Archive for 2012

SchifferLine 15 May 2012

Timely Real Estate News……………………………………………………………………….15 May 2012
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Los Angeles County Museum of Art –a treasure in your own backyard

It wasn’t always so.  LACMA, as it is popularly known today around the world, has until recently been referred to as the “step sister” of museums — a nice, local museum where the family could spend a few hours wandering the exhibits, have lunch, and see the nearby La Brea Tar Pits.  But things have dramatically changed.  While LACMA is the largest encyclopedic museum west of Chicago and attracts over 1 million visitors annually, it has literally taken the art and museum world by storm — in both deeds, exhibits, and quality of its collections and architecture.  

Originally LACMA was part of the Los Angeles Museum of History, Science and Art, and founded over 102 years ago in Exposition Park.  In 1965, the Museum moved to its new Wilshire Boulevard complex as an independent, art-focused institution — the largest new museum to be built in the United States after the National Gallery of Art.  

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World -class art…world-class architecture

Through multi-million dollar donations from many of the community’s leading philanthropists such as Robert O. Anderson, Eli and Edythe Broad, Bernard and Edith Lewin, and Lynda and Stewart Resnick, LACMA has grown its exhibition space to now include one of the world’s most impressive line-ups of collections in modern and contemporary art, American and Latin American art, and Asian art.  Its permanent collection continues to expand with additions of world-renown sculptures, paintings, tapestries, and most recently, LACMA made world news with the installation of the “Levitated Mass” by artist Michael Helzer — a 340-ton boulder, measuring 21.5 feet wide and 21.5 feet in height, which came to the museum, criss-crossing Southern California from its Riverside County quarry to find its final destination atop a 456-foot-long trench that one can walk under.  

It is not the first most eye- and media-catching event ever held at LACMA.  Perhaps the most famous of its exhibition was the highly controversial “Back Seat Dodge ’38″ sculpture (1964) by Edward Kienholz, who portrayed a couple engaging in sexual activity in the back seat of a truncated 1938 Dodge automobile chassis.   An interesting side note:  The museum agreed to keep the door closed, and it could only be opened by a museum patron who was over 18. This exhibit has been one of many record setting exhibits that has followed through the years.   

With the leadership of its forward-looking Directors over the past decade along with a very influential Board, and the combined generosity of a ‘Who’s Who Donor” list, LACMA is a “must-see” attraction today.  The incredible permanent and touring exhibits, the character and feel of the museum grounds and iconic new pavilions are truly world class.  The museum has shown its forward-looking vision by selecting some of the world’s most renowned architects to create and design pavilions worthy of the art they hold.  Truly, LACMA is the place to spend some quality time. During the summer months, they have wonderful jazz concerts every week.

Of note, the Docent council just celebrated its 50th anniversary, and my mother was just honored for serving as a docent since 1968. Congratulations, Mom!

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La Brea Tar Pits — it’s real.  It’s not animatronics

No, this is not on the Jungle Cruise….it’s not a new attraction from Universal Studios or Disney…it’s Mother Nature’s Real Thing — the La Brea Tar Pits.  This is the “home” to a few unfortunate souls (animals of all shapes, sizes) who wandered centuries ago into these unsuspecting pits of what is called asphaltum or heavy oil.  These pits consist of crude oil that seep up along the 6th Street Fault from the Salt Lake Oil Field, which underlies much of the Fairfax District north of Hancock Park.  But these pits have been forming for tens of thousands of years, and from time to time, asphalt would form a deposit thick enough to trap animals and when they entered the pits they were unable to free themselves.

The Tar Pits exhibits, which is adjacent to LACMA, are being excavated and studied — and has produced dramatic large mammal bones that are remains of saber-toothed cat, dire wolves, bison, horses, giant ground sloth, turtles, snakes, clams, fish, gophers and an American lion.  The park is known for producing myriad mammal fossils dating from the last glacial period…..and you can witness archeologists working at the Page Museum where the specimens are displayed.  George C. Page was a well-known Los Angeles philanthropist who felt from his early teen years that there should be an exhibit/museum and research center located next to the pits…and he contributed the funds to house the exhibits as it is today.                                          

George C. Page Museum exhibit

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Malibu is market on the rise….and it’s about time!

Malib, the fabled beachside community on the edge of the Pacific, is like other Westside communities:  it reflects the same oddities and challenges of the recessionary-market we’ve been living with since the late 2007s.  Malibu, like many other communities in West Los Angeles, has suffered in the residential market as well.  And regardless of how ‘famous’ it might be, fame can’t alone move real estate.  So it was good news to hear that Malibu is on the rise — real estate is moving at last. Coldwell Banker provides us with weekly updates on various Westside markets — and Malibu is one of my communities that I focus on.  
So, here’s the good news:  From the manager of our CB Malibu office as of 5 May 2012, the office is “extremely busy with offers and closings, especially on large high-end sales, on and off the beach.  Escrow closed on three beach houses last week in the $5+ million range, and one house off the beach went for over $10 million.”  In April, it was reported that sales are up 28.44%, and this doesn’t count several sales that closed after the report was generated.  

Unlike many other areas, Malibu has had such a large amount of unsold inventory where prices were not in a competitive range.  The report indicates that inventory numbers are coming down without having a panic about needing inventory.  That being said, most of the many beach houses that were sitting on the market over the last two years have gone into escrow or have sold….so, according to our CB manager, that’s great news, and “we’ll be needing good-quality beach inventory soon.”  Did you know that there are at least 12 wineries in Malibu?  

Sales volume continues ahead of 2011 pace….a far cry from a year ago

I wasn’t particularly impressed that our sales volume for the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — was only $24 million ahead of 2011 figures — or $624 million for this year vs. $600 million for last year.  On the face of it, that’s only a 4% increase over the previous year, but then I went back to the 15 May 2011 SchifferLine and discovered that for last year at this time, we were more than 10% behind the previous 2010 performance in sales volume.  So while we have slowed down a bit in our trending of upward sales volumes, we’re significantly ahead of where we were last year — demonstrating our market is still relatively strong.  

What we have seen this past April, for example, shows that Beverly Hills is having a good  year –.  Average sales price year to date is $5.223,090  vs. $7.031,266 last year .In April ’11 there were 10 sales over $3,000,000 including one at 10,675, another at 12,000,000,  another at 12,500, and another at 15,700 vs. 9 this past month, but the highest sale was $9,150.   In Beverly Hills Post Office the average sales price for April ’11 was $3,251,363 vs. $2,582,564 again with 4 sales over $3,000,000 with the highest sale at $11,725,000 vs. 6 over $3,000,0000 this year and the highest sale came in at 9.1. In Bel Air, the average sales price was $5,101,271 in April ’11 vs. $4,638,446 in ’12.  The big difference was obviously impacted by the one sale in April ’11 of a  
whopping $40,000,000 which was among the 7 sales over $3,000,000 vs. 4 in April of this year with the highest sale at $25,500,000. In Brentwood, in April ’11, the average sales price was $3,131,954 vs. $3,035,625.  In April ’11 there were 10 sales over $3,000,000 with the highest one coming in at $8.2 vs. 10 in April ’12  with the highest sale at $12,000,000.     I have always regarded median sales prices on a year-to-date basis as the only relative reliable # to gauge our market performance.

A tale of two markets……pricing is everything in today’s world

How you price your home for sale can either make you a hero or a bum.  It’s that simple.  In today’s real estate world, there are two markets — #1 — if the home is appropriately priced for what it is; and #2 — if the home is improperly priced.  These homes (#2) “linger” and sell for much less had they been properly priced in the first place.

While the economy and the real estate market ebbs and flows, pricing is as always everything — and I see the effects of how improperly priced homes fare on the market:  The picture is not that pretty….  

Let me give you a couple of examples:  A property recently came on the market near the Brentwood Polo Fields — it was a nice little house, in need of repairs that was a potential short sale, but extremely well priced, and it generated 35 offers!  While it hasn’t closed escrow, and I cannot give you the final sale price, we do know that the final sale price was over the asking price and it sold within days of coming on the market, and given the speculation of what the final sales price is will most likely not be a short sale.  And another example is a listing I took in January in Mountaingate — a lovely home, good condition,  perhaps some updating was needed (but not much), a beautiful city views; 3 bedrooms, 3 1/2 baths,  but has some freeway noise.  We had a fair amount of showings….but we realized that we needed to adjust the price — and we lowered the price by $100,000.  Within days, we had two offers and we just opened escrow with one of them.  

The point is this:  What is clear is that we are short on inventory on the Westside — the buyers are out there, and while sales volumes are still ahead of 2011, we’re not satisfied — and the biggest concern we have now is that we cannot provide our clients with the level of quality inventory and choices that we have seen in the “old boon times” of four and five years ago.  Warning:  Do you research….and hire an experienced real estate agent who knows the neighborhood and can guide you through this competitive maze.

What is quality inventory?  Positive vs. negative energy

I have talked about ‘quality inventory’ a great deal in the past, because, I suppose, that is the category of homes most
buyers are seeking.  Quality inventory means that it is 1) well-priced for where and what it is; and 2) condition is prime in terms of look, feel, and quality that comes through in all facets of the home’s interior and exterior.  It’s bright, sunny, and inviting — quality is felt and seen wherever you are inside and outside the home.  The home has its own “positive energy”.

Negative energy is easy to feel and see:  Buyers will walk into a property with their “cash-register mentality”.  As a general rule, buyers will look for deficiencies where they can knock down the price — carpets are worn or dirty; wood floors are worn – needing to be fixed or replaced; counters are worn or damaged; painting inadequate; appliances are old; kitchens and bathrooms need updating; and the yard and landscaping are below par.  So unless the property is being marketed as a “fixer” — then it’s a whole different kettle of fish.  This means that if something would cost $10,000 to replace — the buyers are going to factor in a $20,000 expense — to give them that “edge” or cushion.  And after inspecting a house with a lot of negative energy, the $$ add up quickly.  

So, seller beware!  Buyers are sophisticated and demanding.  They don’t like being on the losing end. .  In these short-inventory markets, there are a lot of competitors out there to snap up the best homes, quickly and aggressively.

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Connecting Kids With Nature

Some of the fondest memories of childhood are of my grand-father and I fishing. Just him and I a couple of fishing rods and the deep blue sea.   We used to go every week on the commercial boats off of Santa Monica Pier (I hated cleaning the fish we caught!) If we didn’t catch a fish, it wasn’t a problem. Those trips were adventures for me and I believe helped cultivate my awe of nature.

They are also among my earliest memories of being concerned about pollution, in the form of trash that would be along the ocean and beaches. It’s a shame that so many children today don’t get these learning opportunities and most of their nature education occurs via a screen.
TV documentaries can be great thing for many age groups – for example, Sir David Attenborough’s various series over the last few decades where he lets the animals and stunning camera work do most of the talking. .For children too young to venture out, TV can certainly be a positive influence environmentally speaking.
Unfortunately, nature documentaries and such these days are too often focused on computer animations and the “whoa!” factor – more fluff than substance. Regardless of programming quality; the best way to learn about nature is hands-on; whether it’s in a local park, or out the back of beyond.
It’s more than just allowing kids to explore the great outdoors though – it’s how it’s done that counts too. While getting kids to properly connect with nature doesn’t mean they should be forced to undertake a vow of silence, don burlap sacks and sleep under the stars using rocks as pillows, it shouldn’t involve excessive noise and destruction, nor be heavily dependent on technology. It should be an engaging experience, one that forces the senses and body to be used in a way they often aren’t in our lives.
If the next generation only sees nature as something cool on a very fleeting and shallow level; as something easily trumped
 by or viewed via a noisy internal combustion engine or gadgets; then the planet is in even bigger trouble than we realize.

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The SchifferLine 1 May 2012

 Happy May Day!

Mariachis, margaritas….America celebrates Cinco de Mayo and the Battle of Puebla

The perception many Americans have is that we are celebrating Mexico’s independence on May 5.   You see we Americans love to celebrate other country’s holidays too such as St. Patrick’s Day, Chinese New Year, or the weeks-long Octoberfest.  But Cinco de Mayo is not the celebration of Mexico’s Independence Day as many believe (actually, it is September 16).  What Cinco de Mayo commemorates is Mexico’s army surprising victory over the French on May 5, 1862, after the French landed a large force on the shores of Veracruz in the State of Puebla in late 1861.  France’s purpose for the invasion was to conquer Mexico and make it a Second Empire.  They also wanted to collect monies owed them by the Mexican government.  At the time, this victory symbolized unity and pride for what seemed like a “Mexican David defeating a French Goliath”.  And while the French were vanquished at this battle, they returned with 30,000 troops a year later and deposed the Mexican army, capturing Mexico City, and established Emperor Maximilian as ruler of Mexico, which only lasted three years.  Still, the Battle of Puebla, as it is called, remains a historic victory for our south-of-the-border friends, and we, too, take pride in celebrating with our friends from Mexico on Cinco de Mayo.

Olvera Street — the centerpiece of Cinco de Mayo in historic downtown Los Angeles

If you’ve never been to Mexico, it’s not far away.  I’ve been coming to Olvera Street since my childhood when my parents brought me to this very historic part of old Los Angeles.  Olvera Street started out as a short lane called Wine Street. In 1877 the street was extended and its name changed to Olvera Street in honor of Agustin Olvera, who owned a home at the end of the street across from the Plaza. He was the first county judge of Los Angeles. Several historic buildings line the street, including the Avila Adobe, built around 1818 by former mayor Francisco Avila, the Pelanconi House, oldest brick house in the city, dating from 1855, and the Sepulveda House, built in 1887 as an Eastlake Victorian business and residential building.

When socialite Christine Sterling walked through the Plaza and Olvera Street in 1926 she was shocked by the dilapidated condition of the oldest part of the city, and started a campaign to save it.   Mrs. Sterling envisioned a colorful Mexican marketplace and cultural center. With funding provided by six influential men and publicity from the Los Angeles Times, she started a corporation to revitalize Olvera Street.

One well-known business that moved to Olvera Street in 1930 was La Golondrina Cafe, the first restaurant in the city to serve authentic Mexican food With the City’s roots firmly established by early settlers from Mexico in the late 1700s and early 1800s, Olvera Street’s cobblestone street and buildings remain much the same as they did over two centuries ago.  Today, some 3.5 million visitors come to the area to dine in authentic, old Mexican restaurants and shop amongst the many vendors with stores and carts in this lively slice of old Mexico.

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The birth of the California-Mexican Cook Book.    Olvera Street was also the inspiration for a famous lecturer and author, Bertha Haffner-Ginger, who discovered Mexican food when she visited Olvera Street area in the early 1900s.  Having just started as a writer for the Los Angeles Times in 1913, Haffner-Ginger took a stroll through nearby “old Los Angeles” and sampled some of the area’s delicious foods, and she was hooked.  Lecturing and writing about “domestic harmony” and focusing on unique, primitive foods, Haffner-Ginger published her 96-page “California Mexican-Spanish Cook Book in 1914, which included a glossary of food terms and the first documented recipe and photo for tacos in the United States.

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Whom do you trust?  You find “trust” in the trenches…..

Like you, I find it frustrating to read about these real estate articles that come streaming from everywhere.  The real estate market is up, down.  The market is bottoming out.  Los Angeles home prices are up by this percentage or that percentage.  And after all is said and done, I look out the window at my home and think?  “What are they talking about”?

Certainly, I have respect for many national reports — because they are reporting on a “national situation”, not just what is happening in Bel-Air, or Brentwood, or Beverly Hills — the communities I specifically report on.  These are national and regional statistics that they are batting about.  And as a reader, you only see the headlines and perhaps read the stories that carry the sweeping overview of our city, region, or state.  But in the real estate trenches — where I work every day — I see a more intimate, more relevant picture of what is really happening in your neighborhood.

Yes, all of these reports affect the national real estate state of mind, and it does impact attitudes of buyers and sellers.  So when I sit on an open house and see the enthusiasm, the intensity and recently, the competition for really great listings, I see a lot of energy out there.

Statistics don’t tell the whole story — and while I rely to some degree on the Multiple Listing Service, I have grown skeptical of MLS monthly stats and take with a dose of reality any statistics that cover Los Angeles.  What counts is what is happening in your neighborhood, in your community, on your street; these stories do not cover your community do they?

For example, we have seen the local MLS allowing agents to double post a sale which really screws up the median sales prices and sales volumes. I have stated enumerable times that the median sales prices for your community are the best reflection of the ‘trend’ in evaluating how your community is doing with home prices.  However, that’s really too broad too.  For months I have been filtering out all of the double-posted sales to give you the most accurate information I can in the SchifferLine.

Being in the trenches every day gives one the “birds eye view “that reflects how buyers and sellers truly feel.  It’s one thing to read about prices in the newspaper, it’s another to sit before a seller and talk about how much they want for their home….or to negotiate for a buyer what they should pay for a home.  The intimacy and sensitivities of buyers and sellers experience is the “true reality”:  This is what I see in the trenches every day.

What you see from the trenches is the true reality of the market.  Flying at 30,000 feet cannot give you the pulse of the market down on the ground.  We live in a magnificent market — the Westside of Los Angeles is truly unique, and so when you see these stories, please understand that you are getting only a partial picture.

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And, the $64,000,000 question:  Are we bottoming out?

I can only speak for the trenches I work in  which is primarily West Los Angeles, although I just referred a client to an agent in Dallas Texas and another one in Hyde Park in Illinois.  I would say to any of this current national talk about bottoming out: “It’s too early to tell.”  From your standpoint as a seller or a buyer, national trends don’t count much when you are negotiating to sell or purchase a home: It’s the deal in front of you — what’s on the table?  Yes, we are definitely seeing an uptick in sales volume over 2011 as I reported in the SchifferLine.  But sales volume is not the most important story — it’s what homes are selling for — the price one is willing to accept and offer.  Let’s wait a few months to see what is happening in our communities — not what is happening in Colorado, New York, or Florida.  I will keep you posted on how the trenches are doing, and I must admit we have pretty nice trenches in Bel-Air, Brentwood and Beverly Hills!

Challenges on the home front.

The biggest challenge I see for home buyers is the lack of quality inventory in our market.  We are seeing very aggressive buyers who are anxious to close a deal.  Many buyers have come late into the market, selected their dream home, and discovered that they’re too late — multiple offers have already been made and the competition is intense.   Many homes are sold before they even hit the market, because our Westside communities remain so attractive and popular, not only with local buyers but with foreigners as well who know they can count on making a sound real estate investment.

Another issue is getting an accurate read on “price”  — either from the buyer’s or seller’s perspective.  Just how valuable is this home?  That’s the question we real estate agents deal with constantly — trying to set a realistic price that is fair to both the seller and the buyer.  One of the problems I have encountered is that the local statistics you might see on some of the online price evaluation sites just don’t take into consideration all of the factors of a home’s true value.  So where do you get the price evaluation?  I always state that the best person to ask is real estate professional, like me.  What do we use?  Simple:  We use comps: Pure and simple!  Comparable final home sales data are what is real.  They tell the story.  And it doesn’t make any difference if a seller believes his home is worth $2, 000,000 when the market/comps clearly show that the home should be priced at $1,750,000.  The longer a home sits on the market, the lower the price is when it is sold.  That’s a proven fact. I am always getting phone calls from appraisers asking for help in making up with a number that works and is fair.

If you would like a no-obligation review of your home’s value, please contact me, at 310-442-1384…..day or night.

Be A Rainmaker…..an inspiration

There’s a group of people on this Earth who have made a bold decision: They have decided to take on a career that promises them no paycheck on a daily basis until they deliver the goods. It delivers an abundance of challenges and problems to solve along the way in order to earn that paycheck.

It’s a job that is built entirely on competence and character mixed with the ability to create rapport, while maintaining ethics and truth even when it costs you. It’s advanced entrepreneurship…you have to want it because it’s going to put up a fight.  It says “You want it? Come and take it if you can, ’cause we ain’t giving it away here!”  Well, it sure feels that way doesn’t it?

This is a group who wakes up every morning with fire in their belly….creativity in their brain and a passion in their heart for the possibilities the day holds.  For what they can accomplish and build, they never, ever, ever quit.

The time they offer you is, oh, so precious, because it’s time not spent with their families, with their hobbies nor with their personal dreams. They offer you that precious time with the generosity of a mother and will defend how it’s spent with the watchful eye of a father. They are happy to be in service to you, to help you reach your goals and defend your right to pursue them. They are having fun, serving people, making money.
They are your Realtor, they are your Lender; they are The Salesmen or Saleswomen and they are in the most honorable profession on this planet; because nothing happens on this planet, until a sale happens: no economy, no employment, no wealth happens without sales.

This is my mantra.. to be of service to my clients and to have fun  and enjoy my life along the way.

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What is going on in my life you ask?

My wonderful Mother is celebrating her 90th birthday this month, so we are all going to Seattle for a weekend long party to celebrate her!  We are also planning a family cruise later this year when we can coordinate our busy schedules. She is fabulous, still lives alone, drives and I consider her as one of the many gifts I have in my life!!!

As for my business, I am very, very busy and enjoying every bit of it… I currently have a number of listings in Mountaingate, a lease listing in Bel Air Crest, and am negotiating a number of purchase agreements for a various clients in different areas, including Brentwood, and Westwood.

I also want to thank all of you who attended our Emergency Preparedness Fair in Bel Air Crest last weekend.  It was most successful and very informative for everyone who attended.

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SchifferLine 15 April 2012

Timely Real Estate News……………………………………………….15 April 2012
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Shifting mentality between buyers and sellers

The difficult job for a real estate agent today is to create the “meeting of the minds” between the buyers and sellers. With good properties, properly priced — as I have been saying — there is a plethora of ready, willing and able buyers out there.

Buyers’ – Definitely want to take advantage of the lower prices and interest rates; No always willing to jump in and make an offer.. Seem to want to wait, but also know that the “bell is ringing” and that the mood is shifting.

Sellers’ – Very defensive about the value of their home.  Know the value has probably gone down or what they would like for it to be, but that doesn’t apply to their house, sometimes just because it is their house.

Two weeks ago, I was working with a young couple who were looking for their first home together in Pacific Palisades, Santa Monica and Brentwood.  We found a beautiful home that everyone loved, including his parents.  The home had just had come on the market, and we were there for the first open house.  It was a popular open house — potential buyers were streaming in and out of the house while we were there and we all assumed it would sell quickly.  Our plan was to scoop it up before anyone else did.  We made an offer but it was substantially lower than the listing price.  We negotiated for two weeks and but we couldn’t come up with a price that everyone agreed on.  In the interim, some of the other houses we had seen when we first started this house-hunting journey had already been sold, some with multiple offers and all were in the same basic price range.  So the question my clients had, “if this house is so great, why are we the only ones making an offer”?  We ended up walking away, as we could not agree on the sellers final counter offer price. It is now on the market at that reduced price, and now it should sell.

So, what’s the answer here?  Price!  Even though it was a great house, the initial price was not realistic because it would have sold immediately.  It didn’t.

Another example of how these differences impact the sale of house:  Just last week, there were  11 offers on a home in Brentwood, three of which were all cash, and it sold over asking price. With another house in Pacific Palisades which had been on the market for a month, the sellers had gotten a few offers way under their asking price, and then they got three offers over asking price last week. It can be very frustrating for buyers in that they have all heard that it is a buyer’s market filled with anxious desperate sellers, and then they encounter the multiple offer scenario and they really don’t know what to do or think about this. What does this mean? It partially means that one of the most important jobs a good real estate agent has is to work with their both buyers and sellers to manage their expectations. Many buyers, who have been in the position of having made an offer on a property and lost it in a multiple offers scenario become gun shy and walk away — or they go with gusto and go way over what they might have initially paid because they just want to get a house!

Sellers who have had their homes on the market awhile and not have much activity, on the other hand, wonder: “What’s wrong with my house”? And 99.10% of the time — it’s the price. Their price is just too high! Sellers’ who procrastinate too long and see their price drop, end up losing more money  in the end then if they had started at the “right price” from the get go. My recommendation is to adopt a smart strategy: Take the emotions out of it, and start with a strong, aggressive price, because at the end of the day, you will end up selling the house for more money than had you trailed the price down. The numbers speak for themselves.

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Strong sales volume continues through first three months

Residential sales volume for the four communities I report on all showed sales increases for March 2012 over the same period for 2011.  Total sales volume for these four communities through the first quarter 2012 was $394 million vs. $333 million for 2011,a 18.6% increase.  Notably, Beverly Hills had approximately $123 million in sales for March vs. $115 million in March 2011;
Beverly Hills Post Office had $81 million vs. $60 million March 2011; Bel-Air had $90 million in March 2012 vs. $71 million for 2011 period; and Brentwood had $98 million vs. $85 million.  What is encouraging with these sales volumes is that the increases are spread evenly throughout the four communities – a very healthy sign.

Specifically, looking behind these sales volume numbers, Beverly Hills, had 19 sales in March 2012, nine in ranging in price from $1,100,00 million to $11.8 million  with 10 over $4,000,000, vs. 14 sales in March 2011 (with six ranging in price from $3 million to $9 million).

In Beverly Hills Post Office, there were 11 sales in March 2012 with prices ranging from $1,125,000 – $4,544,000 and only one over $3 million at $4.5 million vs. March 2011, with 12 sales with one at $3.7 million and one at $6.999 million.  Bel-Air had 15 sales with prices ranging from $ 451,180 to $11.5 million and 5 over $4,000,000 vs. eight homes in March 2011, with one sale at $890,000, one at  $7.4 million and one at $21 million.

In Brentwood, there were 18 sales in March 2012, starting at $928,000 and with four ranging in price from $4.8 million to $7 million vs. March 2011, with 13 sales prices starting at $1,100,000 with one at $3.6 million and another at $26 million.

I have avoided referring to the MLS’s #s for median sales prices because of the wide variances we get from their summarized data each month vs. the detail (behind the #s).  Suffice it to say, the volumes and pricing appear to be on a rising trend in these four communities – which is nothing but good news for all of us.

One of the statistics I haven’t shed a lot of light on is “Days On Market” — which compares the statistics for the actual number of days a home is listed to the day it enters escrow. From March 2012 to March 2011, these numbers are skewed by human foibles because even though the Multiple Listing Service has a “fining system” in place, for changes in a transaction status, many agents neglect to post their changes in a the required time frame. Therefore the monthly MLS stats for “days on market” are skewed by misinformation put in the system. That is one of the key factors a buyer looks at when considering an offering price.  We also use that number when setting a listing price.

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Income property…..rising rents are spurring new demand

You may not be interested in buying a new home or selling your current home, but perhaps you want to consider purchasing income property. According to specialists in income property on the Westside, now is the time to make an investment in income property. Prices are down, interest rates are still low – 4 – 5%.  As reported last week in the Los Angeles Times, rental prices are rising….indicating a strong incentive to invest in income property.

Another factor in your decision, of course, is that property values are still down from their highs of 2006 and 2007, you can get positive cash flow which is something we have not seen in a while.

According to the property income specialists who recently spoke at my office sales meeting, the approximate down payment for “A” area units (Beverly Hills, Bel-Air, Brentwood, parts of Venice, Santa Monica) is 50 – 55% down. And for properties in “B” areas it would be approximately 40% down payment – (Culver City, Mar Vista, West Los Angeles, other parts of Venice, and some parts of Los Feliz and Silver Lake).  For example, what would $1,000,000 buy you in income property today… a quality four-plex in a” B’ area.

Retail/office building update: There is also a strong market for retail/office buildings. A lot of owner-users are now buying buildings these days. What is very hot now is the Abbot Kinney retail area in Venice. Abbot Kinney retail and office area attract boutique, one-of-a-kind merchants, which gives the area a unique, local flavor.  And on another front, Target is coming to Westwood – taking over the old Home Expo space — across from Trader Joe’s (in back of Ralph’s).

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Fortune report indicators show housing market on mend…

One of America’s most respected business journals, Fortune Magazine, observed that “if you’re waiting for home prices to go up, then you’re missing signs the troubled housing market has finally turned around.” The article points out that many economists have concluded the US housing market has reached a turning point and is healing. Now, this may sound hard to believe after hearing about the glut of some 3 million homes in the foreclosure pipeline…lagging California employment #s…but these same economists
believe that while home prices have remained depressed compared to the 2006 bubble high, the recent pick-up in sales is what we should pay attention to according to economist Paul Dales at Capital Economics. After all, he stated,” prices tend to be a lagging indicator, and that it should take six months for any improvements to show in the market, if not longer”. “Even if the asking price
is at the right level when the home is first listed, it may still take a few months to find a buyer and another month or so before the contract closes,” Dales stated. “The selling price that is registered at the end of this process, therefore, relates to the market conditions somewhat earlier.”

Fortune points out that the evidence reminds us that perhaps we should change our expectations of what a housing recovery might look like, particularly following a crisis marked by record foreclosures and a financial crisis that sent the economy into one of the deepest recessions in history. “The recovery we have been anticipating is defined more on the rate at which the glut of vacant properties come off the market as opposed to any steady rise in prices, which some think won’t happen for years”, Dales said. Currently, the inventory of unsold homes in the US has dwindled, falling in January to 6.1 month’s worth of supply, the lowest since March 2005, and six months is considered ‘ideal’ for a healthy housing market.

As I have reported in the SchifferLine recently, there is not a lot of quality inventory in the marketplace, and in some cases, it will take several days to a week to get an appointment to see a home that is priced right and has the quality buyers are seeking.

And on the heels of Fortunes’ somewhat optimistic view comes the report last week that nearly a 1 million foreclosures will hit the market in 2012. Fortunately, the majority of these homes will be in the already hard-hit markets of Nevada, Arizona, Central California and Florida. But all of these factors — increased sales, stagnant pricing, foreclosures, and continued tight credit — all play pivotal roles in how our real estate market fares. The good news? We are in one of the most vibrant, most asset-rich areas in the world — Los Angeles’s famous Westside. We’ll fare better than most — so stay tuned

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The SchifferLine will take you on a tour of sites to see in Southern California
As part of my concentration of fun things to do close to home, the SchifferLine will begin pointing out to our readers the unusual, the rare, the different and unique sites of California’s rich heritage and history….our first stop is Pasadena’s famous Huntington Japanese Gardens which was recently opened after its restoration…..

Return of an Icon – Pasadena’s Huntington famous Japanese Gardens

After a year-long closure and a $6.8 million renovation, the historic Japanese Garden opened to the public on April 11, marking its centennial as one of the most beloved and iconic landscapes at The Huntington Library . Completed in 1912, the nine-acre site, with its picture-postcard views of Koi-filled ponds, distinctive moon bridge, and historic Japanese House, has attracted more than 20 million visitors since the institution opened to the public in 1928.

“The Japanese Garden is arguably the most popular spot at The Huntington,” says James Folsom, the Telleen/Jorgensen Director of the Botanical Gardens. “It is a garden that functions on multiple levels at once. It’s a magical place, intimate and inspiring, yet at the same time it teaches us about Japan’s unique landscape traditions, craftsmanship, horticulture, and rituals.”

Several new elements will enhance this “magical place.” Among the new features visitors will see is an authentic ceremonial teahouse, situated on a ridge above the existing Japanese House and set within a traditionally landscaped tea garden. A newly created waterfall cascades down the slope, visually connecting the tea garden to the ponds below.  The teahouse was donated to The Huntington by the Pasadena Buddhist Temple. Built in Kyoto in the 1960s, it made a return trip to Japan for restoration in 2010. Kyoto-based architect and craftsman Yoshiaki Nakamura (whose father built the original structure) oversaw the restoration. The restored teahouse was then shipped back to San Marino and painstakingly reassembled here under the tutelage of Nakamura and other expert craftsmen who had traveled from Kyoto for the project. Its location on a picturesque ridge will provide visitors with a stunning new vantage point from which to admire the vista below.Restoration of the Japanese House, a structure built in Japan around 1904, was led by preservation architect Kelly Sutherlin McLeod. Her research revealed a number of original architectural features that had been covered over or removed during the course of the past century. Elements such as the distinctive curves of the roof line, an elaborately carved ornament atop one of the gables, and original plaster and wood finishes have been restored, giving the house a dramatically different appearance, but one more authentic to the building’s past.

A Storied Past

The Japanese Garden is among the oldest and most elaborate of its kind in America. Begun in 1911, it was inspired by widespread Western fascination with Asian culture. The Japanese gardens exhibited at world’s fairs and expositions in St. Louis, Chicago, and San Francisco helped to fuel the trend. Henry E. Huntington shared this interest, and at the urging of his superintendent, William Hertrich, he decided to build his own Japanese garden on his San Marino estate. Many of the garden’s plants and ornamental fixtures came from a property in nearby Pasadena that had failed as a commercial venture. Purchased in its entirety by Huntington, the materials also included the Japanese House, an example of a type of upper-class Japanese dwelling typical of the 19th century. The moon bridge, commissioned by Huntington, was built by Japanese craftsman Toichiro Kawai. After the institution opened to the public in 1928, the Japanese Garden became a major draw for visitors. But by the advent of World War II, staffing shortages and the political climate caused the Japanese Garden to be neglected, with parts of it inaccessible to the public, and the Japanese House fell into disrepair. The Huntington (as it is now called) is closed Tuesdays but open the rest of the week — please check their web site for directions, hours, and pricing: www.huntington.org

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Please don’t forget to join us at the Bel Air Crest Emergency Preparedness Fair Sunday, April 29th 11 – 1.It is open to non Bel Air Crest Residents .You will be to purchase supplies, make arrangements to get your home, see presentations by the Los Angeles Fire Dept and the Red Cross and the children will be able to climb on the fire truck. There will be food and games. Please call 310 471-3755 to RSVP.

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What is happening in Carole Schiffer’s Real Estate World”

I just closed two escrows this week, one a lovely home in Mountaingate to a couple of first time buyers, and another home in Bel Air that is now up for rent for $7,000 a month until the owner moves here from Hawaii next year. I have a great custom home in Bel Air Crest also available for lease for $20,000 a month as well as a number of lovely homes in Mountaingate, some already on the market and a few coming on in the next week or two. As always I am ready to assist you with all of your real estate needs and I look forward to seeing you at the BAC Emergency Preparedness Fair on the 29th of the month.

C

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SchifferLine 1 April 2012

It’s finally Spring….the rain or what we had of it has for the most part come and gone, and we now we enjoy the full bloom of our incredible landscaping and trees that populate Bel Air Crest — we are so fortunate to have these gifts that truly enhance our neighborhood.  How lucky are all are too live here!
We have seen so many changes over the years at Bel Air Crest since its ‘founding’ in 1990. It is hard to believe we are entering our 22nd year as a community.  When I moved to Bel Air Crest in 1991, it was acommunity of “pioneers” — as we referred to ourselves.  Our association meetings were raucous affairs. Homeowners were constantly fighting with the developer over ‘this and that’, and shouting matches occurred often, making the evenings long and exhausting.  And having been on the association board for the past 20 years, we fortunately have gotten past those challenging times, and we no longer call ourselves pioneers.  Today, Bel Air Crest is a fully mature community with a very diverse group of homeowners from all walks of life who have, for the most part, treated their Bel Air Crest home as their castle.  Today, people drive up to their home, open their garage door, drive in and disappear.  Like many of us in these challenging times, it’s a wonderful pleasure to live in such a beautiful community and, yes, pull up the drawbridge to recharge our batteries.  Yes, Bel Air Crest is older….a bit more gentrified, if you can call us that

As you may know, myself along with a number of other BAC residents and Rick Cole have been working on helping get the community ready for a catastrophic emergency, i.e. fire, earthquake. We have been working very hard to not only make sure the community is ready, but to also assist in educating our residents on how to take care of themselves.  All of the experts tell us that every resident in the City should be prepared to take care of themselves and their families for 4- 7 days.  It is for that reason we are sponsoring an Emergency Preparedness Fair at the club house on Sunday April 29 from 11 am – 1 pm.   We will have a number of suppliers available for you to either purchase some supplies or arrange for services such as a gas shut off valve or a handyman to make sure that your big pieces of furniture or electronics are properly attached to the wall.  We will also have some food and games for the kids. If you have any friends or relatives who you think would benefit from joining us, please invite them as well. 

So, to answer that question that I get asked on a regular basis, what is happening with real estate and in Bel Air Crest specifically?  We have had a fairly active quarter.  It is interesting to note how things change in that there are times when we have only one or two Custom homes on the market vs. a much higher number of Canyon homes, and at this point we have only one Canyon home on the market and eight Custom homes on the market. Last year for the same quarter, there were five Canyon homes listed for sale, 1 Custom lot, and three Custom  homes. There were four homes in escrow, three Canyon and one Custom, and two closed escrows, both Canyon. There are a number of reasons as to the higher than normal Custom homes on the market and they range from the passing away of one of our long time residents to residents purchasing smaller homes because their family size has changed, and in some cases, they are purchasing bigger homes.  As in any area the reasons vary.  I have not seen or heard of anyone leaving because of the freeway construction taking place around us. If you own a custom home and would entertain doing a lease option, please let me know as I have a client that is not in the position to buy today, but most likely would be in about 6 – 8 months and would like to lease a home while they are putting their finances together. They are ready to move as their current lease is up at the end of Apri. I am still meeting people who have lived in Los Angeles for a number of years, who are coming to the community for the first time, and loving what they see.  I also have clients for the area who live in other parts of the city, and have kids who will be attending schools nearby and want to relocate to be closer to the schools. The reasons to live in Bel Air Crest are still very compelling. 

As always if you have or know of anyone with any real estate needs, please do not hesitate to give me a call.  In the meantime, I will see you around and please do join us on the 29th.     (RSVP is necessary).

Carole

 

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SchifferLine 15 March 2012

Timely Real Estate News………………………………………15 March 2012
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March is Women’s History Month — honoring their contributions

If you ever wondered why football players always say “Hi, Mom” when they’re on camera during a game, you get the idea: Women — and more precisely, Moms, play pivotal roles in all of our lives. And so it is natural to have a month-long celebration honoring the contributions of women who have helped move civilization forward in so many fields of endeavor or just life in general. Women have always struggled to get recognized for their importance and contributions to society, and it wasn’t even until 1920 when women in the United States gained the right to vote with the passage of the 19th Amendment.

Women’s History Month was actually inspired by a school district in Sonoma, California, in 1978, when it declared the week around March 8 as Women’s History Week. March 8 was already recognized as International Women’s Day. And when the event became so popular with other schools around the country, Senator Orrin Hatch (R-Utah) and Rep. Barbara Mikulski (D-Maryland) cosponsored the first Joint Congressional Resolution proclaiming Women’s History Week….and of course, this was so well received by various celebrations around the US, in 1987, Congress expanded the focus to a whole month.

The focus has always been on contributions of women who have “made a difference” — including a long line of distinguished first ladies from Dolly Madison, Eleanor Roosevelt to Michelle Obama to our first women Secretaries of State — Madeline Albright to Condoleezza Rice to Hillary Clinton. The list is endless, and so it is this month, we can think about the great women in our own lives who have been there for us, including my own…”Hi, Mom…”

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2012 gets off to fast start

The ‘hummmm” in the office is stronger, more vibrant than we have seen in a while.  Sales volume for the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — are all showing up and because of some large sales, the  median sales prices for February 2012 compared to 2011 is up a little. Sales volume for these four communities was $176 million vs. $170 million in 2011. Notably, sales volumes were up in three of the four areas — Beverly Hills, BHPO, and Brentwood. Only Bel-Air suffered a volume decline this year vs. February 2011.

As always, influencing the median sales price, which I believe is the fairest way to average out actual prices sold in single family homes were large sales of over $10 million — Beverly Hills Post Office recorded a sale of $21.750 million in February and had another sale of $6.750 million as well last month. Beverly Hills had two sales over $7 million; Bel-Air had a sale of $10.175 million; and Brentwood had three sales over $3 million — two in the $3 million range and one for $9 million.

There were a total of 30 sales for the month, and the average sales price vs. average listing price (always a strong gauge of market strength) was led by Brentwood at 95.5%; Bel-Air at 91.6%; Beverly Hills at 90.4%; and Beverly Hills Post Office at 89.7%. In other words, the average price reduction from the listing price to actual sales price is still hovering around 10% reduction.

This is not a seller’s market….yet. But we are continuing to see multiple offers on homes that are priced right.
The average days on market (DOM) is still over 100 days, with Beverly Hills at 96 DOM; Brentwood at 100 DOM; Bel-Air at 124 DOM; and Beverly Hills Post Office at 143 DOM.

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Rolling Spring break for schools eases congestion….what to do? where to go?

Perhaps I’m getting old….I never heard of “rolling Spring breaks” when I was growing up — maybe that’s because when I grew up we didn’t need them: There were  less people living in Southern California when I had a Spring Vacation in school. But with millions more living here in our Golden State, school districts have instituted the rolling vacation schedule — where schools are staggering their Spring breaks to ease crowding at popular resort towns (like Balboa, San Diego, Palm Springs) and make it easier for families to get around to popular attractions without the huge crowds all coming at once. The problem is if the kids go to different schools and each school has a different schedule, it makes it difficult to schedule something for the entire family to do together at the same time.  Did you know that nearly 80% of all domestic person-trips are taken by car, truck or RV? And that’s up 11% from 1994…and what that means is that most of us who are taking time off this spring will be going by automobile? And with gasoline prices going through the roof, you might want to consider some of the close by choices suggested by the Southern California Automobile Club in their monthly magazine, Westways. Given the price of gas today,   I thought it might be fun to give you some suggestions for day trips rather then “trips”. The obvious choices for day trips, of course, are the famous Southern California theme parks — Disneyland, Knott’s Berry Farm, Sea World, Magic Mountain, and Universal Studios — but there is a world of other free (or almost free attractions) that can appeal to the whole family as well — including the Getty Center, Getty Villa (Malibu), and a variety of nature and mountain walks in the nearby mountains. Different communities have wonderful venues that can entertain you and your family for a day, like Pasadena with the Gamble House, the Norton Simon & Huntington Museums, and a delightful tea at the beautiful Langham Hotel. Or how about the new exhibit Levitated Mass at the Los Angeles County Museum of Art?  They are in the process of putting it together, but should be most interesting when it is done. Museums abound in our area, all within easy driving distance –the Hammer (Westwood) to the Gene Autry Museum. One of my favorite places, of course, is San Diego and all of its famous attractions including the Gaslight District, USS Midway, San Diego Zoo or Legoland and Wild Animal Park.

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College debt can be a challenge for first-time home buyers….check it out

If you or someone you know is planning to buy their first home, you will have to consider the debt issues of your college loan if you have one. Many first-time borrowers have too much debt from college loans and as a result, either opt out of buying or they seek help from their parents — who sometimes co-signed for their children’s indebtedness. There are some sobering statistics to note: one in four college borrowers are carrying past-due student loan debts,  there is a higher delinquency rate than previously thought. About 167,000 former students are carrying more than $200,000 in loan debt, or about one-half of 1% of all student-loan borrowers. The average balance per borrower is $23,300. According to some experts, this is a “ticking time bomb” — a looming crisis threatening young adults, their families and the broader economy. There are some 37 million borrowers with student loans, of which 5.4 million had at least one past-due student loan account.

What’s worse, is that only 40% to 50% of students at the California State University system, for example, end up completing their degrees. And sadly, many scholars believe that America’s declining or stagnant college graduation rates have become an Achilles’ heel in the competitive global economy. The report issued by the New York Federal Reserve concluded that there are far-reaching consequences of these loan failures, which force students to make decisions that greatly affect their careers and the outcomes for their families and parents. And here’s one last statistic to sober you up: The latest outstanding student loan balance is $870 billion, which is nearly $200 billion more than the total credit card debt in the US.

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Foreign buyers focus on individual homes….

Now that Freddie Mac and Fannie Mae have left a trail of broken dreams because of the housing market meltdown, foreign clients are storming US shores with pockets full of money to pick up hundreds of thousands homes throughout the country. According the National Association of Realtors, foreign clients have purchased $41 billion worth of houses and apartments during the 12-month period ending March 2011 — that is roughly the same amount purchased in the previous period of 2010. And there are no signs this trend is abating.

While most of these are investments are via the rental market, there is another $41 billion spent by immigrants who moved here within the last two years and individuals with visas of more than six months — bringing the total to $82 billion worth of US residential real estate that was taken off the market by international buyers, up from $66 billion the year before according the NAR.

When a similar trend occurred in the early 1980s with Japanese buyers, there was a huge outcry that we were selling off America. Not so this time. The foreign share of the domestic housing market is a “small sliver” of the $1.07 trillion pie. And in today’s times, local economies are welcoming with open arms anyone who is moving into the neighborhood with money to spend. The most popular places for foreigners? California (of course), Florida, Texas, and Arizona.

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Top 10 overlooked personal tax deductions….

Here are some handy tax tips for you to consider…..1. Dependent parents. More and more often, middle-aged people take care of their aging parents, including paying some or all of their medical expenses. If you’re providing more than 50 percent of your parents’ financial support, and their expenses exceed 7.5 percent of your adjusted gross income, you may qualify for a big deduction. 2. Mortgage loan discount and origination fees. If you bought a house in 2011, make sure you check your Good Faith Statement and deduct any mortgage origination fees or discount points that you paid. The IRS considers all of these expenses prepaid mortgage interest, and mortgage interest is always deductible for primary residences. 3. Sales tax on a new vehicle.  This deduction comes with a lot of restrictions and stipulations—buying a used car doesn’t count, for example—but if you purchased a new car in 2011, you may be able to deduct the sales tax on the purchase, even if you don’t itemize your deductions. Depending on your filing status (i.e. single, married filing jointly versus married filing separately) and income, your deduction might be a little lower, and if you make more than $135,000, this deduction is not applicable. 4. Home energy efficiency improvements. If you make qualifying energy-efficient home improvements to your primary residence, like installing doors, windows, a water heater, furnace, or air conditioner, you may be able to deduct up to $1,500 off your 2011 tax bill. For more information, see this list of green energy tax credits.  5. Mileage for volunteer work. If you travel a long way to volunteer for a charity, you can deduct the IRS-determined mileage allowance for your commute back and forth. While the reimbursement rate fell a bit for business expenses last year, fortunately the 14 cents per mile for charity-related travel held steady. 6. Childcare
expenses when volunteering. If you paid a babysitter to watch the kids while you volunteered for your church or other non-profit organization, you can deduct that expense on your taxes.  7. Expenses for mentoring programs. Many volunteers for programs such as Big Brothers Big Sisters, Young Life, and youth groups end up spending a lot of their own funds on children by paying for meals and event tickets. You can’t deduct the money you spent on yourself, but you can deduct the cash spent on the child. 8. Continuing education deductions. If you itemize your deductions, don’t miss out on these miscellaneous itemized tax deductions: Subscriptions to professional publications, dues paid to professional associations, investment advisory fees, costs of a safety deposit box, and tax-preparation fees (even if you used online tax preparation software like TurboTax).  9. Jury duty pay. If you received jury duty pay, the IRS considers it like any other taxable income. But if you had to return jury duty compensation because you still had a salary from your employer while at jury duty, then you can deduct the pay from your tax return.

You don’t have to be a CPA or a math whiz to figure out that many activities, tasks, and everyday situations can be money-saving tax deductions. But of course fine print can always get in the way, so if you’re unsure about itemizing or taking certain deductions, consult a tax professional. The last thing you want to do is claim a deduction and pay it back later on during an audit.
Aren’t taxes fun?

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Light Rail Expo coming to the Westside.

We all complain about the horrible traffic on the Westside, I know I sure do… Expo is coming to the rescue.  As we have read and heard recently, the Expo stations connecting Downtown to the Sea is in the works with some stations already completed and in the final testing stations.  Here is the phone number to call for more information of the stations and the route (213 922-3976). Jim Kennedy is the Community Relations Manager for the project and his direct # is 310 500-1787, and email address; [email protected]  I would provide you with the link, but apparently is it full of virus’ and I don’t want to contaminate anyone’s computer.  According to a presentation I recently attended, there will be parking areas for us to leave our beloved cars and get around the city.  They are working with community groups (called stake holders) to assure their concerns are addressed.  .  As we are seeing with the construction for the widening of the 405, there are going to be some miserable days ahead of u, but hopefully in the end it will lighten the traffic gridlock that we all experience here.

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As for me, I am very busy, hold open houses most Sundays on one of my listings in Mountaingate, including my new listing at The Ridge, and/or working with some of my many buyers including selling homes in Brentwood and Bel Air, and condos in Santa Monica, Venice and the South Bay.

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SchifferLine 1 March 2012

Timely Real Estate News……………………………………………1 March 2012
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Let’s have a Spring Cleaning Party! How to make it fun

It’s a tradition — Spring time is Spring Cleaning Time. Unless you’re the type who wants to do it all by yourself, here are some handy tips to get your spring cleaning done quickly and put it behind you before Summer arrives with the whole family involved. It has been said that if you haven’t used/worn it in past six months, get rid of it.  I was told a few years ago by a coach, that the more clutter you get rid of, the more new and exciting things come into your
Life… and it is true.

Pick a day (usually a Saturday) when you don’t have a bunch of competing activities that require/demand anyone’s participation, including soccer or Little League games…
2. Make this into a “party” — invite everyone to bring their favorite CD and alternate playing them so everyone can listen, too. You can even pull out names from a hat as to whose CD gets played first/in what order.
3.  Gather supplies before the day arrives….don’t wait for the last minute and have to run out to get something — it destroys the momentum;
4.  Have some good snacks and drinks on hand for break times….choose your families’ favorites — you know what to bring.
5.  Make chores age-appropriate.
6. Turn off the ringers of cell phones — and enforce the rule that cell phones can only be accessed during breaks and lunch.
7.  Take pictures of the event — video and photos. Post on Facebook and/or Twitter. Let them show they’re having fun. 8.  And when you’re through, have a Grand Prize (several) — Best Worker; Best Job Done; Most Diligent; Most Creative, etc.

And finally, you may want to take the family out for dinner and a movie (after they clean up, of course). The Spring Cleaning Party can be an easy-to-organize, easy-to-finish event that will bring the family closer together and you will have accomplished a lot, too.

Happy Spring Cleaning Day!

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The Ides of March is not just the name of a popular movie — it’s been around a lot longer than that! The “Ides of March” has been with us for several thousand years and is most noted as the 15th day of March in the Roman calendar, probably referring to the day of the full moon. The word Ides comes from the Latin word “Idus” and means “half division” especially in relation to a month. It is a word that was used widely in the Roman calendar indicating the approximate day that was the middle of the month. The term ides was used for the 15th day of the months of March, May, July, and October, and the 13th day of the other months. The Ides of March was a festive day dedicated to the god Mars and a military parade was usually held. Perhaps the Ides of March is best known as the date on which Julius Caesar was killed in 44 B.C.(remember that?).

Caesar was stabbed (23 times) to death in the Roman Senate by a group of conspirators led by Marcus Junius Brutus and Gaius Cassius Longin. The group included 60 other co-conspirators according to Plutarch. Can you imagine the uproar on our cable news channel had that happened today? We’d never hear the end of it.
But leave it to William Shakespeare to bring the “Ides of March” into popular lore. The fateful meeting when Caesar learns of a possible plot against him is famously dramatized in William Shakespeare’s play Julius Caesar, when Caesar is warned by the soothsayer to “beware the Ides of March.” And who would play Caesar today? George Clooney, of course!

March comes in like a lion and goes out like a lamb.

Well, we’re waiting. And waiting. No lions anywhere on the horizon. One only has to look outside in the middle of January or February and see the bright, sunny skies and feel the 80-degree weather wrapping around you to understand why Hollywood is located in Hollywood. Why we have a parade on New Year’s Day in Pasadena. We are woefully short of rainfall this year, and frankly, I would love to see the rain falling outside my kitchen window and to see how fresh everything smells after the rain stops. But no rain also spells trouble down the road as we experience dry, draught-like conditions which can lead to increase fire risk.

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The operative key words today in real estate: “Global” and “Connected”

I wouldn’t call myself a techno-wizard by any stretch, but if you’re going to survive in today’s real estate profession, you have to be virtually connected and available 24/7 and you will have to learn to go global at the drop of a mobile phone. We’re all connected today, and the lesson learned came home to land in my lap while driving a client from Japan around last week.

I first met my client via my web site four years ago.  At the time, he and his wife were living in Hong Kong, but they wanted to move here to Los Angeles where he had grown up and attended USC. Timing was not right for them to have made the move then.  But through the years, we have stayed in touch while they moved around different parts of Asia because of his job. As an investment banker, with one of the biggest lending institutions in the world, he has had an opportunity to be in the forefront of watching and participating in the changing economic situation the world over.

So now that he and his wife and two beautiful children are ready to call West Los Angeles home for the next four to six years, we are looking for a home that suits their needs;  one that will also enable the children to attend one of the great private schools in the area. Having a geographically friendly home to the school was at the top of their list. As we were driving about looking at houses, I received a call from an agent who was in Miami on his way to Cuba to play in a baseball tournament for a few days.  We were finalizing a transaction where I am representing a buyer who lives in Hawaii; we had to get all the formal sign offs of the transaction by the deadlines, so time was of the essence.

To set the picture straight:  I am in Los Angeles….the agent representing the sellers was in Miami on his way to Cuba….the sellers were in Utah at their home….. and my buyer was at her home in Hawaii.  Talk about connections. And working globally!

My passenger client was listening to all this conversation going on(something he is used to as most of his business conferences are held in the same manner)….”Amazing….I’m just amazed at how all this gets done, and I’m just sitting here….taking it all in.” “Wow,” he said, “our world has sure shrunk, hasn’t it?” “Yes, you certainly could say that!” I nodded my head in agreement.

Being globally connected — that’s what I call it. Being able to stay connected wherever your client is. This is not unusual these days, we have to consider that we have to be available literally 24/7 — and yes, it’s a challenge.
One of the key attractions  on the Westside are all of the wonderful private schools we have here Enrollments are down because of the economy — and many parents have opted for public schools, which remain solid on the Westside. So
those with the ability to pay for these private school, we are seeing openings in these schools that we have not seen in the past.  In these challenging times, in order to facilitate a sale and manage the myriad of responsibilities during escrow — one has to stay connected, wherever the client is and wherever I am. It all just comes with our new territory. And frankly, I love it….thrive on it!

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Good news on the home front — nationwide homes sales up — a strong sign

The National Assn. of Realtors reported that January sales of previously owned homes rose 4.3% in the US, and inventories fell to nearly seven-year lows as lower prices, unusually warm weather and an improving economy lifted demand. This is a good-news report, because it shows that the market appears to be gaining speed.  The prices are not necessarily following the level of activity, but if the level of business continues to grow as it appears to do, then I would imagine that given the shortage of good inventory, the natural progression of supply and demand will kick into gear.   According to Laurence   Yun, the lead economist for the NAR, “Things are genuinely improving,” Yun’s forecasts have traditionally been on target and while these are what we call — trailing stats — they reflect a marked, positive change in the market. As we have seen on the Westside during the past year, we have experienced slow starts in the first three months of the year, only to see a rapid acceleration of sales volume as we move toward the strong selling months of April-June period. “It’s still the case that existing home sales are recovering, albeit only gradually,” said Paul Diggle, property economist at Capital Economics. Sales are up 13% over the last six months and up 38% from their mid-2010 low, “so there’s clearly an underlying recovery in place,” he said. Nationally, the median sales price in January was $154,700, a 2% drop from a year earlier. Home prices are usually weaker in the winter because there are fewer transactions, and the National Assn. of Realtors doesn’t seasonally adjust the price data. Inventories fell 0.4% to 2.31 million, the lowest since 2005. That represents 6.1 months of supply, the lowest since April 2006 and down from 6.4 months in December.
While working with some of my buyers lately, they all have been surprised by the number of multiple offers on properties they are interested in, or properties that have been on the market a very short period of time that already have an accepted offer.

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US Incandescent Light Bulb Phase-out

There seems to be a bit of confusion over incandescent light bulb phase-out
Legislation passed back in 2007 established a phase-out schedule for most incandescent bulbs; starting with 100 watt light bulbs in 2011 in California.5W light bulbs will be phased out next year and the 60W and 40W light bulbs will disappear in 2014.Consumers will still be able to buy 100 watt bulbs for a while, until stocks run out – which is expected to happen around mid-2012. From what I’ve read, some folks have been hoarding the darned things.

Incandescent bulbs are incredibly energy intensive considering only 10% of the electricity they consume is converted to light – the rest is wasted as heat. That wasted heat is money and often coal being burned. Still, some folks say they prefer the type of light they generate .

New packaging requirements have also commenced where the term “watts” is replaced with “lumens”. The reason for this is a watt is a unit of power, whereas lumen is a unit of light.
While packaging will offer some sort of “watt-equivalent” detail as well, here’s how the new ratings translate for clear, frosted and soft white general service light bulbs.

100 watt = 1490-2600 lumens
75 watt = 1050-1489 lumens
60 watt= 750-1049 lumens
40 watt = 310-749 lumens

That information comes from the American Lighting Association; which also lists a table for modified spectrum general service incandescent light bulbs. Additional packaging labeling requirements also offers consumers a greater amount of information to help them make a more informed lighting choice.

The types of light bulbs we can be replace our incandescents with will be either halogen or xenon hybrid bulbs that scrape past in terms of the new efficiency requirements; or Compact Fluorescent Lamps (CFL) and LED bulbs – both of which blast past it, with a *quality* LED bulb being the king of efficiency and serviceable life.

CFL’s are well established in the market and very reasonably priced these days. Given the increase of recycling points, the small amount of mercury CFL’s contain has become less of an issue.

LED’s can be a different kettle of fish when it comes to quality in some cases – you just need to be careful what you purchase; particularly given their higher price tag.
There is also a great deal of controversy regarding the handling of the mercury CFL light bulbs.

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What is happening in my personal real estate world?  I can only tell you that I am very busy.  As I have in the past I am working with approximately 10 – 12 active buyers (ready to purchase something in the next 30 – 90 days), and have two great listings in the Ridge in Mountaingate with some new listings in the wings, including a fabulous Custom home in Bel Air Crest that will be coming on the market in about two weeks for lease at $20,000 a month! Please let me know how I might assist you or someone you know with any of their real estate needs.

• About Carole
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• Selling a Home
• Buying a Home
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SchifferLine 15 February 2012

Timely Real Estate News………………………………………………15 February 2012
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You don’t have to go to New Orleans to celebrate Mardi Gras

The 18th annual Mardi Gras in San Diego’s Gas Lamp district is back.  The largest Mardi Gras celebration on the West Coast, San Diego’s 18th annual celebration in the Gas Lamp district takes over downtown San Diego on Fat Tuesday, February 21.  Although much smaller and cozier than the famous Mardi Gras celebration in New Orleans, the authenticity and charming Gas Lamp area of San Diego makes this a must-see if you’re in the mood for fun and joining other Fat Tuesday celebrants

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Leap Year (2012) and Leap Day (February 29) are fast approaching

Every four years, we get to play Leap Year and Leap Day.  February 29 is Leap Day and is the one day that we add a “day” to our calendar to make sure we catch up with the Earth’s rotation around the sun.  We all do the obligatory snicker when someone says that because they were born on February 29 (in one of the former Leap Years), they’re not as old as they really are.  So how did this all get started?

Julius Caesar, Father of Leap Year

Julius Caesar was behind the origin of leap year in 45 BC. The early Romans had a 355 day calendar and to keep festivals occurring around the same season each year a 22 or 23 day month was created every second year. Julius Caesar decided to simplify things and added days to different months of the year to create the 365 day calendar, the actual calculation were made by Caesar’s astronomer, Sosigenes. Every fourth year following the 28th day of Februarius (February 29th) one day was to be added, making every fourth year a leap year. In 1582, Pope Gregory XIII further refined the calendar with the rule that leap day would occur in any year divisible by 4 as described above

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Home prices surge for first month…..sales volume down

There’s good news and not-so-good news:  Home prices surged upward in the four communities I report on  — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — for the month of January when compared to same period in 2011.  But sales volume was down 25% for the first month as well, which dampens some of my initial enthusiasm for the start of the New Year.

On the good news side, however, Median Sales Prices were up in all four communities for January 2012 compared to January 2011.  Beverly Hills, which had a great January, was up 60% over January 2011.  Beverly Hills Post Office was up 25% over last January; Bel-Air was up 30%, and Brentwood nudged ahead by 3%.  Year-To-Date Median Sales Prices are the best gauge how our neighborhoods are doing in terms of home values.  Each month, the Multiple Listing Service (MLS) continues to track monthly sales and for the most part, the #s are trailing statistics at best.  Homes sold in December may not show up for three or four months, depending on when the escrows close.  And, as I have noted in the past, MSL has had challenges in eradicating double booking a sale when two real estate agents record the same sale.  I try my best to weed these out, but sometimes, it’s difficult based on the way MLS sends out its data.  Still, our #s remain the best guideline as to what is happening in our communities.

When you track median sales prices for December 2011 sales vs. January 2012 sales, Beverly Hills had a huge statistical leap of 110% increase for this year — with the average MSP of $4,800,000 vs. $2,280,000.  Bel-Air showed a 46% increase in January 2012 over December 2011, with a MSP of $1,935,000 vs. $1,654,000.  BHPO was down 5% for the same period as was Brentwood.

What does this mean?  It’s too early to tell?

One month does not make a year, and while it is encouraging to see all four communities I report on in the positive area, it doesn’t necessarily mean we’re going to have a spectacular year.  I will share with you that we’re seeing a lot of activity at open houses, and I’m off to one of my best starts already.

One of my recent sales was to a wonderful lady from Hawaii who came here to shop for a home close to UCLA ((She had already done her research on the Internet (California Moves, Trulia) and she was very focused and organized.  Our combined – 50 homes, most of which we looked at in a crush of 4 days.  About  25% of the homes on the lists had at least one offer, some as many as 10 pr had gone into escrow while we were looking.. But fear not, we did find “that special one”, and now are going through the inspections. She really had not totally planned to find something that quickly, but fortunately we did.   I am relating this story to illustrate the current state of the market.  .

One of the key factors in this market is the challenge to even see the home you want to inspect.  In Beverly Hills, for example, it may take you three or four days, and in some cases, a full week — before you can even get an appointment to see the house.  And one of the reasons for this is that there is not a lot of good inventory out there now.  Good properties are hard to find, and many homes are being gobbled up before they even get on the market.  And as an aside, a house next door to my Mother’s home in Beverly Wood, came on the market and had 11 offers on it.  We couldn’t believe it.

The point is that the Westside continues to attract buyers from all over the world — it’s all about location, isn’t it?

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Los Angeles County luxury home prices make up some lost ground
In a larger context, the luxury market is finally getting traction in Los Angeles County.

I attended the Previews Directors meeting of Coldwell Banker’s Los Angeles Company today.  This is the group of Coldwell Banker agents that specialize in the higher end market (in West Los Angeles, that cut off is $2,000,0000 and slightly lower in other parts of the areas covered by the Los Angeles Company which includes all of Los Angeles, Ventura and Santa Barbara counties).  The energy in the room was palpable, and exciting in that the difference in the production and sales volume between, just the first six weeks of 2012 vs. 2010 and 2011 were appreciably higher.  Thus far, there have been two sales over $20,000,000, one in Beverly Hills Post Office and the other in Bel Air (both of these are closed escrows).  The sales volume in Beverly Hills is up 30% from the same time last year, and in Bel Air, it is up about 10%; in Brentwood it is up approximately the same amount and the same in Beverly Hills Post Office. One of the areas reported on was Santa Monica, and there it was reported that of the 58 active listings, 46 are in escrow!  The only area that is suffering is Marina del Rey, with Venice recovering faster than the Marina.  You can’t keep a good home down long.  Last year brought a dose of real estate reality to many wealthy areas of Los Angeles, including tony San Marino which endured a 7.2% decline in median sales price, erasing gains from the previous two years.  And where beach areas have remained strong over the past decade, Hermosa Beach was the big winner and Malibu a big loser.  San Diego-based Data Quick pointed out that “looks can be deceiving” — while some areas made some strong gains in 2011, they really were just climbing back to previous levels — not highs, but levels that deteriorated during 2010 and 2009.  One of the main reasons for the rise in luxury home prices has been the lack of homes for sale at the top of the price spectrum.

According to Data Quick, Bel-Air and environs had a 14.3% price increase from 2010 to 2011, but it came off a 10.5% loss in the 2009-to-2010 tally.  The 147 recorded sales in Bel-Air included the $85 million Spelling mansion, which claimed the highest priced -sale distinction for Southern California for 2011.

In Beverly Hills’s desirable 90210 Zip Code, prices were up 7.3% compared with a 1.7% drop the year before.  Malibu was hardest hit with a median sales price drop of 21% to $1.65 million over the previous year.  And Santa Monica’s 90402 had 110 existing home sales at a median sales price of $2.141 million, an 8.5% price drop….and Pacific Palisades took a 7.8% hit as well, which has been its third consecutive loss in a row.

All in all, the market appears to be strengthening as we enter 2012.  Year-to-date median sales prices will tell our story for the most part….but there can always be a Spelling Mansion hitting the market, too, which influences all of these stats.  At the end of the day, your home’s value will be based on what buyers are willing to pay for it.

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What an impressive event….my Uncle’s military funeral

I really didn’t expect a memorial service out of the ordinary….at my age, unfortunately I’ve been to many, but I must share with you the absolutely impressive, moving military funeral given for my Uncle last week.  He was 83 and had served as a pharmacist in the US Army in Korea.  Born in Brooklyn, New York, in 1928, Art served as an officer during the Korean War and on getting out of the service in 1953, he worked as a pharmacist in Long Beach, where he passed away after a long battle with lung cancer.  At the memorial service, his coffin was draped in the American Flag, and three honor guards walked in perfect unison, smartly turned to face us, and then another soldier played taps. After taps, the honor guard tri-folded the American Flag and gave it to my Aunt as an expression of America’s gratitude for Art’s contributions in the military.  The entire ceremony was very moving!

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Amazing spider silk

Spider silk – stronger than steel, tougher than Kevlar – and beautiful

A fear of spiders isn’t uncommon, although often unfounded. I know of far more people who have been bitten by dogs or scratched by a cat than have been bitten by a spider. Sometimes fear can be turned into fascination once we understand more about something.

A fascinating aspect of spiders is the webs they weave – not just the intricate nature of the construction, but the silk used to spin the web, which is the strongest natural or synthetic fiber known. Spider silk is made up of complex proteins. Researchers have been keen to figure out how to replicate spider silk, but have so far only decoded the silk’s DNA for a handful of species of spider.  Spiders create different types of silk depending on the application, with some species may create up to 8 different silk types.

The interest in creating spider silk based products for applications such as ropes and protective clothing becomes apparent when you look at the properties of the silk.

According to Wikipedia, spider silk strength is better than that of high-grade steel and is as strong as Kevlar; which is used in bullet proof body armor. It’s very lightweight and it would only take a strand of spider silk weighing around a pound to encircle the entire planet. Some webs are strong enough to capture small birds and bats. Spider silk is able stretch up to 140% of its length without breaking and retains its strength below -40 degrees Celsius.

Spiders are great recyclers too when it comes to their silk. After a couple of days, the web strands lose their stickiness – so the spider eats that section and weaves a new one. While silkworms have been farmed for their silk for thousands of years, there hasn’t been much success in spider farming or harvesting spider silk as they can be cranky little critters who have a tendency to eat one another. However, that doesn’t mean to say there hasn’t been any success.

An example of just how beautiful spider silk can be as a fiber for textiles is captured in this cloth, made from the silk of the golden-orb weaving spider.

An embroidered cape made of spider silk.
Crafted by Simon Peers and Nicholas Godley, 2011
Image credit: Victoria and Albert Museum

An image of the full spider silk cape can be viewed here. I’m not at all a fan or spiders, I found this to be absolutely beautiful. Aside from the amazing workmanship, what you see is the natural color of the silk. According to the accompanying report on the ABC, 1 million female golden orb spiders contributed to the 4 meter (around 13 feet) cape. Spiders were captured in the highlands of Madagascar each morning, harnessed in special equipment and their silk extracted; then returned to the wild. I’m not sure how the spiders felt about the whole ordeal though – and if they are the same golden orb spider we have here in Australia, the handlers would have been risking a nasty bite.

Trivia – there are well over 30,000 species of spider and only 200 species have bites that can cause health problems in humans (allergic persons aside) – less than 1%. Three species of spider go extinct each year.

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SchifferLine 1 February 2012

Timely Real Estate News…………………………………………….   1 February 2012
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In case you haven’t noticed, Super Bowl XLVI is coming to a living room near you.

Even if you don’t like professional football, you can watch this Sunday’s 46th Super Bowl ads and know that you are making history (again) as being part of the largest American television broadcast ever.  Last year’s 2011 Super Bowl attracted the largest-ever telecast in American TV history with 111 million viewers (160 million worldwide), and this year’s match between New York Giants and the New England Patriots is expected to surpass that landmark.  Whether you are game watcher, ad watcher or just like to graze the food, the Super Bowl has become an unofficial national holiday and Americans consume more food on Super Bowl Sunday than any other holiday except Thanksgiving.

Held in the Lucas Oil Stadium in Indianapolis Sunday, February 5, the game’s history is replete with football heroics and, most importantly, with television’s most expensive advertising — this year, ads will cost $3.5 million for a 30-second spot, not including production, which adds a minimum of another $1 million.

What is the most famous Super Bowl ad?  You’re right:  It was the legendary 1984 Apple commercial which introduced the Macintosh, created by Chiat Day Advertising right here in Los Angeles.

This 60-second commercial, developed by Lee Cloud and directed by Ridley Scott, has been voted not only the best-ever Super Bowl ad but the best television commercial produced in the last century.  Super Bowls have a way of inspiring the creative minds we have in advertising.

You can expect this year’s Super Bowl advertisers will have that famous commercial in mind — from the acclaimed Budweiser frogs to e-Trade’s talking baby to sexy GoDaddy.com ads, the ads have become as much a part of the spectacle as the game.

The National Football conference leads the American Football conference 24-21 since the two met for the first time in January 1967 before 61,946 at the Los Angeles Coliseum, which featured Vince Lombardi’s Green Bay Packers who beat Kansas City, 35-10.  The Pittsburgh Steelers have won six Super Bowls….Dallas Cowboys and San Francisco 49ers each have won five…..Green Bay has won four….and the New England Patriots are pointing toward the fourth win.  Who are you rooting for?  I’m pulling for the Giants.

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The “405″ takes on new meaning…..a term some say will live in infamy

I’m not normally in for hyperbole, but it was interesting to hear a recent New York transplant describe her reaction to driving the 405 freeway after arriving in our Golden State from New York (actually she is now bi coastal).  “I’ve learned to swear in Californian:  405!”  Heard that before?  That’s California Speak — and for all of us who have struggled on the 405, we wonder “why am I doing this?”

What is particularly depressing at times is that as you drive up or down this critical Los Angeles artery, you can see the nightmare stretching out before you…there is no break, no speed up.  However, I have learned that simply by using the 405 widening project’s Twitter site , you can get timely updates that can help you navigate your daily comings and goings.  It really works, and once you get used to scanning Twitter.com/I_405 a few times a day, you’ll be able to 1) get where you need to get by missing clogged arteries, and 2) lower your blood pressure. It tells us what is open, what is closed and the timing for openings and closings of streets, freeways, etc.   Perhaps one day, the 405 will take on a newer, more pleasant meaning…..we can hope.

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Valentine’s Day creates a great opportunity to show ‘you care ‘

Just to remind you….in a recent survey, 67% of females felt their Valentine’s Day celebration “failed their expectations.” So, I thought it worthwhile to pass on different, fun ways to celebrate Valentine’s Day…..Balloon Goodies — insert candy surprises into balloons before inflating them….add a folded-up Valentine’s message and then inflate each balloon — tie with a red ribbon and present on Valentine’s morning.  Family Affair — have the children help you prepare red Jell-O with cinnamon hearts mixed in….or heart-shaped cookies….pink-colored Angel food cake, topped with strawberries and Cool Whip.  The Gift of Time — give a hand-made coupon for some work you can do to free up time for your spouse or parent.  Scavenger Hunt — Prepare hand-written Post It Notes with sweet messages and attach with a candy heart or other treat…..place around the house where they will be found all day.  Picnic fun — you can either place a blanket on the floor near a ‘lit fireplace’ with candles on the mantel…and have a Valentine’s meal with a bottle of your favorite bubbly or invite your friend or spouse to a Valentine’s picnic in the park.  And , of course, there are the traditional flowers and card — the most popular gift of all are roses delivered to work or home to your loved one….interestingly, women surveyed prefer other colors besides red, too!

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Out of the box — extending your reach, your market

Having spent 30 years in the real estate business, the hallmark of my survival (and success) has been my ability to work “out of the box.”  Every two weeks, I report on four communities in The SchifferLine — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood.  But my reach is much longer and my “box” is much bigger than these four communities!  My discerning clients come from and go everywhere — from far away in China or Mexico or Russia — or from just around the corner.  So it is critical that I can serve ALL their needs — and that’s exactly what I do.  They all have unique wants and needs that cannot always be served by one community or the next.

During my career, which started in Marina del Rey and extended into Venice and Santa Monica in the early 1980s, I have always been involved in the ‘goings and comings’ of the entire Westside — alert to local trends, real estate values, and most importantly what is happening in every community on the Westside, that is one of the reasons I serve on the Board of Directors of both the Century City and West Los Angeles Chamber of Commerce.. Knowing ‘the neighborhood’ is not a fancy marketing phrase — it’s the foundation of my core business philosophy of serving a diverse, demanding client list that expects a real estate agent who goes that extra mile — outside the box, too!

Here is a partial list of properties I’ve sold in the past five years:
A partial list of homes and condos I have sold in the last five years that are not in Bel Air Crest, Mountaingate, Brentwood Circle, Beverly Hills Post Office

Beverly Hills: Spaulding, Chevy Chase, Wetherly, Bedford, Rodeo, Tower, Summit,  Camden.

Brentwood Park: Avondale, Rockingham, South Bristol, Carmelina North & South

Marina Del Rey & Playa Vista: Via Dolce, Playa Vista, Ketch Mall – Bought & Sold

Westwood: Wilkins -Bought & Sold, Wilkins – house & condo, Rochester Av, Ohio

Pacific Palisades: Palisades Drive, Paseo Miramar, Castlemar, Strathmore

Santa Monica: Ocean Ave – house, Ocean Ave – condos, Alta, Margarita, 11th, 24th, 25th,  Montana

Other Areas: Avenida Del Mundo, Coronado CA, House in Arizona, House in Hawaii

* – not a complete list

I represented the clients as buyers, sellers and sometimes both buyers & sellers.

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Investment properties are on the radar as demand grows

Over the years, I have assisted clients in a variety of real estate investments, and I wanted to share with you some information about the investment property market. In addition to single-family residences, I can help you with your investment property search. Here is a recent update from the Reis Observer on real estate investment published in November, 2011:

The Reis Observer, which publishes quarterly reviews of real estate news on the major US markets, identifies the Westside (which this report covers from downtown Los Angeles to the ocean) as the most affluent section of Los Angeles County. Northern sections such as the San Fernando Valley and Tri-Cities area (Glendale, Burbank and Pasadena) mix affluent and middle-income communities. Southern and eastern sections of the county are less well off.  Downtown has been the location of a recent condominium and apartment development boom, beginning with the reuse of older office buildings and shifting to new construction. While the economy in Los Angeles County isn’t not faring well at year end according to Reis, the good news is that the 761,500-unit market-rate, investment-grade Los Angeles rental apartment market continued to tighten in the third quarter of 2011, and rent gains began to accelerate. While new supply is gearing up, demand far exceeds it, and this is expected to continue through the end of the year. The national press has noticed.

According to Multifamily Executive magazine, “job growth, healthy investment sales, and a long-awaited decline in vacancy have the apartment sector looking up in Los Angeles County.”
Here is a list of the various sub markets in Los Angeles County:

Westside

As of October 31, 2011, the 40,991-unit Beverly Hills submarket has a vacancy rate of 3.3%, and an average asking rent of $1,844 per month for the third quarter of 2011, fourth highest among 37 submarkets in Los Angeles County according to Reis. The vacancy rate fell 20 basis points in the third quarter, and is down 60 basis points year-over-year. Rent gains were above average, with the average asking rent up 1.0% for the quarter, and the average effective rent up 1.2% to $1,797 per month. The year-over-year gains were 2.4% and 2.6%, respectively.
In the 35,975-unit West LA/Brentwood/Westwood submarket, the vacancy rate is 4.5% and the average asking rent is $2,194 per month, the second highest county-wide, Reis reports. The vacancy rate was unchanged during the quarter, but is down 100 basis points year-over-year. Both the average asking rent and the average effective edged up 0.1%, the latter to $2,109 per month. The year-over-year gains are 1.6% and 1.8%, respectively.

The average asking rent in the 18,300-unit Santa Monica submarket, at $2,358 per month, is once again the highest in metro LA, according to Reis. The third quarter vacancy rate is 3.3%. Rents rose sharply here during the quarter, with the average asking rent up 1.5%, and the average effective rent up 1.6% to $2,234 per month. The quarter accounts for nearly all of the increase from a year earlier. Vacancy has been essentially flat in Santa Monica for a year.

Central Los Angeles

The 14,065-unit South/Central Los Angeles submarket has a vacancy rate of 3.6%, and an average asking rent of $901 per month, the second lowest recorded by Reis. In the third quarter the vacancy rate increased 20 basis points, but it is unchanged from a year earlier. The average asking rent rose 0.6%, and the average effective rent increased 0.5% to $875 per month during the quarter. The year-over-year increase is 1.0% by both
measures.

For the 44,402-unit Wilshire/Westlake submarket, Reis reports a third quarter vacancy rate of 3.9%, and an average asking rent of $1,207 per month. The vacancy rate was fell 20 basis points in the third quarter, and is down 70 from a year earlier. Both the average asking rent and the average effective rent rose up 0.6%, the latter to $1,184 per month.

In the well-established pattern of gentrification moving out from a central core, much of the multifamily development action is in this submarket near Downtown. In the 8,780-unit Downtown submarket, the vacancy rate is 5.8%, and the average asking rent is $1,809 per month, fifth highest according to Reis.
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SchifferLine 15 January 2012

Timely Real Estate News…………………………………………..     15 January 2012
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What are you doing January 23?  Happy Chinese New Year!

You don’t have to be Chinese to celebrate Chinese New Year. Also referred to as the Lunar New Year and Spring Festival, Chinese New Year is the most important of traditional Chinese holidays.  It marks the end of the winter season, and the ‘festival’ begins on the first day of the first month in the traditional Chinese calendar and ends with the Lantern Festival which is on the 15th day. Now don’t refer to your Gregorian calendar to get your dates right — doesn’t work… This celebration began centuries ago and is scheduled this year for Monday, January 23, 2012 — the year of the Dragon.    Where is the best place to be?  Hong Kong would be my vote.  Plan B would be Beijing!

Interestingly, the Chinese have figured out the right foods to eat on New Years to guarantee wealth, happiness and luck for the coming year — bamboo shoots (symbolic for wealth); black moss seaweed (symbolic for wealth); dried bean curd (happiness); fresh tofu is not served because the color “white” symbolizes death and misfortune; chicken (happiness); eggs (fertility); egg rolls (wealth); whole fish (prosperity); Chinese garlic chives (everlasting, long life); lychee nuts (closed family ties); noodles (long life); oranges (wealth); peanuts (long life); pomelo (abundance and prosperity); lotus or watermelon seeds (having a large number of children); and finally, tangerines (having a lot of luck)!

Every Chinese restaurant worth their chopsticks will have a broad selection of these items on their New Year’s menu….and Monterey Park is the place to be if you can’t get to Hong Kong or Beijing! G?ng X? F? Cái. Happy New Year!

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There may be a way to derail the foreclosure juggernaut

One the biggest factors in dragging down home prices — and your equity — are the glut of foreclosed homes that keep coming on the market.  There are an estimated 4 million homes in the foreclosure pipeline — homes that have begun the three-step foreclosure process combined with those already past the “save me” mark — which is over 2 million.  These homes have been an albatross around our economy’s neck, but federal officials hope to launch a pilot program in early 2012 to convert government-owned foreclosures into rental properties.

The program, which was cited by Federal Reserve Chairman Ben Bernanke last week as one way to address the housing crisis, would sell foreclosed homes now owned by Fannie Mae and Freddie Mac to investors in bulk. The properties would then be converted into rentals.

Me thinks this is an outstanding way to keep these foreclosed properties off  the market, thus helping to preserve the ‘normal’ market price for your home.  When bank-owned homes come into our neighborhoods (yes, even in Beverly Hills or Brentwood or Bel-Air), they can dramatically affect the comparables, which are used by appraisers and buyers to determine the ‘true’ value of a home.  These devalued properties, in turn, affect your home’s price, and obviously, lessen your equity.  These devaluations can amount to as much as 30% in some Westside neighborhoods, and in the inland California counties, the price reductions (re: equity) can amount to more than 50%.

The initiative began back in August, when the Federal Housing Finance Agency, the Treasury Department and the U.S. Department of Housing and Urban Development announced they were seeking suggestions on ways to dispose of repossessed homes now owned by Fannie Mae, Freddie Mac and the Federal Housing Administration.

In addition to getting the properties off the government’s books, officials are hoping putting the homes back into productive use which will stabilize neighborhoods and housing values. Also, it is looking to expand the supply of rentals, which are increasingly in demand.

The agency is not releasing details on how the rental program would work, instead saying it is “proceeding prudently but with a sense of urgency to lay the groundwork for the development of good initial transactions in early 2012.”
Administration officials said they are continuing to work with the agency to develop the program.  Stay tuned — this could be a positive program to stave off future foreclosed homes negatively impacting our home prices and equity.

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2011 is history….and it ended on a relatively high note.  What will 2012 bring us?

I always am nervous about the monthly stats I receive from the Combined Los Angeles Multiple Listing Service (CLAW) — our semi-official tracking organization that handles the goings/comings of our residential real estate market.  I have to confess I don’t always ‘trust’ these numbers — because we have seen in recent years there is a tendency to double record home sales (two registered sales for the same house by different agents involved in the transactions), and these have skewed the median sales prices which many of us count on as the barometer of how we’re doing.  They have promised to be more diligent about keeping these double recordings out of the system, but I have yet to see them make that change so I have my own ‘methods’ of deleting these double-dip sales.

December 2011 stats are in:  And what we find that year over year, overall sales for the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — are up 9% over 2010.  We sold just under $2 billion — $1.998 billion to be exact.  And that’s over the 2010 year-end number of $1.835 billion.  So, the market has made some progress in overall sales volume, but this increase also has an asterisk next to it: Last year’s total sales included some rather large transactions that made a bigger-than-normal impact on the #s — including Jennifer Aniston’s home which sold for $39 million and the Aaron Spelling estate, which sold for $85 million after being on the market for nearly three years at $150 million.  But one must always remember, too, that every year, we have these anomalies in some form or another — we have many large estates on the Westside, especially in Beverly Hills and Bel-Air, so when these $20-million-plus homes are sold, they greatly affect the ‘median sale prices’….but over time, these all even out, too.

Median sales prices are the key to understanding the market rather than looking at short trends (like from month to month), and the year-end numbers continue to show a steady market – one that is holding its own.  Beverly Hills, the community with the highest median sales price on the Westside, was down 10% over 2010, at $2.863 million for 2011, compared to $3.181 million for last year.  Beverly Hills Post Office was up 12% over 2010 — with a median sales price of $2.050 million vs. $1.850 million for 2010.  Bel-Air stayed even with 2010 median sales prices — $1.609 million for 2011 vs. $1.600 million for 2010.  Brentwood inched up 4% in median sales price over 2010 — with $1.793 million vs. $1.722 million for 2010.

Beverly Hills Post Office ended 2011 on a high note, however — with an 84% increase in median sales price for December 2011 over November 2011.  And compared to the previous year, December 2011 #s for BHPO were 13% ahead of December 2010.  Likewise, Brentwood showed a 26% increase for December 2011 over November 2011; and a 28% increase for December 2011 vs. December 2010.

What does this tell us?

We did make progress over the previous year — still not back to where we were four years ago….but we’re slowly climbing our way back out of this hole we’ve been in.  The volumes indicate that buyers are applying for loans and getting  them.  There are enthusiastic, active buyers who are coming to Open Houses every Sunday, and that’s the best indicator for where we are right now.  My business for the 4th quarter was the best for all of 2011, and quite frankly, because of the surge in real estate spending during the months of November and December, I feel confident that this trend will continue through the end of the year.

While you may read about the softening of home prices throughout the US, our #s in the four communities I report on clearly indicate there is a resiliency and strength in our ‘product’.  We have the best residential real estate product in the nation, if not the world.  Who can compete with the quality of life of Beverly Hills, Bel-Air, and Brentwood?  Few areas can.  And that’s why we’re seeing more foreign buyers who have cash to spend now.  Everyone who has researched real estate as an investment damn well knows that our market is one of the best investment areas on the Planet.  We prove it — in good and bad times.  So cheer up.  We’re making progress.

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In case you haven’t heard — your kids need a ‘small loan’.  Mom & Dad banks thriving today.

There’s a new bank in town……The Bank of Mom & Dad.  Perhaps you’ve heard of it.  More and more kids are turning to the nation’s most popular bank that offers low-interest (or no interest) loans….who will listen to your pleas for a down payment….and who will hand over the funds and put their arm around you….”you are just like my son.  Oh, you are my son!  Even better!”

About a third of first-time buyers in 2011 got either a gift (26 percent) or a loan (7 percent) from their families to help finance their home purchases, down slightly from 2010, but consistent with assistance levels seen during the last decade, according to data from the National Association of Realtors (NAR).  This isn’t surprising news to most of us, and yes, I will confess that I went down this road to make my first real estate purchase in the 80’s,  and I  know  many of my friends and associates who have either gone to Mom and Dad or are Mom and Dad.

In November, 2011, all-cash purchases among first-timers hit a high of 13 percent, according to Guy Cecala of Bethesda, Maryland-based Inside Mortgage Finance, a mortgage industry newsletter publisher and researcher. That’s up from 6 percent in 2009, when IFM first began tracking it. While the company’s surveys don’t ask about the source of cash, Cecala said that when first-time buyers buy outright, it’s likely their parents who are purchasing on the children’s behalf.

What’s encouraging these all-cash purchases now? Home prices are way down – with the median price in November 2011 at just $164,200, down 3.5 percent from a year ago, according to NAR. Mortgage interest rates, too, remain at all-time lows. According to mortgage researcher HSH, the average rate on fixed 30-year loans fell steadily from 5.1 percent at the start of 2011 to 4.09 percent in December.

As a real estate agent in a price range that usually starts at $1 million, we are still seeing young parents who have the down payment — or even the full amount — in their pockets and are key to our recovery.  They play an important role in the lower end of our market — and we welcome them with open arms.

Indeed, in some markets, without parental help, many first-time buyers wouldn’t qualify for the best rates or even a loan on the types of property for sale. To qualify for loans backed by Freddie Mac or Fannie Mae, borrowers need at least a 740 credit score and a minimum of 20 percent down payment — or else they’ll pay private mortgage insurance and additional “risk-based pricing” fees on their loan, IFM’s Cecala says “As the government rethinks the role of the two mortgage giants, these tighter lending standards may be here to stay, or be tightened further”.

To be sure, many baby boomers want to help. More than a fifth of them have co-signed a home loan for an adult child or given a gift or loan to help them buy, according to a September survey by Better Homes & Gardens Real Estate and
Research Solutions Inc. More than half of those earning at least $75,000 said they wanted to help their children finance a home purchase.  If you are in the position of considering either giving or receiving a private money loan, please check with your financial advisor for all of the “ins and outs” of the IRS requirements as well as tax implications before you get too far down that road.

It is also advisable to work with an outside party to draw up a formal loan agreement and repayment plan, and to record the loan locally as an added lien against the property. Doing so makes the adult child accountable but also turns the interest on the intra-family loan into one that’s tax-deductible as mortgage interest.

In these challenging times, the real estate business has always had the Mom & Dad Bank — it’s just in these days when we have such sophisticated tracking technology, we’re seeing it more transparently than ever before.  After all, if you’re a seller, you really don’t care if the money comes from Mom & Dad Bank, do you?

Happy Parenting…..

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Non-food uses for olive oil

Our use of olive oil dates back prior to 3500 BC and today over three quarters of a billion olive trees are cultivated around the world. One of the amazing things about olive trees are the conditions in which they can grow. While originating from the Mediterranean, there are thriving olive industries in many countries, including Australia, and I’ve seen them thrive in some very harsh conditions over here.

Olive oil grades

In case you’ve ever wondered about the various olive oil grades, here are a few of the common ones:

Extra-virgin: comes from the first pressing of the olives; the best quality; Virgin: has an acidity less than 2% and no refined oil content; Pure olive oil: Usually a blend of refined olive oil and virgin olive oil. Refining is carried out using charcoal or other chemical filters; Extra light: More of a marketing term than a grade. Usually highly processed, may be mixed with other oils, or may be just pure olive oil grade. The “light” refers to flavor rather than caloric content; Pomace, cake or lampante: not intended for human consumption, and generally used for industrial purposes, such as soap making or lamp oil.

Non-food usage tips for olive oil

We’re familiar with olive oil in relation to cooking, but there are so many other ways it can be used; often avoiding the need to use synthetic chemicals, compounds and substances that aren’t very environmentally friendly. For these tips, you don’t need to use the best grade of olive oil.

- After polishing copper or brass, rub it with a little olive oil to slow down the reoccurrence of tarnish
- Can be used as a stainless steel cleaner; apply sparingly
- Rub olive oil into wooden cutting boards to help prevent cracking, repel staining and marking
- Remove paint from hair or skin by dabbing a cotton ball dipped in olive to the affected area
- Use it as an alternative for those squeaking hinges

- Olive oil can help with stuck zippers – use a cotton bud to apply
- Apply a little olive oil to your shoes to restore their shine
- Old leather can be made more supple by rubbing in olive oil (spot test first)
- Coat garden tool blades with a thin layer of olive oil to prevent dirt sticking to them and to help prevent rusting. This works really well!
- Mix one part lemon juice with 3 parts olive oil to make wooden furniture polish

- Rub into to fingernails before and after manicuring
- A small amount of olive oil applied after shampooing can substitute hair conditioner.
- Extra light olive oil can be used as a massage oil
- Olive oil can replace shaving cream or shaving oil
- Dip a razor into olive oil after use to prevent the blade rusting
- Can be applied to chapped lips to relieve the dryness
- Use as a makeup remover

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As for me, the New Year has started out with a bang!  We had an offer on one of my listings on New Year’s weekend (unfortunately it did not go), but seems to have set the pace for what it looks like will be a very busy and active year for me.  I have a wonderful new listing in Mountaingate and have some listings in both Bel Air Crest and Bel Air Park coming up in the next month.  Also all of my properties that I have leased are renewing and some have expressed the desire to purchase these homes, which the landlords are all agreeing to.  Once again, I am so grateful for all of you who stop me on the street to tell me how much your enjoy reading the SchifferLine.

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