July 30, 2008
Seems like we are always “speaking” to sellers about staging their home and how to get top dollar. But on the other side of that conversation is the conversation with buyers. They want a good deal right? They should actually be out there looking for those houses that are NOT staged. Buyers want to try and look through all the clutter, mis-matched furniture, dings on the walls and ugly wallpaper - these are good things for buyers really…the buyers savvy enough to see through all that! The good news about ugly furniture is that the seller will be taking it with them! Buyers should hope that there are gorgeous hardwood floors under the old carpet that’s been there for 25 years (protecting those hardwood floors!)
Buyers want to look for “good bones.” Good bones include a great location (we’ve always heard the real estate mantra, “Location, Location, Location!) It’s true. Ideally as a buyer you want the worst house in the best location. You can typically improve the house easier than overcoming a bad location. Buyers want to check out the neighborhood, who are the neighbors? What are the other houses in the area selling for? What did the seller pay for the house? When? How long has it been on the market? Typically homes that have been on the market for a long time are easier to “negotiate down” in price. The closer to the list date a house gets offers, the closer to it’s list price that it gets. In today’s market homes are still selling on average about 95% of list price. So, if a house listed for $1 million dollars, it would sell in the $950,000 range. This is an average of course…some more, some less. Back to how many days on market and how many price reductions. Once a home gets reduced into the “right” price range, it will get more activity and in some cases generate multiple offers.
Believe it or not, in some cases, homes in the the Hollywood Riviera are still seeing multiple offers. About 2 weeks ago, July 10th or so….there was a house that got 8 offers. I showed a wonderful little house this evening here in the Riviera that has been on the market for 33 days (not even the average days on market for the area which is 69 days now.) It was attractively priced in the first place at $859,000 (it’s a well kept original 1948 home.) It was reduced in price twice - once to $849K and then 10 days later on the 25th of July (only 5 days ago) to $829,000 and now it has 3 offers on it. So, obviously, a seller can get a house priced in the range where they can get in themselves in the driver’s seat.
A buyer needs to get in front of that price and if someone would have made an offer prior to this price reduction, they might have been able to get a few more concessions from the seller. In this multiple offer situation, the buyer will have to be willing to do what it takes to get the house - if they really want it that is.
It’s a new market and in most cases, a great one for buyers right now. There are a lot of choices out there and as we move forward we will see how the market changes. It is not a static market - it never sleeps and is constantly something to watch….that is what makes it so exciting!
July 28, 2008
What’s happening in the Hollywood Riviera Real Estate market on July 28, 2008?
There are currently 37 homes for sale in the area. 15 of those are on the Torrance 90505 side and the other 22 have the Redondo Beach P.O. Box address - all the homes in the Riviera are technically part of South Torrance.
The 15 Torrance side homes have an average list price of $941K; have an average of 69 Days on Market and the average house size is just over 2000 sq ft. The lowest price house is on the PCH service street and is listed for $649,000, 3 bed/2 bath and over 1600 sq ft. The most expensive listing on the Torrance side is $1,648,000 - a gorgeous brand new home with wonderful finishes, a beautiful front patio and outdoor fireplace out back.
The RB side has an average list price of $1,445K; have an average Days on Market of also 69 days and the average house size is just over 2400 sq ft. The lowest priced RB house is $829,000 and is close to original condition, 4 bed/2 bath and just over 1600 sq ft. It’s on a cute street, Calle de Madrid. The most expensive listing right now is $2,499,000 and is gorgeous new construction with over 4300 sq ft, a view, a basement and many wonderful amenitites on Via Alameda.
Welcome to the Hollywood Riviera - there are lots to choose from - take your pick!
July 26, 2008
You’ve been to the beach, the farmer’s market, the park and your local library. Here are some other destinations to help alleviate midsummer kid boredom, without dropping a bundle.
1. Cabrillo Marine Aquarium: Marine exhibits, touch tanks and special events. Admission is a suggested donation of $5 for adults and $1 for kids and seniors. http://www.cabrilloaq.org
2. South Coast Botanical Garden: 87 acres of land with a collection of plants from all over the world, classes, tours, walks, and special shows. Admission is $7 for adults, $5 for students & seniors, $2.50 for children under 5. http://www.southcoastbotanicgarden.org
3. Charles H. Wilson Park: Free Little Train Rides on the first Sunday of the month. The park also has a treehouse. http://www.visittorrance.com/parks.htm
4. Madrona Marsh Preserve and Nature Center: Learn about the animal and plant species that benefit from the marsh at the Nature Center, then explore the marsh itself and see them in their natural habitat. http://www.friendsofthemadronamarsh.com
5. Pointe Vicente Interpretive Center: The 10,000 square foot center features exhibits about the natural and cultural history of the Palos Verdes Peninsula, with an emphasis on the Pacific Gray Whale. No admission fee. http://www.palosverdes.com/rpv/recreationparks
6. Roundhouse Lab & Aquarium: Native and non-native marine life, including sharks, moray eels, lobsters and octopus, on display in tanks. Free Admission. http://www.roundhouseaquarium.org
7. L.A. Maritime Museum: Exhibits include vessels, models, paintings and memorabilia of maritime life. Hands-on exhibits include knot board and amateur radio room. $3 general admission, seniors and youths 7-18 $1, children 6 and under free. http://www.lamaritimemuseum.org
8. Western Museum of Flight: Focuses on the history of the aerospace industry in Southern California, with planes from all eras on display. Admission $5, students $3. http://www.wmof.com
9. Bannning Residence Museum: Built in 1864, the restored, 23-room Greek revival mansion is the former home of Phineas Banning, who founded Wilmington. Admission is $5, $1 for children under 12. http://www.banningmuseum.org
10. Sea Aire Golf Course: Sea Aire is a very short nine-hole, par 27, pitch and putt golf course nestled in the Seaside Ranchos Neighborhood of South Torrance. http://www.ci.torrance.ca.us/Parks/10153.htm
Courtesy of the Daily Breeze Saturday, Jully 26, 2008
July 22, 2008
According to RisMedia 44% of people surveyed believe that the real estate market will improve when a new president is elected.
“RISMEDIA, July 22, 2008-Nearly half of all home buyers (44%) believe the housing market will improve once the new President takes office in January, 2009, according to a new survey recently released conducted by Harris Interactive® and commissioned by Move, Inc., operator of Realtor.com®.Forty-eight percent of women and 41 percent of men who plan to buy a home in the current market said they think the housing market will get better once the new President is in office.”
To read more on this interesting article go to the following link: http://rismedia.com/wp/2008-07-21/real-estate-market-expected-to-improve-with-new-president/
July 15, 2008
In 1978, California voters passed Proposition 8, a constitutional amendment that allows a temporary reduction in assessed value when a property suffers a “decline-in-value.” A decline-in-value occurs when the current market value of your property is less than the current assessed value as of January 1.
For full details please follow the link to the Los Angeles County Office of the Assessor : http://assessor.lacounty.gov/extranet/guides/prop8.aspx
July 14, 2008
Okay, so here we are in the Hollywood Riviera and most of the 38 houses for sale are sitting and I mean sitting on the market untouched, no phone calls, no showings (unless of course you have an open house then it seems busy.) I do think there are buyers out there and I got a “yes, there are buyers out there” today when I talked to the listing agent of 139 Via La Circula - a terrific home just listed last Wednesday - so less than a week ago - and it has 8 offers on it right now! Yes, 8 - that means 7 “according-to-the-agent” qualified buyers that won’t get the house! Why don’t those seven “left-over and jilted” buyers buy one of the 37 houses that will be left over???? Price, size, location….what is it?
In this case it was all the above….the house on Via La Circula has everything! It’s on a great street - the kind where kids play out front and there are white picket fences. It’s in a great location within the Riviera - easy walk to the beach and Riviera Village. It was completely redone in 1993 - with over 2400 sq ft, 4 bedrooms, 2.5 bathrooms, + a den, family room and living room, hardwood floors, separate laundry room, the list seems to go on…pool, spa, nicely landscaped backyard….etc. Now the reason it got multiple offers - it was priced really well - at $1,199,000. This is a deal - and of course it will sell over this price. Which it should, no doubt - 8 offers. I am still amazed!
Anyway….if anyone is reading this and trying to sell their house - you better havea good location, have it priced right and make it look stunning!!!
July 13, 2008
Hollywood Riviera Open Houses
5319 Calle de Arboles -$1,089,000 - 3 Bed/2 Bath - Beautiful Home - Sunday 1-3
4910 Calle de Arboles -$1,649,000 - 4 Bed/4.5 Bath - Just Completed 2007 & Gorgeous - Sunday 2-5
140 Vista Del Parque -$999,000 - 3 Bed/2 Bath - Updated - Sunday 1-4
308 Via El Chico -$1,125,000 - 3 Bed/2 Bath - Panoramic Queen’s Necklace Views - Sunday 2-4
625 Calle Miramar -$1,899,000 - 3 Bed/3.5 Bath - Just Completed 2005 - Beautiful Craftsmanship - Sunday 2-4
405 Via La Selva -$1790,000 - 4 Bed/3 Bath - Panoramic Queen’s Necklace Views & Remodeled - Sunday 2-4
356 Paseo de Arena - $1,249,000 - 4 Bed/3 Bath - Over 3000 Sq Ft - Sunday 3-5
4520 Newton -$819,000 - 3 Bed/2 Bath - Remodeled - Sunday 1-4
216 Calle de Madrid - $859,000 - 4 Bed/2 Bath - Sunday 1-4
3874 Newton - $1,399,000 - 4 Bed/3 Bath - New Construction - Sunday 1-4
239 & 241 Calle Miramar $1,479,000 - New Townhomes - Sunday 2-5
136 Via La Circula - $949,000 - 2 Bed/1 Bath - Charming - Sunday2-5
139 Via La Circula - $1,199,999 - 4 Bed/3 Bath - Pool & Spa - Sunday 1-4
South Redondo Beach Open Houses
754 Ave A - $819,000 - 2 Bed/1 Bath - Sunday 12-4
631 S Gertruda Ave - $2,549,000 - 6 Bed/5 Bath - Brand New Home - Sunday 1-4
622 Vincent Park - $1,575,000 - 6 Bed/4 Bath - Sunday 1-4
615 S Gertruda Ave - $2,99,900 - 4 Bed/5 Bath - Brand New Home - Sunday 1-4
1724 Esplanade - 5 Just Completed Oceanfront Townhomes - Sunday1-4
425 S. Catalina - $757,000 - 2 Bed/3 Bath - Sunday 3-5
212 N Irena - $889,000 - 3 Bed/2.5 Bath - Many Upgrades - Sunday 1-4
523 Lucia Ave - $1,299,000 - 4 Bed/5.5 Bath - Custom Built - Sunday 1-4
312 N. Catalina Ave - $1,099,000 - 4 Bed/2.5 Bath - Impeccable Back Unit - Sunday 2-4
218 N. Lucia Ave - $859,000 - 4 Bed/2.5 Bath - Great Value - Sunday 1-4
July 11, 2008
It’s amazing to me how many times I hear the saying, “I’d buy this house if I win the lottery this weekend!”
Back to my thoughts on how many people want the “American Dream” of owning their own home. I ususally hear this when I’m at open house on a luxury property (something in the upper million dollar range or above.) I was at 405 Via La Selva last week when I heard someone say that. Back to the 6 reasons to buy a home - pride of ownership is a big one!
July 10, 2008
Pricing today is like picking produce. Think about going to the grocery store or farmers market. If the produce is really expensive it doesn’t matter how good it looks, you’re not buying it. Pricing is the top priority in a buyer’s market. If a house is not priced properly, nothing else really matters. However, if it’s got a great a price, then it is important that it shows well - think lights, camera, staged - the produce can’t be rotting away in other words. Underpricing is something a seller can really never do…even today in this buyer’s market, a home that is grossly underpriced will get multiple offers. Maybe we should just price it for a $1 (and then I’ll take two pounds of those!)
July 6, 2008
Consumer Reports - July 2008 issue - has a good article on the 8 Benchmarks of Borrowing. Follow these guidelines to avoid falling into financial distress.
1) 20% - Add your monthly car payment, average new charges on your credit cards, & other non-mortgage debt payments. The total should be no more than 20% of your gross monthly income.
2) 28% - PITI - Your monthly mortgage payment (including property taxes and insurance) shouldn’t exceed 28% of your gross monthly income.
3) 36%-48% - Ideally, your total monthly debt payments shouldn’t exceed 36% of your gross monthly income. Many people go above 48% - which should be avioded.
4) 80% - The total amount borrowed on your first mortgage, plus any second mortgage, home-equity credit line, shouldn’t be more than 80% of the property’s value. The lower this debt-to-equity ratio, the better.
5) 6 pts. - Low introductory interest rates make Adjustable-Rate-Mortgages look affordable. Most ARM’s come w/ a lifetime cap of 6 percentage points. If you are considering an ARM, add 6 percentage points to the “teaser” rate, then calculate the monthly payments under the higher rate. That’s your worst case scenario; if the result (with taxes and insurance) exceeds 28% of gross monthly income, dump this deal.
6) 6 months - You should have enough money to cover six months of living expenses in an accessible account for emergencies. Don’t use credit lines as a substitute.
7) 36 months - Don’t take out an auto loan that exceeds 3 years. Longer term loans can leave you “upside-down” with a loan balance that’s larger than the car’s depreciated value.
650-700 points - You’re generally considered a sub-prime borrower if your FICO credit score is below 600 for auto loans and mortgages and below 700 for premium credit cards and 650 for classic cards, says John Ulzheimer, president of consumer education for Credit.com, a loan information and referral website. If your credit score falls below those thresholds, you’ll pay higher interest rates.
Article courtesy of Consumer Reports July 2008 Issue
