Selling YOUR Downtown Long Beach Condos-State of the Market-December 2007

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We are all painfully aware of the changes in the real estate market and that prices have been declining not just in Downtown Long Beach, but in most places across the nation.  If you are considering selling your Downtown Long Beach Condo you must understand how critical pricing has become.

The Downtown Long Beach Condo market is flush with inventory affording buyers many choices. Naturally buyers are interested in getting the most their money will buy. Sellers who pay special attention to the desires of todays buyer will fare better in actually attracting a buyer. 

 

While it is understandable that sellers want to sell for as much as possible, denying what the market is telling you is a recipe for disaster. Many such sellers are currently unable to meet mortgage payments and are trying desperately to stave off foreclosure. Many of these units are now being marketed as short sales. 

 

Short sales occur when an owner owes the bank more than the market will bear. Not all of these condos being marketed as short sales will be accepted by the banks. Short sales are conditional and require proof of specific hardship. Without bank acceptance an attempt at a sale, as a short sale, can fall through. Understandably buyers are wary of short sales, although they do recognize that a short sale can make an otherwise impossible purchase possible. Banks recognize that denying a short sale will likely result in foreclosure. With so many Long Beach properties heading in this direction, the banks are becoming more cooperative. Foreclosures are much more expensive for a bank than the loss caused by a short sale. 

 

Sellers using their property as a primary residence may become eligible for a 5 year mortgage rate freeze under President Bushs new voluntary agreement with banking institutions. Some of the criteria is as follows: This offer only applies to buyers using their property as a primary residence who have not missed any payments.  It also would only apply to loans taken out between 2005 and 7/30/07 with rates scheduled to rise in 2008 and 2009.  Consult with your lender to inquire about eligibility. 

Foreclosures are becoming available in the Downtown Long Beach Condo market. Many of these are in desperate need of upgrades unaffordable to todays 100% first time homebuyers. While these may seem like a good buy, and occasionally are, most buyers are faring better purchasing conventional sales, priced right with upgrades, at this time. 

The immediate problem for Downtown Long Beach Condo sellers is the quantity of short sales currently available and coming onto the market. When an owner is in trouble they will price their condo well below market to position themselves as an attractive purchase. As these short sales close escrow they become comparable sales and drive market prices down. The difference in market pricing between what is available as a short sale as opposed to most conventional sales is substantial, at this time. A few smart sellers have recognized this and are pricing their condos for sale accordingly and are receiving offers. If a unit is priced to compete with the short sales on the market, yet is not a short sale, it is VERY desirable to a buyer. Think about it, the right price; no bank hassle and close in 30 days, that sounds like a great chance at a sale to me.  

If you are on the market and your condo is not selling you may not be reducing your price in time.  You may be chasing the market down.   This is never a good thing to do and will generally cost you a lot of money or possibly drive you into a short sale, if you ever sell.  It is much smarter to take a giant leap when considering your price reduction and get ahead of the curve than to inch down and never quite get it right. 

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Oceangate Square Condos-Downtown Long Beach-Market Report-720 W 4 St-90802-January-December 8, 2007

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 Downtown Long Beach Condos

 

Oceangate Square Condominiums Market Report

 

January - December 8, 2007

 

 

 

 

Located in Downtown Long Beach the Oceangate Square Condos, built in 1984, sit on the corner of Maine Avenue and West 4th Street just one block from the beautiful Cesar E. Chavez Park and community center.  Park amenities include basketball court, Community Center, Playground, Weight Room, Picnic Area and Restrooms.  The park provides programs for Tiny tots, Youth and Teen Recreation and Senior Programs.

The complex provides a gym, community room, picinic area and outdoor barbeques on the greenbelt.  This is a well run building with a cohesive HOA.  A 4 story building the top floor units include highly desirable additional square footage in the form of additional loft space and cathedral ceilings.  It is a really great place to live.

 

This lovely condo complex is within walking distance to area beaches, the Long Beach Convention Center, The World Trade Center, the Downtown business district, Pine Avenue, area restaurants, local galleries, the East Village Arts District,  The Aquarium of the Pacific,  Rainbow Harbor and The Pike.  It is also convenient to area freeways and all area public transportation including the Metro Blue Line lightrail system.

RES	Status	Unit #	Bd	Bth	Gar	SqFt	Price	DOM
1	A	311	1	2	0	584	$229,900	164
2	A	109	1	2	1	584	$249,000	93
3	A	216	2	2	2	957	$275,000	62
4	A	116	2	2	1	957	$279,900	71
5	S	410	1	1.5	1	853	$281,000	11
6	S	108	1	2	1	584	$290,000	27
7	X	107	1	2	1	588	$259,000	110
8	X	109	1	1.5	1	584	$269,000	258
9	X	416	2	2	2	1,352	$374,900	276

 

There are currently 4 condos available at the Oceangate Square Condos:

 

2 - 1 bedroom, 1.5 bath units

2 - 2 bedroom, 2 bath units

 

2 condos have closed escrow this year,:

 

Unit 108 closed escrow in April 2007; listed at $299,000 it closed escrow at $290,000, it was on the market for 27 days.  This was an immaculate unit with pergo flooring, seller included stackable washer/dryer; 1 bedroom, 1.5 baths. 

 

Unit 410 closed escrow in April of 2007 as well; listed at $274,900 this top floor condo closed escrow at $281,000.  There were multiple offers for this unit as quickly as it went on the market.  The unit was immaculate, had wood laminate flooring, was priced right, needed little work and the loft was highly desirable; 1 bedroom, 1.5 baths, cathedral ceilings and loft.  I know how desirable this unit was, I represented the buyer who acquired the unit.  I wrote an article about the purchase of this particular unit.  The buyer wanted exactly this unit, but it was not available at that time.  Letters were sent to the owners of all similar units in 4 complexes in the neighborhood.  The seller contacted me directly before it went onto the market,even though he had already listed it.  The article is called Reverse Prospecting Works it is an interesting read.  REPRESENTED BUYER

 

3 Units Expired

 

We are all painfully aware of the changes in the real estate market and that prices have been declining not just in Downtown Long Beach, but in most places across the nation.  Note that these 2 two bedrooms are the only 2 units that have sold in this building this year, and they both closed in April of this year - 8 months ago.  Prices have come down since then.  If you are considering selling this must be a consideration when deciding on how to price your condo for sale. 

 

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Downtown Long Beach Condo For Sale-Sunset Pointe Condos-640 W 4th St

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Who is Negotiating YOUR Long Beach Home Purchase or Sale

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Do you know who is negotiating the purchase or sale of your Long Beach Homes?  The real power in your Long Beach Realtors ability to negotiate a contract on your behalf lies in their command of the contracts they are wielding.  The standard form contracts that we use were written by attorneys for the California Association of Realtors (CAR).  Each and every paragraph of these contracts was developed to protect the consumer; the buyer and the seller in all Long Beach Real Estate transactions. 

Knowing how to bend the contract toward a buyer or a sellers best interest is an art, in my opinion.  Contracts have little boxes and small seemingly insignificant paragraphs in them which are often glossed over as meaningless.  There is nothing meaningless in any of the CAR contracts. 

Without going into great detail (not going to give away my secrets here, sorry) as a listing agent, representing a seller, there are a few specific items I look for on a contract when I first receive it.  These items, if addressed, tell me if the buyers agent is looking out for their clients best interests.  If they have marked these areas off they have already earned my respect because I firmly believe that all Long Beach Realtors should have their clients best interest in mind at all times.  If these items are not indicated I already know I am dealing with a rookie, or just a lazy real estate agent looking for a check who didnt take the time to learn their trade. I will take advantage of the shortcomings of that buyers agent in my clients best interests.  That Long Beach Buyer should be so lucky! 

When representing a buyer I complete all of the areas of the contract that relate to protecting my buyer and await a counter offer from the seller and listing agent.  Once the counter offer is received these areas are checked first.  If the listing agent has countered back on those items, with the intent of protecting their seller, they have earned my respect.  If these areas are not countered back once again I know, I am dealing with a rookie or a real estate agent without a command of the contracts.  I will take advantage of the shortcomings of that listing agent in my clients best interests.  That Long Beach Seller should be so lucky! 

OK, I will give you a little sumptin sumptin here.  Lets say you are a buyer, writing an offer on a Downtown Long Beach Condo priced at $350,000; you offer $335,000 and ask for some closing costs, the appliances, the plazma TV and a home warranty.  Your lender has qualified you up to $400,000 and you have a pre-approval letter to prove it.  That is a good thing because you will have to present that letter along with your offer to purchase, and you do just that.  So here it is, you just told the listing agent and the seller that although you are offering $335k, you are qualified up to $400k.  Why on earth would you do that?  Why on earth would your real estate agent let you do that? 

 

Caveat emptor

Let the Buyer Beware

 

It would have been very easy to call the buyers lender and have a new pre-approval letter faxed over for $330,000 to present with the offer.  This would have told the seller that the buyer was making the best offer they could and that the closing costs were necessary to consummate the transaction.  It also would have made a counter offer on price less likely.  Why did your agent go ahead and send the letter stating that you were qualified up to $400,000?  Do you think it was in your best interest to have done that? 

 

As a listing agent, I receive pre-qualification and pre-approval letters showing buyers qualified well above listing price most of the time.  As a buyers agent, a new pre-approval letter and a whole lot more is sent with the letter proving that my buyer has the loan and can close it. 

 

Never let the opposing side in a negotiation know what you are capable of,

it will change the response you get and will cost you money. 

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Long Beach Implements New Fire & Building Codes

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All new commercial, industrial and nonresidential buildings that require two or more exits, or that are greater than 3,000 square feet, shall be protected by an automatic sprinkler system.  All new multi-family (3 or more units) residential, hotels, motels and similar buildings shall be protected by an automatic sprinkler system.  All new single-family dwellings and duplexes greater than 4,000 square feet or more than two-stories in height shall be protected by an automatic sprinkler system.  All existing multi-family residential, hotels, motels and high-rise buildings shall upgrade the existing fire alarm system to current code, at the time of replacement of the existing non-functioning fire alarm control panel.  Partial automatic sprinkler systems are not allowed. Where automatic sprinkler systems are required to be installed by this section, or by any other sections in this code, the automatic sprinkler system shall be installed throughout the entire building.  Fire apparatus access roads shall have an unobstructed width of not less than 26 feet, and an unobstructed vertical clearance of 15 feet.  Fire apparatus access roads shall have a minimum inside turning radius of 28 feet.

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