Category: Los Angeles

Posted on

The Fierce Competition for Beach Homes in the Greater Los Angeles Area: Wealth Disparities and Crazed Competition at The Top

L.A. BEACH HOMES FOR SALE | FOR LEASE | SOLD | UNLISTED

REAL ESTATE NEWS (Los Angeles, CA) — The real estate market in the Greater Los Angeles Area has been witnessing a surge in demand for beach homes, attracting a large number of buyers, particularly those with significant financial resources. However, this rise in demand has further accentuated the growing wealth disparities between the rich, poor, and middle class. The best properties are being snatched up quickly, often with multiple offers above the asking price, while average and less desirable properties languish unsold. This blog post explores the case study of 3671 S Leland St in San Pedro, CA, which attracted hundreds of open house visitors and garnered multiple offers, only to be ultimately sold to another buyer.

The Increasing Divide: The Rich Getting Richer, the Rest Struggling

In recent years, the gap between the wealthy and the less affluent has widened, with the affluent segment experiencing significant economic growth and accumulating substantial wealth. This trend is evident in the real estate market, where affluent individuals are increasingly investing in beach homes, driving up prices and creating a fiercely competitive environment. As a result, middle-class and lower-income individuals find themselves increasingly priced out of the market, unable to compete with all-cash buyers and the soaring prices of desirable properties.

Case Study: 3671 S Leland St, San Pedro, CA

The case study of 3671 S Leland St, just over a block away from the beach in San Pedro, CA, highlights the intense competition for beach homes in the Greater Los Angeles Area. This property attracted hundreds of open house visitors and received many offers above the asking price. Buyers like Richard Kramer, as mentioned in the conversation, were actively seeking properties in the area, but even with a significant budget, they found it challenging to secure a home within their desired price range. The property ultimately accepted another offer, leaving Rich and his partner disappointed:

The Battle for Beachfront Bliss: Richard Kramer Pursuit of 3671 S Leland

In the sun-kissed coastal paradise of San Pedro, California, a fierce battle unfolded for a magnificent property on Leland Street. Richard Kramer, fueled by determination and a burning desire for his dream home, embarked on a tumultuous journey through a highly competitive real estate market. As the curtains rose on the listing for 3671 S Leland, the stage was set for an epic clash of aspirations and fortunes.

Nestled in the heart of Coastal San Pedro, 3671 S Leland stands as a testament to architectural character and enduring love. Priced at $999,900, this sun-drenched home basks in a picturesque view, with glimpses of the ocean and Catalina Island visible from the living room, kitchen, upstairs bedroom, and rear yard. Natural light floods the interior, showcasing hardwood floors, dual-pane windows, and a central heating/HVAC system.

The charming living room, complete with a beautiful fireplace, exudes warmth on cool coastal nights. The spacious kitchen and adjacent breakfast nook invite culinary delights and cozy mornings. Other notable features include an inside laundry area, a formal dining room adorned with a chandelier, a downstairs den for office or entertainment purposes, and two generously sized bedrooms on the lower level, accompanied by a well-appointed guest bathroom.

A private upstairs bedroom, boasting separation and tranquility, provides an ideal retreat. One of the property’s unique attributes is the oversized garage, capable of accommodating four vehicles or serving as storage for various toys. Above the garage space, a spacious attic-style workshop awaits, offering endless possibilities for creative endeavors.

The expansive rear yard presents a canvas for outdoor enjoyment, with three large above-grade gardening beds and the remnants of an above-ground pool house/cover, which could be transformed into a captivating al fresco dining and entertaining area. The long driveway adds further appeal, perfect for RV, boat, or trailer storage, subject to local ordinances.

Located in the scenic area of San Pedro, the property offers proximity to Point Fermin Park, Hey Rookie Pool, Angels Park and Cultural Center, the Korean Bell, and other notable attractions. It is also known for its enchanting inhabitants—a flock of majestic wild peacocks that gracefully roam the neighborhood.

Richard Kramer’s Brave Pursuit

With the property’s allure firmly entrenched in his heart, Richard Kramer embarked on a quest to make 3671 S Leland his coastal dream home. He knew that competing offers were coming in from other buyers, some of whom were eagerly measuring the interior room dimensions. Armed with financial resources and an unwavering spirit, Rich crafted an offer well above asking price, coupled with a 14-day escrow period. To further demonstrate his commitment, he waived both loan and appraisal contingencies, painting a picture of a seamless and swift transaction.

The Unfortunate Outcome

Amidst the high-stakes drama, fate intervened with an undesirable twist. Another bidder, lured by their own visions of beachfront bliss, emerged victorious in the battle for 3671 S Leland. A competing buyer with deep pockets, with the heaviest money bags, threw down loads of cash. The seller, swayed by an alternative offer that aligned with their best interests, chose a different path, leaving Rich’s dreams momentarily unfulfilled.

Tsunami of Beach Home Buyers

Richard Kramer’s valiant pursuit of 3671 S Leland embodies the fierce competition and unpredictable nature of the Greater Los Angeles Area’s beachfront real estate market. The saga serves as a reminder of the challenges faced by aspiring homeowners in a landscape where the affluent often secure the most coveted properties. Yet, Rich’s unwavering spirit remains unbroken. Feeling sad and let down, yet still undeterred by this setback, he will continue his quest for a coastal sanctuary, ever hopeful that the next opportunity will lead him to the beach neighborhood haven he envisions.

Factors Influencing the Competitive Environment

All-Cash Buyers: Wealthy individuals who can afford to purchase properties with cash have a significant advantage over those reliant on financing. All-cash offers are often preferred by sellers, as they eliminate the uncertainties associated with loan approvals and appraisals.
Limited Supply: The availability of beach homes in the Greater Los Angeles Area is limited, contributing to the heightened competition. The desirable location, scenic views, and proximity to the beach make these properties highly sought after, driving up prices and intensifying bidding wars.
Wealth Disparities: The widening wealth gap has led to an increasing concentration of wealth among a select few, who have the financial means to invest in luxury properties. As a result, the demand for beach homes from affluent buyers far exceeds the supply.
Implications and Challenges for the Middle Class and Low-Income Individuals:

The rising prices and intense competition for beach homes have significant implications for the middle class and low-income individuals. They face numerous challenges when attempting to enter the housing market, such as:

Limited Housing Options: As wealthier buyers snatch up the best properties, middle-class and low-income individuals are left with fewer options. They may have to settle for less desirable properties or face the prospect of renting indefinitely.
Financial Barriers: Securing financing for beach homes can be challenging for those with limited resources. Loan approval requirements, high down payments, and rising interest rates pose barriers that many cannot overcome.
Reduced Mobility: The inability to access affordable housing in desirable areas restricts the mobility of middle-class and low-income individuals. This lack of mobility can hinder career opportunities and limit access to quality education and amenities.

From San Pedro to Malibu and beyond, the Greater Los Angeles Area’s beach home market reflects the growing wealth disparities within society, with wealthy all-cash buyers dominating the competition. The increasing concentration of wealth among a few individuals results in limited housing and fierce completion for the best properties near the beach.

L.A. BEACH HOMES FOR SALE | FOR LEASE | SOLD | UNLISTED

Beat out the other buyers to the best deals. Get them first! Receive a free list of upscale, luxury beach homes new listings. Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | Popular | Luxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

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. Names have been changed to protect privacy. 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.

Posted on

How to Spot a Fake Property Rental Listing

ASK COREY

Inquiry about listing

Q: Hi, Corey: I found this privately owned house on Craigslist, but it appears too good to be true and I worry that it’s a scam. The Craigslist ad (https://losangeles.craigslist.org/lac/apa/d/los-angeles-bedroom-bath-full-house-in/7626404699.html) leads to a Google form (https://docs.google.com/forms/d/e/1FAIpQLSdEoa8rrNWLDirWigK2FoyXVXeCoubcWFxR5VVNq_X1LlXdAg/viewform) that appears innocuous but I have read a lot about people getting scammed on rental websites. The house is also listed on Zillow (https://www.zillow.com/homedetails/3219-Darwin-Ave-Los-Angeles-CA-90031/20638602_zpid/). Do you think that this is a real listing? If so, I think I will apply. I appreciate your professional opinion on this. Thanks,Emily

A: I don’t recommend applying for a rental property online without first seeing the property and the owner/manager/agent.  Legitimate property owners usually offer a viewing first, while scammers prefer to force a payment or an application first.

There’s a small chance it could be legitimate. You might want to try requesting a viewing, and try contacting the owner’s email and asking for their contact info.  Then, I can verify the contact info for you if you’d like.

It is generally not recommended to complete an application, pay or provide personal information online without first visiting the property and meeting with the landlord or property manager. Often, scammers will insist on rushing through the process, avoiding in-person meetings, or avoiding showing the property.

Online applications can be legitimate, but they should only be filled out after you’ve had a chance to tour the property and confirm the legitimacy of the listing. Direct interaction with the landlord or property manager, seeing the property first-hand, and not rushing through the rental process are crucial steps in avoiding scams.

Additionally, if a rental seems too good to be true, or the rental process seems too easy or fast, those could be red flags. As always, caution and due diligence are important when navigating the rental market.

They are also failing to provide contact information in all of the listings and web pages, another major red flag. Legit owners/managers/agents usually try to provide contact info whenever possible.

A legitimate landlord or rental agency will typically provide a way to contact them directly, whether that’s through a phone number, an email address, or even a physical office location. The total absence of contact information is indeed a red flag and could be indicative of a scam or an indication of poor service.

Without a way to directly reach out to the individual or organization, it becomes much more challenging to verify the legitimacy of the listing or to ask questions about the property or the rental process. It also makes it more difficult to arrange a viewing of the property.

This, combined with the online application before a viewing, should definitely raise suspicions. It’s essential to approach this kind of situation with caution and to consider looking at other properties where the landlord or rental agency is more transparent and communicative. For Craigslist listings with multiple red flags, click to flag the listing in the middle top of the Craigslist property page.

For the property in question, our research indicated that the home was available for lease by legit owners, but they were attempting to minimize the number of non-serious inquiries. They had the price a bit low because they like to receive plenty of applications so that they may be choosy for just the right tenant. That may or may not be a wise business decision, costly for the many applicants, who must waste $35 to $40 each for lots of applications and credit reports. It may also be costly for the landlord as far as missing many good renters who did not apply due to a lack of contact information, lack of communication and missing offer to view the property for Craigslist users.

The search for a new home can be both exciting and overwhelming, particularly in the digital age. While the internet provides an abundance of resources and opportunities to find your perfect place, it also opens the door for scammers and less scrupulous landlords looking to take advantage of eager renters. In this guide, we’ll share some essential tips on how to spot a fake property rental listing.

1. It’s Too Good to be True

One of the most common red flags is when a listing seems too good to be true. Scammers often entice potential victims with rental rates that are significantly lower than other comparable listings in the area. They may also list amenities or features that are uncharacteristically luxurious for the rental price. If the deal appears too good to pass up, it’s a signal to be cautious. Research similar properties in the area to get a feel for average rental rates and what they offer.

2. Lack of Contact Information

Legitimate landlords, property managers, or rental agencies will typically provide ample contact information, like a phone number, email address, or physical office location. However, scammers tend to avoid sharing this information to make it more difficult for potential renters to reach out or verify their legitimacy. If a listing does not include contact information, or if the contact information provided doesn’t match what you find through independent research, consider it a significant red flag.

3. Application Before Viewing

While online applications have become increasingly common in the rental process, legitimate landlords or rental agencies will typically arrange an in-person viewing of the property before asking you to fill out an application. If a listing insists that you complete an online application – which often includes sensitive personal information – before you’ve even seen the property, be wary. This can be a tactic used by scammers to collect your personal information.

4. Pressure to Act Quickly

Scammers frequently create a sense of urgency to push potential renters into making hasty decisions. If the landlord or property manager is pressuring you to sign a lease, pay a deposit, or hand over personal information immediately, without allowing you time to thoroughly consider your decision, it could be a scam. A legitimate landlord understands the importance of this decision and will give you time to think it through.

5. Upfront Payments

Beware of listings that require an upfront payment before you’ve signed a lease or even seen the property. Scammers often ask potential renters to wire money, pay with a gift card, or use other untraceable methods to secure the property. No legitimate landlord or rental agency would require payment before a contract is signed and they have demonstrated their legitimacy.

6. No In-Person Meeting

In today’s digital world, it might not be uncommon for some conversations with landlords or property managers to take place over email or phone. However, they should always be willing and able to meet in person, especially before signing a lease agreement. If the person you’re communicating with makes consistent excuses to avoid meeting or showing the property, it’s a strong indication of a scam.

7. Poor Grammar and Spelling

While a few typos shouldn’t necessarily discredit a listing, noticeable patterns of poor grammar, spelling errors, or unprofessional language can be an indicator of a scam. Professional property managers or landlords will typically ensure their listings are well-written and error-free to attract serious inquiries.

8. Trust Your Gut

Finally, don’t underestimate the power of intuition. If something doesn’t feel right about a listing, the communication with the landlord, or the rental process – trust your gut. There are plenty of legitimate rentals out there, so don’t feel compelled to settle for a situation that makes you uncomfortable.

Remember, finding a new home should be an exciting new chapter, not a cause for

stress or financial loss. By being informed and vigilant, you can protect yourself against rental scams. When in doubt, take a step back and evaluate the situation. Ask questions, do your research, and don’t rush into any agreements without fully understanding the terms.

9. Conduct a Reverse Image Search

In an attempt to make the listing seem legitimate, scammers might use images taken from other legitimate listings. If the images seem unusually professional, or the property seems too perfect, conduct a reverse image search on Google to see if the images appear elsewhere online. This could help you determine if the listing is a potential scam.

10. Verify Ownership

If you have the opportunity, it can be beneficial to verify the ownership of the property. This could be done through local property tax records or registries, many of which are available online. If the name of the person or company you’ve been communicating with doesn’t match the owner on record, proceed with caution.

11. Use Trusted Platforms

Where you find the listing can also provide clues about its legitimacy. While scammers can target any platform, some websites have strict processes for verifying listings and landlords. If possible, use trusted platforms and always read reviews if they are available.

12. Professional Help

Finally, consider getting professional help if you’re uncertain. Real estate agents, legal consultants, or experienced friends can provide valuable advice and potentially spot red flags that you may have overlooked.

We did some advanced research using special premium person identification, property records search and verification report services (included with the Top Level Tour). It turned out that this L.A. property was legit, but had already received several acceptable applications. So, it ultimately did not offer very good odds for Emily anyway.

Stay vigilant and informed as you embark on your property rental journey. By keeping these tips in mind, you can ensure that you’re well-prepared to spot and avoid potential rental scams. Happy house hunting!

Get a free list of affordable rentals in Downtown, Los Angeles or any California neighborhood. Fill out my online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | Popular | Luxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

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.