A not-so-open letter to potential buyers

My buyer clients recently had a disappointing experience with a deliberately under-priced home in Burbank.  It was originally on the market for $600's+ and had a $100,000 (!!!!) price reduction after 30 days.  That's really a big drop for a home in great condition and it immediately drew four offers. Yes, even in this market, some underpriced houses are drawing multiple offers.  Here's the heavily edited post-mortem email that I wrote them.

"[Buyers] I know the [street name] house was a disappointing situation.  But here's some "back story": ...[Some Realtors] are known for deliberately underpricing their properties in order to attract multiple bids and sell them quickly...The strategy is very controversial, but [some agents] and their sellers find it successful. My experience has been that properties sell just as quickly when they're priced correctly, but that's me. 

Additionally, [some agents] often have their own buyers for their properties -- who they then have bid against each other for the under-priced houses.  The [street name] house was really under-priced for that many square feet in Magnolia Park, so I wasn't surprised that it drew so many offers so quickly, even in this market.

So the take-away is that if it seems too good to be true, it probably is.

Here's what you can do so you're ready to rock next time:

- Follow through with [buyers' lender] and obtain a full pre-approval.  Those mean more to listing agents and sellers than a pre-qualification.  Also, be able to show proof of funds to close in a liquid form.  In other words, your entire down payment, plus about 2%-3% for closing costs, should be readily available on a page or two from a bank or financial institution.

- Most listings are added to the mls Tuesday, Wednesday or Thursday.  We can check every day, and if something is appealing, get in before the open house.  [Of course, this requires that you use a Realtor in your home search.  Just saying - ed.] And also, not all homes are open every weekend.  This way, you won't miss anything.

 - ...[Adjacent areas] to your [dream location]...may be worth considering.  [They may]...have great housing stock, and prices might be coming down.  It might be worth considering.  Perhaps you'll let me give you a tour sometime...

Anyway, please call me with any questions and know that I'm here to help."

1106 N. Cordova, Burbank closed today and here's how it went

1106 N. Cordova Street in Burbank closed escrow today.  We had two offers very quickly after putting it on the market at the end of May, and it sold over list price at $464,000. The transaction went very smoothly -- I wish all transactions could go this well!

Here's how we got offers over listing so quickly: 1) The sellers had the home expertly upgraded.  No, it wasn't a flip in the classic sense as the owners had lived there 17 years until they bought a bigger house last summer.  They spent some money, and it showed. 2) It was beautifully staged. (That's the living room, above.) I thought this was essential as the house was small and I knew furniture would make it look bigger.  I'll post a before-and-after video soon. 3) I marketed the hell out of this.

The inspection went pretty well as far as inspections go, although the water heater conked out and the sellers had to replace it. The buyer, her agent and his team were really on top of things and responded to everything in a reasonable, timely manner.  And we had a back-up offer.

However, there's pain in every escrow.  The only pain here was with the appraisal.  As I said in a previous post, the first appraisal came in low.  Even though the buyer was putting down a hefty sum, Wells Fargo balked.  The buyer changed lenders (Great Western), we had a second appraisal that came in to value, and the lender got the loan done in two weeks (!!!).  And everybody is happy!

Burbank home is in escrow

The sellers of 1106 N. Cordova, Burbank received multiple offers and accepted one this a.m. Of course, the house is still available for backup offers.  I am thrilled to have had a listing that was so nicely redone and I am grateful that the sellers took my advice and had it professionally staged.  More details on this escrow as it goes along.

Open house on Sunday, 6/5, 2 - 5 - 1106 N. Cordova, Burbank 91505

This beauty is open today from 2 to 5. It is listed for $459,000.  Features: updated and redone throughout, 2 beds, 1 bath, fabulous Magnolia Park neighborhood, new a/c, new windows, new interior and exterior paint, new light fixtures, fireplace, refinished hardwoods, big backyard, and a regular sale! There's nothing else in this stellar neighborhood in this condition for this price. Come visit me and special guest Steve (who'll be there with his playlist, of course). More pics can be found at www.JudyGraff.com.

New listing coming Friday, May 27

Wait until you see how gorgeous this 2 bedroom, 1 bath is.  The owners have updated and redone it, and it features an expanded, remodeled kitchen, a remodeled bathroom, sunny bedrooms, new windows, new light fixtures, hardwood floors, new a/c and heat, a big back patio and huge backyard.  It has also been staged by Color Me Sold. It's in the heart of Magnolia Park, in Burbank, and is very close to the Chandler bike path and all the cool restaurants and shops on Magnolia Boulevard.  Plus, it's in Roosevelt Elementary's district.  It will be available to see and on the multiple listing service on Friday, May 27.  More then.

921 N. Frederic, Burbank

I just saw 921 N. Frederic on Burbank's weekly caravan and I am impressed.  This 1104 sf 3+2 is listed for $549,000 and has been remodeled with a nice new kitchen, parquet and bamboo floors, new windows, redone bathrooms, etc., etc.  It feels much bigger than the 1104 sf to me.  It also has a bigger-than-usual grassy backyard and a good Magnolia Park location.  I recently sold a home on Frederic about a block away for $620k that was larger.  Query: there are lots of kids on this stretch of Frederic.  Is that a good thing or a bad thing?

I also viewed 1505 N. Pass in Burbank. It's also noteworthy.  It's a 3+2 and is a flip.  The kitchen is really spacious.  The only downside: there's no landscaping in the backyard.  It is listed for $495,000.  Last year, I sold a house just down the street for $485k which was a 3+1 and nowhere nearly as upgraded, so this seems like a fair price to me.

Those are today's standouts.  Tomorrow I'll be on caravan in Toluca Lake and Studio City.

Burbank's Magnolia Blvd. now has three gun stores

How many gun stores does one Burbank street need? Lots, apparently. Magnolia Boulevard now has three gun stores within the mile between Victory and Buena Vista. Is there that much demand in that neighborhood? (I'd like to point out that there are only two bars in the same stretch of road. Probably a good thing, considered.) Is this what the Magnolia Park folks (the merchants association) had in mind? Is this what the city council had in mind? Is this the same city council that would not allow new restaurant establishments on the same stretch of road a few years back because patrons might park on surrounding residential streets? Um, priorities?

Burbank's Holiday in the Park

Magnolia Blvd. in Burbank will be closed tonight between Buena Vista and Hollywood Way for the annual "Holiday in the Park."  This should be great fun if it doesn't rain.  My reason for going: this will be a good opportunity to visit some of Burbank's and the greater L.A. area's best resale and vintage clothing stores (yes, I've previously blogged about Burbank's clothing stores).