Think you can’t afford to buy in Beverly Hills, you may want to think again. There are some bargains in the MLS. And if you’re OK with a Beverly Hills PO within the City of Los Angeles, there are even more bargains available to you.
The lowest priced single family home currently listed with a Beverly Hills P.O. is going for $425,000. It is bank owned and, to be fair, it is a real fixer… maybe even a tear down. But the property is high in the hills and surrounded by homes in the seven figure range.
If you want to be within the Beverly Hills city limits, there is another bank owned property listed for $699,000. That one already has offers on it, and will likely go for more, but it gives you an idea about what is available and how affordable certain areas are becoming.
But what if you are a beach person? Well, right now there are three short sales available in Malibu for under $600,000 and one of them is a single family residence with canyon and ocean views!
It’s been more than ten years since we’ve seen house prices this low. People who got into the nicer areas around Los Angeles in the last downturn and who didn’t use their homes as a piggy bank are still way ahead in terms of equity. The nice thing for buyers to consider is that the current housing market is presenting bargains at all levels.
For instance, one of the homes our team is working on is a $1.8 million bank owned property that isn’t in the MLS because the bank doesn’t know what to do about the tenant that still resides there. While $1.8 million may not sound like much of a bargain, and it is probably larger than you last grocery bill, just consider that the last sale price on this place was north of $2.5 million and the house has views that run from downtown Los Angeles to Catalina Island! For the right buyer, it may present the opportunity of a lifetime.
As a buyer, there are things that you have to keep in mind while shopping for your new home.
First, when you view a home, don’t focus on the cosmetic issues that are easily changed. When viewing a short sale or bank owned property, you need to know going in that these homes often need some TLC. In many cases, the cosmetic issues can be fixed with a bucket of paint and a scrub brush; neither of which should keep you from buying. Many of these homes are still occupied and the current residents will rarely – meaning “never” – clean them up to show.
Second, location is the most important thing when considering a long term investment return. This market won’t remain down forever. When it does come back, the most desirable areas will come back first. They will be followed by outlying areas. Some areas that are the most remote from major metropolitan areas in Los Angeles and Orange County Real Estate will be very slow to recover and may never return to the values they were at before the housing market collapsed. With that in mind, this means that you may be able to find a very nice home in these areas for less than it would cost you to build one.
Third, if you are seriously thinking about buying in this market, get pre-approved for your loan now. This will tell you how much you can afford to spend, keep you focused on homes within your reach, and allow you place a bid immediately when you see your dream home. Without a pre-approval letter, you will have to go through the approval process before you can submit an offer and that dream home may actually be sold to another person in the mean time.
by Jim Malmberg
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About the Author: Jim Malmberg is an agent and real estate professional with SHORTsense.