Ask a realtor anything (Huntington Beach, Irvine: sale, buyer, gated)

[sidewaysAK]

hey do you just deal with the OC or most of the surrounding areas of LA??
I am going to be moving to LA soon, and we are looking to move to an upscale neighborhood.
I have done research, nd been told of places like calabasas, newport, beverly hills.
Are there any areas you recommend?
Also do you think that buying into the ritz at LA live is a good buy?

thank you

[USCTrojanCPA]

Originally Posted by sidewaysAK

hey do you just deal with the OC or most of the surrounding areas of LA??
I am going to be moving to LA soon, and we are looking to move to an upscale neighborhood.
I have done research, nd been told of places like calabasas, newport, beverly hills.
Are there any areas you recommend?
Also do you think that buying into the ritz at LA live is a good buy?

thank you

Most of my buyers are actively looking in the OC, but I am very familiar with the LA and Inland Empire. I grew up in Irvine and Huntington Beach, but went to school at UCLA and USC (yes, I'm a Brojan). There are several great communities that may fit your needs like the 4 you named off. Other areas like Monarch Bay (Dana Point), Laguna Niguel, Laguna Beach, Irvine, Newport Coast, Corona Del Mar, Tustin Ranch, Belmont Shores, Manhattan Beach, Hollywood, Santa Monica, West LA, Pasadena, Arcadia, Malibu, Bel Air, and Palos Verdes are also nice.

The 4 areas that you mentioned are all great places to live and I'd definitely recommend them in a heartbeat. They each offer something different. It all depends on what you and/or your families preferences are in terms of location and features that you are looking for as well as your commute to work. Each area will have different price points. Have you visited each of the 4 cities?

I would stay away from buying any high rise property like LA Live because I personally think it is overpriced and because downtown LA isn't very vibrant as other large downtown cities are. Most all people that work in downtown LA commute from the suburbs. Your resale value will always be higher for a traditional single family residence than it will be for a high rise condo unit, but the HOA fees can be brutal.

[russlancea]

My husband and I put an offer on a short sale last November that was accepted by the seller. That doesn't mean much, since the lender has to approve. The listing agent keeps saying the paperwork is being reviewed by the lender. I know short sales can take forever, but my husband and I can wait 6 or 9 months. The offer is about 100k less than the amt owed on the house, I believe. What happens now--play the waiting game only to be told the lender rejects our offer because it's too low?

[USCTrojanCPA]

Originally Posted by russlancea

My husband and I put an offer on a short sale last November that was accepted by the seller. That doesn't mean much, since the lender has to approve. The listing agent keeps saying the paperwork is being reviewed by the lender. I know short sales can take forever, but my husband and I can wait 6 or 9 months. The offer is about 100k less than the amt owed on the house, I believe. What happens now--play the waiting game only to be told the lender rejects our offer because it's too low?

The recommendation that I have to buyers who want to submit offers on short sales is to set very low expectations. If the listing agent is experienced with having closed on short sale listings, that's a plus. If there is only one lender on the property, that's a plus. If the lender will not take a huge loss on the short sale, that's a plus. Although it's true that more and more short sale properties are getting closed (25%-30% vs. 5-10%) you should expect the worst and don't get emotionally attached to the home. I will say that a fair number of the short sales that did close, the buyers paid cash (if that tells you anything). I would advice you guys to follow up with the listing agent every 3-4 weeks to see what kind of progress has been made. Sometimes when the paperwork goes to the lender it's like it went into a blackhole and no one knows where it is in the process. I would advise you guys to keep actively looking. Don't just stop and hope that short sale goes through (if it does, great...if not, you guys have a plan B, C, D, etc). If you PM me the address of the home and your e-mail I can send you the full listing as well as the property/loan detail for the home.

[USCTrojanCPA]

Originally Posted by Charles

It would be a buyer's challenge to find the "sweet spot" of low interest rates/high price vs higher interest rates/lower price. If he is putting a lot down, then it probably pays to wait as he's borrowing less at the higher rate, but the home is probably cheaper. On the other side, if he is taking out a huge loan, not putting as much down, then it might be better to pay a higher price for the house but get get a nice low 4.25% 15 year loan. It takes assumptions and number crunching. And then for others, they can't afford to time it; they have to move, buy a home, get their kids into school in a certain window of time and whatever happens happens.

As the old saying goes...you can always refinance into a lower interest rate but you can't never refinance into a lower loan balance. Higher interest rates benefit cash buyers the most and no interest benefit folks with limit downpayment funds.

[russlancea]

Thanks for the reply, USCTrojan. My husband said the same thing, that he won't get emotional until escrow actually opens. My agent gave me details on the seller's loan, which is hard for me to understand. Only one lender, someone I've never heard of. Seller refinanced and their payment is going to skyrocket.

We have a good chunk of money saved up for a house, but won't use it all on the down payment. It's definitely not enough for an all cash offer I've detached myself, per my husband's suggestion. Most other homes I'm interested in are short sales.

My agent contacts the listing agent now and then and it's the same response--lender is reviewing paperwork. They say they have experience with short sales, but who knows. I've been renting and saving for years now, so what's another year? Thanks.

[Charles]

Originally Posted by russlancea

My husband and I put an offer on a short sale last November ...... I know short sales can take forever, but my husband and I can wait 6 or 9 months.

Do you (or does the forum) think that if the offer for the short sale was all cash, that it would still take six to nine months? In other words, does having an all cash or high cash offer speed up the short sale purchase?

[USCTrojanCPA]

Originally Posted by Charles

Do you (or does the forum) think that if the offer for the short sale was all cash, that it would still take six to nine months? In other words, does having an all cash or high cash offer speed up the short sale purchase?

Not necessarily. Some of the short sales that I saw that closed with cash buyers took over 6-9 months. Banks can be a little strange when it comes to all cash offers. For example, I had the highest bid on a bank owned REO in Irvine but yet the bank goes with the 5th highest offer that was $45k less than what my buyers offers (there were over 20 offers on the home).

[Charles]

Originally Posted by USCTrojanCPA

I had the highest bid on a bank owned REO in Irvine but yet the bank goes with the 5th highest offer that was $45k less than what my buyers offers (there were over 20 offers on the home).

Was the winning offer all or very high cash (compared to your high bid but maybe lower down payment)?

[USCTrojanCPA]

Originally Posted by Charles

Was the winning offer all or very high cash (compared to your high bid but maybe lower down payment)?

The winning offer was $700k all cash. My buyer's offer was $745k with $400k down.