
David, , La Jolla, CA
Sun Mar 30, 2008
Here is the problem. You either are doing all the leg work yourself or you have an agent that should get out of the business. If you are a bonified buyer you should be working with an Buyers Agent. A Buyer Agent is your main point of contact for real estate, not the interent. If they are a professional they will find the ideal unit for you and do all the leg work for you.

If they cant find what you are looking for, they need to start knocking on doors and sending direct mail campaigns in areas you want to buy. No reason for you to look 6 months. Now Buyer are Home Owners in 45 days, not 6 months.

Bank owned is the way to go if you are looking to buy on price alone, and many bank owned properties have multiple offers.. thats why when you know what you want and where you want it, it makes our job easier for those who take being a Buyers Agent Seriously. My buyers dont wait, if they do.. they get exactly what they want. I gurantee it!

Find a solid buyers agent and they will find you a home tomorrow.

Building your team of professionals to get you what you want is as just as important as buying the house.

Check out my site. http://www.renter2buyer.net

Where Home Renters Become Home Owners
Web Reference:  http://www.renter2buyer.net
1 vote
Dorene Slavi…, Agent, Torrance, CA
Sat Jan 24, 2009
I know exactly what you mean. I had the same experience when working with the last two clients this year.
It was actually tough to find a nice condo, for a good price!
We were able to find tow good developments though and each couple did purchase and for a good price too.
Unfortunately, both of them had to do some work on the condo's after purcase, but they are both very happy.
My adivce is ...get a good agent...and don't give up!
Web Reference:  http://www.doreneslavitz.com
0 votes
Sky Minor, Agent, Los Angeles, CA
Wed Jan 21, 2009
Sky's basic premise of neighborhood valuation:

Places where people have money don't go down until the very bottom of the market and even then, not much.
Hence, gentrification.

Welcome to the East Side my friend.
0 votes
Dorene Slavi…, Agent, Torrance, CA
Thu Oct 2, 2008
It might take some time to find just the right property. I spent three months looking with my current clients..but we close escrow in two weeks. One of the misconceptions seems to be that great homes in the best neighborhoods can be purchased for next to nothing..this is not the case.
0 votes
Muriel Levin, Agent, Beverly Hills, CA
Thu Oct 2, 2008
Just to let you know that according to the statistics based on hard numbers, there are 5 areas in Los Angeles where not only the prices have not gone down but where they have gone up. And so if you are looking in one of the five biggies, you are finding that the news on CBS and others are not correct. Either you change neighborhood or you readjust your real estate knowledge.
Are you looking in
Hancock Park
Beverly Hills
Brentwood
S Monica
Malibu?

Nope, the price ain't goin' down there...
Web Reference:  http://www.muriellevin.com
0 votes
Hi, , Virginia
Mon Mar 31, 2008
wait a year or two
yes, first the junk drops in price
then the better quality
then the best
be patient
seen news on cbs
housing prices in some parts of CA dropping $2800 per week
just about opposite of the boom
the sooner it adjusts
the better

anyways

good luck
0 votes
Dot Chance, Agent, Burbank, CA
Sun Mar 30, 2008
Hi, Interrupted. In most areas of Los Angeles the market has gone down. What areas are you looking in? If you are looking in the westside the prices have been fairly stable.

What is the price range and size condo you are looking for? The last four deals I've made offers on for my clients have all been sold in multiples.

Hope you find what you are looking for soon!
Web Reference:  http://www.DotChance.com
0 votes
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