Timely Real Estate News……………………………………….1 March 2011
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And the beat goes on….real estate prices up, down, who knows?
For the past seven years I have been reporting to you on the trends and statistics on real estate prices in four of the communities I report on — Beverly Hills, Beverly Hills Post Office, Brentwood and Bel-Air. And through this period, starting in 2003, I have seen the market zoom up, zoom down, and now climbing back ever so slowly. But climbing up it is. The higher end market (over $10 million) is softer than it was in 2010, but at a meeting the other day of the special agents at Coldwell Banker that specialize in high-end properties, it was amazing to hear the prices of some homes in our area that are either on the market or will be soon.
For example, the meeting was held at the amazing new home at the corner of Sunset and Alpine in Beverly Hills. It is on a little less than two acres….approximately 36,000 square feet with nine bedrooms and 13 baths! The details are awesome – gold-plated fixtures, including door handles, all of the doors are lined in brass, hand-painted walls including guilding, and the limestone exterior was completely hand- and custom-made. All of this magnificence can be yours for $68.5 million! But this was not the only house that was discussed in the $20 million to $50 million price range. Obviously a few sales in this price range will do wonders in boosting the numbers.
However, some news reports on real estate and housing can scare the hell out of you….The Los Angeles Times reported last week that new home sales fell 12.6% in January….but as you read on, it gets worse: This is a dismal sign after the worst year for that sector in nearly a half of century. A half century! And while new home sales are not necessarily a major factor in our market — it’s the headline that rattles around in your brain and fosters a sense of fear and concern. As I have mentioned before, just going through the paper is enough to make you crazy and suspicious as there can be two to three articles in the same section of the paper on the same day that completely contradict each other as pertains to the status of our market and economy.
So it is with some restrained humor to report that if you just read the headlines, one might cut their wrists to see/hear about falling prices. For example, on February 15, Data Quick — a reliable real estate reporting firm out of San Diego, noted in the Los Angeles Times that Southern California home sales and median sales price edged lower. In the San Fernando Valley median sales prices, for example, were down in December 2010 and again 7% in January. Fortunately this same situation is not holding true south of Mulholland. But at first glance, a homeowner looks at the region’s statistics and assumes that their homes is clustered into that bucket of real estate soup…and sadly trudge onward.
What I try do in the SchifferLine is to bring clarity and “real numbers” that directly affect your home. My monthly stats issue’s goal (on the 15th of the month) is to deliver the best available data I can acquire from our member Multiple Listing Service as well as other sources. I want you to know exactly what is happening in your neighborhood and community as that is the most important thing, right?
So, after going deeper, one can quickly realize that while we are part of Southern California (or even Los Angeles County)….our communities are unique and well positioned in today’s market.
Every community, every neighborhood, and every street and home is different. The strength and breath of our Westside communities have endured the ravages of real estate deflation to a large extent. We have a ways to go…..but don’t believe everything you read. We’re a resilient bunch
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Here is an update on home financing….while the lending waters are still difficult to navigate I can tell you that it is getting better, slowly, but surely. I am seeing loan approvals being obtained in 21 days! We have not seen that in a few years. Most of the appraisers I have run into in my transactions lately are once again from the Los Angeles area, and they are familiar with the area, properties and have been more realistic in their appraisals. Hopefully thiswill continue. Also as stated in a recent LA Times article, all cash purchases are on the rise, in fact in the $1,000,000 and up market, 29.2% of the buyers paid cash, which is the highest percentage since 1994. For homes selling for $5,000,000 and up 62.2% paid cash. In the past 2 years, approximately 50% of my transactions have been all cash.
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It’s Spring Cleaning time of year…..don’t you just love it?
Spring is one of the loveliest times of year, so why do we celebrate this Rite of Spring by cleaning out our closets, garage and getting rid of all the stuff we accumulated since last spring? There must be a law someplace against this.
The arrival of spring is supposed to bring warm weather, which is – as I have discovered — the inspiration for spring cleaning. While we have certainly had our share of cold and rain lately, it’s nice to know we have warmer days ahead. Spring cleaning is sort of a ‘rite of passage’ — taking us from winter’s cold to summer’s heat, and in researching who ever thought of this idea in the first place, no one really knows for sure. And do we care? Spring cleaning has been a tradition for centuries in Persia, starting on the Iranian Norouz, or Persian New Year. In preparation for Passover, Jews have a tradition of cleaning their homes this time of year, and of course, Americans utilize the warming months of March to clean up winter’s mess. At least we haven’t created a national holiday for Spring Cleaning. I truly believe Spring Cleaning is akin to New Years’ Resolutions — it’s a nice objective, and we have to be patient about this.
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Preparing your home to sell
Since spring traditionally has been the busiest time of year in real estate (but that has changed in the last few years as there is no busiest time of year), there are some practical reasons to get your home/yard in order. Without question, presentation is everything in today’s tough real estate climate. A home that doesn’t show well doesn’t do well. And when you consider that nearly 50% of buyers make their decision to purchase a home before they even get out of the car, curb appeal becomes extremely important. My philosophy about making repairs to your home reflects the reality of the market today….
Buyers today feel empowered, and to a degree they are, so if there are things in the house that needs to be addressed such as your carpet, kitchen, floors, etc., they will completely over estimate the repair costs by at least 20 -30%. For example, if a repair/replacement of an item will cost $10,000 they will use their estimate of $30,000 in their decision as to what to offer on the property… so my feeling for sellers is to “take the power back”.. If you can make the change yourself or at least make it look better”, why should you as the seller leave money on the table?
Here is a consensus list of the most important ‘clean-up’ factors for you to consider:
1) Eliminate clutter. Clean out your garage, closets and all of the stuff you’ve accumulated around the home’s exterior. Buyers want to know what lies behind those hidden doors and they’ll look when you’re not lookin’.
2) Clean up walls, windows and floors. Buyers are extra picky these days, and your floors must be in excellent shape….remove outdated window treatments such as old drapes, bent metal blinds, and clean your windows. If you need to paint your walls, paint them. Also remove old wallpaper.
3) Landscaping. Curb appeal is everything. Did you know that nearly 50% of buyers will make a decision to purchase a home BEFORE they get out of their car? Landscaping makes a difference. Step out into the street and see how your home looks….get opinions from professionals, like me, to evaluate the look and feel of your property.
4) Clean interiors. Your home should not look like 30 years of history. Your marketing goal is to sell the property. Buyers want to be able to visualize how “their stuff” is going to fit, not yours. A “buying sign” is when buyers start talking or thinking about how they would place their furniture/things.
5) Kitchen and baths. Improving these two areas in the house are the “money shots”! Sometimes it can be as simple as just painting the cabinets and changing the hardware. Obviously if you have the ability to do so, and they need them, changing the appliances in the kitchen will go a long way.
6) Exterior improvements. Since so many buyers make their decision to purchase a home before they even get out of the car, a buyer needs to make whatever capital improvements that brings the home’s exterior to a competitive level. Yes, you’re in competition with every other home on the market in your price range (there are five homes on the market for every buyer) and a well-designed landscaping plan plus a quality home exterior are guarantees that buyers will at least get out of their car and into your home.
At the end of the seller’s day, the key to selling your home requires two basic elements: 1) The right price; and 2) the best presentation possible — inside and out. And the best way to insure you’re on target with each of these requirements is to retain the services of an experienced Realtor who knows your neighbor….like me!
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Repurposing old neckties into something functional
Repurpose old ties into something functional, repurposing, also known as reusing, is the second most important action of the green 3 R’s – Reduce, Reuse, Recycle.
I think most men who spend much of their lives in office jobs tend to accumulate a pile of ties – and some only get worn once or twice, fashion (planned obsolescence) being such a fickle thing. They are also easy and relatively cheap gifts to give; but gifts that may sometimes not appeal. So, what to do with these neglected neckties? Repurpose them.
Ties That Matter create reasonably priced and unique bags and pillows from neckties that are donated to the organization. The company also employs women in need to make the creations and donates a percentage of its revenue to help finance support services for the homeless. Zero waste, recycling and reusing materials, providing work to disadvantaged groups and plowing some of the returns back into the community – what a great business model. The creations made by Ties That Matter are all originals and look pretty good too: You can see their products on their web site, http://www.tiesthatmatter.com/ or they are at a number of craft shows throughout the country.
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It looks like it is going to be beautiful this coming weekend, and I will be holding my fantanstic Malibu beach house open (20726 Pacific Coast Highway) which has just been reduced to $8, 450,000. I will be there from 1 – 4, and I invite you to stop by and say hello. Next week, I will be holding my lovely listing at 11816 Henley Lane in Bel Air Crest open (new open house hours 2 – 5), so again I invite you to please stop by.
