In this months newsletter, we learn that the LA Commercial market is on fire but good deals are starting to get harder and harder to find. On the residential side, inventory is starting to pick up but interest rates continue to rise. The market appears to be stable with no immediate concerns of price depreciation. Still lots of demand out there but there are many factors we need to keep an eye on, like interest rates, global financial markets and the general health of our economy. Don’t miss our Words of Wisdom section where we are reminded that “We are not what we earn.” Please continue sending us topics of interest so we can cover them in future newsletters. Thank you for reading!
Living in an affluent big city like Los Angeles is very fun and exhilarating. There is action everywhere! One can’t help seeing the tremendous amount of wealth while driving around and constantly passing by multi-million dollar mansions and seeing exotic cars revving their engines as they idle in traffic. It’s the land of opportunity, without a doubt. The perfect environment for the hungry and hard working entrepreneur to find success.
Success…..what an interesting, yet sometimes nebulous idea. What is success? It’s different for everyone but in our society it’s hard not to equate success with the amount of money one earns. Although money is extremely important and it allows us to live comfortably and make positive changes in our community - we are not what we earn. You will be remembered not by how much money you made, but how you contributed to society and how you influence those around you. This video is a great reminder of that. I hope you enjoy it! - D. Adelpour
Market is continuing to climb as we approach the hot selling season. Interest rates are now definitely on the rise so buyer affordability is going to be a variable we need to pay close attention to. Inventory is a huge issue right now so it maybe a good idea to come to market sooner than later before the rush of inventory comes in April and May. There is a lot of demand so with the limited supply, you can command a higher price.
Make sure to price correctly - This is a huge factor in the market right now. Many sellers are coming to market over 10% above market value and find themselves sitting and waiting. We are still in a good market, but buyers are savvy and are not willing to grossly overpay. If you’re priced too high, your property will sit. If you want to leave some space to negotiate, don’t be higher than 5% above what market value is. There is nothing better for a buyer than a property that is stale. Don’t put yourself in that position.
Have a strong showing presentation. There is a huge difference between opening the door and letting buyers through on their own, versus having someone give them a custom home presentation that outlines all the great features of the property. This alone coupled with strong negotiation can net you 5-10% more at closing.
Internet is King! Make sure your home looks amazing on the internet. It all starts online so if you don’t have a strong web presence, you are leaving money on the table.
If you are considering selling but aren’t sure where to start, give us a call for a FREE in home consultation to go over all your options.
Dennis@DennisAdelpour.com - 310.573.8670
Advice for BUYERS:
Inventory is very low right now so you have to create inventory. We have had a lot of luck recently finding deals off market for our buyers. It takes a lot more effort than just looking on the MLS but it’s necessary to make the difference. Inventory will start to pick up in the coming weeks so don’t settle. Interest rates are on the rise, but historically speaking, they are still relatively low. I see interest rates rising close to 5% by the end of the year. Check with your lender how this will affect your monthly payments. The days of 3.5% interest rates on a 30 year fixed maybe gone and not coming back anytime soon.
Check expireds and rentals for off market opportunities. Door knock neighborhoods you are interested in and send mailers with custom letters to sellers. This really works! We are doing it now for our clients. Sellers love the idea of selling off market because it limits the inconvenience of open houses and random showings. It’s a win-win for both the seller and buyer!
Re-Explore properties that have been sitting on the market for 60 + days.
Make sure you have your money straight! Don’t wait until you find a property to get your pre-approval letter. If the property you find is hot, you may not be able to get a pre-approval in time to show you’re qualified. If you’re a business owner (non-W2), there is a lot of paperwork that needs to be submitted. Don’t procrastinate, do it now and get it out of the way.
Connect with us to help you find off market properties through our proven strategies.
