Right now is an opportune time to become an owner in Downtown Los Angeles!
Why you need to become a part of DTLA’s dynamic future
Downtown LA is on the launching pad! According to GQ Magazine, January 2014, DTLA is “The new capital of cool in the US…America’s next great city”.
These are 5 Major reasons you need to invest in Downtown LA now:
- Follow the crowd. America is moving back to the city. The exodus to the suburbs of the last 70 years has reversed itself and now the trend is back downtown. History has shown that smart money follows the trends.
- Astoundingly positive demographics – Currently there are over 5,094 new housing units under construction and scheduled for delivery over the next 18 month period. This construction is estimated to increase the population downtown by 8,829 people. In addition, as of January 1, 2015 there are 16,665 proposed housing units in various stages of the approval/financing process that will add another 28,497 DTLA residents. In the last 10 years, the permanent population of DTLA has grown from 23,894 to 53,915. With what’s planned and under construction, population in the next 5 years is estimated to reach 91,241!
- Major infrastructure investment – All roads lead to Downtown! Since 2004, over $17 Billion has been invested in DTLA’s physical and transportation infrastructure – another $1.5 Billion is already committed between today and 2020. A city who’s existence over the last 80 years has centered around the automobile has suddenly transformed itself into a public transport Mecca incorporating subways, light rail, a huge Clean Air bus system and, coming soon, a new DTLA Street Car loop. Who would have thought you would be able to take the Metro from Santa Monica to DTLA in 27 minutes – even during rush hour!
- Economic opportunity – All this new population growth is resulting in an explosion of new cultural facilities, distinctive shopping opportunities and hundreds of new restaurants and entertainment venues. New and exciting facilities and businesses are opening up weekly. There is always something to do and see in Downtown LA!
- Potential growth in real estate values – Condominium construction is lagging far behind current and future demand. Only two new condominium projects (Metropolis and TEN50) have broken ground in the last 12 months and only a few new projects are on the drawing board. With the huge population growth coming over the next several years, there is a significant supply/demand imbalance – a fact is currently demonstrated by an increase in overall DTLA condominium values of over 10% in the last 12 months!
There are many more arguments for why your investment dollar belongs downtown – too many more to go over here! Suffice it to say that now is the opportune time to consider living and investing in Downtown Los Angeles.
Why you need a Real Estate Broker to help you buy your Los Angeles real estate (and why a good broker is worth every nickel of that commission)
It shouldn’t be this hard, but it is. In their attempt to protect the Buyer in a real estate transaction, the State of California and the BRE (Bureau of Real Estate) has taken a myriad of steps over the years to be certain that every conceivable question and issue is addressed for both buyers and sellers of California real estate. As more and more litigation and seller and buyer legal actions occur, more and more regulations and disclosures have been enacted to try to cover every conceivable problem or question that might present itself when you go to sell your property to someone else.
The primary issue to any buyer is the question of Agency – who will represent you in the transaction. California law makes it mandatory that before engaging a licensed real estate broker to work with you in purchasing a property, you and your broker must have an informed agreement as to your agency relationship with that broker and other brokers that you will come in contact with during the transaction. Normally, your broker will confirm that he or she will be working for you as your agent in the transaction. You will be advised of Agency Relationships from day one by acknowledging the Agency Disclosure at the beginning of your search. In addition, you and your Broker will confirm the agreement as to Agency several times during the purchase process. This agency disclosure will confirm that in most cases (more about the “most cases” next), your broker will represent and protect your interests in the transaction. However, (and this is the “most cases” part), when an instance occurs that your Broker also represents the Seller of your property, you will agree that you understand and accept that your Broker is representing both you and the Seller. In such cases, which seem to occur often in practice, your Broker must disclose this dual agency, obtain your written agreement and the written agreement of the Seller, agree to act fairly and openly, and to be certain neither you nor the buyer obtain an unfair advantage in the transaction. Your Broker will not disclose any information to either you or the Seller that will result in a disadvantage to either of you. This is an important document that drives your entire transaction and without it, many issues can arise before and after the sale that can cause serious ramifications. You need a real estate broker to define and lead the way.
In addition to the Residential Purchase Agreement you will sign when you make an offer on the property you have located you will be asked to acknowledge many more disclosure documents. It is not uncommon for a single real estate transaction to require 30 to 40 various disclosures and contract modifications and acknowledgements. Your sales person will be responsible for providing these documents in a timely manner and being certain that all required signatures from you and the Seller are obtained. The Escrow will not close until and unless all pertinent documents are in and accounted for.
As you can imagine, this can be a daunting job considering the tight performance dates usually required in the Residential Purchase Agreement (RPA). Following is a partial list of required documentation on most transactions.
- S 01-Purchase Agreement/Contract-RPA-CA
- S 02-Buyer’s Inspection Advisory-BIA
- S 03-Counter Offers-SCO, BCO, SMCO
- S 04-Agency Confirmation*-on Contract or Sep. Form AC
- S 05-Escrow Holder Acknowledgment-Pg.8 RPA
- S 06-Addendum-ADM
- S 07-CB Regional/Local Area Specific Addendum & Disc.*
- S 08-10-Escrow & Commission Instruc. & Amendments
WHEN THIS OFFICE (CB) REPRESENTS BUYER
- S 11-Agency Disclosure- AD-Buyer
- S 12-Agency Disclosure-AD-Seller
- S 13-Possible Representation of more than one Buyer or Seller-PRBS
- S 14-CB Mold Disclosure & Agreement-CB-FD-200
- S 15-Receipt(s) from Escrow for each of Buyer’s Earnest Money and Increased Deposits (See #43 RID)
- S 16-Copy of Earnest Money Dep. Check (for each dep. or increased dep.) Check Registration Form-CRF
- S 17-Transfer Disclosure Statement-TDS
- S 18-Agent’s Visual Inspection*-AVID-Buyer’s Agent
- S19-Agent’sVisualInspection*-AVID-Listing Agent
- S 20-CB Affiliated Business Arrangement Disc-CB-ABA
- S 21-Statewide Buyer & Seller Advisory-SBSA
- S 22-Seller Property Questionnaire-SPQ
- S 23-Carbon Monoxide Detector Notice-CMD
- S 24-Lead Based Paint*-FLD (Pre-1978)
OR Proof of Year Built if built 1978 or later
- S 25-NHD/Zone Disclosure Report
- S 26-NHD/Zone Disclosure Statement/Receipt/Ack.
- S 27-Receipt for Combined Hazards Booklet*
- S 28-Res. Earthquake Hazards Report* (Pre-1960) OR Proof of Year Built if built 1960 or later
- S 29-Local Government Report* (Property/City Report)
- S 30-Retrofit Compliance Certificate (If applicable)
- S 34-Supp. Statutory Disc.-SSD (If SPQ not used)
- S 35-Preliminary Title Report/Supp. Title Report
- S 36-Escrow Receipt for Prelim
- S 39-Inspection Reports: Physical Inspection or Waiver
- S 40-Inspection Reports: Geological Report or Wavier
- S 43-Inspection Reports: Other*
All of these legal documents protect you as the Buyer before and after your purchase. Without these disclosures and their acceptance and confirmation by you and the Seller, you might be subject to significant legal vulnerabilities and unforeseen obligations.
In addition, your Broker will be responsible for “riding herd” on your transaction and making certain that all contract deadlines and requirements are met within the dates specified. He or she will be responsible for obtaining agreement on many other documents that may be occasioned by your particular transaction, including but not limited to:
- Property profile issues – review of Grant Deeds, Liens, encumbrances, notice of defaults, and other title issues..
- Carrying out a basic property condition inspection
- Knowing of and providing local area or property specific disclosures
- Accessing and Providing Zoning and Geologic reports and surveys
- Required Earth Quake, Fire, Mudslide, and Flood Hazard reports
- Any and all required actions that will make or break your transaction and protect you from present or future problems that will complicate or defeat your transaction.
During the term of your transaction, besides the obvious duties of helping you locate a suitable property, your Broker will be responsible for communicating and coordinating with you, the listing Broker, Title Company, Escrow Company, lender and other service providers within the times specified by your sales contract. This is obviously more than a full time job – one that takes patience, experience and exceptional attention to detail. Getting to the closing table is a highly complicated process that is best handled by a professional. As an uninitiated and inexperienced Buyer, you need a Broker to make certain your transaction goes right from the start!
Approx. Interest Rate (30 Year Fixed)