Good morning:
Every morning I sit down at my computer and do a general search for expired listings through my Multiple Listing Service. In areas throughout Los Angeles, home prices have decreased. I have a buyer who has been searching for a property for over a year. She's a military Reservist. In addition to serving her country, she has been employed for 15 years at a major corporation. Because of the higher cost for homes from 2000 to 2008, she could not find a home within her budget. Like many buyers, she saved her money for a down payment, has a high FICO score and ready to buy. She is in the ready, willing and able category.
While searching the expired listings, I found a bank owned property that was within her price range and possible location. To gather additional information, I called the listing agent. He explained that the bank was making repairs in the master bathroom because of a leak from the ceiling. That's why the status was changed from 'Active' to 'Expired'. The bank was getting estimates of how much it would cost to repair the damaged ceiling. He explained that there were two assessments. One was a roof assessment and sewage assessment, which the bank would pay in full prior to the close of escrow. The new buyer would not be responsible for those assessments. Did I add that the property was about 3 miles from the beach?
After gathering the specifics, I called and asked if she wanted to tour the property. She said, "Of course!" I met her at work and we drove to the property. There were many positives about the location and area. It was only 10 minutes from work! She shopped in that community. She even added that her dentist was in the same city.
We toured the 2 bedroom, 2 bathroom condominium yesterday afternoon. As with most bank owned properties, repairs were needed. At a glance, the rooms needed painting, the electrical fixtures needed replacing. Because of the hole, exposed insulation and torn area in the ceiling, this was a huge distraction for buyers and investors. The carpet and tile were in good condition. The hot water heater was new and strapped, with an overflow pan installed underneath. With the exception of the dishwasher, the stove was a newer model. Underneath the kitchen and both bathrooms, the wood was damaged. The cabinets and counters were in good condition. Although the home owners association probably replaced the piping, the damage to the ceiling area was very obvious. I pulled the comparables. The bank was too high on the listing price. Clearly the bank will have to reevaluate the price if they want the condominium to sell.
After viewing the property, I took her to dinner. Although she may not consider this particular property, there are others in the area that require less repair. My buyer now is hopeful. For all the buyers who are reading my blog and have not found their dream home, never give up! Stay prayerful because there is a light at the end of the tunnel.
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