re$real

re4real will be flying the friendly skies again, off to visit real estate in faraway lands. I was just recently in Sydney, Australia, where surprisingly the condo/housing market is on par with prices in Los Angeles. The only difference being their escrow period – it is much different than ours. They have a “cooling off” period, but don’t do the due dilligence like we do here. I’ll report from Cape Town, South Africa and London soon! Sit tight!

Watch it like a hawk? Or, let it simmer in the “crock-pot?”

I visited this property back at the end of May when it had just hit the market. My initial intrigue with it led me to “do the math” myself (well, at least a rough estimate of) and hypothesize as to what it would take to make the mortgage (+ taxes, + insurance, + utilities, etc., etc.) on this sweet 1906 gem in the heart of Venice beach. I estimated it would be a hair over $6,000 a month, IF you were able to buy the property for $200,000 off the sticker price. Now, two months later, I revisited the property, this time online, rather than in person, and noted that there has not been any reduction in price. The agent’s caveat in the written details state that the property can be “delivered vacant or with 1 tenant paying $3150 per month (ahem, 1 bathroom, hmmm, well your guests can pee in the ocean when it’s occupied): additional income – lease 2 parking spots!” WOWZIE! Oh, yes, this is a “duplex” per se, with 2 units, 1 lower, 1 upper, each with own washer/dryer, 2 bedrooms, 1 bath each, remodeled to reflect modern aesthetics and accomodate 21st Century living – but incorporating touches from the early 1900’s, including the original O’Keefe & Merrit stove. So, if you can cover $3500 month, stand having a tenant live within close proximity (and handle the stress that the tenant might not always be able to pay that high rent – but then again, life’s a crap-shoot and if you want to gamble in real estate, you’ve got to take the chance sooner or later!), and maybe, just maybe, rent a couple-o-parking spots out to some neighbors for some extra milk money – perhaps you can make an investment in this god-awful market! But, that is, if the seller will budge on the asking price. Seller, seller, where for art thou? And, why is your head in the sand like an ostrich? Here’s a link to the listing agent’s private site for the duplex: www.1900pacificave.com

She ain’t nuthin’ but a gold digger….

First of all I love this ad. How can you not? And, even though I can scour the MLS for properties in the pre-foreclosure state, this is a good way to access the lion’s share of them all at once.

Check out the link to find properties that are “short sales.” This means, in a nutshell, they are listed for sale at prices less than what the current owner owes. It’s all about market value, supply and demand. Basic economics. The only downside is that the process can be grueling and arduous, but who ever said that buying a house is fun? Oh, I did!

www.shortsense.com

You should have been in pictures!

This house is so damn cute. It’s like an over-sized hotel suite in Shabby Chic style replete with the original Bachelder fireplace from 1928 – but the entire house has been given a perfect face-lift. White walls and moldings, character hallways, picture window from the guest bedroom looking out to the spa-esque dipping pool + guest house for visitors, family members or to rent out and help pay the electricity bills or car payment – but maybe you just have a bike, manual and motor, because there ain’t no garage at this abode. Barreled ceilings, tasteful fixtures and finishes….doesn’t need a thing, except maybe the addition of a California Avocado tree in the luscious garden. The property has been on the market for 138 days and has been reduced to the cool cool price of $1,399,000…take away the one from the front and it would likely have 1000 bidders and maybe sell for a mil. At this price it’s going to sit. Sorry seller. Not sure what your agent’s been telling you as to why your house isn’t selling, but the days of buying the worst house on the best street are back in vogue. This is one of the best houses on a great street – BUT, it has two bedrooms in the main house and one detached guest house/room which just isn’t enough, even in Santa Monica, to substantiate the list price. I’m sure the owner doesn’t want to lose money on the investment, and some true love and care was placed into the remodel/upgrades, but if he or she really must sell they are going to have to heed this advice and reduce, reduce, reduce! At $1.2 mm this could be someones dream home. Add an extra bedroom later on down the road. Maybe a new master on a second floor addition, or push out toward the back. Until that day comes, take the design elements and buy the foreclosure on 25th Street for $800K (mentioned in an earlier entry) and do the upgrades yourself….

Click on this link to see photos & more info. about this home:

http://guests.themls.com/view_photo.cfm?mlsnum=09-345757

Cracker Jack Box

A few weeks back I watched Breakfast at Tiffany’s for the “umpteenth” time with a friend of mine who had yet to see the Capote flick. I think the scene where they ask the Tiffany’s salesman if he would be able to inscribe something on the inside of a ring they got out of a box of Cracker Jacks is extremely relevant to today’s economic times.

People still want luxury, but it’s the little luxuries that make more sense right now. Consumerism will never die, it just ebbs and flows and though it has waned, there are still needs and supply and demand is alive and kickin’.

The pent up needs in our local real estate market are reflected in the statistics of recent sales. The Eichler home in Granada Hills on Lisette (where for the last several nights there has been a light so bright I thought a spaceship had landed to save us all – but it was just a movie crew) had 25 offers thanks to the low, low list price of $479,000. It will be interesting to find out exactly what it ends up selling for. A house on Marmont Ave., just above the Chateau on the Sunset Strip, that was a probate, not a foreclosure like the Eicher house, sold exactly for the asking price of $949,000. Whoever snatched that up has views for life, or an amazing rental property/investment. I’m telling you, you’ve got to listen to me!

There is a sweet house on 21st Street just north of Ocean Park, south of Pico in the Sunset Park area of Santa Monica that has been on the market for 60 days at the list price of $824,900. This foreclosed property boasts the bone structure of a early mid-century English cottage, with charming details such as a bay window in the front living room and arched hallway entrances, built-in cabnitry in the petite dining area. The kitchen needs to be built out with a stove and oven, but I can just imagine a refurbished O’keefe & Merrit or a brand new Wolf or Viking and how the punch of the new with the old could make for the perfect chef’s dream.

I see so much potential in this house, not only because of it’s stellar location (um, walk to Zabies or Mrs. Winston’s on Ocean Park and bike to Trader Joe’s on Pico), but because I envision it being loved by the new owners, who will grow roses and herbs and take advantage of the spacious yard and ample room to grow. The house does need cosmetic work (don’t we all?), and could use a second full bath (there is only one full bath and one powder room), but I know that it’s been loved before and will be loved again. Wow, houses really are like people after all!

Here are some pics. Looks way better in person. Have a swell weekend!

Oh and p.s. Cracker Jack boxes sure are fun, only if you could live in them!

Beverly Hills seems like the place to be…but what about Granada Hills?

Believe it or not, a single family residence can be had in Granada Hills, for a price that won’t leave you with Beverly Hills sticker shock. For under $500,000 you can get a 3 bedroom, 2 bath house with a 19,000 square foot lot…in a great neighborhood, that is literally 25 minutes from Beverly Hills – of course when the 405 allows for such a pleasant, timely voyage. Good schools, lots of hiking, a great all around neighborhood to grow up in – I should know, it’s the town I’m from! Plus you are still in the City and County of Los Angeles. Who knew?

This one is “value price ranged” or is it “value range priced?” I don’t know, and don’t think it really matters, but it’s suggested “retail” price is between $415,000-$499,000. And the thing is, who’s paying “retail” these days? Just imagine the deal!

I see London, I see France, I see the Getty out the window!

Well…you could see London and France if you put photographs up inside…but the view of the Getty to the northeast isn’t just a virtual reality! This house on 7th, just north of Ocean Park, in Santa Monica (walking, skateboarding, or biking distance from la playa), has much of the original details from whence it was built in 1948 by the original owner/architect…who’s family owned the property up until now – well, essentially they still do, it’s a probate sale, but no court confirmation is required.

At $1,050,000 it could be a good investment especially considering that it’s on an R2 lot, which means that there is the potential for future development (i.e. add another structure or tear down and build two units/houses/condos/townhouses…you catch my drift), possibly live in one and rent the other out…blah blah….

In addition to the “investment” potential, the house itself has the potential to be aesthetically revamped and either brought back to it’s original early mid-century spelndor, OR taken to an entirely new level of contemporization (is that a word? it’s allowed in the blogging world…who says so? ME!)

There aren’t any pix online, except for a view shot, and this shot does not do justice to the real life views from the vintage picture windows.

It’s going to be open this Sunday…so if you want to see it, I can give you more details.

There’s something bohemian about this part of town that is so refreshing, yet you are still in the middle of it all. Almost like you’re on a street in San Francisco….it’s definitely worth taking a peek if you’ve ever thought about Santa Monica as a home-base.

This is RE4REAL signing off for the evening…buenos noches y buena suerte!

Lambo Gallardo OR down payment for a house?

Driving on the 405 freeway going south last week I ended up behind a green Lamborghini Gallardo, whether or not it’s really “green” or not is a whole different story! I suppose if you are going to be trapped in the hell that is Angelino traffic, you might as well be riding in style, but I can’t imagine that riding in a Lambo at 4 miles per hour is any fun. (I can’t really imagine riding in a Lambo at all since I’ve never stepped foot in one, but I did steal my brother’s Hot Wheels Lambo back in the ’80s and obsessed over the switchblade doors!)

Yesterday I did a drive-by of a new listing in Santa Monica canyon. Excellent location for $1,299,000: 3 bedrooms, 2 baths, completely remodeled with 6-burner Wolf range in the kitchen for all of you aspiring “Top Chef” candidates, wood floors, Carrera marble counters, California closets, and original 1960 mid-century flare  that includes the stone fireplace & house facade.

I think this is a great price for the location and size of the property. Plus, if you forgo the Lambo you will be able to afford the down payment! Another reason that I am confident this is a GOOD DEAL is that the most recent comparable sale at 674 Kingman, in the Canyon, sold in 10 days for $50,000 over the asking price of $1,299,000 & that property needed updating. Perhaps this new listing on Dryad Road will slide under the radar and you can steal it! It is the lowest priced listing on the market in the 90402 zip code for a single family resident. I can provide more statistics if you are interested.

My blackberry shots of Dryad Road:

and…the pro’s shots!

The ‘bu

25200 Malibu Rd. Unit #1, Cliff May Building
2 bedroom 2 bathroom with direct access to the beach.

Insider information from the listing agents:
This unit has created quite a stir among the locals who feel that is one of the best opportunities in years to live on famed Malibu Road.
Just bring your tooth brush and your furniture and you can move right in and enjoy all that beaches of Malibu has to offer.
The sale will take place on May 8, 2009.
The overbid amount will be $1,339,250

Court Date Is 5/8/09 @ 9:15Am @ 1725 Main St., Santa Monica, Dept N.

If you are serious and want to throw your hat into the ring, let me know!

And…a little about Cliff May for those of you that are curious (borrowed from www.ranchostyle.com, yes it’s late and I am tired so I am blogerising rather than summarizing!).

 

 

Indoor-Outdoor Living First and foremost, Cliff May homes are unique in their relationship to the outdoors. They are Californian, built for individuals who want to erase the lines between indoors and outdoors and embrace the spectacular Southern California climate. And in an environment where the sun shines 300 plus days a year and the average high temperature is 75 degrees, why would anyone want to live differently? It is not uncommon in Cliff May homes to find that every room in the house has a connection to the outdoors. Floor-to-ceiling glass takes the place of walls to bring light and nature in, creating a relationship to the outdoors that is as much a part of the home as the decor. Perhaps the San Diego Union put it best when it featured an original Cliff May design under the heading: “Home with a Garden in Every Room.” Builder and Pioneer In the early 1930s Cliff May was designing homes in San Diego and Los Angeles. Then, and throughout his career, he was building homes for the Southern California climate and for people who wanted to enjoy it. He was a builder and a promoter and he pioneered a style—the California ranch house. In an interview in 1936, May explained: “ The early Californians had the right idea. They built for the seclusion and comfort of their families, for the enjoyment of relaxation in their homes. We want to perpetuate these ideas of home building.” What made Cliff May exciting to anyone interested in home design was his drive to perpetuate ideas of livability rather than façade. His passion was designing homes that were in harmony with the way people wanted to live. He watched families use his houses—watched them give parties, prepare meals, use the patio for entertaining . Each idea that brought pleasure to home owners was worked over and improved in the next house he built. No new idea in planning, no new material, escaped May’s attention. Large expanses of glass and sliding glass doors, for example, came into his designs the month they were available. The Father of the California Ranch Home May loved wide open spaces. No wonder. A descendant of an early California Spanish family, he was raised on a San Diego ranch. Considered by many to be the father of the California ranch-style house, May is noted for combining the western ranch house and Hispanic hacienda styles with elements of modernism. His approach called for houses to be built out instead of up, with the continual goal of bringing the outdoors in. May studied business and accounting at San Diego State for a couple of years but left school around the time the stock market crashed in 1929. While still a student he made furniture, which he sold in a model home. That led him to home building after leaving school, and he built and designed his first house in San Diego when he was just 23. Still, May never became a member of the American Institute of Architects with the designation of AIA, but rather, spent most of his career as a licensed building designer. “I was proud that I got where I did and wasn’t an architect,” he said in an interview with the Los Angeles Times at the age of 79. Cliff May was ultimately given the designation of licensed architect when the State of California, under Governor George Deukmejian, did away with the agency overseeing building designers. Want More May? If you are looking for further information on Cliff May, may we suggest delving into the resources that are listed on the Cliff May Library page or the articles “For Cliff May, Less was More” from the Rancho Style Newsletter, Issue No. 3 and “California’s New Best Seller” from the Rancho Style Newsletter, Issue No. 4. Also avaiable to download—and highly recommended—is the research paper Cliff May and the California Ranch House by Laura Gallegos, a graduate student of California State University, Sacramento. This paper provides an extensive look at the roots and influences of Cliff May’s work and discusses the significance of his ranch house designs in American culture. You will find the paper listed as a resource on the Cliff May Library page. You can also download the paper directly by clicking here.

Just around the corner from the Mexican restaurant in Jerry Maguire!

What?!! I love Paco’s Tacos on Centinela in West L.A. – betwixt Culver City and Mar Vista – on the way to Playa del Rey…thanks Lynne for introducing me…but, you failed to mention that it is the famed location in one of my favorite flicks of all time, Jerry Maguire!

And, thanks to Bobby R. for actually making me aware of this tidbit of info. this past weekend. Who knew?

This has nothing and everything to do with real estate. The fact is that YOU can live within a bike ride from this esteemed establishment, where they hand-make the tortillas and serve them warm with the nectar of the gods, yes, butter!

This house on Chase Street  in the Palms/Mar Vista/Culver City-Marina adjacent ‘hood is super charming and the house is not too shabby that was just listed for sale for $679,000. It’s a 2 bedroom, 1 bath, with room to grow, a nice yard and converted garage that could be a guest room, play room, office, man cave, etc.

Plus, you can have Paco’s every night of the week if you choose! And Tito’s for lunch…

Buy me! Buy me! Buy me!

T.G.I.F.!!!

Take a looksie….a 1 bedroom condo in Santa Monica under $400,000 – listed for $399,000!

 

 

 

 

 

 

And this adorable Single Family Home in West L.A./Westwood adjacent for $679,000! 3 bedrooms, 2 bath…this would make a great long-term investment, to either live-in and/or rent out (UPDATE as of APRIL 14, 2009 – this house is in ESCROW!! you snooze, you lose!)

If you want to check out the above mentioned house at 2844 S. Bentley this Sunday be sure to head north and visit me at my open house at 2125 S. Bentley Unit 101 – we just reduced the price to $699,000 for this beautiful, like-new (1 owner, built in 2002) 3 story townhouse with attached 2 car garage and rooftop deck off the master suite that offers views to downtown and Century City. All hardwood floors and stainless appliances….stop on by, I would love to see you. I won’t have rosemary-pesto panini’s, but maybe if you’re lucky I’ll bust out some Easter treats.

http://guests.themls.com/profile_page.cfm?mls=09-349693&tab=search

April Fool’s Day is over

What if, tonight on the 6:00 pm news, the reports tell you that housing sales in southern California are picking up? Will this statement mean anything to you? Who knows…but one thing is certain, consumer confidence is heavily persuaded by the press. That being said, are you going to wait until you hear this NEWS on the news, or are you going to be one of the forces behind the wave of change?

Reports, widely seen on the news last night, show that caffeine intake before a strenuous workout can decrease post-exercise soreness and increase strength and focus during the workout. Starbuck’s stock is up today. Coincidence? I think not.

Surely buying a home is not the same as purchasing a cup of joe, but the concept of supply and demand is relevant. Many will wait until the “last minute” when the market finally “bottoms out.” And they quite possibly will all be fighthing over the same beans!

Venice Bungalow – waiting to be refurbished before summer sets in! $699,000

http://guests.themls.com/profile_page.cfm?mls=08-331209&tab=search

Pied-a-terre @ 999 Doheny. Own a unit at this West Hollywood full service building on the corner of Sunset Blvd. & Doheny. Walk to the strip. Rent out or live-in. Full-service building with valet. Common areas are slated to be remodeled, investment opportunity. $429,000

http://guests.themls.com/profile_page.cfm?mls=09-358847&tab=search

Two Thousand and Nine

No, the title of this post is NOT the price you can pay for a house in Los Angeles these days, but the fact does remain that there are some sweltering “deals” to be had for those ready to get their feet back into the real estate market.

RE4REAL is back!!! Hope everyone had a lovely time during the holidays and that an eventful new year is underway…now, let’s discuss what is happening in 2009 so far:

-Since 1/1/09, in the Greater Los Angeles area, 313 single family residence listings in the $500,000-$1,000,000 range have hit the market. In that same price range, 104 properties have sold, and 143 are in escrow.  Of the properties that are in escrow, 8 were listed in the new year…the remainder were all listed in 2008. All of the properties that have “sold” thus far - meaning they have closed escrow in 2009, were listed in 2008 – it is very unlikely that a property will close escrow in less than 2 weeks, but it is not unheard of.

-In the $250,000-$499,000 price range, 199 single family residences have sold in 2009 – of these properties,

In this category, 295 homes are in escrow as we speak, er write, or read…well you get what I mean! Eight of those properties in escrow were listed in 2009, the rest in 2008 – and believe it or not, a few stragglers from 2007! Yes, we’ve got inventory that’s been sitting on the market for quite some time, but some of them are finally going to sell…that’s the most interesting part, finding out why those properties have taken so long to sell and what has changed in the market, or changed with the sellers, to substantiate the sale.

There is a variety of factors that goes into whether or not a property will sell, regardless of the economic temperature. The properties that have been sitting for a year or longer are obviously highly overpriced – even if there is something significantly “wrong” with the property, it could still be saleable at a “reasonable” price. That is the difficult part – coming to terms with what is “reasonable,” especially given these volatile economic times.

-64 houses $1,ooo,ooo and above are in escrow, and in this price range 45 properties have closed escrow since New Year’s Day 2009. Three that are in escrow were listed in 2009 and BELIEVE it or NOT, one property in Tarzana (that’s the West Valley, and this particular house is located south of Ventura Boulevard) comes up as listed and sold in 2009…whether or not it’s a “glitch” in the system is yet to be determined. The thing is that with statistics you always have to take them with a grain of salt because there are several factors that come into play that can muck up the entire formula, first and foremost, human error. Theses statistics that I share with you are gathered from the Multiple Listing System and calculated by me, so we must leave room for error, but I do feel they help give a sense of where we are at two weeks into the new year. The market is breathing. People are investing in real estate in Los Angeles. And now, for the nitty-gritty details, like (uh-oh I promised not to abuse that word!), what is the price differential between original list price and sales price and days on market for properties that are selling in today’s real estate market?

-Of the 45 properties in the million dollar plus range that have sold thus far, 41 were listed in 2008, 1 in 2009 (see aforementioned property), and 3 were roll-overs from 2007.

Okay – this might be “cheating” but here is the way the MLS calculates the data:

Market Analysis Report

# of Listings Average DOM Low Price $ Median Price $ High Price $ Average Price Total $ *Avg. Price w/ Sq.Ft. $ *Average Sq. Ft. *Avg. Price/Sq.Ft. $ ***Avg. Price w/ LSZ $ ***Average LSZ ***Average Price/LSZ $ Average SP/Average LP

Active – – – – – – – – – – – – –

Backup 32 70 1,025,000 1,397,000 11,950,000 2,014,219 2,014,219 3,219.09 625.71 2,014,219 14,297.25 140.88 –

Hold – – – – – – – – – – – – –

Pending 32 63 1,075,000 1,485,000 4,195,000 1,631,905 1,631,905 3,687.16 442.59 1,640,998 17,943.90 91.45 –

Sold LP 45 46 1,085,000 1,749,000 16,500,000 2,388,878 2,455,583 3,825.74 641.86 2,439,756 19,688.30 123.92 –

Sold SP ** 45 47 11,500 1,547,000 14,500,000 2,147,663 2,200,053 3,765.39 584.28 2,188,028 19,739.95 110.84 90.73%

Expired – – – – – – – – – – – – –

Canceled – – – – – – – – – – – – –

Withdrawn – – – – – – – – – – – – –

Ah-ha! I already see an error, the $11,500 – a glitch, a lease price being submitted for a “sales price” therefore throwing off ALL of the stats – unless I go in an manually recalculate them for you – i’m nice, but not that NICE, and I am getting tired.

Okay – look at the “average SP/Average LP” it’s 90% – that means that the properties that have sold in 2009 so far are only off their list prices by 10% and that is including the “glitch.”

The bottom line is that although there are some that would like to turn real estate into a science, it’s really not…the principles of supply and demand will always dictate and when a property is priced right for the market at the time it should sell in a reasonable amount of time for a reasonable price. That is not to say that there are not exceptions to this statement, especially given the number of listings in areas like the San Fernando Valley that are short-sales or foreclosed and not selling, even at $550,000 and under, but that is likely because demand for such properties is even less than demand for properties $1,000,000 above in other areas of Los Angeles. Sometimes it is difficult to ascertain, but it goes back to those who have the buying power, especially in this economy. Those who can readily obtain a loan or have the funds available to finance a purchase are likely not going to be looking for primary residences in the market where distressed properties are so abundant. But, these distressed properties do present good opportunities for first-time buyers and investors as an opporutnity to get into these properties are such prices may not last forever. And again, these statements are just an opinion, none of this is meant to be indulged in as fact, but I think with proper research you can grasp the nature of what is happening in Los Angeles real estate and realize that it’s not that much different then it has always been – but the inventory has changed and demand has been quelled by wide-spread economic panic, but it does still exist. There are deals to be had and still a market for sellers with good equity to stand to profit in these times.

Now that your head is spinning, TAKE THAT and have a little patience! And call me when you are ready to buy or sell!

http://en.wikipedia.org/wiki/Take_That

http://www.youtube.com/watch?v=JFhkhRZhDas

Or, if you’re a G & R fan…voila!

http://www.youtube.com/watch?v=M10eWdR-dcI