LONG BEACH REAL ESTATE
Downtown Long Beach High Rise Condos
Dream Homes in the Sky
Champagne Wishes and Caviar Dreams
At what point did Robin Leech's "Lifestyles of the Rich and Famous" Television show transition from a consumers dream to a purchase contract?
For the last few years the excitement of purchasing High Rise Downtown Long Beach Condos has been high. Consumers have plunked down hefty deposits to procure these fabulous newly built condos and have sat, sometimes for a couple of years, on long waiting lists in the hopes that they too may acquire one of these beautiful sky high homes with walls of glass, endless ocean views, travertine, marble and concierge services.
So many of these potential buyers excitedly shared their dreams of huge profits. Most planned to sell as soon as possible after the close of escrow. Some of these Downtown Long Beach High Rise projects are completed, others are still under construction or in the planning stages.
Over the last several months I have been contacted by many of the soon to be owners to discuss the future sale of their units. Some were approaching the close of escrow and were preparing to put their condos onto the market immediately after the close of escrow. Imagine their shock when they found out they were about to pay $10's of thousands more than current market value. Add to that the cost of sale and oh brother were they in trouble. Others, less fortunate had already purchased, several had purchased multiple units.
One gentleman explained that he had ordered custom everything (already installed) which had added another over $40k to the already staggering price tag. His unit was about 4 weeks from closing and there was a hefty cancellation penalty. We computed his loss by backing out to be far less than the loss would be if he proceeded with the purchase and sold at a loss. He was not a candidate for a short sale, as he has too many other assets and foreclosure was not an option, his credit is pristine. Rent wouldn't even come close to covering the overhead. His decision? Cancel the purchase, write off the loss and move on. This gentleman was smart enough to consult a Realtor, regarding the future sale, prior to his purchase, which saved him a large loss.
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