REAL ESTATE NEWS
Here’s are some of the biggest, costliest mistakes made by condo sellers around Downtown Los Angeles over the last several years:
- Using a net sheet as a gauge of final sale amount
- Selling to an iBuyer hastily without fully marketing the home
- Selling with a tenant in place
- Not fixing up the unit with quick, easy fix-ups
- Selling during a panic / crash
The above list represents some of the most dramatic mistakes in real estate transaction that we’ve seen in DTLA and nearby. First of all, a Net Sheet is for the purpose of reminding sellers to account for seller closing costs and other costs associated with selling a home. The Net Sheet should be taken as only one example of myriad outcomes. While some net sheets may show an estimated final sale amount that is exaggerated and high, others may show an amount that is conservative and too low. In a recent transaction, one seller sadly took the net sheet about as a reliable indication of net worth (not the purpose of a net sheet), and received a very low offer from an iBuyer. Because the iBuyer offer added up to more profit than shown in the net sheet, the seller accepted the buyer from the iBuyer. This mistake cost the seller more than $100,000 because the ibuyer immediately re-sold the property for $85,000 more than he paid for it, and the seller could have picked up even more money if the property was presented fixed up and staged. Do not use a net sheet as a predictor. Don’t sell to an iBuyer without fully marketing the property. Most real estate professionals recommend fully marketing the property to the world so that many iBuyers and many full-retail, top-dollar buyers can see the property, and provide a selection of offers that include quick cash and top dollar spenders.
Another seller sold during a stock market panic, with tenants in place, and without fixing up the loft. That property also sold for around $100,000 less than it would have if it were sold just a bit earlier, with tenants moved out, and with the loft fixed up to look its best. Home sellers can take advantage of free reports about avoiding common mistakes, and finding out how much their home is worth in the current market. Get a free report on how to avoid mistakes when selling a home. Find out how much your home is worth. Get a free list of recently sold homes, along with list of currently listed homes for sale in the area. 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, Realty Source Inc, DRE 01889449; MPR Funding Inc NMLS 2000513. 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. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.
