Timely Real Estate News…………………………………………….. 2 February 2009
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Reality check….what 2008 taught us: Live in the now
If you’re thinking of selling your home, this is not the time for wishful thinking. I want to be very candid with you: If you were to read the article in the Los Angeles Times on 2 February, you would think it is all doom and gloom, and it is not. As with all stats and percentages, there are always a number of different ways to figure both stats and percentages. The stats from this article are drawn from Data Quick, and they differ somewhat from the MLS stats. As I have mentioned in past SchifferLines, I have talked about the situation where some agents, in order to protect their client’s privacy have “withdrawn” their listing from the MLS before it actually closes escrow. Thus the stats from the MLS only reflect those transactions that closed for that particular month. If you want the “true” picture, which would include those properties that have been withdrawn, it will be necessary for them to appear in the public records and then the MLS adds them to the sales stats for the respective month in which it closed. This generally takes a few months. In the last Schiffer Line, I reported that the Multiple Listing Service data (the statistics that I use every month to share with you) showed Beverly Hills was down 33% when you compared December 2008 median sales price to December 2007, pretty much what was reported in the Los Angeles Times Monday, 2 February their front-page story. But what they failed to report were the MLS averages for the entire year of 2007 vs. 2008 for the communities I cover, which shows a much more realistic picture of the price/value trends. Here is what the stats show as of January 1, 2009: Beverly Hills is only down 4% for year-to-date median sales prices as of December 31, 2008; Bel-Air is down 3%, Brentwood down 4%, and Beverly Hills Post Office is still hovering around 17% down from 2007. Considering the meltdown in the economy during the last three months of 2008, and seeing the market decline and unemployment rising, combined with miserable retail sales performance, these numbers are relatively not-so-bad.
And there is more good news: Our Brentwood Court Coldwell Banker office showed an increase of 33% in volume for December 2008 over December 2007 ways to get to the bottom line. In reading the article in the Los Angeles Times on 2 February, one gets the impression that it is all doom and gloom, it is not. Yes, we have and will continue to experience softness in the pricing of homes on the Westside. In the past, I have talked about how some agents at the request of their client’s privacy, etc. rather than have their.
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Monthly fluctuations are not “trends”.
You cannot compare “one-month performance” in median sales prices for any of the Westside communities I cover because of the vast fluctuations in anomalies that happen from month to month. A high-priced home, say over $15 to $25 million in any of these communities, will greatly affect the median sales price for that month. So, one has to look at the overall trend in pricing, and as you can see, the trend is down, yes, but not to the extent the Times reported. Yes, there is softness in the market, and it will most likely continue.
However, if you are going to sell your home, the price has to be reality based. And what do I mean by that? It means simply that you have to understand your neighborhood’s most recent performance. I have always taken the position about not having the “my-home-is-my-castle” mentality when getting ready to sell (and price) your home. You can’t always assume that your home is more valuable than another home in your neighborhood because it very similar.
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Helping you find the right price.
Unfortunately there are many buyers who do not feel the same way you do, and if you truly want to sell your home today, then you have to price it accordingly to today’s reality. Having an experienced Realtor as your agent will be critical to insuring you get the most for you home’s potential. All too often, we still have sellers who have great, long-term memories — they remember the good ol’days when prices were 15% to 25% higher. … when every home — it seemed — had multiple offers.
The good news is that 1) there are many homes still generating multiple offers; 2) buyers are getting some excellent, 30-year fixed loans at low interest rates and 3) we are seeing large throngs of shoppers at open houses, not just look-e-loos.
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A typical story about moving out and up.
Let me share with you an example of what is happening under the radar: One of my mentees (I have been a mentor at Coldwell Banker for new agents for the past 10 years), asked me to go on a listing appointment with her….we met a young couple in their early 30s that she had met at an open house the previous Sunday. The husband is an elementary school teacher and the wife works for a government agency, and they have two beautiful children, a boy six and a daughter three. They currently live in Culver City in a 946 sq. ft. home in the Del Rey section. They bought their current home for $300,000, fixed it up some and are now wanting to sell it in the mid-$500,000s. They are savers, have the funds and credit to move up to a $1 million home now — they want a ‘dream’ house….nearby good public schools…shopping, and are excited about ‘moving up’. They are perfectly positioned to make this transition.
These are the new buyers. They are out there. They are smart, motivated, and able to make this leap to their dream home. And they will be successful.
As I said earlier, all is not doom and gloom. The American Dream is alive, well. Move-up buyers are taking advantage of the lower interest rates and are able to get more property and value for the investment than just six months ago.
Ask yourself these questions: Many times I get asked about what I refer to as the Chicken and the Egg Syndrome — When should I sell my house — now or after I find my dream home? If you are thinking of selling your current home and purchasing another one, there are four questions you need to ask yourself: 1) Sell your home first, then shop; 2) Buy something concurrently to selling your home; 3) Sell your home, move into a temporary residence until you find your new home; and 4) Rent out your home until the market has stabilized. There are pros/cons to these questions, and every situation is different. But to be “good sellers, you really need to have a “game plan for yourselves”.
My recommendation is to talk to an experienced Realtor. No harm, no foul. Get a reality check on your individual home’s value now. Then — and only then — can you adequately evaluate your options.
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Green your computer use
Lightening your computing environmental footprint. Computing has changed the world – a great example is the Internet. It’s hard to imagine either not existing. While computer usage can actually lessen our environmental footprint, for example, being able to work from home or control of farm irrigation and many other tasks, the energy consumption involved with casual computing and gaming generally is massive. When not in use for extended periods, switch your computer off at the wall to avoid phantom power load consumption. Have your power saving/management options enabled and properly configured for periods when your computer is temporarily not in use. In Windows, this can be found in Settings/Control Panel/Power Options. During usage, only have your screen as bright as you need it – unnecessarily bright screens really chew the juice. If you’re going to use a screen saver, use a blank (black) screen – animated screen savers just consume electricity unnecessarily. If you can afford it, buy extended warranty with your new system so there’s less likelihood of you needing to junk the computer within the first few years if an expensive repair is needed. Before purchasing a new computer, consider upgrading the hardware in your current machine. Some extra RAM (memory) or a new hard drive may be all you need to restore life to your current system. According to this site, the energy needed to churn out a new computer is enough to power a system for a decade. It’s not uncommon for Windows to get slower as time goes on. This isn’t necessarily your machine, but software bloat. All the updates, installing and uninstalling of software, applications running in the background that you don’t really need take their toll and basically clog your machine up; seriously impacting on performance, which in turn is more wear and tear on hardware and increase electricity consumption. Consider doing a reinstallation of Windows and your software. A lean machine will sip less electricity and perform much better.
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Check this information out!!!
I have a number of very exciting properties to share with you… Canyon and Custom homes in Bel Air Crest, both for sale and lease, homes in Mountaingate also available for sale or lease, and one or two in Brentwood property… so if you have any interest any of them, or know someone who might, please do not hesitate to give me a call, or shoot me an e-mail.
