The Property and the Situation
17522 Sherman Way #204 was a 1,150 sqft, 2-bedroom, 2-bath end-unit condo on the second floor of a 1988 building in Reseda. The seller had owned for eight years as a rental property and wanted to liquidate. The market for similar Reseda condos had softened modestly over the prior 90 days — comparable units selling at 96-99% of list with 30-45 day market times. Worse, the HOA had announced a pending special assessment of approximately $14,000 per unit to fund deferred building repairs (roof, exterior paint, parking lot resurface). The assessment would be billed in three installments over the next 18 months. Most agents would have:
- Discounted the price by the full $14,000 assessment amount up front
- Hoped buyers wouldn't notice the assessment until after they were committed
- Or both
We took a different approach.
The Strategy
The starting belief: serious investor buyers expect honest disclosure and respect transparency more than they hate surprises. Hiding the assessment until escrow opens is the worst-case path — buyers feel deceived, contingencies extend, and you risk a fall-out that re-lists the property at a stigmatized price.
Instead:
- Pre-listing disclosure package. Built a full disclosure packet including HOA financials, assessment notice, and assessment payment schedule. Made it available to every prospective buyer at the listing inquiry.
- Agent remarks disclosed the assessment up front. "Pending HOA special assessment ~$14,000, billed over 18 months — full disclosure packet available; price reflects this." No agent who showed the property could miss it.
- Priced at the top of comps. $445K — the top of the recent solds range. Did NOT discount for the assessment, because we'd already disclosed it.
- Aggressive marketing. Realtor.com Premium placement, Instagram targeted ads to LA County investor demographics, dedicated open house Saturday and Sunday.
- Open negotiation. Welcomed offers but required all to acknowledge the assessment in writing as part of the offer.
Execution Timeline
| Day | Activity |
|---|---|
| Day 1 (Friday) | MLS launch with full disclosure in agent remarks; Realtor.com Premium activated |
| Day 2-3 (weekend) | Open houses Saturday + Sunday; 38 buyer agents through the door |
| Day 4-12 | 14 private showings; 4 second showings |
| Day 14 | 9 offers received; best-and-final due Day 16 |
| Day 16 | Best-and-final received from 7 of 9 buyers (2 dropped) |
| Day 17 | Selected highest qualified offer at $448,000 cash, no contingencies, 14-day close |
| Day 19 | Mutual acceptance signed; escrow opened |
| Day 33 | Escrow closed (14-day timeline honored) |
The Result
| List price | $445,000 |
| Sold price | $448,000 |
| Sale-to-list ratio | 100.7% |
| Days on market | 19 days |
| Offers received | 9 |
| Showings | 38 (incl. open house) + 14 private |
| Days from list to closed | 33 days |
Why the Approach Worked
Three things made transparency a competitive advantage instead of a discount-trigger:
- Disclosure FILTERED out tire-kickers. Anyone uncomfortable with a $14K assessment self-selected out before showing. Every buyer who showed up was already comfortable with the assessment math.
- Disclosure ELEVATED the buyers who did show. Investor buyers (~70% of our offer pool) saw a transparent seller as someone they could trust through escrow. Trust-driven buyers move faster.
- Disclosure REMOVED renegotiation risk. No buyer could re-trade the price during escrow citing the assessment because it was disclosed up front. Price held all the way to close.
Lessons for Sellers Facing Similar Disclosure Challenges
If you're selling with a complication — pending assessment, known repair issue, deferred maintenance, lawsuit history on the building — the temptation is to discount and hope buyers don't notice. The data from this transaction (and many others like it) suggests the opposite is the better approach: disclose loudly, price at full comp, attract the buyers who are the right fit for your specific situation. You'll move faster, hold price, and avoid escrow fallout.
Could This Approach Work for Your Property?
If you have a Simi Valley or Ventura County property facing a similar complication and you're trying to decide whether to discount preemptively or disclose-and-hold, contact me at (805) 723-2498 for a no-obligation conversation. I'll review your specific situation and give you an honest assessment of which approach fits the property.
This case study illustrates a representative transaction approach. Specific names and addresses have been adjusted or composited for illustration. Past results don't guarantee future outcomes.
Frequently Asked Questions
Should I always disclose problems up front when selling?
Generally yes for material issues. California disclosure law requires you to disclose known material defects regardless of when in the process. The strategic choice is HOW to disclose — buried in escrow paperwork (worst) or front-loaded in agent remarks (best). Front-loading consistently produces better outcomes.
How do investor buyers compare to homeowner buyers in this kind of situation?
Investor buyers (especially cash) move faster and care less about cosmetic issues; they care more about transparent financial information and predictable closing. For properties with known issues, investor-targeted marketing often produces better outcomes than homeowner-targeted.
What if my HOA situation is worse than a single assessment?
If your building has multiple ongoing issues — lawsuits, repeated assessments, deferred maintenance backlog — the disclosure-and-price-firm approach still applies, but the buyer pool narrows further. You may need to widen your marketing reach (out-of-state cash investors via national networks like eXp Realty's). Contact me to strategize.
How much did the marketing budget add to the sale?
Roughly $850 — Realtor.com Premium placement + boosted Instagram ads + professional photography + virtual staging for two rooms. Against a ~$25K commission split, this is a worthwhile investment. Always discuss marketing investment with your agent before listing.
Work with Brian
Whether you're researching the market or ready to make a move, Brian Cooper has 20+ years of Los Angeles and Ventura County real estate experience, an 18-day average days-on-market, and a 101% sale-to-list ratio. Contact Brian or call (805) 723-2498.
