Long Beach Real Estate-Long Beach Condos

Long Beach Condos Buyers Guide|Manifesto

Whether you are a first time buyer an experienced pro or investor buying a Long Beach condo or loft can be a confusing and often stressful process.  It's an emotional experience filled with many decisions, most with financial repercussions.  Finding the right condo or loft is difficult enough; knowing what to offer, what and when to negotiate and how to make the deal work best for you, the buyer, is another story altogether. 

As a professional who has sold many Long Beach condos and placed countless buyers in the Long Beach condos of their dreams, I feel it is my responsibility to tell you that there is a lot you need to know before jumping into your condo purchase. 

Your Needs and Desires...

It is important that you have a clear image of what you are looking for and that you transmit this clearly to your Realtor.  Make a list and explain your needs and your desires.  Understanding the difference between your needs and your desires will make your choices much easier to make.  Your needs must be met, your desires may be sacrificed if they are not practical within your price range.  Are you looking for a larger place for your growing family or are you looking for a larger place for entertaining?  Where do you need that extra square footage?  What will you sacrifice for it, if necessary?    Are you downsizing?  What are you willing to let go of?  Don't let emotions cloud your judgment.  Make certain that you get what you need from the new purchase; if some of your desires are fulfilled, all the better. 

 

Be clear with your Realtor when explaining what you are looking for.  What is most important to you? 

• Newly Remodeled
• View
• Square Footage
• Number of Bedrooms
• Number of Baths
• Condition
• Flooring
• Fireplace
• Parking Spaces/Garages/Guest Parking
  • Side by side
  • Tandem
• Pet Rules
• Pool
• Spa
• Community amenities
• Concierge Services
• Doorman
• Gated Security
• High Rise
  
• Elevator
• Location in the complex/top floor/corner unit/bottom floor
• Neighborhood
• Age of condo
• Proximity to
  • beaches
  • restaurants
  • galleries
  • parks
  • golf courses
  • shopping
  • freeways
• etc...

Often a condo purchase is more about buying into a neighborhood lifestyle (location).  If lifestyle is at the top of your needs list make certain that is clearly communicated to your Realtor.   Do you entertain much?  Make sure your complex has guest parking or there is ample parking in your new neighborhood. 

Are You Ready to Start Shopping?

 

Unless you are an all cash buyer (be prepared with proof of funds), you will need to be pre-approved, preferably by a direct lender.  If you have great credit and belong to a credit union you may be able to get a stellar interest rate from them, check it out.  When you find a condo that you want to make an offer on you will need to submit you're pre-approval with the offer.  It is foolish to begin to shop without a pre-approval; you might find your dream condo the first day out, like another of my recent buyer clients. You need to be in a position to write and submit your offer when you find the Long Beach condos that you want to purchase.  Bank statements will probably need to be submitted along with your offer as proof of sufficient funds to consummate the transaction, have them with you with the account number blacked out.

 

Consider Your Future...

Always consider the future resale value of your condo purchase.  I know, it's difficult when you find the perfect condo in a not so perfect location; or it has the 2 bedrooms and 2 baths that you wanted but only has 1 parking space in a parking impacted area.  Unless you live alone that missing 2^nd parking space is certain to become a real problem while you are living in your new dream condo and will probably become the reason you will want to move on rather quickly.  Will you be able to sell that condo easily without a 2^nd parking space, or in an area that isn't in such high demand?  Some areas appreciate quicker than others, if you can afford to purchase in an area with higher appreciation it would be a much smarter purchase. 

Are you buying the smallest or least desirable condo in a highly desirable complex?  When it is time to sell you may sit on the market for longer, sell for less, or not sell at all if other larger more desirable units are for sale at the same time.   Buying the smallest, least desirable condo in a highly desirable complex and neighborhood isn't always a bad decision.  If it provides you with the lifestyle that you are craving at a price that you can afford, the condo will fulfill your needs.  Just remain aware that it will take you longer to sell it when the time comes.  In the meantime have a grand time enjoying the lifestyle you craved. 

 

Remain Flexible and Alert...

Your Realtor should be familiar with the inventory available in the neighborhood of your choice.  They will most likely show you the best of what is available, based on your stated needs and desires, on your first and second trips out.  If you do not find what you want you should begin making adjustments in your search criteria quickly.  Continuing to search, in a specific area, after you have seen the best of what is available within your price range is usually a downward spiral; either adjust your needs, desires or price range; or wait for new inventory to enter the market.  Remember there are other buyers watching and waiting as well, you will have to move quickly. 

Loose Lips Sink Ships...

While you are shopping you may run into a seller at home.  As a buyer this may seem like a stellar opportunity to ask questions and garner information about the condo, the complex and the area.  Often without realizing it, your simple conversation with the seller could cost you money at the negotiating table.  Without realizing it you may be letting the seller, or the listing agent, know how badly you want the condo, or how much you love the condo or neighborhood.  Knowing how badly you want it may net you a different counter offer than you may have received had you not had that conversation.  Sellers face the same problem, conversations with buyers or their agents often cost them money by way of a lower offer and tougher negotiation than they would have received.  This is why Realtors always try to keep the buyer and seller apart until the deal is either closed or past any possible negotiation time frames; loan approval, removal of contingencies, appraisal, repair requests, etc...  It's in your best interest!  You should be confident that your Realtor is capable of negotiating your offer and will not reveal personal information that could adversely affect your negotiations. 

 

Future Planning?

Condo prices are so affordable right now many buyers are purchasing more condo than they need with a mindset towards their future growth and needs; marriage, children, home office, etc...  Do you have future needs?  Will they become an issue in the next 3 to 5 years?  Perhaps you are a better candidate for a single family residence to anticipate these needs?  Keep in mind that there is no guarantee that you will be able to sell at break even in 3 to 5 years.  When you do sell you will need to recoup your purchase price plus the cost of sale.  The cost of sale involves commission, your closing costs and any costs given to your buyer during negotiations; plan on approximately 9% appreciation to break even.  That could take some time in today's market. 

 

After Purchase Expenses...

Not all condos are in turnkey condition.  Condo fixer-uppers can become expensive and the upgrades are all 'after purchase' money and can add up quickly. 

• Kitchen
• Baths
• Appliances
• Flooring
• Heating
• Air Conditioning
• Water Heater
• Paint
  • Wallpaper Removal
  • Ceiling Scraping

 

Do you have the after purchase resources to accommodate these upgrades?  Are you willing to pay market value, or near market value, then make an additional investment into the property?  How long will it take you to recoup the additional investment?  How will that affect your future life plan? 

Many inexperienced investors are purchasing, doing a quick remodel, then attempting to sell (flip) to recover costs and make a profit.  Often these inexperienced investors find they spent too much on the remodel and become stuck renting the unit out.  Truly experienced investors have warehouses filled with cabinets, flooring, etc... which were purchased at wholesale, and have crews on salary trained to go in and do a professional, fast and inexpensive remodel, list the condo and still retain a decent profit margin.  Flipping condos is not for the inexperienced investor. 

 

Read Also:  Buying Fixer Upper Homes in Long Beach - This article was written to Home buyers, but has many relevant points for condo and loft buyers as well. 

 

Always Inspect...

Hire a professional inspector.  While most problems in a condo are fairly visible a professional inspection will set your mind at ease regarding those that are not, like air conditioning, heating, water heaters, which are/are not operable and may possibly, be nearing the end of their useful life. 

 

Don't Procrastinate...

When you locate the condo that you want to buy you should write your offer right away.  If it is new on the market and highly desirable you may find yourself in a multiple offer situation.  Make the best possible offer that you are willing to, decide if you are willing to negotiate further if you receive a multiple counter offer and go for it.  Some people don't want to write offers if they even think there is going to be a multiple offer situation.............you have to be in it to win it!  Go ahead and write your offer, the worst that can happen is that you are overbid.  Your Realtor will have called the listing agent (I hope) and may have some information that will help you decide how to present an offer. 

Going home to sleep on it or wanting to bring parents or friends to look at it before you make your decision to even write an offer will often put you out of the game.  Write the offer, show it to them if your offer is accepted...good properties move fast.  If they ixnay it you can always get out of the deal during your 17 day contingency time frame, no harm, no foul! 

If you find a condo that you like, but something just doesn't feel right, it's probably not the right purchase for you.  In this case, go home and think about it for a while.  Yes you might lose it, but that may be for the best if you had reservations in the first place.  There is plenty more inventory on the market, something else will turn up. 

 

Your Realtor is Your Advocate...

Thinking about shopping without a Realtor?  Think you will just write an offer through the listing agent?  Think this will help you get your lowball offer accepted?  It will, if you find a crooked listing agent!  Do you want to be represented by a crooked agent?  Oh wait a minute....they don't represent you...they represent the seller; they are just facilitating your deal.  It's called dual agency or double ending.  It's actually legal in California, but very few agents can or will handle it in a truly professional manner.  It's not the best position for the buyer to be in and let's face it if the agent is crooked are you going to get actual disclosure or are you going to find out you were duped by a neighbor after you move in?  Having your own representation is more valuable than you realize. 

 

Buying Bank Owned?

Banks are not subject to the same level of disclosure as actual home owners in a standard sale are.  The government, recognizing their unfamiliarity with the property, has relieved them of much disclosure.  You will have to do some extra investigating to discover the facts about your possible purchase.   A good agent familiar with condo purchases can make a huge difference.   

 

Found My Condo...Now What?

When you find a condo and are considering writing an offer your agent should prepare a Comparative Market Analysis of like properties in the area and present it to you along with the actual Comparable Sales.  Together with your Realtor you will decide on the price and terms of your offer.  Remember when you submit an offer the bank or seller will be looking at their net proceeds.  So if you offer a solid price but ask for a lot of closing costs and other extras you could easily lose the deal to a better NET offer, even one that is less in price than yours.  It's all about the NET!

If your Realtor is really sharp they will find out what the sellers motivation is.  A motivated seller is more likely to negotiate than an unmotivated seller.  In a down market it isn't really wise to sell unless you have to, so most sellers are motivated on one level or another, some more than most.

Reasons for selling that will create a very highly motivated seller:

• Job Loss
• Job Transfer/Relocation
• Lifestyle Change
  • Marriage
  • Children
  • Home Business

 

Condos that have been sitting on the market for a long time, perhaps expired a few times and/or have reduced their price, sometimes several times, often have a worn down seller who is finally ready to negotiate.   Vacant condos are expensive for owners to maintain.  There is only so long anybody can/or is willing to carry the mortgage, HOA fees, taxes and insurance without the rental income to offset the expense. 

 

Home Owner Associations...HOA...

Many Condo Associations are in financial difficulty.  Once your offer is accepted the escrow company must order a fresh copy of the CC&R's, financials, budget and minutes and deliver them directly to the buyer within the contingency period indicated on the purchase contract; usually 17 days, unless that time frame has been reduced.  Buyers should go over these documents in fine detail and determine the financial stability of the association and whether is it prudent to move forward. 

• How much are the monthly expenses?
• How much is in the reserve account?
• Is the insurance current?
• Is there an increase in the HOA dues scheduled?
• Is there mention of any upcoming assessments?
• What do the minutes say?
  • Are there upcoming repairs scheduled?
  • Is there enough money to cover the repairs or will there be an assessment?
• Are the pet rules satisfactory?
• Have you read the Rules and Regulations?

 

Read the documents and ask questions until you are satisfied.  If the documents are unsatisfactory the buyer should cancel the escrow immediately.  Not all HOA's are in trouble, just beware of the one's that are.

 

Read Also:  Long Beach Condo Buyers Beware - Don't let this article frighten you, let it educate you. 

 

More Long Beach Condo Buyer Tips:  Long Beach Condos - Buyer Tips for a Smart Purchase

Are you overwhelmed yet? 

Sounds like a real handful doesn't it?  It is!  That is why you need top notch representation.  I can make this easy and a lot less stressful for you.  Call me if you are thinking about buying or selling a Long Beach Condo (562) 212-5420 Laurie Manny, Your Long Beach Realtor. 

 

 

Long Beach Condos For Sale

• Long Beach Condos For Sale $1,500,000 and higher
• Long Beach Condos For Sale $1,000,000 to $1,500,000
• Long Beach Condos For Sale $900,000 to $1,000,000
• Long Beach Condos For Sale $800,000 to $900,000
• Long Beach Condos For Sale $700,000 to $800,000
• Long Beach Condos For Sale $600,000 to $700,000
• Long Beach Condos For Sale $500,000 to $600,000
• Long Beach Condos For Sale $400,000 to $500,000
• Long Beach Condos For Sale $300,000 to $400,000
• Long Beach Condos For Sale Under $300,000

 

Relocating to Long Beach California?

Check out our Relocation and City Guide - Relocating to Long Beach California

http://www.longbeachrealestatehome.com/00ADC2

Long Beach Condos - 2010 Sales Update

State of the Market

Updated May 26, 2010

Despite assorted claims that prices are going up, actual sales statistics do not support these claims  Below find 2010 Long Beach Condo sales indicating what is currently available and what has actually sold (closed escrow) in specific categories.  In each case recent average closed sale prices are below average active sale prices. 

Have you ever wondered what the value of an additional bath or an additional parking space is? Have you pondered how important this is to buyers?  Do you doubt that an additional bath or parking space may be the catalyst that actually sells your Long Beach Condo? 

The number of bedrooms, bathrooms and assigned or deeded parking spaces makes a difference in the value and desirability of Long Beach Condos for sale; there is considerable value attributed to additional bathrooms and parking spaces.  Today's buyer is searching for the most their money will purchase.  While most buyers want a master and a guest bath for their convenience, they are also considering future resale value; they are buying today anticipating the future sale of the condo. Condos with 2 baths and parking spaces command higher prices on resale.   While condo sellers usually cannot cure the lack of an additional bath or parking space they can price their condos appropriately to entice a buyer to purchase. Staged condos increase desirability and command higher prices.  Overpricing your Long Beach Condo will cause you to chase the market down. 

 

Many Long Beach condos that are remodeled, staged and priced to sell are receiving multiple offers as fast as they are placed onto the market.  Multiple offers are great for the seller, they are able to choose a strong offer and have the best chance of closing escrow.  Multiple offers are very stressful for buyers who must carefully consider their offer in order to compete with the many offers.  Many sellers, including banks, are utilizing pricing strategies at this time; pricing low to incite multiple offers and drive the price up to as close to market value as possible.  They do not want to sit on the market and have their listing become stale, they want it sold quickly.  Smart buyers are recognizing these strategies and are writing their offers accordingly for acceptance. 

Some Long Beach condos are currently experiencing financial difficulties.  Buyers will learn about HOA finances and how they can seriously affect your financial future in this article:  Long Beach Condo Buyers Beware

Here we have broken down 2010 Condo sales in Long Beach to specifically show what the consumer is buying - what is important to them.  We hope you find this information helpful when thinking of buying or selling your Long Beach Condos. 

Long Beach Condos - 3 Bedrooms 3 baths 2 parking spaces

Currently Active on Market:  27

Average Price:  $728,649

Average Days on Market:  80

Average ( ListPrice / SqFt ) : ( 728649 / 1836 ) = $ 396.87

13 CLOSED SALES:

Average Price:  $475,307

Average Days on Market:  68

Average ( SalePrice / SqFt ) : ( 475307 / 1748 ) = $ 271.91

Long Beach Condos - 3 Bedrooms 2 baths 2 parking spaces

Currently Active on Market:  14

Average Price:  $576,992

Average Days on Market:  108

Average ( ListPrice / SqFt ) : ( 576992 / 1417 ) = $ 407.19

13 CLOSED SALES:

Average Price:  $481,961

Average Days on Market:  104

Average ( SalePrice / SqFt ) : ( 481961 / 1330 ) = $ 362.38

Long Beach Condos - 3 Bedrooms 2 baths 1 parking space

Currently Active on Market:  4

Average Price:  $290,500

Average Days on Market: 63

Average ( ListPrice / SqFt ) : ( 290500 / 1206 ) = $ 240.88

4 CLOSED SALES:

Average Price:  $377,250

Average Days on Market: 47

Average ( SalePrice / SqFt ) : ( 377250 / 1273 ) = $ 296.35

Long Beach Condos - 2 Bedrooms 2 baths 2 parking spaces

Currently Active on Market:  72

Average Price:  $338,703

Average Days on Market: 97

Average ( ListPrice / SqFt ) : ( 338703 / 1138 ) = $ 297.63

79 CLOSED SALES:

Average Price:  $293,403

Average Days on Market:  107

Average ( SalePrice / SqFt ) : ( 293403 / 1116 ) = $ 262.91

Long Beach Condos - 2 Bedrooms 2 baths 1 parking space

Currently Active on Market:  58

Average Price:  $281,643

Average Days on Market: 85

Average ( ListPrice / SqFt ) : ( 281643 / 993 ) = $ 283.63

129 CLOSED SALES:  

Average Price:  $265,719

Average Days on Market:  93

Average ( SalePrice / SqFt ) : ( 265719 / 1046 ) = $ 254.03

Long Beach Condos - 2 Bedrooms 1 bath 2 parking spaces

Currently Active on Market:  5

Average Price:  $160,640

Average Days on Market: 39

Average ( ListPrice / SqFt ) : ( 160640 / 894 ) = $ 179.69

4 CLOSED SALES:  

Average Price:  $145,225

Average Days on Market: 45

Average ( SalePrice / SqFt ) : ( 145225 / 847 ) = $ 171.46

Long Beach Condos - 2 Bedrooms 1 bath 1 parking space

Currently Active on Market:  12

Average Price:  $197,691

Average Days on Market: 84

Average ( ListPrice / SqFt ) : ( 197691 / 898 ) = $ 220.15

15 CLOSED SALES:  

Average Price: $139,866

Average Days on Market: 71

Average ( SalePrice / SqFt ) : ( 139866 / 838 ) = $ 166.90

Long Beach Condos - 1 Bedroom 1 bath 1 parking space

Currently Active on Market:  57

Average Price:  $203,661

Average Days on Market:  95

Average ( ListPrice / SqFt ) : ( 203661 / 690 ) = $ 295.16

58 CLOSED SALES: 

Average Price:  $194,981

Average Days on Market:  98

Average ( SalePrice / SqFt ) : ( 194981 / 740 ) = $ 263.49

Long Beach Loft Sales - All

Currently Active on Market:  8

Average Price:  $414,250

Average Days on Market: 123

Average ( ListPrice / SqFt ) : ( 414250 / 1713 ) = $ 241.83

10 CLOSED SALES:

Average Price: $297,300

Average Days on Market: 168

Average ( SalePrice / SqFt ) : ( 297300 / 1187 ) = $ 250.46

When you are ready to buy or sell your Long Beach Condo call Laurie (562) 212-5420 to begin your search. 

 

We have put together important information for first time Long Beach home buyers:

 

• Don't Make Any Major Purchases
• Things to Avoid Before Purchasing a Long Beach Homee
• Changing Jobs Affects Your Ability to Purchase a Long Beach Home
• Long Beach Homes - Issues for 1st Time Buyers
• Long Beach home owners can deduct PMI
• Long Beach Condo Buyers Beware
• Long Beach Condos - Buyer Tips for a Smart Purchase

 

Custom Search's for Foreclosed-REO-Bank Owned Homes-Condos-Income Properties by area:

• Long Beach

• Bemont Shore, Naples Island, Belmont Heights, Bluff Park, Bluff Heights, Rose Park
• Downtown Long Beach, Alamitos Beach
• Long Beach, Signal Hill, Los Alamitos, Rossmoor, Cypress, Lakewood, San Pedro
• North Long Beach

• Lakewood
• Huntington Beach
• Newport Beach - Newport Coast

Long Beach Condos For Sale

• Long Beach Condos For Sale $1,500,000 and higher
• Long Beach Condos For Sale $1,000,000 to $1,500,000
• Long Beach Condos For Sale $900,000 to $1,000,000
• Long Beach Condos For Sale $800,000 to $900,000
• Long Beach Condos For Sale $700,000 to $800,000
• Long Beach Condos For Sale $600,000 to $700,000
• Long Beach Condos For Sale $500,000 to $600,000
• Long Beach Condos For Sale $400,000 to $500,000
• Long Beach Condos For Sale $300,000 to $400,000
• Long Beach Condos For Sale Under $300,000

 

http://www.longbeachrealestatehome.com/00AB7D

Live Work Properties - Long Beach Real Estate

Urban Living Lifestyle Alternatives

I often wonder what is in the minds of real estate developers.  How do they decide what to build and where?  Sure, they conduct surveys and build what they believe will be desirable enough to sell.   But do they hit the mark?  Are they really providing the living spaces that today's savvy buyers crave?  Sometimes yes...sometimes no. 

Long Beach Buyers who contact me almost always want an extra bedroom to convert into a home office; a guesthouse works great too.  I've seen dining rooms and garages in Long Beach turned into home offices when the needed space just wasn't available inside the home.   The thing is that a bedroom office is a work space contained within the homes living space and that isn't always ideal environment for all home based businesses, especially those with consumer traffic, or when you need 2 separate his and hers offices.  Where is the space going to come from?  Do you really want to buy a 4 bedroom house to accommodate the home offices inside the home? 

Our Long Beach Lofts are highly desirable live/work spaces for professionals who love the urban living environment they provide.  Quite a few buyers have either purchased or have considered purchasing one of the newer lofts in Downtown Long Beach or Alamitos Beach planning on carving a home office or work area into the expansive spaces.  It worked for some - mostly for those running virtual businesses from home. 

Downtown Long Beach Loft Living - It's a Lifestyle!

It's difficult to conduct business from within the home environment when children are present, even if you close the door.  While we love our children and most parents have a built in off switch, is it really professional to hear children running around being noisy in the background when you are on a business or sales call?  There is a real need for separate office space for many who chose to work from home. 

With so many people working from home now functional living and work space should be a factor when designing living environments in both urban and more rural areas.  We don't seem to have moved into this arena much; perhaps it is because we are already so built up.   When the majority of homes were built years ago on most of the available land we didn't have the same needs or concerns as we now do. 

When searching for a live/work home there are many things to consider. 

• Does the business need a separate space for instance a storefront or professional office?
• Would a particular neighborhood be more conducive to a successful business?
• Do you need a visible location on a main avenue with signage?
• Do you want your business housed in a free standing structure?
• Do you need a parking lot? If so, how many spaces are required?
• Are you willing to remodel the storefront or office to suit your personal needs? Is it financially responsible to remodel? Or does it need to be in ready condition - already close to perfect for your needs?
• Do you live alone or do you have a family to consider?
• Do you only need a functional living area or do you need an actual home?
• Does your business have foot traffic and how will that affect your personal living space?
• Is your business virtual? Will there be no foot traffic?
• Is the home environment more important than the business?
• Do you prefer a more residential neighborhood?
• Would a bedroom office work for you?
• Do you require a guesthouse to convert into your office? Does it need a separate entrance?
• Would additional rental income help you pay the mortgage?

Many questions need to be addressed and answered when you are considering consolidating your business into your home living space; it's a big decision. 

The shortage of available live/work space in Long Beach has caused some business owners to purchase mixed use income properties providing both space for their business and a living environment.  Live in one, use the other for your business, if that works for you.  In some cases a 3^rd or a 4^th unit will provide additional rental income to help offset that mortgage. 

In Long Beach we have a plethora of Mixed Use Properties available in all sorts of configurations and condition. 

• Storefronts or professional office space with apartments above.
• Freestanding retail stores or professional offices with units out back and/or above.
• Front houses on main avenues, zoned for retail or commercial use, with or without additional units.

Benefits of Working from Home

• Less Stress
• No distractions.
• Privacy. Conversations not overheard. No wandering eyes.
• Control schedule, can flex hours to fit lifestyle.
• Secure environment, no petty theft.
• No drive time. No more wasting 2 hours or more travelling to and from the job.
• No Prep time. Wake up. Have coffee. Go to work.
• Personal space. Decorate or arrange to personal taste. Make functional for yourself.
• Virtual environment
• Hire virtual employees as independent contractors. Decrease payroll expenses.
• Complete control over your life.

Monetary benefits of Working from Home

 

Deep Reductions in expenses: 

• Rent
• Payroll
• Insurance
• Utilities
• Gasoline
• Eating out
• Other business overhead expenses...
• Business attire
  
  • Clothing
  • Shoes
  • Accessories
  • Dry cleaning
  • Shoemaker
  • Etc...

 

A Mixed Use property purchase requires a commercial loan.  The interest rates are usually a bit higher as are the qualification requirements.  Lenders usually want the buyer to have at least 50% down payment before agreeing to fund the loan.  Before deciding to search for a property zoned commercial or retail you should consult with a commercial lender. 

If you are thinking that buying a Mixed Use property might work for you it would be my pleasure to guide you through the process from beginning to end.  Contact me to discuss this very real possibility at (562) 212-5420.  If you own a Mixed Use or Residential Income Property and are thinking about selling and understand the value of top of the search engine exposure, ask me about my Unique Internet Marketing plan. 

 

Long Beach Income Properties Market Update 2 to 4 units For Sale

 

Long Beach Income Properties For Sale

• Income Property For Sale in Long Beach California-5+ Units
• 2 to 4 Units For Sale in Long Beach California
• Triplexes For Sale in Long Beach California
• Duplexes For Sale in Long Beach California

 

 

http://www.longbeachrealestatehome.com/00AACC

Long Beach Income Properties Update and Market Report

2 - 4 Units

Updated May 5, 2010

 

 

Year	2-4 Units Closed Sales	Avg Sold Price	Avg Days on Market
2000	668	$251,230	62
2001	680	$275,447	58
2002	917	$335,175	47
2003	905	$430,067	38
2004	845	$569,532	40
2005	909	$664,537	46
2006	635	$713,856	68
2007	349	$715,638	88
2008	345	$462,084	87
2009	460	$365,475	78
2010	123	$372,342	72

Sales of Long Beach Income properties (2 -4 units), are picking up as buyers realize what good buys they are right now.  Prices are up slightly in since January but are still low, days on market are down some.  Smart investors are investing in the Long Beach income property market and future planning for retirement income.  Some of these income property sales have provided instant return on investment (ROI), others will do so in short order. 

Bank owned investment properties have been entering the market here in Long Beach providing excellent opportunities for ownership. 

Gross Rent Multiplier's (GRM) are down and Cap Rates are up.  The days of a 14 + gross rent multiplier are gone.   We are beginning to see GRM's back in the healthy 10 and below range once again.  Smart investors are scooping these up bank owned income properties in Long Beach rather quickly, often with all cash offers or large down payments.  Its a very good time to be out shopping for residential income properties.  

Although Long Beach is part of Los Angeles County, we do not have rent control here.  This makes Long Beach an ideal place to own and operate investment properties. 

2 to 4 income property units may be purchased with a residential loan.  5+ units and mixed use properties will bring you into the commercial arena requiring a commercial loan.   Commercial loans are structured very differently than residential loans and the qualifying process is more rigorous.  A commercial loan will likely require about 50% down payment with a higher interest rate than pure residential.  Contact a commercial lender to find out what you will qualify for and how much down payment the lender will require prior to shopping, the down payment required on commercial loans is usually substantial.

Many buyers in contact us interested in purchasing residential investment properties in Long Beach.  Some are new to this market and don't understand how to purchase.  At this time banks require non-owner occupied units to place a minimum 20% down payment, sometimes higher.  Owner occupied units can be purchased with lesser down payment, ask your lender how much down payment you will require for your purchase.

 

Claiming to purchase owner occupied and not actually occupying is considered to be bank fraud which is a felony. Before considering an income property purchase you should first contact your lender regarding qualification. 

Long Beach has been experiencing a shortage of available homes and condos for sale; as a result buyers are turning to the residential income property market in an attempt to find a fit.  Often a duplex, triplex or a four-plex will provide a very nice front home which may work as a good fit for a 1st time home buyer.  A portion of the rental income generated by the units will be considered by the lender and will assist the buyer to qualify for a higher amount, making the purchase both possible and manageable.  If you are a 1st time buyer and think this may work for you call your lender, ask them how much loan you will qualify for with rental income from a duplex, triplex or a four-plex. 

Buyers are finding that Mixed Use Properties can be a great live/work solution.  We have few live/work properties in Long Beach, finding the right mixed use property in the right location can be a great resolution. 

Income properties are a great solution for parents searching for investment properties to house their college student children.  While the price may be a bit higher than a condo, the income is as well because there are more bedrooms to rent, more bathrooms and more common area than say a condo purchase would provide. 

 

 

There are currently 81 duplexes for sale in Long Beach.  

Average Price: $488,546

Average Days on Market:  115

Lowest priced duplex for sale in Long Beach:  $150,000

Highest priced duplex for sale in Long Beach:  $1,499,000

 

 

There are currently 36 triplexes for sale in Long Beach. 

Average Price:  $613.132

Average Days on Market: 166

Lowest priced triplex for sale in Long Beach: $144,500

Highest priced triplex for sale in Long Beach:  $1,875,000

There are currently 74 Fourplexes for sale in Long Beach. 

Average Price: $528,630

Average Days on Market:  181  

Lowest priced fourplex for sale in Long Beach: $240,000

Highest priced fourplex for sale in Long Beach: $1,555,000

 

 

All 2 to 4 Unit Long Beach Income properties for sale

(Includes Signal Hill)

Includes Standard Sales, Foreclosures, REO and Short Sale Properties

Direct MLS feed is always current and up to date

 

Properties marked contingent are currently in escrow accepting back-up offers.

 

Contact Laurie for more information, available property lists, or to purchase investment properties in Long Beach (562) 212-5420

 

 

(Direct feeds from the Southern California MLS)

Belmont Shore and Naples Island Luxury Real Estate For Sale

• Belmont Shore and Naples Condos For Sale-Long Beach Real Estate
• Belmont Shore Naples Homes For Sale in Long Beach CA $2000000 and up
• Belmont Shore CA Homes for sale under $1000000
• Belmont Shore-Naples Homes For Sale in Long Beach California $1000000 to $2000000

Long Beach Homes For Sale

• Long Beach Homes For Sale $300000 to $400000
• Long Beach Homes For Sale $400000 to $500000
• Long Beach Homes For Sale $500000 to $700000
• Long Beach Homes For Sale $700000 to $900000
• Long Beach Homes For Sale $900000 to $1200000
• Long Beach Luxury Homes For Sale $1200000 to $2500000
• Luxury Homes For Sale in Long Beach California $2.5 Million and up

Long Beach Condos For Sale

• Long Beach Condos For Sale $1,500,000 and higher
• Long Beach Condos For Sale $1,000,000 to $1,500,000
• Long Beach Condos For Sale $900,000 to $1,000,000
• Long Beach Condos For Sale $800,000 to $900,000
• Long Beach Condos For Sale $700,000 to $800,000
• Long Beach Condos For Sale $600,000 to $700,000
• Long Beach Condos For Sale $500,000 to $600,000
• Long Beach Condos For Sale $400,000 to $500,000
• Long Beach Condos For Sale $300,000 to $400,000
• Long Beach Condos For Sale Under $300,000

Long Beach Income Properties For Sale

• Income Property For Sale in Long Beach California-5+ Units
• 2 to 4 Units For Sale in Long Beach California
• Triplexes For Sale in Long Beach California
• Duplexes For Sale in Long Beach California

 

 

http://www.longbeachrealestatehome.com/009112

Time is running out! 

Only 18 Days left to get under contract!

 

April 30, 2010 is the cutoff for first time buyers to be under contract in order to take advantage of the $8,000 Federal first time buyers tax credit.  Long Beach First Time home buyers who don't already have a home under contract are running out of time.

 

When this bill was signed into law it extended the existing $8,000 first time home owners tax credit (click for more details) through April 30, 2010 for First Time Home buyers and includes a 60 day extension if a binding contract is already in place prior to the deadline.   The credit can be utilized for up to 10% of the home purchase price to a maximum of $8,000.  A first time home owner is defined as someone who has not owned a residence in the last 3 years. Homes purchased in 2010 may claim this tax credit on their 2009 tax returns.  More information on this bill can be found here.

 

Existing homeowners will now receive a tax credit of $6,500 if they have lived in their current homes for 5 years.  This tax credit is available for the purchase of 'principle residences' only, purchased for $800,000 or less.  Home owners will be able to utilize 10% of the purchase price up to a maximum of $6,500 .

This bill increased qualifying income limits for the tax credits as follows:

• Taxpayers filing as single:  Increased to $125,000
• Taxpayers filing jointly:  Increased to $225,000

 

If a home buyer utilizes this tax credit and does not reside in the home for a minimum of 36 months the tax credit must be repaid.  This means the home buyer must use this home as their principle residence for no less than 3 years to retain this tax credit. Active duty military personnel are exempt from this requirement under military order. These tax credits can not be claimed by anyone under 18 years of age.

 

This article should not be construed as tax advice, you should always consult with your tax advisor before making a purchase to decide on what course of action is best for you individually. 

In the last few months I have received many calls from first time home buyers interested in utilizing the $8,000 tax credit who were seeking advice. Many of these buyers were barely able to scrape together the 3 1/2% required for the down payment required to qualify for an FHA loan.  I asked these buyers how they will facilitate necessary and/or emergency repairs to the home once purchased, buyers should ask themselves this question before beginning their search.  There are many things to consider when you are purchasing your first home. One of the most overlooked details when purchasing a first home is after purchase expenses, which can be considerable. 

 

When you purchase your first home be aware of the age of the existing components of the home:

• Age and condition of roof
• Age and composition of plumbing
• Age of electrical components and existing upgrades
  
• Condition of foundation
• Age and condition of windows
• Age and condition of kitchen
• Age and condition of bathroom
• Age and condition of existing flooring
  

These items are all costly repairs and upgrades.  If you do not have the available cash to facilitate these repairs or upgrades how will you handle it when the need arises?  Buying a home is a large responsibility, first time buyers should educate themselves and think to the future before deciding to buy today.  An $8,000 credit today will not help you if you have to spend $40,000 to replace a roof 12 months later and the funds are not available. 

 

We have put together important information for first time Long Beach home buyers:

• Don't Make Any Major Purchases
• Things to Avoid Before Purchasing a Long Beach Home
• Changing Jobs Affects Your Ability to Purchase a Long Beach Home
• Long Beach Homes - Issues for 1st Time Buyers
• Long Beach home owners can deduct PMI
• Long Beach Condo Buyers Beware
  
• Long Beach Condos - Buyer Tips for a Smart Purchase
  

 

This article addresses issues that many first time home buyers do not consider, that being the remaining life of the existing systems currently in the home and the cost of future replacement. 

• Buying Fixer Upper Homes in Long Beach

We don't just sell homes.  We educate our clients on a consultative basis.  When you are buying your first home your agent should be able to provide you with more than a list of available homes.  Choose your agent carefully, find somebody that you trust is working with your best interests in mind.   

 

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