Over the last several months many buyers of houses for sale in L.A. have been faced with stiff competition. The average Los Angeles real estate buyer obtaining a loan is either being over shadowed by all cash offers from investors and foreign buyers or finds themselves in a fierce bidding war caused by multiple offers on the same house.
To beat out the competition I encourage my buyer clients to consider taking on a remodeling project that may be intimating for other buyers, but is not a total fixer priced cheap enough to be a property for investors with all cash. Hopefully the exterior paint and landscaping are heavily neglected to immediately turn off a large majority your competition. Your job is to see past what is skin deep.
When choosing a house that needs work, my golden rule (besides the obvious location, location, location) is to love the things about the house you can’t change and be able to affordably change the things about the house you don’t love. If you like how the house is sited on the lot, floor plan, parking, ceiling height and the amount of natural light in the house you should be in good shape. Of course, a large lot size on a quiet street among pride of ownership houses is ideal.
Once you acknowledge the potential of this fixer upper house it is important to be fully aware of your remodeling limitations, both in time and money. This can be determined by performing inspections to discover the actual costs and work needed to bring the house up to your standards. You never know what is lurking behind the walls and you are better off spending the money now on inspections. I also encourage my clients to submit a request to the seller for repair credits at the close of escrow. The worst the seller can do is say no. If you have time it is wise to obtain bids from contractors for the remodeling work before removing the inspection contingency and committing to buying the house.
Purchasing a house that needs work is also an excellent investment if you are a buyer who is particular about interior design and will never quite get the house you love unless you do it yourself. Not only are you saving money by not paying for someone else’s idea of beautiful, but you will pay less in property taxes.
Two fixer upper houses for sale in L.A. currently on the market that I recommend as good candidates are 5222 Los Feliz Blvd. in the gated Laughlin Park area of Los Feliz near Griffith Park and 7536 Kimdale Lane in the Nichols Canyon area of the Hollywood Hills near Runyon Canyon. Both these mid-century homes have good design, are located in highly sought after areas and are sited on lots over 10,000 square feet with enough room for a pool.
For more information about these homes for sale or buying other potential fixer upper properties in Los Angeles, please contact me at 323-829-8811.