• Compass DRE# 01991628
  • Address: 2120 Colorado Blvd., Suite #1, Eagle Rock, CA 90041
  • Office Phone: 323-274-2148

Tracy King Blog - Eagle Rock Real Estate - Northeast Los Angeles Realtor

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LA Digs - Northeast LA Real Estate Blog

Welcome to LA Digs, the real estate and Northeast Los Angeles community blog written by Realtors Tracy King and Keely Myres.

Here, we share tips, market updates, and local news bits to keep you informed on what's happening in Northeast Los Angeles and the surrounding neighborhoods. Read on to learn about the latest in your neighborhood!

Is Cash Always King?

Cash buyers are exerting downward pressure on prices, according to a report in DSNews.com, quoting a study from HousingPulse Survey. This article points out that with distressed properties, the investors with cash dominate the market and that sellers often take lower cash offers because the deal can be closed faster with fewer problems. As a result, the first-time and FHA buyers are shut out of the entry-level distressed property market. This is a funny kind of capitalism in action. Free market means that the seller does not have to take the highest offer, they are free to choose a lower offer with cleaner terms.

But if you are a cash buyer and you want a really nice home, you don’t necessarily have the same influence on price. You may still get the deal, but only if you do offer the highest price. I could quote several stories over the last several years in which the winning bid in multiple offers was cash for homes that were not at the low end of the price range. I represented a buyer last year who purchased a couple of homes in La Canada and Pasadena by either paying cash or agreeing to no loan or appraisal contingencies. One of the highest sales in Eagle Rock last year was all cash, and this year I have seen cash buyers competing with each other on good properties, driving up the price as a result.

Where is all this cash coming from? Lots of places: investments that have been earning a fraction of a percent interest in CDs, sales of businesses, inheritances, divorces, lawsuits, and retirement accounts, even savings. Another source is the Bank of Mom and Dad, which sometimes is a gift and sometimes is a gift that is expected to be returned at some future time.

What does all this mean?


  1. Don’t make the assumption that if you have cash you will always win at a bargain price.

  2. Don’t believe everything you read about how bad the market is. There are a lot of people who are serious buyers today because they have faith in the value of real estate over the long term.  And a lot of them have cash.
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Are you a home buyer starting your search? READ THIS!

In the past we posted our number one tip for home buyers -- always change your locks when you move into a new home.  But that tip is for buyers who actually find a house and make it to the close of escrow, not buyers who are just starting out on their journey to home ownership. 

So for all of you who are jumping in and not quite sure what to do besides pore over Redfin listings online, here you go:

The very first thing you should do, BEFORE you even start looking online for houses, is call a lender and get PRE-APPROVED!

If I got a dollar for each time I'd seen buyers start looking before they take this crucial step, end up finding their dream home and then learn that they can't afford it -- well, I'd be able to buy my own dream home!

Talking to a lender should really be foremost in your mind.  Learn what your options are.

Because let me tell you, if you're looking at homes in the $500,000 range and then learn that you can only afford $350,000... well let's just say that a house listed for $350,000 is a whole heck of a lot different than a house listed for $500,000.  Or even $450,000.  Nothing in your new $350,000 range is going to look good enough after you've seen those $500K homes.

And then there's the flip side - what if you learn that you can actually afford a bigger loan?  Or that there is a financing solution that allows you to get a re-hab loan?  Maybe you didn't even know you could afford a house!

Don't have a lender?  Try Edward Uriarte (310.463.2270).  Or Steve Kenilvort.  We've worked with both and they've done great things for our clients.
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Tracy King, Realtor
DRE# 01048877
Phone: 323-274-2148 | This email address is being protected from spambots. You need JavaScript enabled to view it.
COMPASS DRE# 01991628

Keely Myres, Realtor
DRE# 01834633
Phone: 323-274-2148 | This email address is being protected from spambots. You need JavaScript enabled to view it.
COMPASS DRE# 01991628

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