The harsh truth about bargain hunting for Los Angeles fixer homes...

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Real Estate Agent with Berkshire Hathaway HomeServices 01238708
https://activerain.com/droplet/4ZHH

The harsh truth about bargain hunting for Los Angeles fixer homes: advice to beginners...

Most of you will agree with me, that all home buyers want, is to get a good value when purchasing their home. This is not just the Los Angeles home buyer’s phenomenon, it is prevalent all around the country.

So, with that said, who should be buying a fixer home? There are many factors to consider. Buying a fixer home is not for everyone.

www.endrebarath.com

 First, the potential buyer needs to have access to a team who can fix, repair, replace things on an as needed or better stated on a must needed basis.  In addition, the person should have either a good solid cash reserve or a partner with deep pockets. If either or both are lacking, then the potential buyer should check with a good lender about 203k loans (remodeling loan). I would suggest that, should be the first step, before even looking for a fixer home in Los Angeles.

www.endrebarath.com

The second factor and equally important aspect, is to have a great vision. I am not suggesting of having rose colored glasses, rather someone who can see past clutter. Someone who can see and differentiate between, what is a cosmetic and what is a structural repair.

www.endrebarath.com

The third and just as important factor as the above two, is to pick a location where one can see themselves living for a few years.

www.endrebarath.com

The hardest challenge a buyer will face will be the competition that one encounters. Since there is such a shortage of inventory in all price points, seasoned developers appear to be  out there ’en masse’. Some are offering all cash, non-contingent offers, others are offering minimal contingencies. They are all offering short escrow periods. These factors in turn makes it more appealing for sellers to accept them, compared to the novice fixer home buyer who will need a regular loan and to boot a remodeling loan on top.

www.endrebarath.com

Hence the harsh truth is, that often the beginners miss out to the seasoned developers. Now if you are looking for a seasoned Los Angeles Realtor to help you get a fixer home with sound strategies, please reach out to me directly.

If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 or homes@endrebarath.com or visit one of my websites  at  http://www.endrebarath.com.  I am a pet friendly realtor and I contribute a portion of my commission to local animal rescue organizations!

 

 

 

 

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Ambassador
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Endre Barath, Jr.  They also need a good agent to give them good advice

Feb 18, 2017 12:57 PM #1
Rainmaker
3,091,014
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Hannah Williams  thank you for adding to the conversation and you are right that is key as well, Endre

Feb 18, 2017 01:01 PM #2
Rainmaker
4,196,630
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Endre,

Hannah Williams knows best.

Feb 18, 2017 01:02 PM #3
Rainmaker
551,167
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

Wow, it even comes with a vacuum cleaner?!? Looks like a bargain! If they really want a bargain, they need to work with someone that knows the market. That's you, Endre Barath, Jr. !

Feb 18, 2017 01:27 PM #4
Ambassador
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

There are always surprises in these type homes. Buyers need to go in with eyes wide open and plenty of resources to fall back on for the unexpected.

Feb 18, 2017 01:28 PM #5
Rainmaker
1,433,808
Yolanda Cordova-Gilbert
Richmond, TX

Endre,

 That home looks like a good potential but I would have to have an inspector but I can visualize this being a gem..but I do not know the LA area so I would have to depend on a realtor like you that knows the area.

Feb 18, 2017 01:31 PM #6
Ambassador
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Endre you provided good advice in this blog.  A fixer upper is not for everyone, and can end up costing more than is saved if the buyer does not know what they are doing and has the right team in place.

Feb 18, 2017 01:36 PM #7
Rainmaker
3,091,014
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Ron and Alexandra Seigel  she sure does...

Feb 18, 2017 01:40 PM #8
Rainmaker
3,091,014
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Nathan Gesner  a true bargain indeed and the Vacuum Cleaner is a bonus:))Endre

Feb 18, 2017 01:41 PM #9
Rainmaker
3,091,014
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Debbie Reynolds  yes the more resources the better indeed, Endre

Feb 18, 2017 01:42 PM #10
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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Endre - The only effective counter to tough competition and short inventory is to have a great agent on the team - interested buyers could do no better than to work with you.

Feb 18, 2017 02:23 PM #11
Rainmaker
1,092,221
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Endre Barath, Jr. - I don't think that anyone could say it better than Dick Greenberg .  To me I would want that seasoned agent to make sure I am dotting the "i"s and crossing the "t"s.  You fit the bill perfectly. 

Feb 18, 2017 02:42 PM #12
Rainmaker
3,157,734
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hi Endre --- bring cash, and lots of it, along with a good understanding of the reality of the purchase.  It's definitely not for the unprepared.   

Feb 18, 2017 06:43 PM #13
Rainmaker
1,916,321
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

Endre Barath, Jr. - I prefer working with honest people like you. This post is all about the truth and nothing but the truth. You're also right about the fact, that this is a universal problem, request, and a desire by people all over, not just LA. What I find discouraging is when prospective buyers don't want to listen to the truth, as you described so perfectly and they keep seeking out agents that give them false hope. 

Feb 18, 2017 08:57 PM #14
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Paul S. Henderson, REALTOR®, CRS
RE/MAX Northwest. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

BUT, but, it looks so easy on my favorite HGTV rehab shows where in just 30 minutes the hosts walk away with a cool $60k and look for another house to flip Endre Barath, Jr. 

Feb 18, 2017 09:27 PM #15
Rainmaker
2,174,109
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

Hi Endre: What I find we need to watch out for in Sacramento is would-be flippers writing offers as cash when they are really obtaining a hard-money loan. Which is not the same thing as cash, people. The lender typically chooses to securitize the property, and it takes longer to close. Plus some of them think after the inspection they can renegotiate the price, so they aren't upfront with their initial offer, either.

I can usually sniff out the real buyers who understand what they're getting into. They have the money, the experience, the labor and materials. When some say, "Oh your price doesn't pencil," it means they are spending too much on labor and materials.

Feb 19, 2017 09:39 AM #16
Rainmaker
3,091,014
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Yolanda Cordova-Gilbert  we had an architect as well as a geologist there....we missed out by $100K someone thought it was worth more...

Feb 19, 2017 10:41 AM #17
Rainmaker
1,269,134
Wayne and Jean Marie Zuhl
Samsel & Associates - Clark, NJ
The Last Names You'll Ever Need in Real Estate

My first home was a fixer-upper. The work never ended, and I sold it, as a fixer upper, to the next guy.

Feb 19, 2017 10:51 AM #18
Rainmaker
3,245,560
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Endre

Your post shares great insight on buying a Los Angeles fixer upper home.

Good luck and success.

Lou Ludwig

Feb 19, 2017 07:51 PM #19
Rainer
176,899
Cheryl Dukes . . . . . Intown Atlanta
Solid Source Realty, Inc. - Atlanta, GA

Compared to the all-cash, non-contingent purchasers, those novice fixers needing a loan seem like outdated relics from the past.

Mar 20, 2017 08:31 AM #20
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Endre Barath, Jr.

Realtor - Los Angeles Home Sales 310.486.1002
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