Sold! $110,000 above asking and that’s not the full story…

Closing my recent listing, the Glendale fourplex (1414 Dixon), at $1,305,000 this week answers the age-old question of “why sell.”

Not only did we negotiate $110,000 above asking, but the property also went into escrow like lightning speed. We had strong interest from several buyers, but ultimately the Seller favored the Buyer with the best financials and was most likely to close. The property went into contract 7 days after it went on the market, and closed in a 47-day escrow.

The hidden story behind this fourplex is that the Seller bought it with me in late 2014 for $860,000 and made $445,000 difference on the sale in less than 18 months time, minus closing costs and improvements on the property. Now we’re targeting two more properties that he can buy with these proceeds in a 1031 exchange (tax free), and hopefully do the same thing again next year.

There was no reason to sell 1414 Dixon, except that the landlord knew that he had maximized the property with the resources he had, and could do the same to a different, under-utilized one with new resources from the sale. If you have a property that you are curious about selling, please get in touch.

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Applying SFR Lessons to Income Property

Today a listing agent on a hot fourplex said her Seller accepted my Buyer’s offer, which was $25k less than two other offers, because the Seller liked me at the open house. How did my likability become worth $25,000? It’s not my worn-out jeans.

As a seller, your greatest fear is someone tying up your property through escrow, canceling, and wasting not only your time, but the momentum your property builds when it goes to market. Therefore, any good buyer’s agent builds a reputation of doing what he says he’ll do, and following through on deals. Thankfully, that reputation not only precedes me most of the time, but when it doesn’t I know what’s important to the Seller and make sure she knows that.

What I learned from selling a $2.5M single family house is that income property agents often take for granted that the person on the other side of the transaction is just that–a person. Most landlords who have properties with 2-10 units often spend a great deal of personal effort caring for their properties and getting to know their tenants. That’s why it’s important not only to understand how income property numbers and laws work, but also how to treat the person on the other side of the transaction like a homeowner.

[Note: I originally intended to be more detailed in this post, but I realized that I’m not retiring yet, and so describing too much of how to transact as an agent doesn’t make much competitive sense.]

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Speaking of Single Family Homes

If anyone knows someone in the market for a mid-century modern classic in Brentwood, 1115 N. Norman Place is on the market for $2,450,000.

If you ask any Brentwood agents, this property will move fast. Check out 1115Norman.com for details.

Norman-Sign

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Single Family Home Agents versus Income Property Agents

I just closed a beautiful house for a friend on the Pasadena / Eagle Rock border.  One difference, among many, between working a single family home versus an income property is when I close a house, 14 alarm and security companies call me the next day hoping to earn a referral to my client.  I’m polite and then hang up.

But don’t start feeling sorry for house agents. The process of buying a house is five times simpler than buying an income property. When I dabble in the house world, it’s like the bowling lanes have bumpers. After working SFRs, I realized why so many agents are slow and fumble around during income property escrows. The nuances of tenants, leases, estoppels, rent control, and systems in an apartment building are understandably more complex than in a house.

So why don’t I start working exclusively in single family homes? When you have an expertise that is rare, even if the work is more difficult, it makes a lot of sense to offer buyers and sellers something special. Smart clients can tell the difference.

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Advice

Something has been happening lately that is both frustrating and encouraging. I’ve had several buyers email or call me recently and ask my opinion on a particular property. The only catch is, they are already in escrow on the property with another agent. First off, I’m grateful that these buyers in question have been forthright about their current agent status. And while it’s frustrating to hear them admit their regret not working with me, in each of these instances I encouraged the buyer to feel confident in their purchase. Why? Because in these particular cases, they were making smart decisions already and were simply looking for reassurance. It’s not my job to tell someone what I would do with my money – it’s important to understand the buyer’s needs, explain the potential pitfalls and opportunities, and let them make the decision that’s best for them.

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1414 Dixon is Pending!

1414 Dixon is Pending!

After 6 days on the market, several above-market offers, and just 2 hours after our Sunday open house, 1414 Dixon is in escrow. Because I marketed Glendale’s lack of rent control and the seller proved that the property could achieve high rents, it sold very fast. If you want to make a back-up offer let me know, or if you want to buy or sell a Glendale property, I know how to get the right price.

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