July 7, 2022 Breaking News, Latest News, and Videos

Tips For Sellers Of Teardowns:

There are many misconceptions about selling a house that most people would consider a teardown.

In the first place, a surprising number of potential buyers for such houses want to buy it as their own home.

Although they may not be all-cash buyers like developers tend to be, often they are willing to pay a greater amount because the structure will be to actually live in. Also, they do not need to factor in necessary profits for an investment pay-off in a year or so.

Even if a house is likely to be torn down by a potential owner-user or developer, it is almost always worth investing some time and money into helping the home show somewhat better.

The benefit of such efforts is a more favorable impression made on all prospective buyers. This has often resulted in developers having to pay more because they are competing with owner-users as well as other investors.

Occasionally an owner has agreed to sell their home to a developer in a quiet way, without being on the open market or in the Multiple Listing Service (MLS).

The supposed advantages of this approach include the avoidance of being inconvenienced by the normal marketing process or feeling embarrassed by some neighbors possibly seeing the condition of the house.

The significant disadvantage of selling a home in this manner is the probability of not getting the best price and not even knowing how much more someone would have paid in a competitive situation.

From having successfully sold more than 100 “teardowns,” we have learned much about the negotiation process and how to manage escrows where different issues arise than are often seen in more usual types of sales.

We have also developed different marketing strategies and skills that have proven to be effective and advantageous to sellers of a “teardown.”

We have learned through experience that it is definitely not worth spending a lot of money on upgrades if the house is going to be torn down.

However, it might be worth paying someone to clear out weeds, brush and debris that may have accumulated over many years.

Preparing all of the disclosure paperwork before beginning to negotiate a contract is of benefit. This will enable the seller to include in the counter offer that the buyer shall accept the property in its present condition, including all items disclosed.

Some sellers even pay for a professional building inspection before putting the house on the market so that a prospective buyer will be aware of any known defects they may consider to be significant.

There are some advantages to selling to a developer. They usually do not have a financing contingency, and typically will buy a property with minimal inspections.They are also not likely to make any requests of the seller.

We have often negotiated with developers for an extended time for our sellers to retain possession of the home at no cost after the close of escrow.

There can be a greater chance of closing escrow when entering a contract with a seasoned developer. However, an owner-user may be more willing to enter a contract at a higher price point. Whether selling to a developer or an owner-user, it is always very valuable to have negotiated back up buyers in place.

Michael Edlen has worked with dozens of investor buyers since 1986 and keeps a list of other agents currently representing developers. He is available for counseling and can be reached through michael@michaeledlen.com or 310.230.7373.

in News
Related Posts

Newsom Signs Sen. Ben Allen’s Pollution Bill That Places Recycling Costs on Producers Rather Than Municipalities

July 6, 2022

July 6, 2022

Senate Bill 54 calls on the producers of specific materials to form a Producer Responsibility Organization  By Sam Catanzaro California...

LA City Council Approves Emblem Program to Identify Legal Cannabis Business

July 6, 2022

July 6, 2022

Placards will serve as notice to the public and enforcement agencies that the business is licensed Last week, Los Angeles...

VP Kamala Harris Visits Santa Monica Fire Station

July 6, 2022

July 6, 2022

Vice President and husband Doug Emhoff stop by Santa Monica Fire Station #2 on Monday By Sam Catanzaro Vice President...

City Council Approves Permanent Parklet Program For Local Businesses: Santa Monica Beat – July 4th, 2022

July 5, 2022

July 5, 2022

Local news and culture in under 5 minutes.* Sony Calls For ‘respect’ After Gaming Developers Receive Online Bullying * City Council...

Landscaping 50 Percent Complete for George Wolfberg Park at Potrero Canyon

July 3, 2022

July 3, 2022

Officials provide update for park under construction By Dolores Quintana A recent update from the City of Los Angeles’ Department...

John McEnroe and Patty Smyth Sell Malibu Home for $29 Million

July 2, 2022

July 2, 2022

Malibu Colony home sold to unknown buyer in private sale By Dolores Quintana John McEnroe, a retired former tennis star,...

SMa.r.t. Column: A Tale of Two Cities

July 2, 2022

July 2, 2022

The City of Santa Monica is surrounded on three sides by the City of Los Angeles. Therefore, while the jurisdictions...

Santa Monica City Council Approves Ballot Measure That Would Increase Hotel Bed Tax

July 1, 2022

July 1, 2022

Santa Monica’s bed tax has been raised since 2004 By Dolores Quintana In a vote on June 28, the Santa...

PETA Attempts to Stop the Beach Club From Holding Annual Fireworks Display

July 1, 2022

July 1, 2022

Parking lot where display is held is on City of LA land, not Santa Monica, allowing Club to obtain permit...

Santa Monica-Malibu Unified School District Prepares for SMASH/Muir Campus Mold Removal

June 30, 2022

June 30, 2022

Exact costs for repairs still unknown By Dolores Quintana and Sam Catanzaro  It is unknown exactly how much the total...

Watering Restrictions for Santa Monica Residents Take Effect Soon

June 30, 2022

June 30, 2022

New restrictions will go into effect on July 5, limiting watering to twice a week By Sam Catanzaro New restrictions...

Daily Harvest Recalls Meal Kits Handed out at Venice Event Following 470 Cases of Mysterious Illness

June 30, 2022

June 30, 2022

Direct-to-consumer meal kit company under fire for handling of outbreak tied to lentil and leek meal kit By Sam Catanzaro...

Central Coast Brewery Makes Westside Acquisitions

June 29, 2022

June 29, 2022

Figueroa Mountain Brewing acquires Broxton Brewery, The Stalking Horse and more. Staff, current beer taps to remain on board at...

Mexican Restaurant Possibly Expanding Into Former Swingers Space

June 29, 2022

June 29, 2022

Bar Hermanito applies for an alcohol exemption sales permit for space at 802 Broadway in Santa Monica By Dolores Quintana...

Six Family-Fun Westside Fourth of July Events

June 29, 2022

June 29, 2022

Fireworks, parades, runs and more taking place across the Westside  By Ashley Sloan  Pacific Palisades  The Pacific Palisades will be...