Timely Real Estate News…………………………………………………………………………..1 August 2012
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Olympics give us inspiration, breather from traffic and travails
There is nothing like having the Olympic Games to take our minds off traffic, the economy, and whatever else troubles you — it’s like going to the movies to escape….every night…and every day, too. And who can argue with the spectacle that surely burdens every host with debts to last a life time but bring so much entertainment, thrills, and chills to the 1 billion viewers and visitors 
who watch and attend these 30th Olympic Games of the modern era.
From David Beckham to James Bond to Queen Elizabeth to the birth of the Industrial Revolution, we witnessed Danny Boyle’s rockin’ Opening Ceremony that served as the launching pad for these 2012 Olympic Games, which has enthralled the world so far.
Los Angeles is, of course, no stranger to hosting the Olympics — having done it superbly well in 1932 and 1984. But what we also do well is train and send athletes to the Olympics: Between our major universities in Los Angeles — UCLA and USC — Los Angeles has sent 1,235 Olympians to the Games since 1904, 587 participants from USC since 1904, and 648 from UCLA since the school was founded in 1920. USC has produced 262 Olympic medals and UCLA 257 medals. And what continues to be impressive is that for 2012, UCLA has sent 32 athletes to London while USC has sent 40. These numbers just demonstrate what treasure of athletic prowess we have in all sports in the Olympics — from shooting to track and field to basketball to cycling. Interestingly, though, is that not all of these athletes from USC and UCLA represent the United States — many have come here from other countries to go to school and train, but still, these numbers continue to be amazing when you consider how difficult it is to become an Olympian.
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There are some positive signs on the real estate horizon….
No, there are no drums banging or celebratory fireworks going off…but there are some encouraging signs that bear sharing. Foreclosures are slowing and the housing market is improving according to Data Quick, the San Diego-based real estate tracking company. There are fewer bad loans that helped bring new California foreclosures actions in the second quarter 2012 to their lowest level since early 2007 while the number of homes lost to foreclosure plunged. This is really good news — because it demonstrates that we have either hit the bottom or we are heading upward in terms of dealing with glut of foreclosed homes on the market, which has historically held down home prices.
The number of notices of default filed on California houses and condominiums in the second quarter fell 2.9% from the prior quarter (Jan-Mar), and were down 3.6% from the same period a year ago. According to Data Quick CEO John Walsh…”the foreclosure process has always been the sanitation department of the housing sector. The question is whether these lower numbers mean that there’s less distress to process, of if we’re just seeing distress get processed at a slower pace.”
The number of trustee deeds which are public documents filed when a foreclosure is completed; fell 27.8% from the same period as last year. That’s one of biggest declines we have seen in the past five years. So, that’s encouraging. And all we can do is hope this lasts.
Home prices in the nation’s biggest cities rose sharply from April to May, fresh data show, underscoring the strength of the housing market’s spring recovery, which was marked by fewer foreclosures and a tight market.
How do we really gauge the market?
As a further demonstration of how the residential real estate market is performing, there was a recent article in the Los Angeles Times quoting Standard & Poor’s/Case Shiller’s index of 20 large cities. They did not mention the Los Angeles market at all in the article, and as a result there is no indication as to what is happening in “our neck of the woods”. It was the second gain after seven months of declines for the Standard & Poor’s/Case-Shiller index of 20 large cities. The 2.2% rise was also the strongest month-over-month percentage gain in more than a decade. And the 0.7% year-over-year decline was the most moderate annual drop since 2010, helping fuel optimism among analysts that the carefully watched gauge may soon begin posting year-over-year gains.
Nevertheless, the slowing economy and a steady stream of foreclosed properties will ensure that the housing market doesn’t snap back to the heady days of the last bubble, experts said. The index may even give back some of its gains during the fall months when buying typically slows down, particularly in colder parts of the country such as the Northeast.”Going forward the real issue is whether the economic improvement we saw earlier this year is petering out.”
The rise in housing values comes at a tenuous time for the U.S. economy, with fears about an impending fiscal crisis at the end of the year beginning to hurt job growth domestically. Housing is highly dependent on a steady labor market, and a weak second-quarter economic report made it clear that the country remained in an anemic recovery.
The nation’s gross domestic product, the value of all goods and services produced in the country, grew at a meager 1.5% annual rate in the second quarter, down from 2% in the first quarter and 4.1% in the final quarter last year. Meanwhile, national job growth was sluggish in June, although California’s economy picked up with job gains in most industries.
“In some of the good places or attractive places where people want to live, there is kind of a little frenzy going on because the inventory is low and people are jumping to buy properties,” Case said. “At the other end of the spectrum, there are those properties that are still in foreclosure and not competing.”
“Some of the optimism should, nevertheless, be dampened by the fact that recent rises may be inflated by strong buying months in the spring and summer,” “It would be premature to conclude that the recent rise in home prices precludes future monthly price decreases.”
So what have I seen as a slog through the trenches on a daily basis? It is an interesting time to be selling real estate in West Los Angeles. The divide between the well priced, well located properties is thriving. This past weekend, one of the agents in my office had a lovely home in Brentwood Park that had just come on the market, and it sold in about a week with six offers, over asking, and I am in escrow with a client for a home in the Bel Air Glen area, and the sellers have a back up offer for $75,000 more than we are in escrow for! Conversely, those properties that are not priced where they need to be are sitting and not receiving the kind of activity that they would have were they priced where they need to be. It is happening all across the board; in every community, and in very price range. Sometimes those properties that have not had a price modification end up for lease because the owners would prefer to have a good tenant rather and to wait out the market. Obviously we have no guarantee that their bet will pay off.
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Tired of being ‘out bid’? Here are some handy tips on how to avoid that.
For years, we have been talking about when a home is priced right, it sells quickly. In today’s buyer’s market, it’ is location, location, location, but pricing, pricing, pricing is a close second. As I just mentioned in the previous article, when a home is priced competitively, there are buyers — usually standing in line. And lines mean only one thing: It is a “hot” listing, which generally means multiple offers. From a seller’s point of view, you love that feeling, but if you’re a buyer, you don’t. Regardless of your FICO score, the money in the bank, your good looks, or the car you drive — multiple offers translate into bidding wars. And in this game, there is only one winner.
As an experienced real estate agent on the Westside for more than 30 years, I can tell you I have been there in both the good and bad times, and in either market condition, multiple offers and bidding wars reign. The problem we have today is the lack of quality inventory, and when a really good home comes on the market, demand results usually in a bidding war. From the seller’s point of view, you can sit back and just pick/choose the offer you want — and it is not always the highest bid/offer. There are many factors involved such as credit worthiness, contingencies, and the overall package — does it feel right, solid? Who is the buyer? Who is the agent?
In working with an experience agents, just as myself, I will be counseling you to be mindful of the following, but you also need to prepare yourself both emotionally and practically when you are getting ready to make an offer on a property, particularly if you find yourself in a multiple offer situation.
1) Make the best and truest offer –– this simply means that you can’t afford to get too emotional about your quest. Take your cue from the comparable sales and make sure your offer makes sense for the home’s location, condition, size and amenities. I will guide you through this process, but I can tell you that in many cases, buyers can get very irrational in the purchasing process – sometimes wanting to over pay for a house or not step up to what the house might truly be worth. And in a bidding war, emotions run high (crying is permitted). So remain calm and listen to me… your agent.
2) Look at all of the costs — not just the listing price — Did you know that 50% of the purchases made by home buyers are decided at the curb? Buyers see their dream home and by the time they walk in the front door, they’re sold. “Oh, honey, we can fix that….that’s not a big deal.” Well, it could be a big deal, and what you have to do is detach yourself from the “dream” and objectively check out the “reality” of what it will take to make the home truly work for you — its location, your life style, the amenities, exterior and interior conditions?. Try to remain objective in this phase.
3) Buy what you can afford — Of course, you’d never not do that. But I have found over the years that many couples just get caught up in a home, especially if there is a bidding war because it just “verifies” that this is a really valuable home….”we can afford that extra $1,000 a month, can’t we?” Stick to the bottom line of what you can really afford based on calculations made BEFORE you start shopping. If you are thinking that you can or want to go you’re your budget, please check with your lender first to make sure that you can. Getting caught up in multiple offers can really ‘fuzzy’ your thinking into a home you may not be able to afford!
4) Keep the appraisal in mind –– Remember, in these economic times, banks are wary of appraisals that come out too high — they always go low. Remember, your partner, the bank will for the most part own at least 50% of the house if not more, and they really do not want to take back properties, or write down their loans. There have been times I have seen buyers and sellers agree on a price that was really too high, only to have the lender come back and say” Sorry, we do not see the value here”, and that can be most painful for everyone involved. We are still having problems with appraisers that not familiar with the area, which we all are working on correcting. They have been bringing appraisers from out of the area, who were totally unfamiliar with our values, but seems to be getting better somewhat. I always work with the appraiser as best as I can to give them the comparable information and as much support as I can, which is again a strong reason for you to be working with an experienced agent such as myself so that I can answer those quirky questions about the neighborhoods…
At the end of the day….the key is to stick close to your trusted real estate agent, like me! I have had so much experience in these bidding wars — and have been successful and have had some failures, too. You really can’t win them all — it is not always a crap shoot, but it sure feels like it some times. So, stick to basics, the fundamentals, and in the end, you’ll come out fine.
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Drip. Drip… We have water issues folks!
Enterprises around the world are turning their attention to the same cause: water sustainability .From the ground-up view, water-stressed communities across the globe are pressing the panic button. Two-thirds of global consumers are expected to 
face water shortages by 2025. Large-scale water issues are leading to unprecedented changes in the consumerscape. A weak 2012 monsoon led some hospitals in India’s capital, Delhi, to cancel surgeries this summer. They had no water to sterilize instruments and wash hands). A drought has severely impacted more than 60% of the US, leading to a spike in food prices that in turn affects countries to which the US exports food.
Corporations are responding to both short- and long-term water crises with plans for innovation; they’re cutting back, finding new sources, and reusing. FMCG Company/ Unilever aims to halve the water consumption associated with its products by 2020. For instance, for consumers, they introduced spray-on dry shampoo in India and a Comfort One Rinse in Vietnam, both of which reduce consumers’ need for water (EconomicTimes.com, 25 April 2012). And initiatives like these are just the tip of the iceberg.
Every Drop Counts
If you ever wonder whether the small changes you make really matter, consider this: each of us uses an average of 100 gallons of water per day – enough to fill 1,600 drinking glasses!2 Just think how much you water you can conserve if your whole family becomes more water wary. Here are some easy ways:
* Cook Smart. Peel and clean vegetables in a bowl of water instead of under running water.
* Slow the Flow. Install a slow-flow faucet to reduce water consumption up to 50 percent.
* Shorten Showers. Take short showers instead of baths, and consider using a shower timer. To make it fun for kids, turn it into a game to see who can get the most “sqeaky clean” in under three minutes!
* Test Your Tank. Add 12 drops of food coloring to your toilet tank and wait an hour. Look to see if any color seeped through the tank, a fitting or into the toilet bowl. If so, you may have a leak.
* Let It Grow. Raise your lawnmower blade to at least three inches; taller grass holds soil moisture better..
* Speak Up. When you see an open hydrant, errant sprinkler or broken pipe, tell the property owner, local authorities the Department of Water & Power
* Look for Leaks. Read your water meter before and after a two-hour period when no water is used. If it doesn’t read exactly the same, you have a leak
* Tap Out. Instead of letting the tap run until water gets cold, keep a pitcher of drinking water in the refrigerator, and use it to refill certified reusable water bottles instead of opting for single-use plastic ones.
* Tap In. Place a bucket in your shower to capture the water that runs while you’re waiting for it to get hot. Use the water to water plants.
* Watch for WaterSense. When you shop for plumbing fixtures, look for the Environmental Protection Agency’s WaterSense label, which means they meet strict criteria for efficiency and performance.3 Click here to learn more.
* Go to the carwash. Water in most car washes is reclaimed (re-used) so the total amount of freshwater used is reduced.
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“….I’m baaack.” Carmeggedon scheduled for September 29-30. So what are you doing that weekend? Going out of town…having breakfast ON the 405? Are you going to stick around and watch college and NFL football that weekend — eating what’s in the fridge and avoiding whatever mess is out there on our freeways. As you recall, “Carmeggedon” never turned into much, did it? Traffic was manageable everywhere, and it ended 12 hours before it was supposed to. The only really creative effort that weekend was the foursome who set up Breakfast at Tiffany’s on the 405 under
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