A private listing versus a public listing is a topic that’s getting a lot of attention these days. On one side of the argument, there’s clear cooperation rules of most multiple listing services and public real estate websites like Zillow, and on the other side of the argument, there’s real estate agencies and certain consumers and the assertion that homeowners should be allowed the freedom to choose how their homes are marketed.

A private, or a private-exclusive, listing is not a one-size fits all solution or a solution that fits everyone’s situation. The “marketing” aspect is limited to the real estate company that you list with (hence, private). In fact, marketing a private listing publicly triggers the rules for clear cooperation requirements to have the property go into the MLS.

I have some private-exclusive listings now. There are specific reasons each of these listings are private now. One is consumer choice. After discussing all of the facts and the process and all of the choices, clearly, the consumer decided to take this route. Another is private-exclusive for the time being because the owner doesn’t want to deal with open houses, people seeing the listing online and driving by, scheduling a large number of viewing appointments etc., while they are still living in the home. Later, though, downstream, this may change if we get to that point.

Private-exclusive may seem “special”. That definitely works for some listings. Not nearly all, though. The best way to get the highest possible price and terms that the market will bear for most sellers is to subject the listing publicly to the entire market using a specific and detailed, proven marketing plan like I construct for every listing.

Private-exclusive can, at times, be a part of that. It’s situational. Depends on circumstances. It’s not a magical solution or a better way. I’m happy to talk and discuss what options fit for you.

— Ken Sisson

Applies to Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a listing agent: Ken Sisson.

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A homeowner’s association’s financials are an extremely important topic to look into deeply before you buy a particular condo anywhere, including here in Sherman Oaks, CA. Think about it… once you buy, you’ve become a part of that association of homeowners.

The reserve study is incredibly important to review. It will analyze whether or not current reserves and reserve allocation is sufficient for future funding. You want to make every effort to be as certain as possible that the homeowner’s association will have enough money to make anticipated repairs well into the future. Aging buildings and important improvements such as roofing and common areas of the HOA will deteriorate over time and require repairs. Those repairs bear costs.

My past history in mortgage lending provides me with insights about Fannie Mae and Freddie Mac condo review guidelines that local condo buyers are simply not going to find in many other local agents. Certain things that I know to look out for before they become problems, can be devastating to a transaction if not detected and addressed early on. Condos and single family home transactions are very different.

— Ken Sisson

Applies to Sherman Oaks, Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a buyer's agent: Ken Sisson.

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This takes some planning. Chances are, you have your goals associated with downsizing in mind but are unsure about how to most effectively accomplish the process.

Talking with an agent like me, early on, so that the plan can be put in place for you, flawlessly, can save you a lot of stress later in the process.

With downsizing a home typically comes downsizing belongings and/or furnishings, as well. I have service providers that can provide their insights, advice and quotes early in the process.

I’ve worked with many clients throughout the years and have helped them accomplished this goal. They’re a lot happier when the transition is complete and their new home suits their needs and their lifestyle better than a home that has rooms that they may not have spent any time in for years or stairs that they just don’t know how they’re going to be able to handle in the future.

— Ken Sisson

Applies to Sherman Oaks, Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit for both sides of a coordinated move: Ken Sisson.

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I’ve specialized in helping home buyers buy homes in Los Angeles for well over 20 years. My mortgage background is actually very important when it comes to specializing in buyer representation. I’m able to share in-depth knowledge about the financing process as well as post-closing tips and things to look out for.

It’s actually most important that your buyer’s agent is more experienced with working with buyers than they are knowledgeable about the area or certain type of home. They should be familiar with the area and the type of home, of course, but I mean if you’re buying a certain type of architectural home, for instance, it’s more important that your agent is specialized in the process of what you’re out to do. You’re not hiring them to help the home, after all, you’re hiring them to help you!

— Ken Sisson

Applies to Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a buyer's agent: Ken Sisson.

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Nobody has a crystal ball and therefore we can’t predict the future, but it looks like what we are seeing now is a product of higher mortgage interest rates and the affordability challenge that dynamic creates.

For instance, while the number of sales year over year decreased considerably for the month of October, the luxury market segment of $5 million and above actually increased year over year. That’s a healthy sign. That segment of the local market is not nearly as affected by higher mortgage rates as the broader market is.

A big factor that is keeping real estate prices high in the broad market is actually the low existing mortgage rates that homeowners currently have. We’re still experiencing a period of time where a sub-3% rate on an existing mortgage can be enough of a reason for a homeowner to stay in their home instead of moving to a new one. That’s helping to keep local inventory of available homes lower. If that factor were not in the mix, I would have concerns about seeing an imbalanced market where supply outweighed demand by a large margin. In any market, that would most likely push prices down.

— Ken Sisson

Applies to Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit for both sides of a coordinated move: Ken Sisson.

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If you’re buying in the same neighborhood, or close by, there could be a great benefit in using the same agent to sell one home and buy another. One benefit is negotiating reduced agency fees. I’ve done this before many times. Another clear potential benefit is that the transactions are closely related and often times critical information is needed in relation to the sale in order to proceed with the purchase. Having one agent handling both eliminates potential communication break-downs that can cost time (or worse). This is a management role for an agent. Instead of managing just one side of your overall goals, they are helping to coordinate the whole thing from start to finish. Clearer communication through the whole process is a huge plus.

As long as your comfortable with the agent, their communication style and their track record of success, and the properties are geographically close enough to each other, using the same agent for both your sale and your purchase is beneficial.

— Ken Sisson

Applies to Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit for both sides of a coordinated move: Ken Sisson.

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The question should add “and why” at the end. Who should I hire to sell my home in Studio City, and why?

As a real estate agent in Studio City, I spend a lot of time on the “and why” part. Why hire Ken Sisson to sell your Studio City home? I’m a licensed broker, not just a sales agent, that’s one thing. It goes way deeper than that. Hire an agent who, like me, is a marketer. Knows the job begins well before the property goes on the market. Understanding the home, its competitive position, the likely buyer audience and the homeowner’s specific goals helps determine how we prepare, price, position and market the property.

Knows Studio City like I do, having lived there for so many years.

Knows, like me, that not every homeowner needs the same strategy, and doesn’t believe their role is to simply tell you what your home is worth or promise a particular selling price. My responsibility is to help you understand the market, the opportunities, the risks and the reasoning behind my recommendations so you can make confident, informed decisions.

If that’s the kind of approach you’re looking for, I’d welcome the conversation.

— Ken Sisson

Applies to Studio City, Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a listing agent: Ken Sisson.

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The buyer’s agency compensation is negotiated and agreed to using a buyer broker agreement in the state of California. It’s completely negotiable both at the time the original agreement is made as well as at the time an offer is being negotiated for the purchase of a particular home.

It’s important for buyers to know that any agreement that they come to with an agent up-front isn’t only about the broker compensation. It’s a service level agreement. What is it that the agent is promising to do for you for that price?

I’ve had conversations with prospective buyer clients in the past that are just completely set on the lowest possible fee being charged and don’t even ask about what I’ll be doing for them. That says a lot! “What if I find someone that will do it for less?” Great! What is “it”?

As a buyer’s agent, I know it’s important to discuss both what the cost is as well as what “it” is. The two topics go hand in hand.

Now, if we establish that you, as a buyer, don’t have the extra funds to pay your own agency representation, then we know and are able to fully agree that we will be requesting a seller credit as part of the offer package to cover the cost of your agency fees. This is almost 100% of the time now how I’ve seen this whole topic handled. The previously agreed upon fee has become a negotiable term of the offer.

My advice is to get all the facts up-front from someone you’ve developed enough rapport with to trust. Also, if you’re reading this, that’s great! You’re doing your research.

— Ken Sisson

Applies to Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a buyer's agent: Ken Sisson.

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The answer to this question really depends on a lot of personal factors. It requires some soul-searching, if not predicting the future!

It is typically best to keep renting if you anticipate only staying in the same place for the next two or three years. The five-year mark is where it really makes sense to seriously think about buying your home.

Five years or longer will typically be when homeowners see that they’ve built up equity. Some through amortization but mostly through value appreciation.

When my prospective home buying clients ask me this question, that “time” question is generally the question that I have for them.

Years ago I heard my mentor say in response to the question “when’s the best time to buy a house?”… “About five years ago!”

That has held up as a fairly true statement, for the most part, over time.

— Ken Sisson

Applies to Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a buyer's agent: Ken Sisson.

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Finding the house is, in most cases, the easiest part of the process. In fact, when the right home eventually appears, people typically know it. Your agent can’t make that happen. That’s personal.

I find that, during the search, I’m mostly answering questions for clients and educating them. I’m clear in my role and I even tell my clients, I’m not going to sell you a house. That’s the house’s job!

So as an agent, what I do is I guide people through the process and educate them. I keep the process on track and within the terms of the contract that my clients agreed to. It’s really easy for people to get caught up in everything that’s going on or get distracted by one thing while another is crucially important. As a real estate agent, I advise people far more than I sell anything.

Even my clients that have bought homes in the past and been through the process before appreciate this. It’s not something people do very often and I do it all the time.

— Ken Sisson

Applies to Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a buyer's agent: Ken Sisson.

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When you’re buying a hillside home in Studio City, it’s incredibly important to determine whether the property is located in a High Fire Hazard Severity Zone or a Very High Fire Hazard Severity Zone and get a homeowner’s insurance quote as quickly as possible up-front. You do not want to be several weeks into the process without this information or, worse yet, have removed your investigation contingency (which covers insurance) already without knowing how much the insurance is going to cost you or what the maximum coverage you can get will be.

Beyond that, it’s important to know that the property lines are not necessarily where any fences, walls or other defined visible boundaries are. The only way to know for certain where the property lines are is to conduct a lot-line survey. These can be quite costly and they’re generally only done when major construction is planned to be done.

Take my advice also and check all permits and beware of any mystery square footage. Hillside construction is extremely costly and you likely do not want to be left holding the bag if the Los Angeles Department of Building and Safety comes calling one day to let you know there’s a violation.

— Ken Sisson

Applies to Studio City, Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a buyer's agent: Ken Sisson.

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It’s never the agent that dictates the market value of your home. It’s the market.

Now, that being said, different agents have different approaches when it comes to relaying what price they think they can get for your home. Some will simply agree with you if you’re thinking of a high price and some will simply come in the door with a high price suggestion. Both of these agents are likely going to be seeking a list price reduction from you later.

When an agent is suggesting a list price higher than any of the other agents you’ve spoken with, that agent is likely trying to “buy your listing” by doing so. Who doesn’t want more money, right? Sounds good but when the price reduction conversation comes later, not so much. (And the one after that sounds even worse.)

How I approach suggesting a list price in Sherman Oaks is telling the homeowner the truth about the current market with solid facts to back it up. Sold comps along with current, active competition that’s on the market. Bottom line is it’s your house, though, and I’m not ever opposed to believing in a higher price from the get-go and employing my detailed and specific marketing plan with all the right strategies to go and get that price for you.

I lead with my marketing plan and we navigate the market to produce the best possible result. I don’t lead with price and I don’t ever try to “buy a listing” with an unrealistic price suggestion simply hoping for a price reduction from you later.

Call me crazy, but I firmly believe that I can’t go wrong with truth and facts.

— Ken Sisson

Applies to Sherman Oaks, Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a listing agent: Ken Sisson.

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If the top listing agent has a proven track record and is a skilled guide when it comes to representing buyers, that could work. Just because an agent excels on one side of the business, however, does not mean that their listing experience automatically translates into being the best fit for your buyer representation.

If you’re in the market to sell a house in Studio City, sure, interview the top listing agents in Studio City. If you’re buying a home in Studio City or the surrounding area, look to interview buyer representation agents instead. A listing agent’s sales history has no bearing whatsoever when it comes to whether they will be the best fit for you. They may not even like representing buyers!

— Ken Sisson

Applies to Studio City, Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a buyer's agent: Ken Sisson.

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This is a topic that is negotiable and, as such, often involved in negotiations in a residential real estate transaction. A rent-back, as it’s often called, is something of value and can be built into an offer or negotiated as a free rent-back or a rent-back with a cost. When there’s a cost, it’s common to see it be in line with the buyer’s principal, interest, tax and insurance costs.

It’s important to note that the buyer’s financing (if applicable) may be the limiting factor as far as the maximum time period that you could stay in the home you’re selling, post-closing. It depends on the loan type, but it’s typical that a primary residence home buyer will be required by their loan terms to occupy the property as their primary residence within 60 days of closing. That, quite often being the case, would make the maximum rent back 59 days.

It really depends on the specific situation, though.

— Ken Sisson

Applies to Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit for both sides of a coordinated move: Ken Sisson.

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The topic of how much your earnest money deposit should be in Los Angeles is a negotiable aspect of an offer to purchase a home. Far less important than the price you’re offering, or other terms of your offer, but, still, a negotiable aspect.

Customarily, throughout Los Angeles, we see 3% being the amount of the earnest money deposit being offered. The earnest money, most simply put, is the buyer’s “skin in the game” so to speak, and is protected by the contingencies that the buyer has going into the contract.

As a negotiable term, I’ve seen earnest money deposits be both lower and higher than 3%. While most transactions that I’ve worked on are at 3%, sometimes a prospective buyer is short on liquidity when the offer is being made and will go in with 1% or 2%, or even a flat $5,000 or $10,000 number, offering an increased deposit by the proposed date of specific contingency removal. Likewise, I’ve seen 5%, or higher, in earnest money deposits offered in situations where a prospective buyer really loves the house and wants to make their offer stand out among multiple offers.

It all really depends on the scenario, but it is, bottom line, negotiable. Most people stick to the customary amount, though, in order to not deviate from the “norm” and have it look like maybe there’s something wrong with their offer.

— Ken Sisson

Applies to Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a buyer's agent: Ken Sisson.

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In Sherman Oaks we have a lot of unique properties. While it’s hard if not impossible, at times, to find exact model-match comparable properties or sales, we can determine what properties are “close enough” and whether they are better or worse with regards to condition, location, amenities, etc.

Pricing strategy sometimes involves a brief period of testing the market. That’s okay, as long as swift action is taken as far as a change of strategy or recalibration.

The first thing to do is to assess what the current competition looks like. If homes that are better are priced lower, then those sellers are sure glad you’re on the market with your high price because they know they’ll likely sell before you! Look at these homes. And I don’t mean only on a computer, tablet or phone screen. I mean go and see them when they’re open. This is going to tell you everything you need to know in order to talk to your agent about recalibrating your pricing strategy.

— Ken Sisson

Applies to Sherman Oaks, Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a listing agent: Ken Sisson.

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I’ve had lots of experience locally with simultaneous closings, short-term rent-backs and bridge programs like the “buy before you sell” program. I’ve walked a lot of people through all three of these options many times. There’s always a best fit for each individual situation and person or family.

I will say that simultaneous closings can get stressful! Everything has to be timed just right and ideally, the same title company should be chosen for both the up-leg (purchase) part of the process as well as the down-leg (sale). It’s never a comfortable situation when multiple moving vans are waiting on word that we’ve closed escrow. Heck, it’s not even ideal when there’s one!

— Ken Sisson

Applies to Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit for both sides of a coordinated move: Ken Sisson.

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There are so many ways that an agent’s mortgage knowledge matters and it should be factored in when choosing a buyer’s agent.

The amount of mortgage information that’s taught to agents in required licensing education is minimal. I’ve found that my in-depth knowledge from my 15 years of residential mortgage industry experience in the past has been indispensable in terms of structuring transactions, avoiding common pitfalls, setting clear expectations, collaborating with the buyer’s lender and accomplishing my buyer clients’ goals.

As a buyer’s agent, and advisor, I feel it’s necessary to know as much as possible about the mortgage process, the guidelines and rules, and that different types of lenders have different appetites for lending.

When I, as an agent, can explain to my buyer client why a particular lender can get them a better rate and better terms than another, or collaborate with the chosen lender and help save a transaction altogether, the value of my in-depth mortgage knowledge is on full display and I’m nothing but grateful for that!

— Ken Sisson

Applies to Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a buyer's agent: Ken Sisson.

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As a former loan officer, I can guide you through this process from start to finish. There are numerous programs that I have access to that accomplish the buy before you sell process. It’s just a matter of determining which one is the right fit for the specific scenario you’re looking to accomplish. When looking at what we call “bridge” options, it’s important that everything aligns perfectly. If you’re financing your purchase, for instance, everything has to be structured so that it still fits your mortgage lender’s appetite for lending. That way we make sure that costly mistakes are not made. Beginning with the end result in mind while discussing and planning out the entire way to accomplish the goal is the key to success.

— Ken Sisson

Applies to Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit for both sides of a coordinated move: Ken Sisson.

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It really depends on the home, the most recent comparable sales and the current local market dynamics. Additionally, there could be something wrong with the house that is causing the need for a price reduction. Typically, price reductions are a result of the listing simply being priced too high in the first place. Sometimes sellers will come to market with ambitious, aspirational pricing. “Test the market.” I have seen homes reduced in price immediately after an escrow fell through, though. Sometimes this can indicate that a fairly significant problem was discovered during the prior buyer’s inspections, before they canceled. Maybe foundation issues were discovered. Or something else that is structural and/or costly to repair. It really takes experience and a working knowledge of what questions to ask and how to ask them in order to determine what the specific situation is and whether the reduced price Studio City home listing is a good deal or not.

— Ken Sisson

Applies to Studio City, Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a buyer's agent: Ken Sisson.

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If you’ve been watching the local market in Studio City for a while, you will likely get a feel for understanding where a particular home listing should be priced, as far as a range, and what the ballpark value is. If there’s nothing incredibly special about the home, then you should be able to find and cite specific comparable sales. Most importantly, taking a look at how the particular listing compares to the current, active competition on the market is the most accurate way to know if the listing is overpriced. In terms of the quality of the house, the condition of it and, of course, the location, if the competing listings are all very comparable or better, then it’s likely that if this listing is priced considerably higher than those, the listing is overpriced. If it’s a listing that’s not new to the market, with higher days on market, and any of the above also apply, it is very likely the listing is overpriced.

— Ken Sisson

Applies to Studio City, Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a buyer's agent: Ken Sisson.

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This is generally a matter of what the situation is and what the costs would be to repair or renovate versus what the most recent comps look like, and, more importantly, what the current competition of homes on the market looks like. Some homes, based on condition, should be sold as-is. Sometimes, though, a keen and experienced eye like mine can spot cost-effective updates that can unlock added value. Buyers are generally expecting turnkey homes when they’re paying top dollar. Particularly in a neighborhood like Sherman Oaks. What are the things that can be done to enhance the home for a reasonable cost outlay that will have it present as its best possible version of itself when we take it to market? That’s the primary question I go into this inquiry with at the top of my mind.

— Ken Sisson

Applies to Sherman Oaks, Los Angeles, CA. Answered by Ken Sisson, Real Estate Broker, DRE 01292247.

Potential fit as a listing agent: Ken Sisson.

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