Timely Real Estate News………………………………………………….1 August 2010
Summer time….and the living is easy
Ira Gershwin, George’s brother, was the supreme lyricist. He must have been thinking about Los Angeles when he wrote those lyrics…”and the living is easy.” As a resident of Beverly Hills for many years (on Roxbury Drive, the house has been torn down unfortunately), Gershwin intimately knew how delightful summers (and winters) were in Los Angeles. But for me, this summer is turning out to be not so easy. Hectic, yes. Easy, not. I have never been so busy with more business than I have had in several years, and as I said in my last SchifferLine, my vacation was anything but. I LOVE IT!
Why all this activity? The answer is as complex as the market seems to be. With housing prices showing some improvement and sales volumes remain well ahead of 2009. But as I have said so many times in the past, some communities experience up months and then down months. For the record, my sales are substantially ahead of 2009, and that’s good news in this down economy.
All of this business, however, gives me some more perspective on market conditions, and to answer the question — why are all these people moving? — let me give you some insight. Remarkably, only one of my 12 – 14 current and active clients is moving because of economic hardship. There are other sundry reasons for these individuals and families to relocate. There are clients looking to see what is “out there” before they make their decision to move, some have their home on the market and/or are in escrow. For example, one client is moving back to the South where she used to live….another has homes in other cities and has found that they really do not use their home in Los Angeles enough to warrant keeping it…one family wants to be closer to their child’s new school….some families are scaling up, some scaling down. A few clients have inherited the property from their parents. One of the most enjoyable parts of my real estate career is that I am constantly meeting new people and learning snippets about their lives and their reasons for changing their homes. Everyone has a ‘story’ — and it’s no different here on the Westside than in other parts of the world….it’s just that we seem to fare better than most areas — both in the worlds of real estate and personal finance.
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An escrow from hell…….or it could have been
I don’t usually scream or pull my hair out when all appears lost. After all of the years I have been in this business, you tend to see just about everything — good and bad (I have been told I should write a book). As we all know, just because one is in escrow doesn’t mean that the transaction will close — far from it. This is especially true in these times. Last April, I represented a seller who accepted an offer from a well-qualified buyer. We entered escrow in April. It was to be a simple, 30-day affair. Not so. We just closed escrow last week — after more than 90 days of one of the most frustratingly/interesting transactions I have ever had in my career. The buyer had gone to his local branch of Bank of America for his loan, and it was not easy….B of A admits that they need to streamline their system. Every business day we all were on the phone with the bank and every day it was the same old story… “We are working on it, it has been sent to underwriting for approval, and every day we need just one more document and then we will be done”. You know what? That last document was never the last document. “Just one more, Carole. Promise!” Promises, promises. The great news about this transaction was that I had a saint for a seller. The buyer, and his agent — who were equally gracious and determined — had the most angst to deal with — because of the tangled web of conflicting requests emanating from the bank. But the good thing was that we all had our eyes on the same goal, and keep the lines of communication going and open. Finally, in the home stretch we could see the light at the end of the escrow tunnel….Oh, oh….just one thing: The buyer had to turn in his leased car to meet the Bank’s debt-to-asset ratio. He did. And voila, escrow closed last Friday. We all celebrated, and the buyers and their two beautiful children are getting ready to enjoy their new home with a yard for them to play in! Champagne for all!!!
But what this is telling you — lenders are becoming more and more stringent, some times to the point of being unreasonable. For example, one of the issues that they are now looking at is if the woman is pregnant and as such may or not be changing her salary. The banks are looking at that potential change and taking it into consideration even if she has no intention of staying home after having the baby, or if her employer has a program that supports Mother’s taking time off to have a baby. I would not recommend to any client that they deal directly with a lender – You are always better off going through a competent mortgage broker like my associate John Ciolino at First Capital Mortgage who can run interference for you. Remember, lenders look at brokers as a source of many loans. An individual usually has no leverage with their single loan at stake. A mortgage broker can also look at your lending package and determine what will be/is the best course for you to follow.
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A different kind of barometer on the Westside Real Estate market
Two weeks ago I closed escrow on a sweet little house in Brentwood that I sold in ONE DAY. It was on a great lot and is being torn down for a bigger house that will be back on the market in about a year. I can honestly tell you that from a business perspective, I wish I had at least ten more like it. I now have a list of developers who are looking for good properties for developing, and this is a great barometer as to the confidence level of the Westside real estate market. One of the developers told me that he had not really been working for the past two years, and his wife, told him it is time “to get back to work’ and he is.
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A new kid on the block…..New York comes to Century City
If you are thinking of changing your life style and are considering one of the new luxury buildings that are on the Wilshire Corridor or Century City. Expensive, luxurious, condo-with-views are coming directly to you via the new 41-story Century on Avenue of the Stars condominium project that has been six years in the making. The ‘hook’ was set in Los Angeles elite who wanted what New York and Chicago have had for years — high-rise condos that are service-rich and feature every luxury imaginable. But for a price. With sales stymied by not being able to show real units — only plans and models — during the initial sales phase, developers are now ready to show prospects actual units. Sales are expected to dramatically pick up — at $2,700 per square foot, no less.
If you’re interested in seeing these units, please give me a call at 310 442-1384 so I can arrange personal tour
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Just in case
As you all know, one of my “hot buttons” is emergency preparedness. Enclosed is my gift to you which is a wheel for you to use in the case of an emergency as well as some information to help you in being more prepared.
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Nail polish and nature
What’s in nail polish? Nail polish isn’t a modern invention by any means. According to Wikipedia, the Egyptians were using it thousands of years ago based on henna extracts and the Chinese used a mixture of natural components such as Arabic gum, gelatin and beeswax.
These days, nail polishes tend to be synthetic chemical cocktails, often petro-chemical based (crude oil). Components may include: butyl acetate or ethyl acetate, tosylamide-formaldehyde resin ,dibutyl phthalate, stearalkonium hectorite, benozophenone-toluene, nitro cellulose. Some nail polish manufacturers are said to use industrial grade nitrocellulose in order to save money. Industrial grade nitrocellulose is mostly used for furniture finishes and car paints.
Of particular concern are formaldehyde, toluene and dibutyl phthalate – known as the “toxic trio” for their potential impact on human health.
Formaldehyde: carcinogen
Toluene: volatile organic compound
Deputy phthalate: suspected “gender bender” and carcinogen
Past our own health, the wider environment needs to be considered – what poisons us is often toxic to a whole range of other creatures. As for the packaging; specifically the bottle and even if it is glass, it shouldn’t be recycled as the contents that remain are considered hazardous waste. It’s my understanding that in the USA it’s recommended that nail polish bottles don’t go out into the trash but to a hazardous waste facility.
On a positive note, nail polish manufacturers have been responding to the “toxic trio” issue. A survey by the National Healthy Nail Salon Alliance last year found the majority of the manufacturers questioned no longer use these chemicals. You can download a list from nailsalonalliance.org that identifies the complying major brands. The use of dibutyl phthalate in cosmetics, including nail polishes, is also banned in the European Union.
As there are so many nail polish brands and some coming from countries with a less than stellar records when it comes to toxins, if you have a favorite nail polish, contact the company and ask them what’s in it. Ingredients may not only vary from brand to brand, but product line to product line. The individual components can then be quite easily researched. You can also start looking into “green” nail polish. Aside from being free of the toxic trio, these “earth friendly” products are water-based; are often plant based and contain no petroleum products. They may use less packaging or bottles made from recycled glass.
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For your consideration…
As a result of my busyness, I am blessed with a number of properties for consideration, some listed and others not yet. They range in price from a fixer in Brentwood priced around $1.200,000 to $5, 000, 0000 in Bel Air Crest. Some of the special ones include an enchanting home in Brentwood on a very large lot with a view into the “lagoonesque “ pool and yard area from the Master that will be priced at approximately $3,200.000. So whatever your needs, home, condo, Bel Air Crest, Mountaingate, Brentwood, a condo in the Century City or Beverly Hills area, or anywhere else you might be thinking of moving to, please give me a call, I would love to speak with you.
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In the meantime, enjoy the rest of the summer: It feels like it is getting shorter all the time. They have already had their orientation for transferring students at UCLA, and Morgan is returning in two short weeks to begin her senior year at SC. August 3rd is my daughter’s birthday. Happy Birthday Mel.
I will speak with you all soon.
