Hollywood Riviera & South Bay Real Estate Blog

   New Hollywood Riviera Listing – under $1 million!  709 Calle de Arboles, Redondo Beach, CA 90277

You’ll want to come see this new listing either this Thursday (March 4th) from 12-2 or this Sunday (March 7th) from 1-4 because it is spectacular.  It offers a great lifestye in the Hollywood Riviera living close to the walking trail and not too far from the beach, Riviera Village and Riviera Elementary, Rocketship Park – these are all some of the fine benefits to living in this wonderful neighborhood.  This home has a sparkling pool and a bonus pool house with half bath and outdoor shower all in your backyard.  It makes for some fun parties or relaxing afternoons in the sun.  The minute you walk into this appealing home you are warmed by the light streaming in from the distinctive windows and clearstory windows in the open beam ceilings.  There is a gorgeous kitchen with honed black granite counters, wet bar and office area built in – and it’s open to the dining area/family room all warmed by a cozy fireplace.  Stone patio off the dining area perfect for BBQ’s.  Throughout the house there are gleaming walnut hardwood floors that are so pretty.  Wood with frosted glass interior doors add distinctive style to the home.  A sharp master bathroom boasts a spacious shower and lots of pretty light.  The master bedroom has its own private deck to admire the pretty back yard with gated pool area.  Don’t forget the bonus room – garage converted to a pool house with 1/2 bath and it’s plumbed for a wet bar.  This bonus room is perfect for whatever you desire – art room, guest house, pool/game room, home office, etc.  Come see it for yourself this week!

Sunset on Calle Miramar Jan 2010

January 28, 2010 – check out this amazing sunset we were priviledged enough to view the other evening out on a walk!  We are so lucky to live in such a beautiful neighborhood.  The beach is so close as is the very quaint Riviera Village for all your shopping, caffeine and culinary needs.  It’s the end of January and we’re able to head out, take a walk and enjoy an amazing sunset like this one!

Realtor Magazine January 2010 issue has a great article I wanted to share entitled, “10 Big Impact, Low Cost Remodeling Projects.”  I found it interesting as Laura and I specialize in getting our sellers’ homes ready for sale and more often than not a lot of these projects + a list of our own is included here.  Nice to get some affirmation that our list matches up in most cases with this list.  Here it is:

1) Tidy up the Kitchen Cabinets – Potential buyers do open the kitchen cabinets.  Homeowners can add roll out organizer trays so that when buyers peek in, they feel like there’s lots of room for their stuff.  (This holds true for your closets too – adding closet organizing systems are well worth the investment.)

2) Add or replace tile – By retiling very inexpensively, you make a room look way cleaner than it was.  Wake up a tired kitchen backsplash or bathroom vanity with new tile.

3) Add a breakfast bar – When a wall separates a kitchen from dining or family room, cut out an opening between the two rooms, add some granite or tile countertop, pull up a couple of barstools and voila – breakfast bar.  Taking the entire wall down may also bring back some of the expense as well, as open floor plans are one of the buzz words these days.

4) Install granite tile instead of a slab – Everybody likes a “granite kitchen.”  Installing granite tiles can be a much more budget friendly way to perk up that kitchen than the higher end slab material.  Although in our higher-end market, it may be worth the money to install the slab.  There are many “pre-fab” granite installers these days, that can do granite counters for much less than the custom guys.

5) Freshen up a bathroom without retiling – With a dated bathroom, putting in a new medicine cabinet ($100-$150), light fixtures ($75- $100), a faucet ($75 – $100), and a vanity ($200 – $300) can bring back your investment right away.  Add a new glass shower door for extra panache.  Bathrooms are on the “highly important” list of most buyers.  This is somewhere you really want to spend money and make it right.

6) Freshen up the basement – a finished basement is very well received vs. a cement block storage room (like most basements.)  Most of us here in Southern California don’t have basements however – so this isn’t on the top of many lists here.

7) Add a room – Look for large spaces that can be enclosed to create a new bedroom for just the price of creating a wall.   Especially when it’s a 2 bedroom home, a 3 bedroom is much more desirable in today’s market.  With more and more people working from home a 4th bedroom is even more desirable.

Spruce up cabinet fronts – painting, re-facing, re-conditioning, adding new hardware are all great ideas for cleaning up the kitchen and adding that “updated” look.  In this same vein, how are the appliances in the kitchen?  Adding a new appliance suite (matching finish) can be quite affordable as long as you stay in the mid-range of choices.  This highly appeals to buyers.

9) Replace light fixtures – In foyers, bathrooms, kitchens, dining rooms, bedrooms – all those old overhead light fixtures – change them out for newer, more modern fixtures.  And if the kitchen has one of those fluorescent light boxes – get rid of that and put in new drywall and can lights.  This is big bang for the buck.

10) Tech up the garage – Replacing the garage door opener with a remote touch pad entry system ($425) makes it look like a high end system.  Also consider a new roll up garage door and opener in place of an old manual door.  Those really date a house.

I am going to add #11 to the list as well as a few other important light remodeling projects that will reward you with big returns upon the sale of your home.  #11 to me is one of the most important projects any homeowner can embark upon to bring big returns!

11) Painting – inside and out.  Wow, now this really can update a home instantly as well as clean it up and make it ready for a new buyer.  This will bring you the biggest bang for the buck!

12) Landscaping – get rid of those old 1950’s shrubs and put in some more up-to-date environmentally friendly plantings.

13) Front door – the curb appeal of your house is so important and as the buyers stand at the front door awaiting their agent getting the keys they notice the front door and patio.  Make this area shine.

14) New interior door hardware – Do your door handles match?  Are they working?  This really updates a house – believe it or not.

15) De-Cluttering – this requires little monetary investment – merely time packing or giving away.  The less the buyer has to focus on that is not your house, the better!  Put it away and save time packing after your house is sold!

If you need us to come and help you get your house ready for sale, we will go through room by room with you as to the many changes you can make to help get your more bang for the buck!

December 5th, 2009 – Here in the Hollywood Riviera there are only 15 houses for sale right now.   6 on the Torrance (90505) side of the line and 9 on the Redondo Beach P.O. Box (90277) side of the line.  The Hollywood Riviera neighborhood has 2 addresses – Torrance and Redondo Beach although it should be noted that the entire area lies in the City of Torrance.  The Redondo Beach side is merely a P.O. Box and has nothing to do with the city of Redondo Beach.  Schools are all South Torrance – Riviera Elementary, Richardson Middle School and South High School.

Of the 15 homes currently for sale – the prices range from $615,000 on 5026 Pacific Coast Highway, Torrance, CA 90505 to 517 Paseo de la Playa, Redondo Beach, CA 90277 which is located right on the bluff above Torrance Beach listed for $3,500,000.  As you can see there is quite a broad range of homes for sale.  In the mid-range, let’s say $949,000 – $1,099,000 there are 4 houses for sale that all have different qualities that make them each unique. 

1. 4817 Via El Sereno, Torrance, CA 90505 – 3 bedrooms, 2 bathrooms with a nice open modern floor plan.  The house has many upgrades including a very decked out garage.  The home has a nice city lights view out the back from a nice deck with a built-in firepit and seating.  Surround sound package and high-end lighting systems make this home ready to move into today!  $949,000

2.  452 Via los Miradores, Redondo Beach, CA 90277 – 3 bedrooms, 2 bathrooms (although one bath is off the kitchen and not near the bedroom area.)  Newer kitchen with granite counters and stainless appliances looks out back to the sunny south facing pool area.  Main bathroom is nicely remodeled as well with double sinks and pretty tile.  $949,000

3.  359 Paseo de Gracia, Redondo Beach, CA 90277 – One of the few short sales in the neighborhood (currently there are 2 active on the market.) This one has been on the market a while and it was way over-priced at $1,179,000 but they just reduced the price to $958,000 which makes this 3 bedroom, 2 bath with over 1800+ square feet seem much more attractive.

4. 209 Vista de Parque, Redondo Beach, CA 90277 – as the name implies, it’s located adjacent to El Retiro Park and this nicely appointed, recently remodeled throughout 3 bedroom, 2 bathroom home priced at $1,099,000 is quite nice.

If you are interested in seeing any of these or other Hollywood Riviera homes for sale, just give me a ring or an email.
Thanks, Kelly

Good news for buyers (and sellers) – 30 year mortgage rates are still low – they have been hovering around the 5% mark pretty much all year.  Currently, the rate is just below 5% – which means you can buy a 30-year fixed mortgage of $600,000 for approximately $3,200 per month – that’s not bad.  Basically, for every $100,000 worth of mortgage you pay a bit more than $500.  Of course, there are fees involved – typically up to 1 point – or 1% which is paid to the mortgage broker for their services.  Other fees include those for escrow and title services and those can add up to another 1% sometimes in fees.  These mortgage fees are a write off on your taxable income (check with your accountant for specific scenarios.)

Last year at this time mortgages were averaging 6%.  The Federal Reserve has pumped $1.25 trillion into mortgage-backed securities to try to lower rates on mortgages and loosen credit.  Rates on 30-year mortgages usually track yields on  long-term government debt. 

So, if you wanted to buy a house here in the Hollywood Riviera that cost $850,000 – and you had $250,000 to put down – you would need a $600,000 mortgage to consumate the deal.  If you could get that 30-year fixed mortgage at 5% (see above example – your payment would be approximately $3,200 per month (+ taxes and insurance, of course)  VS. that same mortgage at 6% or $3600 per month – as you can see there is a $400 difference every month or $4800 per year.  That can make the difference between buying a house or not for some people.  So this year vs. last year is all good for you if you’re a buyer – lower prices for the home you are buying along with a lower price for the mortgage as well!

Almost Thanksgiving – wow!  Time is moving along as usual and so is the South Bay real estate market!  Not many homes that are under $1 million with good bones, move-in condition and nice views stay on the market too long any more.  Here are three such homes that are currently available.    Click here to be directed to the listings.

The first one has been on the market for about 58 days now and they have reduced the price 3 times – so clearly they are motivated at this point.  The current price is $998K (reduced from $1.199K originally.)  It’s a nice Hollywood Riviera home located on a cul-de-sac with a panoramic city lights view.  The home has been nicely updated and has an amazing garage! 

The next one is a brand new listing here in the Hollywood Riviera – it’s close to Rocketship Park and Riviera Elementary (but not too close!)  This home has amazing panoramic views and gorgeous hardwood floors to boot!  It’s very well priced at $949K.  I doubt this one will last long!

The 3rd good deal in the South Bay for under $1 million right now is in Rolling Hills Estates.  It’s right off of Silver Spur, so it’s got great access on and off the “hill” as well as being close to Peninsula Center shopping and Peninsula High School – an award winning high school in Palos Verdes.  It’s been recently updated throughout with a nice open kitchen.  Hardwood floors, a fireplace and sliding glass doors to the back patio and yard make the living room extra special.  For $899K it’s the most well priced of the three homes listed here today.  I bet this one won’t last long either.

If you want to see any of these homes, call me right away….doubt they will be around for long. 

There are currently 29 single family homes for sale here in the Hollywood Riviera.  They range from $530K (small fixer on PCH) to $3.5 Million (house on the bluff above the beach!)  That’s not a lot of inventory especially when you consider that only 6 months ago – May 09 – there were 49 homes for sale.  Our inventory has been selling.  Another plus is that the all the inventory is moving - including the high end inventory. 

Currently there are 15 homes here in the Riviera “pending” sale.  That means they are in escrow with a buyer in the process of purchasing the home.  That is typically a 30-60 day process depending what worked best for all parties.   These 15 homes range in list price between $589K – $2,248 Million.    The average price of the homes pending sale is $1,012,580.

Sold homes – if we go back and compare solds the 1st half of the year vs. the (not finished) 2nd half of the year you will see how the 2nd half of the year has gone much better for everyone.  Jan 1, 09 – June 30, 09 – there were 24 homes sold.   Their average price was $1,002,500. 
                                                                 Jan 1, 09 – Jun 30, 09 Solds 

Since then, July 1st, 09 – today (October 28th, 09) we’ve had 36 homes sell (that’s a 30% increase already and the 2nd half isn’t even over – remember those 15 pendings – most likely at this rate they will all sell prior to the end of the year which would make 51 homes sold vs that 24 (more than double the number of sales 1st half 09 vs. 2nd half 09.)  That’s good news for those who thought to sell the 2nd half of the year.  It also shows that the stimulus package the government is backing is working.  Not many of the people who get a $8K tax credit for purchasing a first home was seen here in this specific neighborhood, but people probably bought homes in lesser expensive areas and now those people who sold those homes can afford to move up to this neighborhood. 
July 1, 09 – Oct 28, 09 Solds

Someone says we have a million dollars to spend….you’re thinking “they’re gonna get a real nice house with all that money.”  Well, I guess it depends where you want that house.  Here in the Hollywood Riviera, it doesn’t get you much anymore.  You have decisions to make when you have a million dollars to spend.  Do we buy a great location with a house that needs work?   Do we buy a little less of a location but the house is much easier to move into?  Do we spend less than the million and really buy a fixer and use the rest to fix it up?  (again thinking of the location.)  When I say location, here in the Hollywood Riviera there are two addresses – although in the end it’s all the same address.  What does that confusing statement mean?  Well, half the Riviera has a Redondo Beach address (a P.O. Box address only though) Then entire Hollywood Riviera is located in the City of Torrance (90505).  There is a perception that is backed by numbers that show it’s more desirable, thus more expensive typically to live on the Redondo Beach side of the Riviera.  Take for example the following averages:

Currently there are 14 houses for sale on the Torrance side of the Hollywood Riviera (90505)

The average dollar per square foot of these is $537.
The average price of those houses is $1,005,850.
The least expensive is $560K and the most expensive is $1,795K.

Currently there are 18 houses for sale in the Hollywood Riviera with the Redondo Beach P. O. Box (90277) address

The average dollars per square foot of these is $627.
The average price of these 18 houses is $1,457,050.
The least expensive is $699K and the most expensive is $3.7 Million.

Now let’s look at the Sold prices Torrance side vs. Redondo Beach P. O. Box side – since January 1, 2009-

On the Torrance side – 28 homes have sold so far this year – January 1st thru Sept 13th.
Their average dollars per square foot price was – $461 (note that it’s lower than the “asking price” of the Active homes.)
Their average sold price was – $835,977.
The lowest price home sold for $605K and the highest priced home sold this year for $1,460K.

On the Redondo Beach side – 23 homes have sold so far this year – Jan 1st thur Sept 13th, 2009.
Their average dollars per square foot price was – $558. (again note lower than the “asking price.”)
Their average sold price was – $1,189,332.
The lowest price home sold for $810K and the highest price home sold for $1,815,000.

Bottomline – You’d think someone with a million dollars to spend would end the day much happier than the normally do.  It’s pretty depressing for me too sometimes to show someone how little a million dollars buys you these days.  We throw around “a million dollars” like it’s chump change but it’s a lot of money. 

What Would I Buy?

I often wonder when a buyer asks me what “I would buy” if given the existing inventory.  I love this question and when we (my partner/sister and I) go out to broker’s opens to preview new inventory…we always play this game.  What was the best deal today?  Best house for the least amount of money in other words.  When we go to broker’s opens we can see many homes in several price ranges of course.  But it usually works out that one or two stand out on their own regardless of the other price ranges (meaning compared to that $2 million dollar house how was the $900K house?) 

“Which house holds the most potential?” is usually one of the questions that runs through my  mind when thinking this way.  “Potential” – what is does that mean?  Lots of things go into the potential-bag.  Location is one of the key items in my potential-bag,  Location is so important.  A good location will appreciate more in an ‘up-market’ and go down less in a “down-market.’  This is huge.  I’d rather have a smaller house that needs some work (cosmetic) in a better location than a nicer bigger house in a worse location.  This is a huge part of Potential.  No one wants a “dump,” but a dump can bring in more money in the long run if you are willing to put in some work.  Cosmetic dumps are what you are looking for.  A house with “good bones” we call it.  That means the floor plan is pretty good to start with (not having to move too many walls.)  Opening up a wall between the kitchen/family/dining room is no biggie…but re-arranging locations of bathrooms &/or kitchens is a huge biggie.  This is not cosmetic…now we are talking “structural” and that gets expensive – if you have to hire an engineer it’s not cosmetic. 

Potential also can mean comparing it to recent sales in the area and recognizing a good value.  There are some values out there right now.  When a house sits on the market for a while – as many have lately – they can start to get lost in the inventory of homes.  When agents see things that have high Days on Market, they often overlook them and forget about them.  This is often a good way to find a value.  When something has lingered on the market a while, it is much more likely that a buyer can negotiate lots of terms and price of course.  Terms are often as important to a buyer as price though. For instance if you are a buyer with a house to sell and you find a good house that’s been on the market a while it is certainly possible that the seller may consider a “contingent” offer (contingent on the sale of the buyer’s home.)  This is not something most sellers would consider when they first put their home on the market in most cases.  So looking for those homes that are “coming down in price” – most likely the reason they are sitting the market for so long is that they started with a high price that has to start dropping to get noticed.  Unfortunately for most sellers who start “too high” with their list price is that they end up selling for less in the long run for the reasons mentioned above.  (Bad strategy for a seller if you ask me.)

So in the end – I would buy the house in the best location and for the most money that I could possibly afford today without breaking the bank on the mortgage.  That house will most likely suit your needs for a longer period of time (it is expensive to buy and sell) so you don’t want to buy something that is going to feel too small in a short period of time.  Maybe a house that needs a little work but maybe a house that is done too (depending on the price.)  Sometimes “doing a little work” gets out of hand and ends up costing more that it should have.  Sometimes “done” is deal.

Someone help me here…..it’s 2009 and digital cameras have been around for a while now.  Pretty sure you can pick one up at any Target, Best Buy, Radio Shack….heck, I bet you can get one at the drugstore.  But I still see new listings come on the market with no photos.  Saw one yesterday – it was a property listed for $3 million plus.  You’d think for over $3 million dollars there must be something of value to photograph.  Something to show the savvy buyers of a $3 million dollar property – maybe a view, maybe a wonderful spa-like master bathroom, a “stay-cation” style backyard complete w/ pool, spa and outdoor kitchen?  Who knows?  What seller of a $3 million dollar home decided to hire an agent who would market their property without any photographs.  I am sure they are coming shortly – or at least I hope so for that seller’s sake.

And then we’ve got the properties with the “messy” photos – love those!  OMG – might be better off taking no photos?  Check these out – these photos are taken from a townhouse I was checking out for a client of mine.  Makes you wonder doesn’t it?  Who is more at fault here, the seller for letting someone in to take pictures and not cleaning up or the photographer who thought it appropriate to take these photos in the first place or maybe the real estate agent who thought it a good marketing tool for their listing?  Ugh!

   
Nice Kitchen, but the mess is so distracting.        

Are the clothes even going to get clean in this laundry room?