Long Beach Real Estate-Long Beach Condos

Real estate has been crazy this week.  I haven't seen this many buyers out shopping since the height of the sellers market a few years ago.  Whoda thunk that a 2 bedroom condo in Long Beach, could be purchased in the $225,000 range?  But it can be!  The prices right now are just incredible.  Renters who had begun to think they would never be able to own are buying condos and future planning. Of course these sales are a result of the misfortune of others. 

Today I would like to tell you all a true story about a Long Beach condo owner in trouble.  Nice young man, lets call him Dave called me a few days ago.  Dave wanted to put his newly purchased Long Beach condo on the market, his company is transferring him elsewhere.  Dave purchased his 680 square foot, 2 bedroom, 2 bath, condo conversion with 2 parking spaces, in November 2008 for $360,000 with 10% down ($36,000), yes - just 4 months ago. He needs to sell quickly to facilitate a purchase in his new location. 

I was already holding my breathe when I heard this much.  Not exactly beach close, I began to gnaw at my nails awaiting the rest of the story.  This was not going to be a good conversation.

Research turned up some interesting information. 

• The complex has 8 units, 7 of which are recorded in tax and title records as sold, but are not recorded in the MLS. 
• The units were sold between October 2007 and November 2008. 
• Every unit sold for either $350,000 or $360,000, over the course of over a year.  The same year that Long Beach suffered an about 40% decline in value. Sale dates and prices were discovered through public records (tax and title records).
• Several of the units in the building were listed on the MLS between April and November 2008 at under $250,000 prior to having been cancelled on the MLS. 
  
• The unit in question was listed on the MLS between May 2007 and June 2007 for $289,900 with a price reduction to $264,900, prior to cancelling the listing. 
  
• The unit in question shows on the MLS as having been sold in April 2007 for $279,000.  That information is not supported by tax and title records. 
  
• The building is not beach close - couldn't get that price even if it were.
• The unit is tiny!
• The Real Estate Agent who represented Dave also handled the loan for him.  Dave said papers were shoved in front of him and he was told to sign - had no idea what he signed and wasn't provided with copies of anything. Didn't even know who his loan was through.  (None of this absolves the buyer from his responsibility for what he signed and agreed to.)
  
• The agent did not present the buyer with comparable sales.  (The buyer didn't ask - he trusted his agent!)
  
• The lender hired the appraiser. While this is normal, it supposes that the agent and lender are honest. 
  
• The property appraised.  (I want to know how the hell that happened!)
  

In case you haven't recognized what is hokey on this deal.  I had the displeasure of informing this young man that his condo may be able to be sold at between $200,000 and $225,000 at this time (just 4 months after his purchase at $360,000 with 10% down). Understand that the 10% down was this young mans life savings, it is gone!  This is based on comparable sales in the same area. 

I referred the owner to a very good local real estate attorney. 

Lesson:  Hire a well known and reputable agent.  Check your comparable's.  Be pro-active in your purchase.  Keep your eyes open, if something doesn't look or feel right, question it. If your real estate agent is attempting to handle your loan, say no.  For your own protection your lender and your agent really should not be the same person. 

Call Laurie today to begin your search for homes and condos in Long Beach (562) 212-5420

Laurie Manny Long Beach Realtor® (562) 212-5420 244 Redondo Avenue Belmont Heights Long Beach, California 90803 Buyers/Sellers/Investors Homes Condos Income Properties 1031 Exchanges