Category: Home value

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Unlocking the Potential: BPO Broker Price Opinion for Improved Land with Blueprints

ASK COREY

Q: Good morning, Corey. I have a question. Would you be able to provide a BPO on improved land that has the full blueprints?

A: Hi Kevin, Thank you for your inquiry regarding a Broker Price Opinion (BPO) for improved land with full blueprints. It’s a great question and one that many California property owners and investors often contemplate. In this article, we will delve into the intricacies of BPOs for improved land, explore how blueprints can impact property value, and shed light on the steps necessary to realize the full potential of your investment.

Understanding the Role of a BPO

Before we dive into the specifics of improved land with blueprints, let’s clarify what a BPO is and why it’s essential in the world of real estate. A Broker Price Opinion is a professional assessment conducted by a licensed real estate broker or agent to determine the estimated value of a property. BPOs are used for various purposes, including sales, refinancing, and insurance. They offer a more detailed and informed valuation than automated tools but are less comprehensive than a full appraisal.

Blueprints: The Blueprint to Increased Value?

Now, let’s address the question at hand: Can blueprints enhance the value of improved land? The answer is nuanced. Blueprints can certainly play a crucial role in increasing the perceived value of a property, but several factors come into play.

Firstly, blueprints provide potential buyers or investors with a clear vision of the property’s possibilities. They showcase the layout, design, and functionality of the land, making it easier for interested parties to visualize their future investment. This visualization can spark interest and enthusiasm, potentially leading to a quicker sale or a higher sale price.

However, it’s important to note that blueprints alone do not automatically add monetary value to the land. Their impact on value becomes significant when they are tied to a concrete plan for development. The value-added by blueprints is contingent on obtaining the necessary permits, completing the city review process, and securing approval for the proposed improvements. These steps transform a concept on paper into a tangible and marketable asset.

Maximizing the Impact of Blueprints

If you possess improved land with blueprints and wish to maximize its potential value, here are essential steps to consider:

Permit Procurement: Initiate the process of obtaining the required permits for the proposed improvements. This step is pivotal in turning blueprints into actionable plans.
City Review Process: Engage with your local authorities to navigate the city review process efficiently. Ensure that your plans align with zoning regulations and building codes.
Utilities and Infrastructure: Specify the details of utilities, infrastructure, and other essential amenities in your blueprints. These aspects add practical value to your property.
Market Research: Stay informed about the real estate market trends in your area. Understanding the demand for specific types of properties can help you position your improved land effectively.
Professional Guidance: Consult with a real estate professional experienced in land development. They can provide valuable insights and guidance throughout the process.
Conclusion

Blueprints have the potential to enhance the perceived value of improved land. However, their true value is unlocked when they are part of a well-defined plan, complete with permits and approvals. If you’re considering selling or investing in such a property, it’s crucial to take the necessary steps to realize its full potential.

As a seasoned real estate broker in Los Angeles, serving all of California, I’m here to assist you in navigating the complexities of real estate transactions. Feel free to reach out to me at 213-880-9910 or coreychambers@yahoo.com if you have further questions or if you’d like to discuss your specific property in more detail.

Remember, your referrals can also make a significant impact on the lives of children in need at Children’s Hospital Los Angeles. Together, we can make a difference in our community.

Best regards,

Corey Chambers
ENTAR® Real Estate & Financial Tech
DRE#01889449

P.S. Your Referrals Help The Kids! We are on a mission to raise $25,000 to help the extraordinary kids in need at Children’s Hospital Los Angeles. We do this by donating a portion of our income on every home we sell. Help us help Children’s. Who do you know considering making a move that would benefit from the services we provide? Call me at 213-880-9910 with their contact info, or have them contact me. You can also visit Referrals Help Kids. Thank you in advance!

How much is your property worth? Order a BPO Broker Price Opinion to get it in writing, along with extra reports. Fill out the online form:

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Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Text and photos created or modified by artificial intelligence. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

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The Tale of Alta Lofts Unit 118: A Cautionary Tale for Home Sellers in Los Angeles

Quick Sale or Fully Marketed Sale?

Real estate is a bustling industry that can offer tremendous rewards, but it also comes with its fair share of pitfalls and cautionary tales. One such tale unfolds in the story of Alta Unit 118, a property located at 200 N San Fernando RD, Los Angeles. What makes this case particularly eye-opening is that the owner sold the property for significantly less than its market value, only to watch an ebuyer investor immediately flip it for a tidy profit.

In a booming market like Los Angeles, where sellers could typically gain an extra $50,000 to $100,000 by fully marketing their properties, the story of Alta Unit 118 serves as an essential lesson. This article delves into the details and aims to provide value to home sellers, buyers, renters, landlords, and investors alike.

Key Details of the Transaction

MLS Listing: OC21175051MR
Size: 1,220 square feet
Sale Price by Original Owner: $475,000
Immediate Resale Price: $549,990
Property Features: 1 Bedroom, 1 Bathroom, $450.81 per square foot
What Happened?

The original owner of Alta Unit 118 sold the property to an ebuyer for around $475,000. An ebuyer, or electronic buyer, usually represents an investment company that uses technology to make instant offers on homes. These offers are often less than market value and can be enticing to sellers looking for a quick sale.

After the purchase, the ebuyer immediately listed the property without making any improvements. Within a short period, the unit was resold for its full market value of $549,990.

The Financial Implication

A quick calculation reveals that the original owner lost out on approximately $74,990 (ignoring transaction fees and other potential costs). In a market where sellers usually make about $50,000 to $100,000 more when selling fully marketed properties, this discrepancy is substantial.

Why Sellers Need to Beware of Ebayers

Quick Sale, Less Profit
Ebuyers offer the allure of a fast transaction, but at a price. Because they’re aiming to make a profit as quickly as possible, they’ll offer less than the home’s true market value.

No Marketing Exposure
Selling to an ebuyer bypasses the traditional marketing process, which includes listing the property on multiple platforms, open houses, and bidding wars—all avenues that could increase the sale price.

Inflated Service Fees
While traditional real estate agents typically charge a commission of 5–6%, ebuyers often have service fees that can range from 6% to as high as 14%. Although it seems like a quicker process, the costs can add up.

Why Working with a Traditional Broker Matters

Market Expertise
A broker who is intimately familiar with the Los Angeles real estate landscape can provide invaluable insights into the best time to sell, price your home, and can even help you stage it for maximum appeal.

Marketing Resources
Traditional brokers often have a variety of resources at their disposal, from professional photographers and staging services to an extensive network of potential buyers. This helps in showcasing your property to a wider audience.

Negotiation Skills
A seasoned broker can effectively negotiate terms, conditions, and prices. In a market like Los Angeles, where prices are skyrocketing, having an advocate on your side can make a substantial difference in your sale price.

Lessons for Buyers, Renters, and Investors

Market Research
Doing your due diligence and market research could save you from paying over the odds for a property or help you snap up a bargain before others notice.

Property Valuation
Always get a property valuation or appraisal. This could be a life-saver, as it was in the case of the ebuyer who bought Alta Unit 118—they knew the unit was undervalued and acted swiftly.

Timing is Everything
If you’re an investor, the tale of Alta Unit 118 demonstrates the lucrative profits that can be made through timely purchases and sales.

Get More Money, Faster, with Less Hassle

The story of Alta Unit 118 serves as a sobering tale for sellers in Los Angeles. In a bustling real estate market, failing to fully market a property can result in significant financial losses. On the flip side, this case presents a valuable lesson for savvy buyers and investors about the gains that can be made through strategic investing.

By understanding the pitfalls and advantages in the real estate landscape, sellers, buyers, renters, landlords, and investors can all make more informed decisions. Always consider working with experienced professionals, like brokers and financial advisors, to guide you through the complexities of the real estate market. This could make the difference between a regrettable loss and a highly profitable sale.

How Much is Your Loft Worth?

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Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. Prices are approximate. All information provided is deemed reliable but is not guaranteed and should be independently verified. Text and photos created or modified by artificial intelligence. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.