A few days ago, the local papers were reporting some negative headlines with regard to the national real estate market. A potential buyer came to me with a counter offer and referenced this headline as a way to back up his low offer.   The very same day, as I made my way through the paper, there was a regional real estate article which highlighted the positive increase in median sales and sales volume comparing 2009 to this year.  I guess you can pick and choose the news article that can back up your approach.

The national real estate market is irrelevant in my view.   I prefer to use data from the MLS (multiple listing service) .  I  also reference the article from the  August 25, 2010  Daily Breeze page A 15 that notes that in Redondo Beach (this does not include all the Riviera),  the median home price is up 5.4% from July 2009 to July 2010.

To be more precise,  the MLS data shows that the Hollywood Riviera tracks average sold prices up 2% this year from 2009.  Also in the Hollywood Riviera: there has been a 38% increase in the number of homes sold this year over last year in the first half of the year.
With the large number of homes in escrow in the Riviera right now, we are on track for a dynamite year in homes sales in 2010!

Everyone has a different point of view huh?

Are you around this weekend? It is a bit cold to go to the beach. Why not go see some GREAT Hollywood Riviera Homes for sale this weekend?
160 Vista Del Parque is a wonderful home and a terrific new low price of 999K! It is open both Saturday and Sunday from 1 to 4pm and has 5 bedrooms, 3 bath and 2286 square feet! It is backed up to wonderful El Retiro Park so it feels like you live near acres of green space!
422 Camino Del Campo is open both Saturday and Sunday from 1 to 4pm and is one level with large all useable lot and pool! $1,239,000!
And the gorgeous 127 Calle de Andalucia is open Sunday from 1 to 4pm with it’s gorgeous remodled style and pool! 3 beds, 2 bath and listed for $939,000!

Sold – Over Asking??? – Yes, it’s back to multiple offers again here.  I opened up my “hot sheet” in the MLS today.  The Hot Sheet is a “status update since the last time I checked – which was this morning by the way’ of my selected areas of interest – which would include pretty much everything in the South Bay from El Segundo down through Manhattan Beach, Hermosa Beach, Redondo Beach, Torrance, and ends at Palos Verdes (including all of  PV – Rolling Hills Estates, Palos Verdes Estates, Rancho Palos Verdes, and Rolling Hills.) 

So, I hit my “Hot Sheet” button tonight to see if there are any new properties listed, what’s gone into escrow and what has just SOLD since the last time I hit the button.  This is something I do several times a day usually by the way.  Well, tonight I run the Hot Sheet and it’s just overwhelming to me that I see 4 of the SOLD properties that have all sold “over asking price,” which to me means there were multiple offers. 

Here are the 4 properties – and they are in all price categories by the way.  Click here to see them.

1) 331 11th Street in Hermosa Beach – list price was $899K and SOLD price was $900K.  11 days on the market – 2 bedroom, 2 bathroom 2001 townhouse in the “Sand Section” of Hermosa Beach with ocean views.

2) 707 S. Juanita in South Redondo Beach – list price was$749K and SOLd price was $759K.  – cute little 3 bedroom, 1 bathroom single family residence that over a matter of one month started at $799K and then they reduced the price to $749K and then ended up selling it over asking.  The magic of the “right price” even done a little bit late!

3) 2100 Via Acalones, Montemalaga section of Palos Verdes Estates – list price was $2,195,000 and SOLD price was a whopping $2,280,000 – even in this price range we see homes selling OVER asking! – 4 bedroom, 2 1/2 bath on a huge 28,000+ sized ocean view lot!

4) 4515 Deelane, West Torrance – list price was$639,000 SOLD for $645,000!  3 bedroom, 1 bathroom remodeled charmingly – perfect starter home that clearly many wanted to get started in!

Hollywood Riviera – Is it Redondo Beach and/or South Torrance? – South Torrance doesn’t sound quite as romantic a place as Redondo Beach, but even with a Redondo Beach address, people in the Hollywood Riviera live in South Torrance.  It’s funny that there is a Redondo Beach address for people who really live in South Torrance.  It started back in the 1940’s when the first track of homes was built here.  Most of those homes are in the upper Riviera on the streets – Calle de Arboles, Calle de Madrid, Calle de Andalucia, Via Colusa and Paseo de Granada.  These homes were typically flat roofed and or very small in stature – no more than 1300 square feet – often 2 or 3 bedrooms with one bathroom. 

The city of Torrance where these homes were located is quite large and the closest post office was really far away, so this little area called the Hollywood Riviera requested from the Redondo Beach post office if they could deliver their mail to them.  The rest is history and now a good portion of the Hollywood Riviera (many refer to as the “original Hollywood Riviera” is left with addresses in Redondo Beach. Our ‘real estate map” that delineates the Hollywood Riviera” and its boundaries includes the area with the Redondo Beach address plus the “newer” Torrance-addressed portion (built in the 1950’s.) 

There is a difference in average price between the two areas. When comparing houses in this neighborhood it’s got to be figured whether the house lies in the Redondo Beach 90277 side or the Torrance 90505 side.  For instance, this year alone the average price for the solds on the 90277 side is $1.154K.  10 homes have sold in the Hollywood Riviera on the Redondo Beach side (90277) vs. the 8 homes that have sold on the Torrance side of the Hollywood Riviera (90505) with an average price of $849K.  As you can see there is a dramatic difference here – a 26% difference in price.  For one, the Redondo Beach side tends to have the homes right along the beach and with really good views vs. the Torrance side which includes some of the less desirable locations which brings the values down.  The lowest priced homes are almost always found on the Torrance side and the most expensive homes are almost always found on the Redondo Beach side thus leading the difference in average pricing.

One of the benefits to this interesting address if you live on the Redondo Beach side is that you are a resident of two communities so if you like to participate in community sponsored activities you can pay the “resident” price of both.  A small savings, but a savings none the less!

So as you can see there is a big differential in one neighborhood that a lot of people – a lot of real estate agents – don’t know about. This is why it’s so important if you ask me to work with a real estate agent who is “local.”  They will know the ins and outs of a neighborhood like no one else can.  Sometimes they will even know the specifics like who the neighbors are!

Today was our broker’s open tour day for the Torrance & Redondo Beach areas.  There were so many houses to see that you really had to concentrate on one area and just see those.  I did the Hollywood Riviera, 2 in South Torrance (Seaside neighborhood) and one on the Avenues in South Redondo. 

The price ranges were from $719,900 for a small house on Clearsite in the Seaside neighborhood of South Torrance to $1.649.00 for a large, 3800 sq ft, of new remodel in the Hollywood Riviera on Via Buena Ventura and then many in between. 

Clearsite – 3 bedrooms, 2 bathrooms + a family room, laundry room and bonus room off the garage.  The floorplan was a bit quirky but such nice curb appeal – $719.900

Via Buena Ventura – gorgeous floors, amazing floor plan (clearly planned by a woman), pretty kitchen, great backyard, great master suite with huge walk-in closet – $1.649.000

New one on Calle Mayor (there are few houses for sale on CM right now.)  Very well done remodel.  Great kitchen, nice finishes, pretty view and a nice floor plan – $1.219.00

Via Sego – not many come up on this small charming street in the Hollywood Riviera – This house is certainly dated, but has great bones, a nice ocean view and a pool.  The pool had this cool slide that came off the deck above it – guessing that wouldn’t be installed in 2010’s-world (I loved it!)  Had a lower level family room with fireplace as well as an extra bedroom and bath down there….a great party house – $1.299K

Broker’s Opens really help the agents get a sense of the market and what is happening.  We can’t sell houses to people without a sense of value.  You’ve got to see the houses to establish this.  These were some of my favorites today!

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.

Home sales rise to highest level

in 2.5 years

10.1 percent increase beat analyst expectations by more than sevenfold  

updated 1 hour, 41 minutes ago

WASHINGTON – Home sales far exceeded expectations last month, surging to the highest level in two and a half years as first-time buyers rushed to take advantage of an expiring tax credit.

The National Association of Realtors said Monday that home resales rose 10.1 percent to a seasonally adjusted annual rate of 6.1 million in October, from a downwardly revised pace of 5.54 million in September.

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. 

If you want a good pay-off, STAGE the property!  It’s so worth the extra time and money spent upfront.  Basically, sellers that sell without staging – which includes everything from finishing little jobs that have gone undone (think handyman), painting (can mean adding color or subtracting color), bringing in furniture and accessories that are appropriate for the style of the house, and de-cluttering of personal items.  Staging can cost some money and note that it’s money well spent.  Money that often brings in double what was spent if not more.  Either the seller can do the work up front and reap the financial rewards or the buyer can buy the house in “as is” condition and do the work – thus reaping the rewards themselves. 

Why would a seller leave money on the table? 

A good realtor who is doing his/her job should be able to advise a seller of what is the best use of money spent on staging.  It’s a lot of work that also costs time, but remember the old adage, “Time is Money.” 

We have two good examples of recent listings that were Staged prior to listing.  Both homes sold in less than a week with multiple offers – a seller’s dream!  Why not position yourself in the driver’s seat vs. the “buyer’s market – seat.” 

House #1 – Brand new construction, contemporary styling, yet was “unfinished.”  And many people find contemporary homes a bit cold.  We advised the seller to finish all the small jobs – jobs that are hard to finish when you’ve just spent a year in charge of all the other new construction jobs.  Paint played a big role in the staging of this contemporary.   Adding paint to certain “feature walls” brought drama, warmth and style to what could have been a very cold atmosphere.  Bringing in just the right stylish furniture and accessories creates a “lifestyle” that is to be envied and a need for emulating.  When it’s done right, we’re talking “Architectural Digest” and who doesn’t want that?  This house was listed for $1,795,000 and received multiple offers selling over it’s list price in 4 days!  “Staged Right” was the staging company that we worked with on this job.

Via Corona – Staged Living Room

House #2 – 1950’s original – Stager gets a hold of it – mind you this is not just any “stager” it’s Laura Kistemaker of “Staged Right” who is the best in the South Bay – she  takes control of the minor remodel which included refinishing the hardwood floors (adding some in a few places), re-tiling the kitchen floor, painting throughout (exterior, interior walls, cabinetry, etc.), remodeling the 1 1/2 bathrooms completely, and some landscaping.  On top of that, she completely staged the house – bringing in furniture for all rooms and all accessories to create the lifestyle that one wants.  Again, time spent upfront, but the outcome was huge!  8 offers in less than a week and sold over its asking price of $724,900.

Greenmeadows Living Room Staging

Wow, here is a photo of a bathroom that is literally covered in personal products.  What a shame, it even looks like an upgraded, granite counter top.  However, you can’t even see it because of all the clutter.  As a realtor who knows the importance of photos in selling the home before the buyer even gets there, this is an example of an agent not doing his or her job.  I would never take this photo!!! I would have asked the homeowner to clear off the counter, or just done it myself!  People out there, if your agent takes this kind of photo and loads it onto the MLS, get rid of them, they are not doing their job!