Hollywood Riviera & South Bay Real Estate Blog

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. 

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.

Your House as Seen By:

Yourself

Your Buyer

Your Lender

Your Appraiser

Your Tax Assessor

    
      (Photo care of the PVStreetFair Website)

Want some fun in June?  Come on out to the 22nd Annual PV Street Fair – up at the Peninsula Center off of Crossfield – Click here for directions.   If live entertainment, arts & crafts, carnival rides, great food and fun are of interest, then the PV Street Fair is for you.  They have a Top Dogs  event as well as a Kiddie Area for the little ones, so there is something for everyone.  Come on up and bring the family!  Saturday & Sunday June 6th & 7th.  Check the website for special discounts such as $25 all day unlimited rides wristband.    https://www.pvstreetfair.com/Home.html 

We had the good fortune of going on a private behind the scenes tour of the new Lowes resort, La Terranea, in its completion phase of building here in Rancho Palos Verdes last week!  What a jewel of a place to be added to the already beautiful Palos Verdes coastline – and just 20 miles south of Los Angeles Airport!  For those of us who live here it is a real treat to see all the public spaces the Lowes Resort owners have created – hiking trails, a sandy beach, restaurtants with outdoor fireplaces and firepits all on the rugged coastline with some of the most amazing ocean, Catalina/Channel Islands & coastline views ever!  Pelican Rock sits right below the La Terranea peninsula….it’s magical.  Featuring the Point Bar and Signature Restaurant – can’t wait for the next special event!

(photo care of the La Terranea Website – Point Bar)
102 acres make up this magnificent place – brand new construction – gorgeous landscaping – coastline, ocean and sunset views rivaled by few!  They are scheduled to open in June 2009 and will offer meeting spaces for corporate events as well as regal weddings and amazing  family reunions.  The grounds include include rolling lawns and gardens all designed to bring the magical ocean views into every event.

(photo care of La Terranea Website – wedding concept photo)

The pools – yes pools with an “s.”  There are some amazing spots to enjoy while at La Terranea – the pool at the “Spa” as well as the amazing slide pool, several hot tubs, a fun kids play area with the water dancing – you can bring the whole family to La Terranea.

 Best Deal in Palos Verdes Estates Right Now!

Check out this deal on Cinco de Mayo – Tuesday May 5th, 2009 – we had our broker’s opens today in Palos Verdes Estates – as we do every Tuesday.  It’s always fun to go out and see the new listings and figure out which ones are well priced and which ones “would you buy?”  Well, today there was a clear cut winner (in my mind anyway.)  4049 Via Solano is on one the best loved streets in Valmonte, a quaint neighborhood in Palos Verdes Estates.  This home sits right behind the walking trail and the gardens are so well tended.  There are nice city lights views – if you like sparkling lights at night you would like this one.  The house is small and in original, well-cared-for 1941 condition – pretty cool actually.  They don’t build houses with neat cove ceilings like they used to.  It’s the least expensive house for sale in Palos Verdes Estates right now to boot!  Super cute.  Click here to check it out!  The street is so ambient with lots of mature trees and quite a nice mix of old and new.  It’s truly lovely.

€œZillow€, €œRedfin€, €œTrulia€, €œEAppraisal€, €œHouse Values€, €œCyberHomes€, these are just a few of the websites out there promising to help you find your home€™s value.  It€™s so confusing, isn€™t it?  €˜Zillow€™ seems to be one of the top offenders if you ask us.  They would be great at finding a home€™s value if all the homes here were exactly alike with exactly the same upgrades, the same views, the same everything.  In the Hollywood Riviera, we all know this is far from the truth.  Each and every one of these houses is different…even the €œtracks€ are all different now.  So many have been added on to, or completely gutted and started over, and some have been torn down and rebuilt brand new.  Zillow, and these other websites rely solely on the public tax records to place value on your home.  Then they go through the tax records and find the most recent transfers within a certain proximity to your home.  We€™ve seen the €œzestimates€ be off by a few hundred thousand dollars.  A lot of the public tax records are inaccurate for one thing.  Often tax records have the wrong number of bedrooms, square footage, etc and again take in no regard for whether the property has a view or not…which we all know can change the value of a property upwards of $100,000 or more sometimes.  The bottom-line is that you need to hire a “human being” who knows the area well.  Someone who has been inside these houses and knows the condition of the homes. Someone who can come inside your home and see all the upgrades and assess its true value.  As Realtors we spend a lot of our time viewing homes – that’s our inventory, so we pride ourselves on knowing it.  This is how value gets established – knowing what the comparables really are. 

Recently, the number of sales is so low in our area, that it makes determining the value of a home very difficult.  There are very few homes to compare to “yours.”  Unfortunately, in today’s buyer’s market it works out that value is typically drawn by looking at the last comparable sale and taking about 10% off of that if you plan on “selling” the property and not just sitting on it. 

Oh my gosh… they must be kidding!  The new budget is calling for a reduction of the mortgage interest deduction. This reduction in deductible expenses will be for high income earners making more than $250,000 a year.  This group will see the deduction fall to 28 cents per dollar down from the current 35 cents for every dollar of their deductible expense.  In our area, this will effect a vast majority of home-buyers, which will further erode sales.   Please, please call your congressperson, your Senators and tell them no way, no how.  Here is today’s news release we received from the National Association of Realtors, who plan on fighting this all the way, and why they are doing so:

	Dear Fellow REALTOR®,You may have seen news reports about President Obama€™s budget proposal that was released today at 11:30 AM Eastern Time. A small section of the sweeping budget plan has the potential to become a major impediment to a recovery in real estate markets across the nation. NAR is 100% opposed to the provision that modifies the Mortgage Interest Deduction and is prepared to use its formidable array of resources against its enactment.As currently drafted, the plan changes the Mortgage Interest Deduction by reducing the amount of mortgage deductibility on families earning over $250,000. This proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values. If this proposal is enacted it will lead to a new round of price depreciation, will cause greater distress on the balance sheets of banks as the collateral value of mortgage backed securities declines. A second credit crisis could emerge before the first one is resolved.As you read this NAR is launching a multiphase plan of action to eliminate this provision from the budget plan. In the next 24 hours, NAR will be expressing our concerns directly to President Obama, to all members of the United States House of Representatives and the Senate, placing advertisements in the publications read by Washington, DC decision makers. Additionally, NAR will be forming a coalition with other groups affected by this proposal. This communication is the first part of our response, we will continue to update you as the situation and events warrant.Sincerely, Charles McMillan, CIPS, GRI 2009 NAR President

Enter to win Re/Max’s annual cruise giveaway.  Simply click here and enter your information for your chance to win.  Simply scroll down to referring agent and enter either Kelly Evans or Laura Medina and it is that simple.  The drawing for a winner is in April.  Good Luck!!!  Maybe you will be saying…  “Uno Mas Cervaza por favor!”

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There are still people out there looking for their “Home Sweet Home!”  Many people – we are in a normal real estate market here in our area – the South Bay of Los Angeles which includes cities such as Redondo Beach, Palos Verdes Estates, Rancho Palos Verdes, Hermosa & Manhattan Beaches, Torrance, etc.  It’s an area bordered by the Pacific Ocean – we call it the South Bay because the beaches curve around from Palos Verdes to Santa Monica and create a bay like shape.  The views from Palos Verdes looking north view the Santa Monica Mountains and vice versa.  The views from Santa Monica looking south see the hills of Palos Verdes…the views are really beautiful!    

Back to our “normal” market – that the  media would prefer not refer to.  The media likes to glom onto the ill effects of the banking industry malfunctions and the foreclosure rate which is through the roof in some cities throughout the country.  It’s depressing to read the paper, so I usually just give it a pass. 

People still have many reasons to buy and sell homes.  Growing families, job transfers, downsizing, opting for a different neighborhood/school system, etc.  Typically these are normal working people (who still have jobs) and can still obtain a mortgage since they have not borrowed every cent against their previous home and/or maxed out all their credit cards.  These people have been reasonable about their finances all along and will continue to be reasonable as time goes on.  Buying a home is still an investment for many people.  Most people I ask, “Do you think this home will be worth more or less in 5-10 years?” answer with “More.”  And I would agree with that sentiment.

Yes…most markets – including our “normal” market have taken a hit in prices – which were highly inflated from our “over-active” market of the past 5 years.  It’s been about a year now since we started seeing the decline here…not even a full year yet…it’s started about mid-year 2008 – from what I could tell.  Things were still rocking and rolling this time last year here in the South Bay.  Brakes went on around June 2008. 

Bottom-line for buyers – right now is a great time to buy into a great South Bay neighborhood and save quite a bit over last year’s prices.  And interest rates – which this time last year were sure to increase – have come down as well.  The Economic Stimulus Package of 2008 ended, but the Feds have new Stimulus Packages in the works that should benefit us all as we move forward!