It's a great time to be a Seller today in Downtown Los Angeles. Inventory in all price ranges is down dramatically, prices have recovered, and interest rates are at historic lows.
The Supply/Demand curve is definitely in the Seller's favor.
What is your Downtown Los Angeles Property Worth?
February 17, 2015
A valuation of your property by a real estate professional (as opposed to a Certified Appraiser) is called a CMA, or Current Market Appraisal. While a CMA quite often is as accurate as a full appraisal by a Certified Appraiser, a CMA will not be used by lenders in determining loan amount. A CMA is normally used by a Seller and his or her selected Broker to determine a price range that will result in a sale of a property in a reasonable amount of time.
When a Broker performs a CMA, the Broker takes several factors into consideration:
- The sales prices of comparable properties within the immediate area of the subject. Normally the Broker will use only sales in the last 6 months to make certain the sample reflects current sales values.
- The Broker will also consider comparable properties currently on the market to determine competition and supply/demand factors effecting value.
- Finally, the Broker will note comparable properties who’s listings have recently expired or been withdrawn.
Once these values have been compiled and analyzed, the broker will then consider the condition of the property, the current strength of the market, and the Broker’s own personal experiences as they relate to the property and it’s surroundings.
While a good CMA is exceptionally detailed, a CMA is not a strict interpretation of what the property will sell for and is often stated as a range of possible prices.
At the current time, Downtown LA condominiums are selling in a broad range depending on location, project, and condition matters between $ 400/square foot and $ 700/square foot. Generally speaking, this range demonstrates an overall increase in values in the Downtown area of around 10% over the last 12 months.
If you would like a fully comprehensive and detailed CMA of your particular property, please go the Contact Me tab on this web site and give me your property address and contact information (including phone number). I will put together your value range for you immediately and call you to discuss it. There is absolutely no obligation to you for this service.
– John Nilsson, CCIM, CRS CalBRE# 01966286
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Why you need a Real Estate Broker to sell your Los Angeles real estate
It shouldn’t be this hard, but it is. In their attempt to protect the consumer and the seller, 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 action 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 seller 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 sell your property, you and your broker must enter into a written 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 with your listing agreement. In addition, you and your Broker will confirm the agreement as to Agency several times during the listing/sale process. This agency disclosure will confirm that in most cases (more about the “most cases” in the next paragraph), 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 potential Buyer of your property, you will agree that you understand and accept that your Broker is representing both you and the Buyer. 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 buyer, to 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 buyer 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, besides the Agency Disclosure (AD), your agreement and acceptance of the Exclusive Authorization and Right to Sell (RLA) will have to be signed with your Broker. This document outlines how you and your broker will work together in getting the job of selling your property accomplished. There are many rights and obligations for both you and your Broker outlined in this document. It is the “road map” for your transaction.
Finally, you will be asked to acknowledge many more disclosure documents including:
- The Affiliated Business Arrangement Disclosure
- Agent Visual Inspection Disclosure
- The Seller’s Advisory (SA)
- Transfer Disclosure Statement (TD)
- Statewide Buyer and Seller Disclosure (SBSA)
- Seller’s Property Questionaire (SPQ)
All of these legal documents protect you as the seller before and after your sale transaction. Without these disclosures, you would have 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, encumberances, notice of defaults, and other title issues.
- Property marketing materials, accurate MLS insertions and follow through.
- 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 marketing your property, your Broker will be responsible for communicating and coordinating with you, the selling 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 from Listing to Sale is a highly complicated process that is best handled by a professional. As an uninitiated and inexperienced Seller, you need a Broker to make certain your transaction goes right from the start!