Real Estate Darwinism

With so many Long Beach homes on the market at affordable prices one would think it should be really easy to find a home and get a great deal.  So why are so many first time buyers having trouble finding a home that suits their needs at a price they can afford? 

Up until a year ago it was almost impossible to find decent homes in Long Beach for under $500,000.  Prices have been dropping so rapidly that some homes have finally become affordable to 1^st time home-buyers.  Recognizing this, many are out shopping, trying to make the dream of home ownership a reality. 

Most 1^st time home buyers are utilizing 100% financing programs and need to have closing costs covered in their offers in order to purchase.  This means they are actually purchasing these homes for the cost of the appraisal and physical inspection, about $600.  Sounds great, doesnt it?   Homes currently on the market; affordable to 1^st time home buyers, are predominantly short sales and bank owned properties and are not necessarily in the best condition.  Even with a deep price reduction most of these homes are still beyond the reach of 1^st time buyers because the buyer will have to lay out considerable cash after purchase to bring the house into livable condition.  1^st time home-buyers just dont have this kind of cash to invest in the home for repairs and upgrades after the purchase.  

Some of the problems buyers have discovered in many of the available homes for sale on the market are:

• Damaged foundations
• Damaged chimneys
• Excessive layers of roofing
• Bent ridge-boards (part of roofs framing)
• Leaking, damaged and old roofs in need of replacement
• Potential mold issues resulting from leaking and damaged roofing
• Kitchens in need of replacement
• Baths in need of replacement
• Incomplete renovations leaving partially completed kitchens and baths
• Badly damaged flooring
• Leaking plumbing
• Electrical problems and upgrades

Many homes have several of these issues placing the seemingly affordable home into the unaffordable for these buyers. For instance a buyer may be able to afford a new roof, but not be able to afford to reframe the roof if that too is necessary.

Occasionally a Long Beach home will come onto the market in really good condition, priced to sell, receiving multiple offers very quickly.  With so many of these buyers conditioned to write low offers, they miss out on the opportunity to purchase a great home.  When a home finally comes onto the market that is in move in condition and has no major issues, which will cost the buyer after purchase, a really good offer should be written immediately.   If it is priced right, trying to negotiate the price of a home like this is just foolish.  It is not easy, for a 1^st time home-buyer, to find an affordable home in Long Beach in good condition, when you do find one - grab it as fast as you can. 

There are currently 83 Long Beach homes for sale under $300,000, in many Long Beach neighborhoods, many are short sales or are bank owned, and most are in need of work. 
 

The smallest available Long Beach home for sale is a 1 bedroom, 1 bath, 540 sq ft home, priced at $300,000 - huh?
 

The least expensive homes on the market in Long Beach right now are both priced at just $150,000.

• 2 bedroom, 1 bath, 825 sq ft, located in Downtown Long Beach.
• 2 bedroom, 1 bath, 782 sq ft, also located in Downtown Long Beach.

Both of these homes front to an alley - OK, that explains the price.
 

There are 8 Long Beach homes for sale under $300,000, which are over 1200 square feet:

(DOM = Days on Market: CDOM = Combined Days on Market)

See also: 

Condos in Downtown Long Beach For Sale Under $300,000-90802-90813

Read also:

Long Beach Home Search-Where do I start?

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