Lofts in LA Archives - Loftway : Loftway


Buying a Home For Sale By Owner Loft

6 Oct 2017 · by Virtual Results PubSub

Buying a Home For Sale By Owner

For Sale By Owner (FSBO) Lofts are just that – Lofts that are being sold without the assistance of a real estate agent. As a buyer, you may be wondering about buying a FSBO Loft, especially if you’re working with an agent. While there are certain risks and challenges you may face, a Loft that is FSBO can be a good opportunity. Here’s what you should know.

The buyer can use an agent

Even though the seller is not using an agent for the transaction, it does not prevent the buyer from using one. However, it does mean that the seller needs to agree to cooperate with your agent. Agents make a living from the commissions they receive. In order for them to earn a commission from a FSBO transaction, the seller needs to agree to pay their commission, or to apply a credit at closing so the buyer can pay the fee.

You should still get a mortgage pre-approval

Even though you and your agent will be dealing directly with the seller, you will still want to obtain a mortgage pre-approval letter before making an offer. Although a seller is likely more inexperienced about the process than an agent would be, it can still signal to them that you are serious about buying their Loft. In a busy market, this is especially true, as the sellers may get more than one offer.

Be sure to include contingencies

When writing up the purchase contract for the Loft, make sure you include any necessary contingencies. You want to make sure that you legally have a way out of the deal if the Loft doesn’t live up to your expectations. Contingencies you’ll want to consider including are:

  • Appraisal
  • Mortgage approval
  • Inspection
  • Clean title
  • Insurability

Decide who pays for what

There are additional fees associated with buying and selling property, and you will want to make clear from the beginning which party is paying for what. Ask your agent for advice on who would customarily pay for these fees.

Don’t skip the Loft inspection

When buying a FSBO Loft, you definitely do not want to skip the inspection. Make sure to hire a reputable Loft inspector. Even if the seller is honest, they still may not know all the hidden problems in the Loft.

Use an escrow account

In a typical real estate transaction where both parties are represented by agents, earnest money and other fees are deposited into an escrow account that is held by a neutral third party until closing. Do not hand your earnest money deposit directly to the seller. There is usually a small fee associated with opening an escrow account, and it should be decided beforehand who will pay for that.

Get a C.L.U.E. report

Be sure to request a Comprehensive Loss Underwriting Exchange (C.L.U.E.) report. It will show you if any insurance claims have been made on the Loft in the last five years. You’ll be able to clearly see if the Loft has suffered any damage in that time, such as flooding or fire.

The bottom line is – if you find a FSBO Loft you love, don’t think you have to go it alone. A trusted real estate agent can help you through the process, from the initial offer down to closing day.




Selling an Inherited Loft

6 Oct 2017 · by Virtual Results PubSub

Selling Inherited PropertyDid you recently inherit property from a loved one that you intend to sell? If so, you have probably discovered that selling inherited property is an emotional process that comes with its own set of challenges. And if you have inherited a Loft along with your siblings, there are even more logistics you have to deal with. Here’s what you will need to know to make the process as smooth and pain-free as possible.

Understand the tax implications

When selling a Loft that you’ve inherited, the tax basis is the value of the property on the day the previous owner died. You will owe taxes on whatever the difference is between the value of the Loft when you inherited it and the amount you sell it for.

To illustrate, if the Loft was valued at $100,000 on the day the previous owner died and you sell it for $150,000, you will report a gain of $50,000 for tax purposes. If you are splitting the inheritance with others, then the gain will also be split. For example, if you would be sharing the inheritance with one sibling, each of you would report a gain of $25,000. If the selling price is less than the value, you do not need to report a gain. If you have any questions, seek the advice of a qualified accountant or tax attorney.

Wait through probate

Before you sell the inherited property, you must wait for it to go through probate. Some states allow for an expedited probate process if the total value of the estate is relatively small. However, most estates that include property will likely exceed this threshold. Once probate has concluded, the executor will be given permission to distribute assets and settle debts.

Make an agreement to sell

If you have inherited property with others, all parties will need to agree to the sale. If not everyone agrees, working with a mediator can help. In some cases, one party may want to keep the property and will agree to buy out the other shares. In other cases, the property must be sold in order to settle any outstanding debts the estate may have.

Prepare to sell

Once all parties have made an agreement to sell, it’s time to prepare the property to go to market. The Loft will need to be cleaned out first, oftentimes through an estate sale. Usually one person will be designated to handle any transactions. This is typically either the executor of the will or the trustee if the property was held in a trust. Consider enlisting the help of a real estate professional, who can assist with pricing the Loft accurately, coordinating showings and handling the closing process.

Be gentle on yourself

Selling an inherited Loft from a loved one is a tough process. Sorting through belongings and deciding what to keep and how to divide them up can be emotionally draining. Even siblings who have great relationships can find themselves in heated arguments. Be sure to take care of yourself and find time away to decompress during the process.

 




Dealing With Seller’s Remorse

6 Oct 2017 · by Virtual Results PubSub

Buyer’s remorse is a fairly common occurrence, happening when someone makes a large purchase, such as a Loft, and feels regret afterward. But have you heard of seller’s remorse? It’s also normal for those selling a Loft to feel regret or anxiety stemming from their impending Loft sale. If you’re starting to feel seller’s remorse, here’s what you can do to deal with it.

Prepare emotionally before the sale

Seller’s remorse often happens when a seller feels an emotional attachment to a Loft. It’s understandable, given that your Loft is where your life happens and you likely have many memories of happy times in that place. If you want to avoid seller’s remorse, start emotionally preparing for the sale now. Make a list of why this Loft isn’t perfect for you at this time, and why you need to move on. Allow yourself some time to grieve for what you’re leaving behind. That’s a totally normal response. If you have the luxury of time before your sale, start the process of letting go early on.

Know your reasons for selling

You’re more likely to experience seller’s remorse if you don’t have solid reasons for moving. This could include feeling like you should sell now because the market is hot, or thinking you should downsize because friends your age are doing it. If you don’t have a compelling reason to sell, you might get cold feet when it comes time to sign on the dotted line. On the other hand, if you’re selling because you need more space, you’re relocating for a new job or your circumstances are changing due to a divorce, you’re far less likely to experience remorse. Even if you do feel pangs of regret, your reasons for moving will allow you to proceed more confidently with the sale.

Focus on your future

It’s tough to say goodbye, especially if you really loved the time you spent in your Loft. If you’re feeling blue, remind yourself of what lies ahead. Focus on the positive aspects of your future. Start researching your new neighborhood and make plans for your new living space. Find reasons to get excited about the next chapter of your life. Remind yourself that your feelings are going to be strong during the selling process, but will settle down once the sale is complete and you’ve moved on. And remember that your feelings are completely natural.

Work with an agent you trust

One of the best ways to help alleviate seller’s remorse is to work with a real estate professional that you trust. Your agent is your partner and your advocate and can help you navigate the complexities of the selling process. Unlike you, they will be able to maintain an emotional detachment and treat the sale like a business transaction. Working with someone you trust means you have someone who will help you make tough decisions, and who will also be compassionate about your feelings, having worked with many sellers in the past who have gone through the same things.

Remember, seller’s remorse is a common reaction to the Loft-selling process. By doing your emotional homework and focusing on the future, you can get through this trying time and leave your old Loft behind without any lasting regrets.