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The New Plan for 2009 Continues
Into 2010
A misconception of youth is that time is eternal—and,
perhaps, it is in the field of physics. Or is it the other way: it doesn’t exist at all?
Anyway, for each of us mortals, time runs its course in various ways. One, for
me, is selling real estate directly. After 30-plus years actively serving
the sellers and buyers in metropolitan Los Angeles and surrounding counties, I’ve decided to increase my sphere of activity
and hang up the habits of all these years: listing properties, selling properties, holding open houses and training tomorrow’s
all-star realtors. But I’m not out of the business. The
loyal clients I’ve worked for all these years—and those of you I’ve never yet met—may still call me
if you have a real estate need. I’m now an associate of the Referral Network, Inc., a part of the
Coldwell Banker affiliates, which enables me to direct you to a stable of fine active realtors who I know—from personal
experience in most cases—will handle your affairs as well or better than I ever did. Here is how it works: Want to list your
property with an agent who understands the importance of its historic pedigree? Call me first. Want
to buy a home that may require a little fixing but not bust your budget? Call me first.
Want to be in a special neighborhood where you can pursue your special interests? Call me first. Calling me gives you the opportunity to refine your search for a specific type of agent who meets your
special concerns. You tell me your needs and I recommend someone. There is no obligation, of course.
To reach me, call me direct at 323-254-1981 If I’m unavailable at the time, leave a message, repeating your telephone number
at least a couple of times. (Nothing bothers me more than being unable to return a call from someone who
is waiting to hear from me.) Thanks for all you’ve done for me in the past and I look forward to serving
you in the future. James Dunham
For the benefit
of those who come to my site for LA Style photos and some of the basic text on buying and selling, I’ve left the “standards”
on the site. Use them for your benefit and enjoyment! Please credit realestatewired.com if you copy and/or
use any of these photos.
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If you are one of the many
buyers who fear they will never be able to own a home because the housing market prices that seemed on a fast rocket to the
moon may now be returning to earth and you don’t want to buy in “free fall,” relax, there is an answer to
your stress.
No, it won't be wining the lottery, inheriting a lot of money, or getting
a job that quadruples your income. But you can learn what's realistic, what's not, and develop a plan that will get you on
your first rung of home ownership.
You need a strategy that says "when
prices drop to X amount, I'm buying." If you don't try to get ahead of the rebound--and there will be a rebound--you
will find yourself competing and paying more. It's better buying as the market drops than it is to buy when it's rising.
If you're a seller, you probably have a similar stress. Sure, you know you're probably sitting
on a lot of equity but circumstances, such as a growing family, change in your job or other personal challenges, require that
you relocate and you hear rumors that there aren’t as many buyers and prices are being pulled down as a result.
You have options also.
Stress, stress, stress.
Consider "How to be Hot in a Cool Market," my personal sales therapy for buyers and sellers
alike.
The answer is a plan supported by facts that is designed specifically for
you.
Having sold real estate in Los Angeles for some 30-plus years, I've been through
the historic "cycles" and seen it all—or most of it—and will use that experience to put your real estate
fears to rest.
Read "A New Plan for 2009 Continues Into 2010" above and
then Call me at (323) 254-1981.
My consultation is free!
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Interested in Los Angeles' History? The
book Los Angeles: The End of the Rainbow by Merry Ovnick is an
excellent guide to understanding the evolution of Los Angeles in terms of its architecture and housing. It provides
insights into how housing design and neighborhoods developed through economic and social influences. Photos by Carol
Monteverde provide instructive counterpoint to the prose. The book's available on Amazon.com. |
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Los Angeles Home Styles Offer An Abundance of Character. This has been James' specialty since the 80's.
Home renovators or new-home builders who successfully
sell their products have learned the basics of pre-planning.
There are a variety
of individual investors and entrepreneurs who believe they can make money in real estate but who often walk away with a marginal
profit or no profit at all because they lacked in-depth understanding of profit determinates.
While
this symptom is more common with the individual investor, it can also occur with the big housing development companies. When
the homework isn't done, or the trends aren't understood, failure will result no matter the size of the investor.
My opinion is that pre-planning isn't done by the average individual because it can be boring,
requires considerable study and, just maybe, isn't sexy enough.
In my book Moving Buildings for Profit I lay
out the fundamentals of determining, first, the costs and, then, the resale value of a move-on. The principles are the same
for renovating and/or building a home, except the priorities may change.
In my formula
are the purchase costs of the empty or improved lot, the material costs, the financial costs and, of course, the rehabilitation
or the labor costs. Adding these up and dividing them by the square foot costs of the home you are building or rehabbing will
give you the estimated square foot costs.
However, trusting square foot costs for
construction in an area, even if it's fairly accurate at the time, is no way to decide that you can sell the project for the
same square foot costs plus profit. It has to be complemented by research into the neighborhood and the larger community in
which the project is located. Again, in my book I have a "Research Pyramid" which I recommend people follow diligently
in determining whether or not their project will be successful.
The essence of the
research is what we've all been told from the beginning: the importance of location, location, location. Every location has
a "resume," revealing where it's been and where it's going. Not too long ago, an investor who had purchased a foreclosure
called our office and, eventually, he became a client of mine and my partner. He was worried that he had paid too much. In
most cases he would have, but he lucked out this time. I knew the area had a special characteristic that would attract a certain
kind of buyer and, within a couple of weeks of the listing, the property was in escrow at full price. The selling price was
even more than the seller had originally hoped he could get. The lesson is not that he was lucky, but that to avoid the stress
that can come from such incidents, he would have been better off investigating the neighborhood where he made the investment
before he risked the investment. Not all real estate agents are trained to assist clients in this way. If you have an interest
in such projects, read "A New Plan for 2009" above and then call me at (323) 254-1981.
(Click here to see "Buying the Fixer for a Successful Investment" on this site.)
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Copyright
© 2007-2010 by James E. Dunham
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