Malibu banked owned properties are properties that have been repossessed by banks because borrowers failed to make their mortgage payments on time. Once a bank repossesses one of these homes,the home is not making the bank any money. This means that bank executives and asset managers want to sell the home as quickly as possible. Because they are so motivated to sell,buyers may be able to purchase Malibu homes for sale for as little as half of the true market value. However,dealing with bank-owned properties also has some drawbacks. Learn about the major benefits and drawbacks before deciding if this type of sale is right for you.
Pricing
The major benefit of buying a bank-owned property is that you may be able to pay a lot less than the home is actually worth. Banks want to recoup the loan money they gave to the original borrower,so if a borrower paid off a substantial amount of the loan before defaulting,the bank may be willing to accept less than market value just to get the property off of its books. Unfortunately,not every bank-owned property is listed way below market value. Some are listed only slightly below market value and others are actually listed at market value. This makes it very important that you discuss the deal with your Malibu real estate agent and determine if it will actually help you or hurt you.
Process
Buying a bank-owned property is different than buying a home from its owner. Instead of dealing directly with the bank,you have to work with an asset manager. Banks appoint asset managers to handle these bank-owned properties and get the best sales prices for them. You need to deal with an asset manager when gathering information and when making an offer. The bank manager has to get approval from the bank before agreeing to sell you the property. This complicated process generates a lot of paperwork and may increase the amount of time it takes to complete the transaction.
Risks
When borrowers fall behind on their mortgage payments,it is possible that they have also run out of money to maintain their homes properly or pay their bills. This means that the bank-owned home that looks nice on the outside may be a shambles inside. You may find that it would cost you a significant amount of money to make needed repairs. In some cases,you might find that the previous owners left their belongings beyond. If this is the case,you will need to sell or dispose of the items. This takes extra time and effort,so be sure the property is worth it before you make the final deal.
Buying Malibu bank owned properties can be a great way to start investing in the real estate marketing,but the process can also be filled with obstacles. If you want to do this type of real estate deal,pick an experienced agent who can help you avoid losing money.
Russell Grether of Coldwell Banker Previews International is a real estate agent based out of Malibu,CA. He specializes in Malibu real estate,Malibu homes for sale,Malibu properties,Malibu Land for sale,Malibu rentals and surrounding area real estate from Montecito to the Pacific Palisades.
Why Look at Malibu Beachfront Homes for Sale
Unlike many neighborhoods in more suburban areas,Malibu offers an excellent variety of living situations for various lifestyles –from the quaint neighborhood of Malibu West to the homes way up the canyons with expansive land and awesome views to the luxurious beachfront estates on the sand,each area can appeal to different types.
When considering Malibu beachfront for sale here are a few things to consider.
1. Consider your proximity to neighbors and major roads.
Fact –The only major street in Malibu is the Pacific Coast Highway. This highway serves as the main thoroughfare by which thousands of cars travel everyday. During summer months it is no secret that traffic can get jammed at times and sometimes parking on the PCH can be an issue.
Many often forget that they live on such a busy street as soon as they close their garage door and look out at the waves and hear just the sound of the ocean and begin watching the dolphins play outside their back porch again.
To that end,one of the best parts of having a Malibu beachfront home is that you have immediate access to the main highway and can easily drive to anywhere you need to go. Many people commute to Santa Monica or further because being able to come back home and look at the sunset overlooking the ocean is worth it!
2. Do you prefer more land or less land?
People who live on the beach usually love it and for good reason. Not only do you have a pristine environment that is constantly changing and showing its moods but you also have immediate access to an incredible source of beauty,entertainment and fun!
One consideration,however,is that if you are a family with young children or prefer a yard that you can tend to,perhaps the ocean is not the best place for you.
3. Maintenance anyone?
Fact –The ocean is salty.
Fact #2 –If you have a beachfront home you will need to do more maintenance.
Living on the ocean definitely has more pros than cons but the main con in my opinion is that you will need to spend more money on maintenance and be very diligent to make sure that you take measures to combat the corrosion and wear that living on the beach causes.
4. Hello neighbor?
Fact –There is not more oceanfront land being made in Malibu.
Unfortunately,there is only so much coastline in Malibu and as a result the properties and home that exist on Malibu beachfront are limited. Most properties are very near their neighbors so as a result sometimes privacy can be limited.
5. I thought you said sand?
When considering a Malibu beachfront home for sale take into consideration as to why you want to live on the beach. Is it the just the views,the walks on the beach,the sand,etc? In Malibu,property values usually coincide with the quality of the beach that the home is built on.
In Malibu there are many different types of beaches that exist. To name a few:
- Dry sandy –commands the highest price and for good reason. These beaches usually have sandy beaches throughout the year.
- Wet Sandy –Can be sandy but usually at low tide
- Rocky –Many homes in the Big rock area can be built over large boulders –access to the water is still possible but launching kayaks or other small crafts can be difficult/impossible.
- Seasonally sandy –Sand moves. A lot. One day you will wake up and the sand will be three feet lower and the next day it can be four feet higher. Some beaches are seasonally sandy with the sand moving based on the predominant swell direction (Winter swells = swells from the W and NW. Summer swells = South swells)
- Rocky with access to sand –Some homes are built over the rocks but a small walk
- Beach key –There are several private beaches in Malibu. Little Dume,La Costa Beach club,Sea Level Drive are a few. Sometimes to the homeowner,it is not important to be directly on the beach that is the most important but rather it is having the access to the exclusive beach that can be more coveted.
6. It smells funny!
In Malibu,one aspect of the Point of Sale Ordinance 321 is that in order to transfer ownership of a house,one needs to provide evidence that the existing septic system is functioning properly with an operating permit.
In some homes,particularly the older ones,the systems are antiquated and do not pass the stress tests to indicate that the home has a functioning septic system. If the system does not pass costs to put in a new one can be between $80,000 to several hundred thousand!
Beach houses usually require retaining walls and even more engineering to protect the system from the relentless force of the sea.
If you are interested in buying a beach house be absolutely sure that you get a septic inspection done - Even if the home has an operating permit! Other agents will disagree with me on this. I have personal experience with saving clients hundreds of thousands on insisting they get systems with operating permits tested that have failed!
Call me for questions on this.
For more information from the City –click here:http://bit.ly/ImCIPd
Right now inventories are high and prices are very good so if you have ever considered buying a beach house now could be a great time! Just in time for summer!
If you have any questions regarding Malibu Beach front homes,please do not hesitate to contact me. I would be happy to answer any questions you may have! russellgrether@coldwellbanker.com or 310.589.2471
