California real estate market in 2014 (and most probably in 2015) is a seller’s market. Los Angeles and desirable areas of Orange County have very low inventory. Sellers feeling so sure that their property will sell often lower the listing price to create a bidding war.
Let me show you what property just came out on the market in Silver Lake yesterday…
This fixer upper at 2225 Loma Vista Pl, Los Angeles CA 90039 got listed back in April 2014 at $499K
After 2 months the listing price got changed to $599K
The property got sold in August 2014 for $665K
This is how it looked.
For more pictures go to Zillow LINK HERE. Since Zillow is not up to date you may still view the old listing pictures.
2 days ago property came back on the market. Here are the new pictures…
It is listed at $319K.
This is just one example that listing price doesn’t mean much. As a buyer in Los Angeles this is something you have to keep in mind. Just because a house is listed at $499K it doesn’t mean seller will accept any less than $520K for example. On the other hand I see a lot of “bargain buyers” that will never offer a full price on a property. They will never accept the fact that offering a full asking price may still be a good deal. If they don’t get that 5-10% off they will not buy and there is just no convincing them. It’s absolutely necessary these days that before you make an offer you research the market, run the comps and properly evaluate the property. Don’t make your offer basing it only on listing price. You may miss out on a great home.
What do you think about this kind of marketing strategy and how much this property will eventually sell for? You are welcome to leave your comments below…