Timely Real Estate News…………………………………………..15 September 2009

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It’s beginning to look a lot like Fall…….
Summer is about over, and Fall is always one of my favorite times of the year, especially in the Santa Monica Mountains and in the four communities I cover — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood.  We have many neighborhoods that display the Fall colors so beautifully as we move into Autumn, and it’s really hard to believe we’re almost three-quarter of the way through 2009. 

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So, Carole, what can the rest of the year bring us — what is the real estate barometer telling you?  Calm or stormy?  Or just more of the same?

I’m reluctant to make any predictions about the balance of the year, but I can tell you that we are seeing more activity (volume and transactions) in these communities.  For the first half of 2009, we were hovering around a negative volume 40-50% on the Westside, but by at the end of August, sales volume was down only 30% from a year ago.  That may not sound like much progress, but consider that national volumes still remain low (in the 40% range around the US).  We had more than $822 million in real estates sales in these four communities between January 1 and August 31, compared to $1.122 billion through the same period in 2008.  And we are seeing more multiple offers as I reported in last month’s Schiffer Line.

Here are some good examples that demonstrate the market’s intensity: Last week, in one day, four homes in Brentwood were reported as  having entered  escrow:  – #1 priced at $3,400,000  – 11 days on the market; #2 – priced at $6,649,000    – 177 days on the market;  #3 priced at $5,195,000 –  23 days on the market; and #4 – priced at $9,995,000 –  209 days on the market.  This last house is very special and had been on the market earlier for $14 million.  Some of these homes, obviously, had been sitting on the market for months, and the last house, which was originally priced at $14 million, sat on the market for nearly seven months and was last listed under $10 million.  Would it have sold earlier if priced properly?  Probably…

So there is ‘life’ out there.  Do not despair!

MLS numbers continue to show their ups/downs……
No matter where you live, you can’t rest on your laurels.  One month, your community may be up, the next, down.  Beverly Hills, for example, has been fighting dropping numbers all year — until August, when the median sales price went up 27% from July 2009 to August 2009.  But the other three areas didn’t do well from July to August (’09) — Beverly Hills Post Office was down 27%, Bel-Air was down 14%, and Brentwood was down 26%. 

As I have stated many times, year-to-date numbers reflect a more consistent trend line for real estate prices, and the news for August 2009 wasn’t particularly encouraging:  Beverly Hills was down 18% for the year compared to 2008; Beverly Hills Post Office was down 10%, Bel-Air was down 8%; and Brentwood was down just 5% through August 31.

But what about comparing median sales prices to last year?  Beverly Hills was down only 4% for August 2009 compared to August 2008; BHPO was down 15%; Bel-Air was down 28% over last year; and Brentwood was a plus 1%, one of the few ‘up’ stats for this past reporting period.

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Los Angeles area values are sliding back to 2005 levels….
According to the quarterly  report from First Republic Bank ( bank that primarily deals with high income clients), and  which has been tracking  home values of the $1 million price range and up since 1985, “values in the Los Angeles area have fallen for the past six quarters on a year-over-year basis.”  Prices are at approximately the same level as they were in the first quarter of 2005.  The average home value in the Los Angeles area (for over $1 million homes in the original index) is now $2.08 million, or a decline of 12.4% over the past year, and down 4.3% since the first quarter. 

Of course, this is having a long-term affect on the market with respect to sales volumes and pricing.  And according to some agents, buyers need to see a clear demonstration of value before making an offer on a home.  The report stated that “the market is confirming a 25% to 30% drop in prices from the highs two years ago.”  And although we are seeing home prices trending down, the report noted that buyers at virtually ever price level is responding to the opportunity to buy value. 

So what is “value”? Properties need to be in pristine condition — “…it’s a buyer’s market and buyers don’t want anything that needs to be fixed up, unless that is specifically what they are looking for, and then they are still very picky.”  Presentation is everything providing the home is priced right.  And if a buyer is putting 40% to 50% down, they are getting the ‘best deals’ and can command something that is ‘turnkey’.  It’s that simple. 

I also want to make this point, again — there are buyers out there in every price category — more in the ‘under-$5 million’ range, for sure.  The correct pricing and quality presentation are essential to not only attract buyers but also to ‘close the deal’.  So, please call me to talk about your selling or buying strategy.  That’s what I do best.

How green is my mail……?
As I stated in the last Schiffer Line, I will only be sending out the newsletter and all of my other marketing materials  via ‘snail mail’ once a month — cutting down the # of copies I have to print and stuff into envelopes. This will happen on the 15th of each month.   I have had a great response from readers who do want to see every issue and many of you have sent in your e-mail address to insure you get all of my marketing materials twice a month,  as you have in the past, please send me an e-mail at ceschiffer@aol.com, and I will add that to my data base.

I would like to share with you a situation I hadn’t counted on:  A lovely lady in Mountaingate called to say that she doesn’t have a computer and she wanted to make sure that she was not taken off my list. Please know that I love all of your comments, advise and information.  And please do not worry, no one will be taken off the mailing list, if you do not have or share your e-mail address with me, you just won’t see my green and purple envelopes in your mail boxes as often as you have. It will only be once a month on the 15th.

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Speaking of my readers, The Hyphen Lady Strikes Again…….
One of my readers, who I have named the Hyphen Lady as she keeps reminding me to include the hyphen in the name Bel-Air, is always sending me anonymous notes about this, and now is including copies of news articles.  I LOVE IT!!  So, please, please excuse my occasional slip-of-the-hyphen.  I promise to be a diligently hyphen-proof reader.   So, be On Guard.  Don’t leave the hyphen out of Bel-Air.  The Hyphen Lady may strike you, too.  I love the mystery of not knowing who you are, so please keep those cards and letters coming. Its great fun, and makes me laugh every time.

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Appraisals….if you’re not happy, get a second opinion
This issue pertains not only to those who are either purchasing or selling a home, but to anyone who is refinancing as well.   According to a recent Los Angeles Times article, many buyers and sellers are ‘finding out that in today’s down market houses aren’t worth what they thought they were.’  At least not in the ‘eyes of the appraisers’ hired by lenders. Essentially, what has taken place is that lenders are turning to third-party appraisal-management companies to hand out assignments instead of hiring appraisers directly.  Many sellers and homeowners contend that the use of middlemen has caused “all sorts of problems”, not the least of which is that much of the work is going to inexperienced out-of-towners who don’t know their jobs or their markets.  One can lose as much as 25% to 40% of valuation on a home some one is either selling or buying.  As I mentioned before, there is legislation “in the hopper” to change these regulations, but for now this is what we are all having to deal with.
 
My recommendation?  If you find a major discrepancy in the valuation on your property, you can request another appraisal….you can also have your appraiser to give me a call which has happened a number of time s in the last few months.  And by all means, please give me a call.  I have the resources and experience to give you the direction and counsel you need in this appraisal process.  This issue affects everyone in my areas, including me! 
Construction Notice….be aware
All of you living in the Sepulveda Pass  region should have received the Construction Notice issued by CalTrans for the I-405 Sepulveda Pass Widening Project.  The contractor is currently performing geophysical utility surveys and soil testing on streets running along the San Diego Freeway.  Street lane closures are required to perform this work.  Work has already started on various sections of Sepulveda from Wilshire north to Getty Center, and then north to Skirball Center Way — on both the street and on/off ramps.  This work is being done during the day and at nighttime, too.  There is additional work on Sepulveda from Sherman Oaks Avenue to Ventura Blvd.  Please see the attached Construction Notice for details.   This notice is different from the one I sent you a few weeks ago, so please do read it.

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Green your car wash
 
Reports on cars and the environment often miss mentioning one of the most common sources of automobile pollution—one that has nothing to do with engine size or exhaust filters. It turns out that we need to rethink our approach to spending Sunday afternoons washing the car. It may seem benign to vacuum your car, wash the dirt off and then buff it to a shine with creams or waxes, but the soapy suds that flow down your driveway to the sewer join storm water runoff and end up in a nearby lake or river.
With that in mind, here are some green tips to keep your ride clean and green.

Not just water  While you might think that cleaning your car merely returns dirt to nature. But the problem is that car dirt is not ordinary dirt; it’s a mixture of exhaust fumes, gasoline and motor oil mixed with lubricants, tar, suspended matter, heavy metals, hydrocarbons and micro-organisms. Add surfactants in soap that make it rinse off easily and you have quite a mix of chemicals.
Then there’s the water. On average, washing your car at home also uses up to 400 litres per wash. Plus, when the suds enter the water stream, the residue from heavier grade soaps can become a greasy pool for fish, coating their gills and causing them harm.

What you can do  You can lessen your environmental impact by using biodegradable car soap like Simple Green   or Ecover. You can also try washing your car on gravel, which will act as a natural filtration system for water before it rejoins the water table. It’s also best to use a bucket and sponge or using a spray nozzle on your hose that turns off when you’re not rinsing. 
It may come as a surprise that the least polluting option is actually to visit a commercial car wash. These operations are typically not allowed to let rinse water run down into storm drains unless it’s been treated as wastewater. They also use at minimum of 50 percent less water than the average home wash
The Ontario, Canada  not-for-profit, RiverSafe launched a Carwash Campaign in 2003/2004 to prevent harmful pollution of lakes and rivers that results from home car washing. They advocate for stronger regulations and laws that specifically address all non-point source run-off, including car washing on residential properties. They suggest:
– Skip the detergents
– Try using only water
– Wash your car on the lawn (avoid driving over tree roots) to prevent wastewater from flowing down to the curb.
But by far the most interesting option is a waterless car wash using bio-based polymers and wetting agents that act as microscopic protectors on the car’s surface. The polymers surround dirt molecules, lifting them from the paint surface before you even start to wipe! No-wet washes clean your car easily, but apparently the polymers create a sheen so your car looks waxed and buffed as well! Waterless products are available from ecotouch.

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Please don’t forget that I have some wonderful properties for sale or lease. In the Marina, Bel Air Crest and Mountaingate. and soon in Beverly Hills Post Office and Beverly Hills.   Check out my web site… Caroleschiffer.com for more information on all of my great listings, and please let me know how I can help you
To all of my Jewish readers… HAPPY NEW YEAR!

Timely Real Estate News…………………………………………….1 September 2009

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Fires and housing make the headlines….taking it all in stride

First of all, any ‘tried/true Californian’ knows this is fire season.  And even though the fires are to the north of us and slowly moving across thousands of un-populated acres in the San Gabriel Mountains, the tragedy of losing homes and the lives of two dedicated fire fighters reminds each of us how dangerous it can be when fire comes to our front door.

We have been fortunate this past year in missing the ‘fire bullet’ — once in October 2008, when fire broke out just across the street from Bel Air Crest and below Mountaingate, and this past July 8, when fire erupted just north and west of the Getty Center, forcing its evacuation as well as Mount St. Mary’s College at the top of Bundy in Brentwood.  In both of these fires, no homes or lives were lost.  Thanks to the quick and efficient action of the Los Angeles City and County Fire Departments in both situations, we were able to put these fires out relatively quickly.

Fire prevention is critical to all of us living in the mountains above Los Angeles — it comes with this beautiful territory.  Here are the things you can do to protect your home and property as recommended by the Los Angeles Fire Department:

1) Eaves must be enclosed and materials must be ignition resistant; 2) Install dual-pane windows — at least one must be tempered glass;3) Deck supports must be enclosed to within six inches of the ground; must be of ignition-resistant material;4) Roof fascia and sheeting must be fire resistant; and 5) Defensible space must be free of brush or debris and must extend 100 feet or to the property line; 6) Purchase some of the gels that are available to be sprayed on your home if there is a fire in the area, and there is approximately one hour before it would reach your property. There are a few products on the market that do this as well as a few insurance companies that offer this service, I personally have Barricade Gel which can be purchased through their website…. Barricadegel.com.
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Secondly, housing prices rise, assessed valuations fall…..so what’s new?
A lot has happened in the two weeks since the last SchifferLine.  Recent articles in the Los Angeles Times have pointed to the rising home prices (“we have turned the corner…..”), the economy is on a rebound, the stock market is up, and all economic indicators are positive.  That’s the good news.  The bad news is
1) foreclosures are going to increase as that pipeline is about to be cleaned out, and it will have a negative effect on home prices everywhere, and 2) overall assessed valuation in California for all real estate declined 2.6%, and that includes not just residential housing but commercial, industrial and farm land as well.  So, if you’re reading the headlines, you are going to get confused, it confuses me and I am in the middle of it!

I don’t want to be a broken record, but…..

Again, you have to look at ‘your neighborhood’ — not a neighborhood three counties or even three communities away.  And I am very upbeat about is happening on the Westside.  For example, there was a three-bedroom, two-bath house on  a busy street, that came on the  for $739,000…., it was a sweet little house, 3 bedrooms, 1 bath, and  needed work, but there were 27 offers and it sold in one day.  That is a Wow! in real estate these days or any day for that matter. We don’t know yet what it sold for, but the guesses in my office are in the mid to high $800,000 range!  I will let you know when it closes what it sold for.  Another example of how things are going….another house came on the market in the same general neighborhood, between Westwood Blvd and Veteran, south of Santa Monica.  In this case, some one had purchased a home  on the corner of a very busy street, torn the old house down, changed the address from the busy street, to the quieter street address, and built a ‘really great house that everyone that I know who saw it loved.  It was listed for $1,150,000 and again sold in one day with five offers (even on a busy street)!   Generally houses on the market in the range between $700,000 and $2 million, if priced well are moving quickly,  but as you move up the price ladder, it weakens.  Over the $5 million market, it is very soft now. Again, pricing your home to (really) sell is the key. 

The two examples above reflect smart pricing that enabled the sellers to get the prices they wanted and quickly.  Overpricing, as I have said so many times before, can kill you in this market.  Buyers are still in the ‘buyers-market-mindset’ — they believe they have the control and they do.  When homes are strategically priced to the local neighborhood, they sell quickly.  Sellers have to be “real”. Recently I sold some long standing clients of mine a great house in Westwood.  It had just come on the market and was a “hot” house.  We wrote a strong, CLEAN offer, and with a few minor points had an accepted offer before it was on broker’s caravan or a Sunday open which was our goal.  Unfortunately it went down hill from there.  In the course of attempting to do our due diligence (inspections), the seller received a back up offer for $30,000 more, and made it very difficult for my clients to determine if the house had a sewer line problem.  So after some hard thinking as they really loved the house, they walked away, and then the back up buyer walked away also… so now the seller has the house “back on the market”, and who knows if he will get the same kind of offer that he threw away!

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Appraisals – The Continuing Saga

As we have discussed in the past, one of the most painful portions of the sales process today, deals with the appraisals.  According to an article in the Los Angeles Times, business section this week, borrowers are being advised to appeal the appraisal if they and their agents feel that it is not appropriate to the property.  Homeowners can ask their lenders for a more thorough evaluation of their property, or they can do more research, and that my friends, is where I come in.  Doing the research to assure a property is properly appraised, is where an experience real estate agent such as myself shines.  I try to nip the problem in the bud before we have a problem, because I “know the market” and generally can help avoid a problem.

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Update on Reversible Lane Project and 405 Widening

A contractor has been selected for the Reversible Lane project and he will require three to four months lead time to obtain the equipment needed to work on the tunnel, which means that work will not start until February or March, 2010.  Please remember that the reverse lane will only be in the vicinity of the Sepulveda Tunnel, and not the entire street as originally thought.  In preparation for the widening of the 405 for the car pool lanes, Cal Trans is currently doing some engineering and soils testing on Sepulveda. Also there are proposed phases for the Los Angeles Department of Water and Power and Department of Transportation to work together to put utilities underground.  The first phase will start in front of Skirball Cultural Center and go to Mountaingate entrance, and the second phase will go from Mountaingate to the entrance to the 405 south at Getty Center Drive   According to my sources, with the exception of the current engineering work being done currently, none of the plans for the remainder of the work has not been finalized.  

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What difference a summer makes….Morgan returns for her junior year!

She left in May a young girl and returns in August a young woman.  Wow!  What a difference a summer makes.  Morgan, my niece from Vancouver, British Columbia, arrived last week to move into her new ‘digs’ at USC to begin her junior year (already?).  She arrived smartly dressed, self assured, and focused. She was all business when she moved into her new two-bedroom apartment near campus with two other roommates.  And then she announced she is going into ‘Rush’, and I thought, oh, boy, that’s a switch for a gal who wasn’t particularly diving into the social world of USC.  She just called….she is now officially a Pledge for Gamma Phi Beta, and Auntie Carole couldn’t be happier or more proud!.  I don’t know what happened over the summer in Vancouver….maybe it was the water (they have a lot of it up there).  But whatever, it’s great to have her back in town, even though she goes to that ‘evil’ school across town.  Ha! is all I have to say!.

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Digging the Garden Contest

Congratulations to Larry Rubenstein and his daughter Julie in Bel Air Park for winning the contest!  Not only did they get them all correct, but they did it the hard way without having the answers and matching them up.  Congratulations Larry and Julie – I hope you enjoy using your Whole Foods gift certificate! 

The correct answers are: 1 – Los Angeles County Arboretum (Catawampus) in the Pasadena area, #2 – Los Angeles County – USC Rose Garden in Exposition Park, #3 Descanco Gardens – Pasadena area, #4 Getty Center – Central Gardens – Brentwood, #5 – UCLA Hannah Carter Japanese Gardens – Chalon in Bel Air, #6 – Huntington Botanical  Gardens ) San Marino, #7 – Madame Ganna Walska’s Lotusland  – Montecito/Santa Barbara, #8 – UCLA Murphy Sculpture Garden – UCLA campus

Not sure when the next contest will be, but it will be coming up in the next few months?  A question, I did not get as many responses  to this one as I did to the architects contest.. Was this one too difficult?  Please let me know your thoughts?  It matters

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Its All in the Bag!

Do you have and or use reusable bags when you do shopping?  And I don’t only mean going to the grocery store?  This is serious stuff.  We all should be using good quality reusable bags for ALL of our shopping.  I keep my in the back of my car so that I don’t forget them whenever I go into any kind of store, even Neiman Marcus!. 

Did you know that Americans throw away 100 billion plastic bags a year?  Plastic bags degrade slowly.  Most do not biodegrade, they photo degrade, and over time they break down into smaller toxic petro-polymers which eventually contaminate soils and waterways.   Are paper bags better?  Not much.  Although 20% of paper bags are recycled, it takes less energy to recycle a plastic bag than a paper one. 

Some interesting facts…… if just 1 out of 5 people in the U.S used one cloth bag a week instead of plastic, we would keep from using 1,330,560,000 plastic bags in our lifetime! Wow.  Ireland imposed a plastic bag tax, the Plas Tax.  Individuals pay .15 per plastic bag… the results consumption dropped by 90%.  That is approximately 1 billion fewer bags annually.  They raised $9.6 million in the first year.  Just imagine what would happen to our national deficit if we had a similar plan

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Listing Review

Do you know anyone that wants to live at the beach?  I just listed a really beautiful home at 129 Ketch Mall for $1,985,000.  It is a block away from the sand, 4 bedrooms, 4/5 baths, roof deck with ocean view, and really lovely.  I also have a lease listing coming up in the Marina (my old stomping grounds).  If you want any information on any of my listings, or want to see what they look like, please go to my web site…. Caroleschiffer.com

Timely Real Estate News……………………………………………….15 August 2009

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Since so many of you have commented about the expense of my mailing you the information I send you regularly, (The SchifferLine and the Quarterly Report) , and also in order  to be Greener, beginning September 1, I am changing how I will be sending you all of this information.  I will still be creating the SchifferLine every two weeks, but will be sending it out via “snail mail” only once a month, and the rest of the time it will only be via e-mails.. So if you want to continue to receive the SchifferLine every two weeks, and I do not already have your e-mail address, please make sure that you get it to me….. ceschiffer@aol.com

It’s Back-To-School Time…..How different it is than when I grew up
It seemed simpler then.  My Mom would take me down to get notebook paper for my new three-ring binder.  I would have my Crayons in my new back pack, and it was very special when I got my very first fountain pen with real ink.  Those were the days I remember most at this time of year.  Today?  Its Play station 3 or Xbox — plus all the new games.  Make sure you have the latest version of Microsoft Office.  And then there is the newest iPod (and of course, every kid needs an iPhone to stay connected — they’re very cool, aren’t they?)  And having the latest Mac Book — if you kid doesn’t already have one — is at the top of the list.  It was not only simpler then — I know one thing for sure — it was also a lot cheaper, too.  Ah, the good ol’days.  How we miss them.

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Lenders holding back on foreclosures…..more than 124,000 in the pipeline
So why are lenders holding back obvious foreclosures from the market?  Good question.  Theories abound but the most popular one is that if all the 124,000 “distressed properties” were put on the market after they had been repossessed, they would probably create mass chaos in the housing market, driving home values down even further, thus depressing the banks’ assets.  According to the Los Angeles Times, June 12, these properties — called “shadow inventory”– are clogging the system.  When they will be released?  Stay tuned.  Again, here is the normal process for the handling of a property that is being foreclosed by the bank…. Default notices are sent to the borrower when they are a few months delinquent in making their payments. This is the first stage of a disclosure and those numbers are up 12% in July ’09 compared to July ‘08.  Then comes an auction notice in which the auction date is set. This is the second stage, and this number is about even with last year. There are times when after both of these notices have been sent that the sale can be postponed.  This happens if the borrower declares bankruptcy, or the borrower and the lender are negotiating some kind of “mortgage relief” for the borrower. The last stage is the actual sale itself and because of all of the negotiations we read about between borrowers’ and lenders is actually down 40% from last year in the state of California.  

So when we are hearing about sales volume picking up in our state, those numbers include all of the lower priced or foreclosed properties that are being sold.  That increase in sales volume across the board will trickle up to us, but it will take a little longer as our prices obviously are higher than those in other parts of Los Angeles County which is seeing this great increase in sales volume.

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Let’s review the July MLS stats…..the good news is that sales volume is up 5% for the four areas I cover — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood.  And year-to-date median sales prices for 2009 in three of the areas have improved as of July compared to the end of June, with Beverly Hills Post Office, Bel-Air, and Brentwood all moving nearer 2008 median sales prices.  Bel-Air, however, is the only area with a positive of 2% in median sales price over 2008 year-to-date numbers.  Brentwood is behind by 5%, BHPO is down 10% and Beverly Hills is down 22% from YTD stats vs. 2008.  I regard year-to-date median sales prices as more indicative of the trends we’re seeing on the Westside.  In sum, we are moving in the right direction.  In looking at the stats, it is always a wonder to me as there are some very large sales that obviously skew the numbers.

To be honest with you, it’s difficult (but I do try…) to bring understanding and sense to the monthly numbers we see from the Multiple Listing Service.  For example, Beverly Hills had a drop of 59% in the median sales price from July 2008; Beverly Hills Post Office was up 23% for the same period, Bel-Air was down 22%, and Brentwood was down 30%.  These are relatively huge differences if you took them as a true indication of our state of market….so you really have to look at the year-to-date median sales price #s to get a truer picture of our market.  As I mentioned before, we have some enormously large estates that fetch from $10 million to $38 million, so when one of these large sales is recorded, it throws everything off.  Again, you have to drill down to your own neighborhood — the ‘comps’ that you have for your neighborhood are the only true indicators of how your home might be valued, but again, every home is different.

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Appraisals are affecting home values….be aware
I have previously discussed with you the issues we are having with appraisals.  There are plenty of eager buyers out there, and god knows we have the sellers there too, but unfortunately, our partner in the escrow transaction, the appraisers are simply not on board, and it is creating very difficult situations for all of us. In some cases, the banks are bringing in appraisers that are from San Bernardino or Orange County, who simply don’t know our market, and frankly don’t know their right hand from their left (I heard of a horror story the other day where an appraiser from out of the area was standing in the master bedroom, talking to the listing agent, and called the room they were both in “the family room!.  Quel dommage!  This is the time when an experienced real estate (me!) really earns their salt as we can hopefully work with these folks and sometimes call the lender directly and ask for another appraiser if the first one is really blowing it.  In days past, appraisers were our friends, not today…

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My Summer Contest – How Well Do You Know the Gardens in Southern California?

I did not want to make it too easy for you, so I originally did not include the answers to the questions as I had in the first contest.  Also when I heard that the Hotel Bel Air was closing at the end of September for renovations for 18 months, I decided to re-issue the contest, by including the answers as I had the first time, extending the response deadline to 1 September, and changing the prize from your choice of the Hotel to now a $100 gift certificate for Whole Foods or Universal Studios… your choice.. so please have fun and take a few minutes to play and maybe you will be the lucky winner!!! Remember, only e-mail responses to be accepted …ceschiffer@aol.com.

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Morgan faces another year at USC….how time flies

I cannot believe it:  My niece, Morgan, from Vancouver, BC, is coming back to begin her junior year at the University of Southern California.  She is a pre-dental major.  It seems like yesterday she faced her freshman year — a bit intimidated I think about coming to a ‘big-city school’ from her private school in beautiful West Van’ where she has grown up.  I’ve seen this young girl become a young woman in the past two years — she has more than adjusted:  She’s doing great in her studies and social life.  What more could an Auntie (especially one from UCLA) want?  Also, I don’t know if you saw the segment on the Today show just recently when they are highlighting the Winter Olympics in Vancouver which are just six months away! But the Today show staff will be headquartered at Grouse Mountain which is where Morgan worked this summer, harnessing the hikers to their equipment getting ready for the trail.  Fun stuff

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 The street life of Sepulveda Pass and the 405 Widening project

Included with this issue of the Schiffer Line is the notice we just received regarding the work that is currently being done and the street closures that will effecting a number of us in the next month.  PLEASE BE SURE AND READ IT. 

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Green Tips

Please don’t forget that you will need to give me your e-mail address if you want to continue receiving the SchifferLine every two weeks…..ceschiffer@aol.com

While you are busy buying all of that electronic stuff for the beginning of school, please don’t forget that UCLA has a recycling center on campus for all of our electronic refuse. 
 It is called the UCLA Safe Center, 550 Charles E. Young Dr., West .800-988-6942. They are located  off of Gayley Ave, near Pauley Pavilion. Their hours are Thursday, Friday and Saturday 8:00 – 2:00 pm.  Electronic waste on Saturdays only.  All you have to do is pull up, open up your trunk, they will empty it for you and off you go.

Here is a list of what they accept:   paint and solvents, used motor oil and filters, antifreeze, and other automotive fluids; cleaning products; pool and garden chemicals; aerosol cans; all medicine; auto batteries; household (alkaline) batteries; fluorescent tubes and bulbs, thermostats, and other mercury containing lamps.  They also accept, computers, monitors, printers, network equipment, cables, telephones, televisions, microwaves, video games, cell phones, radios, stereos, VCR’s and electronic toys.. You will be limited to only six pieces of electronic waste per visit.

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Keep Those Cards and Letters Coming

Thank you for Loretta H for sharing her memories of growing up at the “Del” also! ”Loved hearing that the Del was your childhood home away from home…it was mine as well. My grandparents visited the “Del “with my mom when she was a little girl (which required traveling by train from NY) and my parents took my brother and me every summer throughout my childhood. My happiest memories are of the salt water pool surrounded by sand, the high diving board, the kiddie pool and playground, the Del jewelry store where I would always get a charm for my bracelet, movie night and dinners in the Crown Room, where my brother had to wear a coat and tie! I have brought my kids back several times and the feeling is exactly the same for me when I walk into the lobby”.

As we begin the last half of August, I want to remind you that real estate activity is alive and well, and please take a few minutes to check out my beautiful listings.  My fabulous custom home on 11730 Stonehenge Lane in Bel Air Crest listed for $6.8 fell out of escrow the day before we were due to close, so if you have not yet seen it, or if perchance you know someone that might be interested in this great house, please let me know.

Have a great rest of the month, and please don’t forget to send me your e-mail address so that you can continue to receive all of the information I send you… ceschiffer@aol.com

Timely Real Estate News…………………………………………………1 August 2009

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If we could only spend a day being a dolphin….getting away from it all

Let’s face it; my wheels came off around noon on Thursday.  My first thought was:  Friday is only hours away and I’m on my way to Coronado, my family’s second home.  Coronado Shores, a magnificent high-rise community that has commanding views of the Pacific Ocean and San Diego Bay has been my family’s second home for the past 36 years….and before that, my summer home was the beautiful, historic Hotel Del Coronado, where I literally grew up learning how to play tennis and jumping from pool to pool.  This is the one place where I can lick my wounds and soak up the sun and relax.  In the past few weeks, the real estate business had gotten to me — a frenzy of new listings, sales, and negotiations.  Mostly good news and some distressing sidebars that involved an escrow that eventually fell apart. 

I needed a break, and so it was such an inspiration to peer over the balcony and see the most amazing sight:  A school of dolphins was literally dancing up and down in the water right below me — just yards from the shore.  Oh, they were having such a great time and I wanted to dive in and swim and dance with them. 
They would appear every day — a morning- and afternoon-matinee performance.  I would take walks on the beach, timed to the dolphin’s performance schedule, and I was so overwhelmed with their magnificent display.  You could see the smile on their faces as they would glance over at me as they leapt out of the water.   I thought to myself:  Wouldn’t it be great to be a dolphin for just one day. 

Getting away to Coronado has been my blessing when things are going crazy back in my world.  But, in many respects, I’m lucky, too, that my real estate business is going crazy.  Yes, it’s summer, and like the dolphins, when I recover, I will remember how much fun it was to leap the waves at Coronado.  You know in my next life, it might be fun to come back as a dolphin.  If only for a day at the beach.  Wouldn’t that be fun?

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And speaking of summer fun….For the Fun of It… another contest!
OK, gang….here’s the deal.  I’m challenging your knowledge of landmark gardens in Southern California in our August Contest.  I’ve identified eight superb and beautiful gardens sprinkled around  Southern California for you to identify, and the one who comes up with the most correct answers (I draw for ties) will win a $100 gift certificate to either the Hotel Bel Air or Universal Studios — both fun places for the summer. The choice will be yours as to which prize you win.  Please read the attached document and e-mail me your answers to ceschiffer@aol.com.  Have fun and Good Luck!

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A hint of things to come?  The 405 and Sepulveda Pass widening project (The carpool lane).
On Friday, July 24, Sepulveda Boulevard was closed from 9:00 p.m. to 6:00 a.m. at Bel Air Crest Road and Sepulveda to take soil samples.  This is just one of many future street work notices that will be coming when this project begins to pick up steam.  The vote is out as to how much money there is to finish the project, particularly as the money is coming from the Federal, State and local governments.  In the meantime they are doing to “little” projects to get ready. 

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It’s up.  It’s down.  It’s the beginning of the turnaround.  Really?

I’ve said this before…it would be nice to cut through all the clutter to gain some clarity about all the news that is streaming at us every day.. But it’s tough.  In mid July, the housing industry, according to all the latest data, was making a comeback.  New housing and home sales are both up for the year compared to last year.  But — and here it comes — national or regional stories about an up tick or downtick in the real estate market means little when you’re looking at your home in your neighborhood.  All the rest is basically ‘noise’ I say.
 
So you ask:  What is your opinion, Carole?  There is good news….there is an enormous amount of activity in the last two weeks — new listings — sales and leases; people are considering either leasing or selling. 

Here are two examples of what I am seeing as a ‘good news” trend: A former mentee of mine had a new listing of a condo in Santa Monica,  and had 10 offers two weeks ago, which  has not been the norm in recent months.. Another one of my current mentees (yes we have people coming into the business which is good news in and of itself), is looking for a home for she and her husband in Venice.  They found something that works for them which is a short sale.  They made an offer, but are the time I am writing this, there are 4 offers, two all cash, one of 50% down, and the other two including hers with 40% down! 

So, what do you see in the near term?  I don’t have a crystal ball, but you can read everyone else who appears to have one each day in the Los Angeles Times or Wall Street Journal….Warren Buffet is pessimistic — look for 2011 before the economy rebounds…the latest LA Economic Development Department’s Keyser Center report is much more positive about the turnaround, predicting the local economy will rebound at the end of 2009.  The Los Times is forecasting more pain for California as unemployment runs up the ladder, but the bright side is the entertainment and media worlds continue to remain fairly strong, although the major entertainment/media firms are trimming back, like Sony, Viacom, and DreamWorks.  All are feeling the pinch of the tighten economy.

So, what’s the strategy?  I recommend that if you need/want to sell/sell, and if you need/want to buy, buy.     As I have quoted Barbara Corcoran, the New York real estate guru on the Today Show, stated:  You can’t wait for the turnaround by sitting on the fence.  Because if you do, you won’t have enough time to get off the fence before it goes back up.  You’ll miss your window of opportunity.

The real estate business is strong in all of my four communities — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood.  I see it every day.  The phone is ringing — from sellers and buyers.  Deals are being done.  Sales volume for all combined areas is up over 30% over last year, same period (January thru June).  Of course, I always recommend to my clients:  Be cautious.  But always, too, if you’re going to be a seller, have your home priced to sell.  If you’re going to be a buyer, expect to pay a reasonable price for a property that reasonably priced.  Common sense, really. 

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Another trend that is picking up steam is that many homeowners — not seeing the price they want (or need) when considering selling — are opting to lease their home instead of putting it on the market.  I’m doing at least twice the number of leases for high-quality homes than I did last year.  So, if you’re not ready to sell, perhaps your best option is to lease your home.  Depending on the area and property, a typical lease will go for 1% of the total value of the home….”but that doesn’t always hold true.  I am seeing homes that were leasing for $7,500 last year that are going for $6,500 today.”  A word of caution:  Every home and every neighborhood is different, so please give me a call to give you an evaluation of what your home might sell (or lease) for., and you have to factor in the “cost” of leasing your home the level of care and maintenance in having a tenant in your property. 

One last comment:  As Tom Peters said, “…if you’re not confused, you haven’t been listening.”  I’m here to help.  Call me.

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Green Tips

You may recall that some time back, I had expressed an interest in us being able to use ”Gray-Water” for our irrigation, but that due to state regulations, etc. it was fairly difficult for the regular consumer to be able to install these systems. According to an article in the Los Angeles Times  from the middle of last month, it appears that starting 4 August 2009, certain types of residential gray water systems can now be installed or altered without a construction permit.  Last summer, Senate Bill # 1258 was passed requiring the state’s Dept of Housing and Community Development to revise the code to conserve water.  Homeowners must follow 12   guidelines.  For a list of all of them, please go to   hcd.ca.gov, and then type in gray water standards in the search field… Good Luc,

There was also another interesting article in the LA Times the middle of last month pertaining to the installation of a “Heat repelling roof”  Basically it is heat deflecting coating that is about 855 effective.. Of course, those is us who live in communities that are governed by Architectural Control Committees  most likely could not currently use this material as it makes for a very white roof, but hopefully this will be the start of the development of other more esthetically pleasing roofing materials.

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In the meantime, I hope you all keep your cool especially with all of the HOT weather we have been experiencing, and that you remember to have fun, and Count on Carole for All of your Real Estate needs

Timely Real Estate News………………………………………………….. 15 July 2009

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 And the Wheels Go ‘Round and Round!

The more things change, the more they stay the same, maybe
I’ve never been accused of being a negative person, and I’m always looking for that silver lining.  Each month — as you know — I review the Multiple Listing Services statistics….any good news?  Are there any pearls of wisdom I can glean from these numbers?  Ah, ha!  There is some good news from the June MLS numbers:  Sales activity (volume) is actually on the upswing — seasonally adjusted — over 2008.  Year-to-date sales volume for Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — through June 30, 2009 — showed sales volume had increased 25% over YTD volume through the first six months of 2008.  And that the actual sales price to original sales price comparisons for the same period was 102%, meaning that we are seeing prices are holding steady compared to the original asking price.  That is great news. 

The sales volume increase is really good news, because it means that buyers are coming back into the market — with more confidence, especially when you see that the days-on-market number is dropping as well.  Yes, we continue to see the ups and downs in each area I cover as we have since I have been publishing the SchifferLine.  It’s a fact of real estate life — no area is going to sustain either highs or lows in median sale price month after month.  I am seeing more people at Open Houses and there are many more multiple offers than I’ve seen in the last year or so.  So this is very good news.

In looking at the Median Sales Price for June 2009, Bel-Air and Brentwood were both up 6% over 2008, while Beverly Hills was down 5% and Beverly Hills Post Office was 13% down.  In the Year-to-Date median sales price, Bel-Air was up 18%, while Beverly Hills was down 7%, BHPO down 14%, and Brentwood at 15% negative from 2008.  Since the recession hit, we are continuing to see the median sales price bounce all over the place in each community.  And the reason for this is that each community is composed of many different levels of housing — from smaller-sized homes that may average $1-$3 million to large estates of $10 to $30 million.  Anomalies occur every month, and so the year-to-date figures tend to reflect a better view of how our home pricing is holding up.  But compared to the rest of America, the Westside continues to outperform most every other area in the US.  See?  There are silver linings.

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 Another rescue from the Los Angeles Fire Department, thank you.

We made the news at 11, as well as the news in the morning, noon, and early afternoon and prime time, plus the front page of USA Today and Los Angeles Times.  This time it was a relatively small fire that started north of the Getty, which resulted in the evacuation of all guests and employees on Wednesday, July 8.  Quick action by the Los Angeles Fire Department contained the fire in less than 24 hours, and resulted in no property damage.  Sepulveda Boulevard was closed for some time.  A total of 80 acres burned.  Again, thank you, LAFD!!!!

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Scam artists have a new one….Treasury Notes
It’s not nice to fool Mother Nature…or the US Government.  In these financially challenging times, it’s not surprising to see a new twist on scams foisted onto desperate homeowners.  According to the Los Angeles Times last week, the latest scheme involves the use of fraudulent Treasury-related promissory notes and bonds as down payment.  In most cases, the article stated, scam artists try to buy homes using worthless Treasury notes.  One clue to the scam is that “private promissory notes” and/or “private offset bonds” usually have the signature of former Treasury Secretary Henry M. Paulson — private bonds and notes are neither backed nor guaranteed by the federal government, so the Treasury Secretary’s name would never appear on them in the first place.  Crooks are getting routing numbers to create false checking accounts, and they use their social security number as the checking account number.  The Treasury department never uses checking accounts for fund dispersal.   So, sellers beware, and as always it is best to work with an experienced agent such as myself to assist you in guiding you to make sure this doesn’t happen.  Desperate times make for desperate measures!

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The Appraisal Problem

Low appraisals are creeping into the market, bringing down home values
Complaints are rising from home owners, realty companies, and home builders over the growing trend for appraisers to “go low”.  Banks who have traditionally used local appraisers for evaluating home values for new loans are now switching to appraisers who may not have local knowledge and/or are using a variety of comparables not normally seen in the past.  What we are seeing is the inclusion of short sale, distressed transactions, and foreclosures which are on the rise in all areas, in the appraisal process.  And what this does is greatly lessen the true value of a home that is in a good location and in good condition.  These are anomalies in a rather strong, solid real estate market as we have on the Westside.  Some of these low appraisals can knock off as much as $100,000 to $250,000 on the value of your home.  Just beware of this issue — it can affect your equity, whether you are buying, selling or refinancing.  Congress is dealing with this issue now, so we shall see.  Call me if you have a question about appraisals in your neighborhood.  I will be glad to get an appraisal for you at no charge.

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Interesting Concept for a Green Tip!

Low Carbon Diet –  Locavores, eat your hearts of romaine out. Two home-grown farms agri- farms have taken root in Hancock Park, where property owners are swapping lawns and flowerbeds, for rows of heirloom tomatoes, chard, green beans and more.  Heart Beet Gardening installs organic gardens throughout the Los Angeles area.  In Hancock Park, instead of nurturing just the host family, the micro farms feed up to 10 families per home.  Members receive a weekly basket of veggies left at their front door. The buy is $25.00 a week, and there is no carbon emission spent in traveling to our local farmers markets.  Looking to convert?  It is not cheap; the cost is anywhere from $1,000 – $4,000, but here is the kicker:  If you host the garden, Heart Beet’s maintenance fees are discounted and those leafy greens are free… For more info. Please contact. Heatbeetgardening.com. (courtesy of Angelino Magazine) Anyone interested? 

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Keep your eyes peeled and watch your mail boxes for the next fun contest in which the prize will either be another $100 gift certificate to the Hotel Bel Air, or to Universal Studios – your choice.. It will be coming in the next week or so.. In the meantime, enjoy the summer and please let me know if you or someone you know wants to see any of my wonderful listings or has any real estate needs or questions.