Million Dollar Listing L.A.
Episode 5 – It’s Personal!
The Altman brothers, Matt and Josh, receive a first offer of $8.7 million for the unfinished house on Oak Pass featured in the last week’s episode. The brothers try to brainstorm a acceptable counter-offer that they will discuss with the developers, who happen to be friends of their parents. They know this initial offer will be a bit of a disappointment.
Madison meets with new client Sharon, who has a gorgeous Malibu home in its most desirable location with features such an imported French fireplace, and custom oak cabinetry with those awesome food storage bins I covet. Unfortunately, the beautiful landscaping is being ravaged by local deer. The woman is stuck with a high interest private construction loan that is coming due in a few short months, and she now wants to unload the house. She could possibly lose the home if she doesn’t list the house for at least $3 million. They agree on a starting point of $3,275,000.00.
Josh Flagg attends a Bel Air birthday party of childhood friend Brandon. He mingles with many of his old high school classmates, most of which he has simply no recollection of. He paints himself as somewhat pretentious and arrogant as a spoiled rich kid that no one liked, but he seems to having a very nice time. Brandon later informs Josh that the home they are standing in, built together with his parents, could be a possible next listing for Josh. The men agree to get together to discuss listing the house.
Josh A. and Matt sit down with the Oak Pass developers, Warren and Denise. The listing price is $9.9 million, so this initial offer of $8.7 million is a bit low. They encourage the developers to try to counter this with $9.5 million to test the integrity of the offer. Josh knows that any offer over $9 million will be very close to what will satisfy their clients. They plan to present this counteroffer to the potential buyer.
Josh F. heads to Bel Air to meet Brandon’s parents at their beautiful “Florentine villa” home. It is 8.400 sq. ft., has a marble kitchen with Wolfe applicances, 6 bedrooms, 7.5 baths, a movie theater and wine cellar. Albert and Mimi believe their home is now worth close to $10 million after their painstaking design and construction, but Josh explains that it is probably in the $8 million range. Albert is hoping his special home would fetch more. Josh would like to list at $7.5 million. Albert and Mimi seem to be a bit hesitant but ultimately agree to list.
Back in Malibu, Madison knows he has to get rid of the pesky critters who are terrorizing his client’s plants and shrubbery. He actually brings something called “Coyote Urine” which supposedly will ward off the deer. Madison dons exterminator gear to apply the stuff himself, too funny.
A brokers’ open is later set up in Malibu for Sharon’s home. Two and a half months are all she has to sell her property before the high interest loan kicks in. Madison feels confident progress has been made in finding a buyer.
Josh F. begins to market Brandon’s home. He feels quite confident it will sell rather quickly. He sets up a snackfest in the kitchen for any visitors. Josh meets many new brokers who seem to appreciate the fantastic features of this home.
Josh A. and Matt contact Sam, the buyer’s agent for Oak Pass. They inform him that $9.5 million is their counter offer. Sam is firm that his client can go no further than $9 million. They promise Sam to get back to him as soon as possible. The brothers call Warren and give him the news. Warren says it is not enough, but he has a new, even larger construction project in the planning stages in Aspen that would require the money from the sale of this house. He tells the brothers to counter offer at $9.1 million and he would accept that.
Josh F. has an offer of $7.4 million for the Bel Air home. Brandon’s parents are not pleased with such a low offer and do not even want to create a counter offer.
Josh A. lies and tells the potential buyer that $9.3 million is their counter offer, not $9.1 million. Matt is enraged when the phone is hung up and says his brother is going to kill the deal. Josh believes in his strategy. Sam calls back and informs the brothers that his client accepted the deal! The brothers call Warren and Denise with the great news that they have made them an additional $200,000.00.
Back in Bel Air, Josh F. is informed by Brandon’s parents that they have had a change of heart and will be taking their home off the market. They explain it took two years to build and they would like to enjoy it for a little longer. Josh completely understands their emotional attachment and tells them to please consider him for their selling needs in the future.
Madison decides to make available Sharon’s home for lease as well as purchase. It would be for $10,000.00 per month with an option to buy. This will help Sharon pay her huge loan until a sale is completed.
The Altman brothers sit down and try to figure out if they could merge their businesses and work together full time. They know each has different selling styles and each would have to change a bit, but it would make sense to double their talents. Josh does not want his girlfriend Heather to join in this new venture, as he doesn’t want to jeopardize their relationship. He knows he would have to make her understand his feelings and how important she is to him. The boys agree to form a partnership.
Madison receives a verbal rental offer of $7,500.00 per month for Sharon’s house. Madison knows it is too low for that exclusive area and urges the broker to increase his client’s offer. Sharon is disappointed with the low amount, which would not cover her high interest loan. She hopes Madision will be in touch with better news, or she could potentially lose her home.
Josh F. meets with his mother Cindy and tells her about his experience with his childhood friend Brandon’s house saga. Cindy says it must have been great for them to see the seventh grade misfit in his new role and how proud she is of him.
Madison’s latest rental offer is only up to $8,500.00. He asks the opposing agent if their client would be able to pay the $8,500.00 per month one year in advance, or $102,000.00 total. The agent calls back with the acceptance of the new terms. He calls Sharon with the news. She hesitates at first but realizes how much more secure it would be to have that much cash in advance to use at her disposal. She agrees to the deal!
Next week’s sneak peek promises to bring some fireworks when Heather finds out about the Altman brothers’ new business deal.