L.A. real estate news and insights.
Before you decide to turn your place into an airbnb, you have to see what the city rules are and what the HOA rules are (if you live in a condo).
Single family homes usually don't have any issues. It's your land, so you can do what you want with it (as long as its legal and not being used for a meth lab).
Condos on the the other hand, have HOA rules in play that you have to live by.
They may not permit airbnb type rentals.
Don't like living under rules?
Buy a house!
Many of the condos I sell have some strict rules when it comes to #airbnb.
More often than not, the rule book will state that units in the complex cannot be rented out for a period of less than 30 days.
The HOA is trying to prevent the complex from turning into a hotel.
So if you plan to make all this extra cash through airbnb, check the CC&R's first to see if it is even allowed.
When you put your home up on the market, your agent has to tell other agents how to show your home.
For example, your agent might say...
🏠home is vacant, go direct, lockbox on front door...
or 👶🍼 owner just had a baby and requires a 4 hour notice to show...
or my favorite 🙄 drive by only, you can see the house after putting in a offer.
Once the showing instructions are written up by your agent, READ THEM.
Make sure they are correct.
The last thing you want is to not show your property because the showing instructions require a 24 hour notice when you told your agent you are willing to show any time.
On this episode, I answer the following four real estate questions:
1) Can I turn my property into an Airbnb?
2) How come the buyers of my home now have to do a final walkthrough? Isn't their inspection period over?
3) I have several trees in front of my house. What issues can that cause to my home?
4) I see a lot of properties on the market that say "BOM". What does that stand for?
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Mortgage rates are showing signs of moderating this month, following increases in April.
Borrowers are discovering much lower rates compared to a year ago.
"A combination of low mortgage rates, a strong job market, and modest wage growth should spur home buyer interest and also serve as an incentive for homeowners looking to refinance this spring,” says Sam Khater, Freddie Mac’s chief economist.
30-year fixed-rate mortgages averaged 4.10%, with an average 0.5 point, falling from last week’s 4.14% average.
Last year at this time, 30-year rates averaged 4.55%.
Source: Freddie Mac
Asking Price: $669,000
The good news is that the home is fairly close to the street.
That means there is plenty of room in the backyard to expand the home.
The bad news is that the property is located within the Burbank Airport flight path.
Original Asking Price: $474,995
Selling Price: $475,000
Most lenders run away from a complex once they find out that there is active litigation (someone suing the HOA).
The right lender has to be utilized in order to make the deal go through.
Luckily, I have sold so many units in this complex that I know exactly what to ask the lender when I first talk to them and grill them on the subject.
People who live outside of Los Angeles think celebrities only live in Beverly Hills and the Hollywood Hills.
But us locals know the San Fernando Valley is where it's at!
Kaley Cuoco from The Big Bang Theory is selling her beautiful Tarzana home.
Asking Price: $6,900,000.
What do you think of this highly stylized home?
The price per square foot on this home is $457.46.
It's a pretty good bargain compared to the highest priced per square foot home in Studio City.
That home comes in at $1,060 per square foot.
Are stats like these important to you?
The best way to get top dollar for your home is to have every single person on the planet know your property is for sale.
Although that is impossible, it should be your goal.
One way to get the word out is to put a big "For Sale" sign in your front yard.
People will see it, tell their friends, and create a buzz about your property.
You don't have to put a "For Sale" sign in your front lawn.
However, by not having the sign out there, you miss out on being the talk of your neighborhood.
What a "For Sale" sign does is it gives your neighbors a topic of conversation when they see each other on the street.
These conversations can literally lead to you getting a buyer for your home.
For example, imagine your neighbor has a cousin who is moving to #LosAngeles from #Texas.
Wouldn't it be great if they told their cousin about your home that is for sale?
I think so!
But if you do not have a "For Sale" sign in your front yard, your neighbor will most likely never know your home was on the market.
Put the "For Sale" sign up and let's give them something to talk about.
Let's say you put your condo on the market and you find a really well qualified buyer.
The buyer's lender is going to ask your HOA manager how much money is in the HOA reserve account.
If that reserve amount is low, guess what, the lender will not give your buyer a loan to buy your unit.
That's why it's so important to attend your board meetings and make sure that your monthly HOA dues are being spent carefully.
If you are trying to sell your condo, and your Homeowners Association (HOA) reserves are low, the buyer's lender could reject the loan.
Banks always want to see a "healthy" reserve amount.
What do they consider "healthy"?
Well, every bank has their own policy. Some are more strict than others.
This is why it's important to go to your HOA meetings and see what the HOA dues are being spent on.
The more money the HOA has in the reserves, the better chance you have that your buyer's lender will approve and fund the loan for your condo.
Buyers almost never rely on a inspection report that was not conducted by an inspector that they hired themselves.
However, I still recommend getting your own inspection done as soon as possible.
This way you can make major and minor repairs to the property before putting your home on the market.
A pre-inspection is when you hire a general inspector to inspect your home BEFORE your home even hits the market.
Sellers do this so that they can make repairs around the house in preparation for the buyer’s general inspection.
Here's the thing... even though you already got an inspection done, the buyers are going to still hire their own inspector and get their own inspection done.
Why?
Because the buyer thinks you personally know the inspector and you told him to write you a glowing report of your home.
They literally think it's your cousin doing you a favor.
Get your pre-inspection done, do the crucial repairs that are needed, have the buyer do their own inspection, have THEIR inspector say how nice your property is, collect top dollar for your home.
