Please help me out with this. There is so much real estate information online these days, I get 'leads' from all over the place but am finding that some of these folks really shouldn't buy a home! I'm not talking about the people who plan to move again in a year, or people whose jobs are uncertain. I'm talking about buyers who simply cannot afford a home.
There are loans out there for everyone and with the 3.5% minimum down payment for FHA loans, there are plenty of people who can qualify. What I seem to be getting alot of these days are potential buyers who qualify for such a small loan and have so little for the down payment and closing costs that they are basically impossible to find homes for.
There is Unrealistic, and then there is Impossible
We've all had clients who are looking for more than they can afford. Normally these buyers come to realize that their first home will not be their dream home and they will have to make some concessions. That 3,000sf home with the pool will have to wait until they are able to trade up somewhere down the line. The issue I'm having lately is the number of leads that come through that don't realize they do not have enough buying power to buy anywhere even close to the vicinity they are interested in.
Los Angeles is huge and like anywhere else, there are a variety of different neighborhoods with houses and condos of all different sizes, conditions and associated price tags. My problem, if you will, is the buyers that simply cannot afford anything within an hour drive of where they want to live. We know they are looking at real estate online, as that's how they found us. How is it that they do not realize that in their current financial situation they simply cannot afford to buy a home- period?
You can't get a Shack for that!
I have a couple of potential clients like this right now. They are nice, sweet folks and I would love to help them. Unfortunately I simply cannot conjure up buying opportunities that do not exist. One couple is looking for a 2-3 unit property for $250,000 or less in an area where they'd be lucky to find a run-down single family home for $100,000 more than they can afford. I've tried directing then to other neighborhoods where there is a miniscule possibility of finding SOMETHING they could buy, but they will not budge from their position. Another young couple is just starting to look for homes but their price point is so low that I couldn't even find them a condo- assuming there are any FHA elgible buildings anywhere near the vicinity they are looking.
I continue to explain to all of my clients that they cannot necessarily 'believe' the list price. I tell them that some properties are priced low in order to either start a buying frenzy or to get ANY offer on a short sale in hopes of forestalling a foreclosure. In all likelihood these properties will never sell for as little as they are initially listed. The true offer price needs to be determined by looking at recent sold comparables and I am more than happy to do the research for them. They get upset that prices sell for more than the list price, and sometimes even think they should be able to offer less than list, regardless of what my research turns up.
What do you tell your clients?
So, what do you tell a person whose buying power is more than $50,000 lower than the cheapest shack you've seen on the market in years? Do you flat out tell them that unless they have a rich relative, they need to continue to rent (for as little as possible) and get to the business of saving up some money? I don't want to be mean and this has nothing to do with "I only sell homes to people who can afford 'X' ". I will help anyone I possibly can! These would-be buyers simply cannot afford to buy property anywhere in the county that would make sense for them based on their needs, lifestyle and the amount of distance they would have to commute to there jobs. If someone wants to buy a car, they see the prices and can easily determine if a car is in their future or not. Yet somehow, many buyers believe that a property they can aford will magically appear and they will soon become happy home owners, regardless of the evidence that this is not the case.
I don't want to simply turn these people away. It's likely that at some point in the future the will be able to afford to buy something and when they reach it, it would be my pleasure to help them buy it. I'm simply having trouble determining the best way to deal with this situation and would love your suggestions!
Jenny Durling, Broker
L.A. Property Solutions
213-215-4758
http://www.LApropertySolutions.com
Copyright © 2011 By Jenny Durling *Maybe Some Folks Really SHOULDN'T Buy A Home!*
Now That You Have Seen Your House From a Buyer’s Perspective, Make a Plan
Replace missing and broken pavers. If you have space, you can all a row of bricks along the edge or plant bright season blooms along the edge to create interest and draw the eye towards the front door. Speaking of doors, a fresh coat of paint on just the front door can make a huge difference in the way your home appears. I have clients who have already told me the first thing they are going to do when they buy a house is paint the front door red! Red may not be your thing, but a bright or contrasting color will definitely add interest and is an inexpensive ‘fix’. Add a nice, new welcome mat and you are good to go.
Agreed, the backyard has nothing to do with curb appeal, but as long as your are working the garden you might as well put some energy in the backyard as well. In Southern California, most people think of the backyards as an extension of their living space. If you have the space and don’t already have one, plant a citrus tree. The Meyer Lemon is a favorite and they grow pretty quickly. I can’t imagine living in L.A. without a lemon tree- it’s almost a requirement! A small tree will grow pretty quickly and won’t cost a whole lot. It will definitely be worth the investment.
If you need to 
If you find yourself in the position of no longer being able to make the payments on your Los Angeles home, a short sale is now an even better option than foreclosure or bankruptcy than it already was. You can short sell your house and rest assured that once the sale is complete, you can close the books on those loans and never have to look over your shoulder. The new law ensures that once a lender has agreed to accept a short sale payoff on the property, ALL lien holders must consider the outstanding balance as paid in full.
The Allyn Morris Studio has a two story living room, dining and kitchen area with the master bedroom on a mezzanine. There are bright red accents throughout the house not only in the steel framing and and railings but in the kitchen and furnishings as well.
Saturday April 30, 2011 at the Hollywood Bowl is the ninth annual Korean Music Festival showcasing some of the best talent in the county such as Sul Woon-Du, U-Kiss and 4Minute just to name a few. The all-star line up is bridging the gap between the generations with the wide mix of performers this year. From traditional singers to teen idol groups the Korean Music Festival is sure to engage the audience no matter who's in attendance. This is a great family affair and a night to be remembered among the Korean population and others in the Hollywood and Los Angeles regions.
Set in the Hollywood Bowl which is known for its social gatherings in Southern California and home to many classical, jazz and Broadway musicals, the Korean Music Festival brings the sounds and sights to life of the Korean culture and atmosphere. Started in 2003 the Korean Music Festival was introduced by the Korean Times, the leading news organization in the Korean American community. The goal was to commemorate the centennial anniversary of Korean American immigration to the US. This type of large scale event had never been attempted before from this organization and it quickly became a local and national event. Every year the festival out-does itself from the previous year and current expectations.
An appropriate song for the Los Angeles River might be "Cry Me a River," given its unfortunate history, but by the end of this month L.A.'s cement channel will be singing a new song. Young musicians between the ages of 6 and 18 can grab a chance at creating that new anthem by entering the Songs of the L.A. River Project competition. Songs must be submitted by April 22. Get more information or 
and took on the struggle of building momentum for the river's revitalization. Those efforts paid off in July of 2010 when the river was awarded Protection under the Clean Water Act. Previously considered a flood control channel and not a navigable river, the river did not qualify for federal funding to remove pollutants or to be restored for recreational use. With the new designation in place, the river has a lot to sing about. Protection under the Clean Water Act will allow for a new look. Plans to remove the concrete liners are in the works and, using modern technology, the river will be able to provide both flood protection and natural habitat for the couple dozen species of birds and fish that already live there, as well as a riparian recreation paradise for Angelenos.
