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

 

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. 

1. Price Prices are continuing to decline. Buyers want to feel secure in their purchase. They want to buy below current market to minimize their potential losses, if any. Price your condo accordingly. 
2. Concessions Most buyers are 100% financing; are without the funds, or are unwilling to pay closing costs, preferring to keep their money in the bank for unanticipated expenses after the purchase, some upgrades or against potential future HOA assessments. 
3. Location A neighborhood they deem safe, desirable or convenient; it just has to fit. 
4. Upper Floor Units First floor units are almost impossible to sell at this time. With the abundance of units on the market right now, first floor units are rarely a consideration for todays buyer. If you have a first floor unit, and must sell, you need to price your unit to appeal to a buyer who just cannot afford anything else. Top floor units are very desirable, they often provide a view, cathedral ceilings and possibly loft space, all very appealing to buyers. 
5. In Unit Laundry Buyers are not interested in community laundry rooms, this can be a deal killer. If you can get HOA approval to add washer/dryer hookups you might want to convert a closet, it may mean the difference between selling or not. If you currently have an in unit washer/dryer, include it in the sale. 
6. Appliances – Plan on leaving yours, 100% buyers are usually moving from a rental, they do not have the money to buy all new appliances; they will purchase a unit that includes them to save money after sale. 
7. Hardwood or Wood Laminate/Pergo Flooring – It costs approximately $5000 to install wood laminate flooring in a 900/1000 square foot condo. Buyers just dont have that kind of money after purchasing. They want wood or wood laminate flooring; they will purchase the condo that can provide it. Most buyers seem to prefer the lighter maple color; light colored flooring opens up smaller spaces making them feel larger, light and airy. If you have wood floors under those carpets you might consider removing the carpeting and going through the hassle of having the wood floors refinished. Nothing is more appealing to a buyer than entering your condo for the first time and seeing gleaming wood flooring. It is a MAJOR selling point. 
8. Secure Parking Spaces units with one space are having difficulty competing, you will have to make your price very attractive. Lack of parking spaces can be deal killers. 
9. Countertops Granite countertops remain in high demand, concrete countertops are fabulous in Downtown Long Beach Lofts; there are many attractive recycled materials available in use such as; glass, wood, etc. 
10. Remodeled Kitchens and Bathrooms Remodeling is expensive, most of todays Downtown Long Beach Condo buyers are 100% financing and do not have the funds available to refurbish with the extras they crave. If you have remodeled your kitchens and bathrooms you will be a much more desirable purchase to a buyer. If you have not remodeled and your kitchen is dated or not in very good condition you should do something to update and clean it up. Update your appliances and include them, sanding and refinishing cabinets, painting cabinets and walls, replacing flooring, replace hardware and hinges, update lighting, new sink, new faucets; do whatever you can to improve the look, clean it up and make it desirable. 
11. Clean Buyers want to see a sparkling clean home when they preview it. Nothing makes a home feel cleaner than a fresh coat of paint. If you have a lot of clutter get rid of it put it into storage have a rummage sale donate it just get it out of the sight of the buyer. Clutter minimizes space, buyers need to be able to visualize themselves in your space, depersonalize your space. Cluttered, messy and dirty condos will not sell. 

Remodeling Your Long Beach Home? Unique Remodeling Materials.

As an experienced Downtown Long Beach Real Estate professional I have both written and received many offers to purchase homes and condos in Downtown Long Beach.  Not only do I know my contracts, I know them well enough to negotiate the very best deal for you whether you are a Buyer or a Seller and I want to earn your business.  Are you thinking about buying or selling a Long Beach Home or a Downtown Long Beach Condo?  Would you like to be properly represented by an experienced professional?  If so, contact me regarding your next Long Beach sale or purchase. 

Posted on December 9, 2007 by Laurie Manny