Sell a Loft in Downtown Los Angeles:
10 Most Common Mistakes Made by Home Sellers
Downtown Los Angeles offers many advantages and disadvantages to home sellers. Most Downtown buildings have issues that sellers must address, including answering objections and questions about lawsuits and other common issues in loft buildings. Every building in Downtown has issues that many buyers are aware of. Even the most popular buildings such as Market Lofts and Barker Block lofts receive complaints or balking questions from buyers about lawsuits, flooding, broken fire sprinklers, water damages, stains, HOA conflicts, parking problems, safety and health issues for a start. A seller absolutely must use a Downtown specialist Realtor(R) who is aware of the issues, and is able to answer and overcome objections and increase the value by pointing out the positive sides.
One common problem with selling in Downtown is that offers have been coming in higher than the appraisals. When an appraisal comes in lower than the offer amount, the deal can often fall through unless it is an all cash offer or the buyer can put down more than 20%. That is why it is imperative to have an agent who can attract multiple buyers, including cash buyers.
Many loft owners in Downtown make the mistake of using an agent who is a friend or relative and not a Downtown specialist. Out-of-area agents have the most costly problems. They cannot show the property as quickly, cannot show it as often and thus are more likely to get lower offers or no offers. Non-local agents have trouble explaining the positive, valuable points of the buildings and are less able to describe the tantalizing details of the amazing shops, exciting restaurants and entertainment of Downtown. A Downtown specialist is able to add value to all downtown properties by emotionally communicating the powerful truth about the amazing renaissance of Downtown Los Angeles.
Agents who are not Downtown specialists often are unaware of the special documentation and reports required by the City of Los Angeles, leaving the buyer and seller squabbling over the required L.A. reports. Most buildings in Downtown require loft lenders or other unique lending requirements. The unfamiliar agents will often fail to take steps to help buyers use the right lender such as a loft lender, litigation lender. A Downtown specialist agent will help buyers choose a lender who is likely to be successful lending on that building. The unknowing agent will suggest that the seller accept offers that are too low or with down payments that are too low for the building’s appraisal or lending situation. The Downtown specialist will know what the appraisal is likely to be, and will suggest to the seller that they require a certain down payment or other terms that will be successful for that building.
A mistake that is expected to increase in Downtown is owners failing to sell while prices are high. Prices have increased by more than $100,000 on the average Downtown loft in the past 2 years. Some sellers who really want to sell will delay after beginning to feel elated, almost greedy about the future potential gains on the loft. If a buyer wants to sell, then the most profitable time to sell is when prices are high. Once prices start to drop, the market can disappear quickly, leaving the seller in a depressing position of waiting for years for the market to recover. Most real estate professionals in Downtown agree that prices may continue to rise for only a fairly short time before having another 2009 style crisis causes a significant collapse in prices.
Downtowners who love their full-time urban life will likely want to continue it, and may only sell to upgrade to a larger or more central loft. Those who are less committed to Downtown should take advantage of the opportunity to test the market at no cost and receive offers so that the seller will get a true sense of the real market value.
To find out what your Downtown property is worth, request a free market analysis or contact: