February 23, 2010
Home Valuation is not a science. We are in a complex market. Are prices heading up again? Are they stabilizing? Are prices yet to take a hit? How then can we truly find an appopriate price for a home?
It takes local knowledge from a seasoned professional to really come up with a true value of a home. Maybe even an appraiser can not come up with a real value if they are “out of area.” There is no way these appraisers (or agents from out of the area) could have actually gone into the comparable homes. A local real estate agent who specializes in your neighborhood most likely will have been inside (maybe even more than once) most of the comparable homes in your neighborhood. Local real estate agents preview homes constantly as they come on the market during broker open tours as well as when they are showing property to their buyers and/or they have just been in the house since – as local area specialists you’d think they must live in the neighborhood and know the neighbors. Knowing the comps on paper and knowing the comps in person are two very different things. As an agent we can certainly gleen certain information from the MLS data – pictures, description, agent notes often tell a certain story, but being there in person really is the only way to “know” a house and it’s flow, footprint, flaws, etc. These are what really add or subtract from a homes value. Square footage, year built, recent remodels – granite, stainless, wood floors, etc… – do add value as well. But a quirky floor plan is hard to forgive.
Just looking at the comps on paper again is just not enough. Digging deeper, making some phone calls and researching time on market, distressed or not seller situation, what type of financing was used? These are all conditions that could make a difference in the pricing of a home, which in turn may or may not hurt the price of your home.
Noting the difference between the “asking” price of a home and then the “selling price” of a home can tell a story in itself. Clearly there is a relationship between time on market and the selling price. The closer to the list date typically closer to the list price a home sells for. The longer a home sits on the market, the further away the sales price is the original list price. How many price changes were made on a listing before it sold? These are all ways to really help determine what a home’s true value is. Often, a home that is priced right to start with will sell for more than a home that overprices and then follows the market down in price. This type of sale typically ends up as a loss for the seller. It languishes on the market and then looses steam and people start to wonder what is wrong with that house and in the end it sells for less – typically.
Valuing a home requires a full inspection of a home – inside and out. A discussion with a homeowner as to what improvements have been made can add value to a home and without knowing what those improvements are one can not accurately price the home. Obviously, market conditions drive the price as well. How many homes are currently for sale in that market? What has sold recently? What homes are pending sale and will offer the latest comps to come?
$/sq ft – can be useful in a “cookie cutter” neighborhood where all the homes were built the same year and have not been remodeled too much yet – think a newer planned unit development. (You know – there is floorplan A, B or C.) In an average suburban neighborhood built in the 50’s, there is too much differnce in all the homes – remodels, additions, improvements, etc to compare them this way. One can come up with a general average dollar per square foot, but of course the smaller the home that greater that number will be and vice versa.
As you can see, it’s not a science. There are so many factors. Please be sure to call a professional realtor in your area who is knowledgeable and who has been “around the block” for a while as they will have been in the comparables and will know it by heart typically.
January 13, 2010
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 5, 2009
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
October 21, 2009
The last two weeks have been very busy for us. We personally staged two homes here in the Hollywood Riviera. Both were on opposite ends of the average price spectrum. One was listed at $1.795.000 and the other was listed at $724,900. First the sellers were given lists of projects such as painting, landscaping and other small jobs. Then we came in with furniture and accessories to transform the average into the AMAZING! The staging took about 3 days per home. What was the end result? Both homes sold in less than a week, and both had multiple offers sending the sales price up above asking price!
I always knew that staging maximizes a sellers profit in a home, but sometimes even we are amazed at what a powerful effect it has. OVER ASKING IN LESS THAN ONE WEEK, in today’s market!
Is your listing agent working this hard for you? If your home is for sale ask yourself:
Have you staged your home for sale (with people who know how to do it properly)?
Have you had your home on the market now for over two months and are you doing endless price reductions?
Are you getting people who come to your home linger and stay a while, or do they bolt out the door?
If you are not having amazing results, give us a call. We will show you the way to top dollar in no time!
September 13, 2009
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.
July 12, 2009
The annual Summer of Music concert series is returning to the Redondo Beach Pier and will offer a wonderful variety of music backed by truly amazing sunsets. The free bi-weekly community concerts are presented by the Redondo Pier Association. Over 20 bands will perform music ranging from Blues, Country and Rock to Salsa, Swing and Surf. Concertgoers are encouraged to bring their own beach chairs for better enjoyment. The Redondo Beach Pier offers a wide array of dining, shopping and fun for the entire family.
July 4 – September 5, 2009
5:00 pm €“ 8:00 pm (July 4, 2009 only)
Beginning July 9, 2009, concerts will take place every Thursday and Saturday, 6:00 €“ 8:00 pm through September 5, 2009 with the exception of August 22, 2009 when concerts will commence at 2:00 pm. during the 7th Annual Chalk Art Festival. Complete event schedule below.
7/4 5:00 €“ 8:00 p.m. The Rogues Rockin€™ Blues
7/9 6:00 €“ 8:00 p.m. Upstream Caribbean
7/11 6:00 €“ 8:00 p.m. Danny Hamilton & The Mudslingers Roots Rock/Alternative Country
7/16 6:00 €“ 8:00 p.m. Sligo Rags Celtic/Bluegrass
7/18 6:00 €“ 8:00 p.m. Open Wide All-Dental Rock Band
7/23 6:00 €“ 8:00 p.m. Swingsations Swing
7/25 6:00 €“ 8:00 p.m. Couchois Brothers Rock
7/30 6:00 €“ 8:00 p.m. Shari Puorto & The Rhythm Addicts Blues/Rock
8/1 6:00 €“ 8:00 p.m. Floyd & The Flyboys Funk/Soul
8/6 6:00 €“ 8:00 p.m. Andy Walo Trio Blues
8/8 6:00 €“ 8:00 p.m. Thin Ice Rock
8/13 6:00 €“ 8:00 p.m. Scott Martin Latin Soul Band Soulful Latin Jazz
8/15 6:00 €“ 8:00 p.m. Kahuna Cowboys Americana
8/20 6:00 €“ 8:00 p.m. Nikki O€™Neill Modern Blues/Rock
8/22 12:00 €“ 4:00 p.m. 7th Annual Chalk Art Festival
2:00 €“ 4:00 p.m. School of Rock Classic Rock
4:00 €“ 6:00 p.m. Free to be Me Drum Circle
6:00 €“ 8:00 p.m. Surf Cats Surf
8/27 6:00 €“ 8:00 p.m. Tom Nolan Band R&B/Soul
8/29 6:00 €“ 8:00 p.m. Rod Lightning & The Thunderbolts of Love Rock
9/3 6:00 €“ 8:00 p.m. Boomer McLennan & The Rhythm Rangers Country
9/5 6:00 €“ 8:00 p.m. Hula Monsters Island
July 8, 2009
Hollywood Riviera Market Analysis – 2nd Quarter 2009 Sales
Great news for sellers this quarter, we had a 29% increase in sales volume! We have seen homes really sell at a fast pace in the past month here in the Riviera which gave us the increase in sales. Along with the increase in volume however, we continued to see the average sales price decline, but only by 13% if you look at the first half of 2009 vs. the first half for 2008. Not the horrific numbers that can be seen in various cities across the country. We chalk this up to the #1 rule of real estate: location, location, location. The properties in the most desirable parts of the state will increase in value quicker in appreciating markets and retain more of their value in declining markets. We are only off about 17% in the number of homes sold so far this year to the same time period last year. Not too shabby! The best way to get your home sold for top dollar is to hire a full-time, Riviera Real Estate expert who can stage and market your home for maximum appeal to buyers€¦ give us a call today!
June 24, 2009
I just wanted to update you on the amazing rapid clip the Riviera has been on for home sales. Look back to our May 19th, 2009 blog post and you will see that Kelly reported 10 homes in the sale pending category, with about 45 homes for sale at that time. As of today, June 24, 2009, I am very pleased to tell you there are 24 homes in the sale pending category with only 27 homes for sale (down sharply from a high earlier this year of about 52 homes for sale)! What a jump up we have seen lately. It directly correlates to a lot of positive news the media has reported in the past month, and historically low interest rates. Buyers perceive this a great time to buy, and perception becomes reality.
June 2, 2009
Your House as Seen By:
Yourself
Your Buyer
Your Lender
Your Appraiser
Your Tax Assessor
April 26, 2009
Here in the Hollywood Riviera real estate market there are 9 pending sales right now – that’s good news. The very good news for our neighborhood right now is that we have a home that was listed for $1,799,000 in escrow right now. There hasn’t been a sale above $1,465,000 since November 1st, 2008. This will create a comparable for the higher end market which has been taking a beating lately as far as appraisals go. Even if someone has wanted to refinance their home, the house has to go through the appraisal process and no higher end comps bring down the average.
Click here to see the current pending sales.
There are currently 43 homes for sale right now in the Hollywood Riviera. This includes everything from $625,000 for a fixer on Pacific Coast Highway to $2,799,000 for a brand new contemporary home looking over Torrance Beach. Click here to see the list of homes for sale in the Hollywood Riviera.
To see what has sold in the Hollywood Riviera since January 1st, 2009 – so a little longer than the 1st quarter ‘09…..Click Here. 12 homes have sold since January 1st, 2009. That is down from 17 homes the same time last year. The average price of the 17 sold homes last year was $1,190,000 and the avg $/sq ft was $577. The average price of the 12 sold homes in 2009 is $972,583 and the avg $/sq ft is down to $509.
