Ellis Posner Real Estate

Buyer Alert: Multiple Offers, Waiving Contingencies, Shrinking Inventories and REOs

A funny thing happened on the way to the double dip drop in real estate values supposedly predicated by a wave of foreclosures set to hit the market: there is now greater buyer demand than available houses in almost every price range and product, inventory has declined precipitously, and housing prices are increasing. Well not really very funny if you are trying to buy real estate in Los Angeles or Orange County or are an agent who represents buyers (me).

Over the past few weeks, every offer I have submitted has been one of many multiples and unless buyers are really willing to step up, and that means more than just price, they aren't likely to see their offer go very far. And, if they do not do so within the first few days that  a property is listed for sale, it will be too late.

I have taken to having buyers come with me to Broker's Open Houses, (and I'm not the only one), working my network group for pocket listings and restarting my "off market" pipeline.

So, as we enter a new era of real estate madness, and let's hope not a bubble, here's some things to look out for.

MULTIPLE OFFERS

A very legitimate pricing strategy for sellers these days is to list a property just low enough so as to get mutiple offers the first week and then sell for a purchase price ABOVE the list price in the MLS. This practice has been used extensivley by REO listing agents over the past few years and is used implicitly if not explicitly by short sale listing agents. It's not a bad idea but requires buyers to change their mindset from how much off the list price can they get (buyer's market) to how high over list price can they go (seller's market).

I expect this trend to continue at least for the next few months so get used to multiple counters and here's what you need to know.

When a seller is responding to more than one offer, the listing agent will check off the multiple offer box on the counter offer form. The first thing buyers need to know is that even if you sign the counter offer exactly as it is written, the seller does not have to accept your offer. (If it is not a multiple counter offer, just a normal vounter, than yes they do have to accept.)

These days, as a buyer you are just as likely to be countered on terms as on price. One of the ways that buying real estate is unique is that the negotiation is two dimensional - both price and terms.

One of the most frustrating counters buying receive in a multi offer situation is the request for your "best and final" price. Hmnn. Does that mean that you are bidding against yourself? Basically, yes.

So, how do you determine what your best and final price offer should be?

Well unless you are paying all cash, an offer above what the property will appraise for is not the best idea. Other than that, what are you likely to pay for a similar property in a competitive situation is the only way to approach setting a value. Yes, we can start with price per sq ft and then add or subtract for amenities and condition, lot size and other factors but at the end of the day how much is that piece of real estate worth to you based on current market conditions. And in Real Estate all we can count on is the current market condition.

So, my advice for buyers in a multiple offer situation is forget what the list price is (was) and determine what the property might sell for based on what else is available, absorption rate, and the absolute most recent sale and listings.

The good news is that I've been able to secure homes for my clients in multiple offer situations even when the client was NOT the highest bidder. Here's why: Terms.

WAIVING CONTINGENCIES

This is not a practice that I recommend or like but in the multiple offer environment that we are currently in, listing agents have asked buyers to waive inspection and even appraisal contingencies. Appraisals? Really?

The defauly contingencies are in the contract for a reason: they protect the buyer and allow for ample time during the escrow period for the buyer to do their investigations of the property, get an appraisal and have the loan underwrtitten.

Sometime over the last few months as the market has changed, I had a listing agent on a standard sale ask my buyer to waive their appraisal contingency. The listing agent was converned that with prices moving up so quickly that the property would not appraise. This particular agent was from out of the area and maybe was misreading the market at the time. But c'mon. The appraisal is a condition of the loan and stated as such in pre-approval letters.

Here's what happens when a buyer waives the appraisal contingency.

If the appraisal does not come in for the purchase price, in theory the buyer would have to make up the difference in any shortfal. Here;s an example.

The purchase price is $600,000 and the buyer is obtaining a 20% down loan. The appraisal comes in at $580,000. The buyer would have to make up the $20K difference out of pocket. So, if you have the funds, want the house, and can take the risk, maybe it's a good strategy. But not one I recommend.

Another common contingency that a seller may ask the buyer to waive is the inspection contingency. Unless you are buying a scraper or a property that you intend to do extensive repairs on, why would you waive this contingency? Beats me.

SHRINKING INVENTORY

The following chart shows Real Estate Activity for Redondo Beach over the last 14 months or so.

It doesn't take too much analytical skills to see that available homes for sale year over year are about half and that sales are up. That's why you can't find a home to buy and the ones that are for sale are selling for more. I could have done the same graphic for Manhattan Beach Real Estate, Hermosa Beach Real Estate, any Westside or Valley neighborhood or Orange County.

BANK OWNED FORECLOSURES

So, here's the trend lines for the foreclosure pipeline. This is all of LA County but it probably would not look any different for any smaller sample.

See that red line? Kind of like a flat line isn't it? More important though is that scheduled for sale and pre-foreclosure not really spiking.

CONCLUSIONS

Here's how this probably plays out.

Currently there is more buyer demand than available questions but the current buyer demand is probably unsustainable. Right now, sellers may be over playing their hand but as buyers start to not step up to the price increase and other demands, the balance will return to the market. Or alternately more sellers will place their homes on the market with the same outcome.

Be patient, hold on loosely, save up more down payment and be ready to act when the right home and situation presents itself.

Free Mobile Search APP from Ellis Posner

If you have used the IDX on any of my websites for Real Estate searches you know that the product is fast, flexible and is fully integrated with Zillow which is no surprise as Diverse Solutions is now owned by ZIllow.

You can now download this FREE Mobile MLS Search APP by typing this URL into your smartphone browser and then saving it as an APP on the homescreen. I know this works great on the iPhone and would love some feedback as to how it performs on Android and other smartphones.

http://app.dsmobileidx.com/5750/64/

It seems that almost every buyer I've been working with has been walking around with someone else's APP so I figured it was time to catch up!

If you click on the link when you are in a non mobile Browser, you will be taken to an actual working demo (how cool is that?) which for some reason seems to prefer Google Chrome to Firefox but worked fine with Safari. Go figure, right.

 

Another Zillow Review

I'm always thankful and grateful for the 5 Star Reviews I've received on Zillow from my real estate clients. I'm now up to 11 and counting with the most recent review posting today from the buyers of 2812 W 167th St in Torrance.

It's kind of ironic in that I only started to see the value of this recently. There are probably any number of my former real estate clients who would have loved to participate in this exercise to help me build my business. I think it is fairly common these days that we all try to find reviews of professionals whose services we are thinking of engaging in order to get a feel and hear what others have to say.

I've been using the Zillow link in the signature to my socalistings email to new prospects and one Hermosa Beach buyer even found me online entirely from the Zillow review. Talk about return on investment. Just try to do a great job and the word will spread. So, please help me spread the word and continue to refer your friends, relativesm and co-workers my way. I'll take care of them. You have my guarantee.

Eight and counting but the lenders aren't showing any signs of easing

I had two properties fund last week and had the pleasure of giving the keys to their new homes to my clients.

For me, I am up to 8 closed escrow so far this year. I'm always pushing for more and would like to have been at 10 by the end of May. As it is, I'm on track for 20 sales in 2012. I prefer to be at 25 so we'll have to see if the market stays as hot as it has been the last 2-3 months. A little bit of luck wouldn't hurt either.

Speaking of which, I believe that both of these homes that just sold can't be found again for the same price. That's how quick prices are moving right now.

2812 W 167th is a 3 bedroom. 1.5 bath 1328 sq ft house on a 5151 sq ft lot was built in 1954. It was listed for $419,000 and had mutliple offers; 11 in fact. My clients went up to $435K which was not the highest offer but we were able to open escrow because I structured the deal in a way that was a win-win for the sellers and buyers. Now all the other single family homes in the neighborhood are consoderably over $450K and some even over $500K. This particular house had been updated enough that other than a coat of paint and some other minor items, it is move in ready.

1662 Orchid Way in Gardena is new construction in a gated community off Artesia Blvd near the 99 Ranch, Ralph's and other amenities. The detached townhouse is 3 bedrooms, 2.5 baths, 1864 sq ft and sold for $520,000 with a $2K credit for the buyer's closing costs plus a backyard upgrade package included for free. Now that this community is sold out, the only other ew construction in Gardena are attached townhouses on the other side of Artesia Blvd that are not gated and almst as much.

The builder was very easy and pleasant to work with and everything was handled very professionally.

I always emphasize to my buyer clients the importance of working with reliable lenders. Here's why. Any broker can promise you the lowest possible rate in the world, but if they can't close on time or delover loan deocuments when they are supposed to be there, that may create more problems than not.

The buyers of 167th St in Torrance were referred to me by one of my favorite loan officers at a major bank (which shall remain nameless). He has always closed loans for me on time with no problems and no drama. Not this time. I should have realized that something was amiss when the appraisal was a bit late in getting ordered. Bank excuse, the "order was in" but no one picked it up. After that it was delay after delay on minor issues. So, when we got to last Monday and the escrow was supposed to close, guess what, no loan docs yet. The sellers had already moved out and were driving cross country expecting their proceeds to close on their upleg. The sellers were represented by another agent from my company who gets a ton of referral business on corporate relocation. So, now the relo company was all upside down because they were looking bad. So, after a few very tense days, the loan dos showed up and we closed on Friday. I can say in all candor that was the first time that any of my clients closed late. Really.The loan officer claimed that the delay was because he ahd not gotten their tax returns up front. Huh? I thought that was what pre-approval is about.

Another complicating factor was that the buyers had initially opted for a 5% down conventional but then had to go FHA due to potential MI problems which may have come up at the final review. That didn't help matters either. Lessons for buyers: make sure your loan officer and the processor have everything they may need and don't change programs. Fortunately, we dodged one bullet on this one. There was less than 100 sq ft added as a non permitted addition. Luckily the appraiser did not try to reconcile that with the tax records.

The buyer of 1662 Orchid closed early, He was using a mortgage broker I had never worked with before so I was fairly concerned and more so after it was disclosed to me that there might be some issues in the credit file even though they had DU approval. This was a 20% down conventional which did make me a little more comfortable even though the builder's contract (not the standard CAR Winforms RPA) stipulated "passive" loan contingencies. As it turned out, this escrow closed early with no drama and the loan officer was excellent to work with even though we hit a few snags. The first was that the appraiser had to come back because the carbon monoxide detector was not initially installed. (C'mon. that's law.) The second, and this was really strange, is that the lender the borker placed the loan with was not familiar with the title company the builder was using and they had to run it through their legal. That actually held up funding in Friday. Honestly I never heard of that one before but there's always something new.

That's all for now. See you around the nighborhood!

Changes to Bank of America (BofA) Short Sale Process

Effective April 14th, BofA implemented changes to the short sale process and modified Equator to reflect these changes. Curiously, they took the system down of Friday the 13th to implement these changes. Maybe I'm the only one who is superstituous. If these changes work as advertised, this will definitely be an improvement to the short sale process and help move a lot of inventory. The big wave of foreclosures that everyone has been concerned about seems more like an urban myth than a reality so this could be welcome news.

The following 5 documents now need to be submitted when the short sale is initiated with an offer:

• Purchase Contract including Buyer's Acknowledgement and Disclosure
• HUD -1
• IRS Form 4506-T
• Bank of America Short Sale Addendum including the agent certification
• Bank of America 3rd Party Authorizations Form

Previously, BofA accepted whatever formats the agents came up with for the 3rd party authorization. They probably realized that was too much potential liability as if they don't have enough already so now there is a standard format.

One of the supposed benefits of these changes is that now a number of tasks such as document collection, valuation, and underwriting can all go on simultaneously. The BofA marketing hype is now stating they will be able to provide a decision on short sales on 20 days. I'll believe that one when I see it.

Another change which preceded this change is that now the backup offer window is 5 days when the buyer walks, not 14 days as previously. They are also stating that they will do no more than 2 counter offers with any buyer and that they will try to respond within 3 days. Sounds good.

New Construction - New Sale at 1662 Orchid Way, Gardena CA

Well this one is kind of interesting. The listing agent and MLS state that this property is a Single Family Home. Upon more questioning, they then clarify it is a PUD. We get the title prelim and guess what? Condo. Really a detached condo like the 2 on a lot townhomes in Redondo Beach. But you have to wonder. Are the listing agents dumb? Crooks? Incompetent? All of the above? Who knows. All in all though still a reasonably good deal.

3 bedrooms, 2.5 baths, 1864 sq ft per the builder (hmnn), in a private gated community right off Artesia Blvd called Gardena Village. Wonderful open floor plan great for entertaining. Features include: custom wood cabinets, buyer can customize flooring finishes, granite counter tops in kitchen, fireplace in living room, and walk in closets. Private back yard and patio. Front yard landscaping is maintained by the HOA. Low HOA fees. Close to shopping, schools and freeways.

New Single Family Home Sale in Torrance: 2812 W 167th St, 90504

After a few delays we just opened escrow on this single family North Torrance home today. This 3 bedroom. 1.5 bath 1328 sq ft house on a 5151 sq ft lot was built in 1954. It was listed for $419,000 and had 11, yes that's not a misprint, eleven, offers within 3-4 days. The listing agent countered only those offers that were at or above the asking price and of those counters, I was able to secure the property for my buyers. Here's what you need to know: our offer was not the highest price. Many buyers and their agents don't fully "get it" that terms are also a negotiating point as well as price. Often we can work on the terms and conditions to make an offer more attractive to the seller than just the price alone. Want to know how? Call me at 310 975 5139 (but not if you're an agent, lol).

Do you want to buy a single family house in Torrance? Here's some links to available properties that I can show you today. The MLS listings will update in real time whenever you run the report.

Torrance Real Estate for Sale: Single Family Houses - MLS Listings in 90505
Torrance Real Estate for Sale: Single Family Houses - MLS Listings in 90504
Torrance Real Estate for Sale: Single Family Houses - MLS Listings in 90503
Torrance Real Estate for Sale: Single Family Houses - MLS Listings in 90502
Torrance Real Estate for Sale: Single Family Houses - MLS Listings in 90501
Torrance Real Estate for Sale: Single Family Houses - MLS Short Sale Listings
Torrance Real Estate for Sale: Single Family Houses - MLS Foreclosure Listings
Torrance Real Estate for Sale: New MLS Listings - less than 7 days on market

New Listing: Investor Special at 366 Hargrave St, Inglewood CA 90302

  366 Hargarve is as close to a sure thing for an investor flipper as can be found these days. That's if we can get the short sale approved at the list price of $199,000 or anything close to that.

This single family house in North Inglewood is on a nice tree lined street in a pocket of homes that is highly desirable due to the price range and location. In fact, most people would think this area is City of LA. It is north of Centinela and just south and east of Ladera Heights.

Here's why this is potentially a great deal for a flipper. The house is listed in the tax rolls as a 2 bedroom, 1 bath, less than 1000 sq ft. It is clearly a 3/2 and much larger. When the current owners purchased it (in 2006), they were aware that the addition of a very large family room, bedroom, and bath was done without permits. At the time they were told (and I wasn't their agent) that if they had an architectural plan drawn and added a garage, the addition would be considered to be legal. (I would highly recommend that a buyer verify all of that with the City of Inglewood.)

If that's all it is going to take, then someone could virtually make money by doing nothing to the house except the aforementiond fixes. With a coat of paint, new floors, new kitchen, etc 366 Hargrave may sell for upwards of $350K. So, even putting in $50K of work, there's a nice opportunity to make maybe $75K or more net of transcation costs on a $250K investment for 4-6 months. Ah, to be a flipper these days.

Market Snapshot Report: Real Estate Values, Prices, Trends

Whether you want to buy, sell or invest in real estate in Los Angeles or Orange County, the more information you have about recent sales, market trends, property values and home prices, the better informed you will be. Even if you are not actively in the market now, but are just curious about your home's value and the real estate market in general, knowledge is power.

CLICK HERE for your customized "Market Snapshot" and them call 310 975 5139 for more information about the value of your home.

CLICK HERE to search for homes for sale in Torrance, Hawthorne, Gardena, Lawndale, Lomita, El Segundo, Redondo Beach, Hermosa Beach, Manhattan Beach, Rancho Palos Verdes, Rollings Hills, Los Angeles Westside, the Valley, and Orange County. All property types including condos, townhouses, single family houses, income, beach homes, luxury homes, bank owned foreclosures, REOs, short sales, probate sales, and other distressed sales, Search the MLS online to find the homes you want to view and schedule showings online.

Closed Escrow: 1027 8th St, Hermosa Beach CA 90254

It seems as if I just posted this sale and less than 30 days later it closed escrow. Wow. Thanks to Josh Oleesky at Wells Fargo and Cathy Haryung at Brighton Escrow this just sailed through very quickly.

If you are keeping score at home, this is my sixth closed transaction for 2012 and for those who haven't realized it yet, the market at the beach is hot. Very hot.

If you price your beach home in Manhattan Beach, Redondo Beach, or Hermosa Beach correctly and it is marketed to get adequate internet exposure, you can expect to get offers or even multiple offers within 30 days or less.

For more on Hermosa Beach Real Estate including free online MLS search, Foreclosures including auctions, REOs, and short sales, reviews of recent sales and much more visit www.90254realestate.com.

New Sale in Hermosa Beach

I just put 1027 8th St, a 3 bedroom, 2 bath, 1360 sq ft house on a 3000 sq ft lot in East Hermosa into escrow. It's really a great "beach house" built in 1958 with the old style wood caulted cathedral ceiling and just a slight ocean view from the living room.

I'm representing the buyers but I had the opportunity to also mee the sellers who are selling this home as a trust sale. One of the current trustees actually grew up in the house which goes back a bit. I didn't get if her parents were the original owners or not, but she did mention that her dad was a Jazz bass player and used to practice in a room they built as an addition out back. (But was it permitted? We'll find out.) She also mentioned that once upon a time it was the tallest house on the block and they had incredible views of the entire South Bay. But, unfortunately not anymore.

This section of 8th Street in the Hermosa Hills (East Hermosa Beach) is very cool because it is one way so there's low traffic and it really has the feel of a Sand Section block in terms of that narrow kind of street down near the beach. Best of all, from this location you can walk ot bike to the beach and leave the car at home on the weekends.

If you are not familiar with East Hermosa Beach, check out the following properties for sale. These MLS listings update in real time whenever you run the searches. For more om Hermosa Beach Real Estate visit www.90254realestate.com or follow Socalistings in Facebook.

Hermosa Beach Real Estate for Sale: All East Hermosa Beach Homes for sale
Hermosa Beach Real Estate for Sale: East Hermosa Beach Condos - Townhouses for sale
Hermosa Beach Real Estate for Sale: East Hermosa Beach Single Family Homes for sale
Hermosa Beach Real Estate for Sale: East Hermosa Beach Homes less than $600,000
Hermosa Beach Real Estate for Sale: East Hermosa Beach Homes $600,000 - $800,000
Hermosa Beach Real Estate for Sale: East Hermosa Beach Homes $800,000 - $1,000,000
Hermosa Beach Real Estate for Sale: East Hermosa Beach over $1,000,000 MLS Listings
Hermosa Beach Real Estate for Sale: Find East Hermosa Beach 2+ bedroom homes 
Hermosa Beach Real Estate for Sale: Find East Hermosa Beach 3+ bedroom homes
Hermosa Beach Real Estate for Sale: Find East Hermosa Beach 4+ bedroom homes

Shorewood Realtors Top Producers

Shorewood Realtors had their annual recognition event on February 16th for 2011 sales at the Cheescake Factory in Redondo Beach. I'm pleased to announce that I was in the top five in my Hermosa Beach office in 3 categories: Number 2 in total transactions, Number 5 in volume of business, and number 5 in commissions earned. I guess that means I'm working harder for less (lol). Must be all those lower percentage listings and buyer credits (lol).

In any case, the recognition is always nice and appreciated. So, thanks to everyone for your continued support. Please continue to send me your referrals, follow me on Twitter and like Socalistings on Facebook.

If you are a client I've represented, please take the time to review me on Zillow.

1174 W 13th St, San Pedro CA, 90731: Closed Escrow 2/7/2012

This really cute little house in the Vista Del Oro section of San Pedro was a great deal for the buyers at a purchase price of $305,000. This 1920's craftsman 2 bedroom, 1 bath home is located close to Averill Park. Built in 1923, it is 960 sq ft on a 4500 sq ft lot. This property offers an updated large kitchen, updated bathroom, formal dining room with original built-ins, vinyl dual-paned windows, copper plumbing, new water heater, recessed lighting, faux fireplace and ceiling fans in both bedrooms. Very light and sunny and with lots of potential.

Here's what made this transaction really unique. The buyers had just completed a short sale. The so called common knowledge is that after a short sale you have to wait for 2 years before you can buy another piece of real estate. Here's what a lot of people don't know. If you have NOT been late at the time your short sale closed escrow and your credit and qualifying ratios are otherwise good, you may be able to repurchase a home using a FHA loan. Crazy, huh? Well it's a lot better solution for the houseing crises than anything else I've heard lately.

2519 Gunnell Ave, San Pedro CA, 90732: Closed Escrow 1/31/2012

Check this out. I was able to list and short sell this single family house in the South Shores neghborhood of San Pedro without the owners ever missing a mortgage payment and therefore making them eligible for a new buy very quickly because they did not destroy their credit with numerous late payments. Truly amazing and I can thank my associate at Shorewood Realtors in Hermosa Beach, Victoria Babilonia, for her incredible mastery of the short sale process. More on that later. Oh, the approved short sale - closing price was $484,000. A great deal for the buyer.

The house is a great 3 bedroom, 1.5 bathroom 1548 sq ft single family residence built in 1954 on a 5670 sq ft lot. If a second floor was added (which it wasn't) there would be a killer ocean view including Catalina so close that you could almost reach out and touch it. But, alas.

Wood parquet floors, recently painted and updated, ready to move in and absolutely spotless. Great floor plan. Enter through oak door into the spacious sunken living room with sliding doors opening to lovely patio and lush landscaping. Floor to ceiling unique brick-type fireplace, hardwood flooring formal dining room, remodeled kitchen w/tile counters in soft tones, beautiful oak cabinetry, eating area and tons of storage. All windows & doors have been replaced with custom vinyl and the plumbing is copper (btv). Desirable location close to the ocean, shopping, restaurants and just down the road from the famous Trump National Golf Course.

As I mentioned, Victoria was miraculously able to get this file approved without the sellers being late. Even more amazing was the fact that after the first buyers dropped out, she was able to get the substitute buyers approved so quickly that we only closed about 3 days late. There is something to be said for specialization and knowing the ins and outs of short sale negotiations. Unfortunately, many agents don't and therefore many short pays don't go through. This one did.

1806 Vanderbilt Lane Unit 5, Redondo Beach CA, 90278 Closed Escrow 1/13/2012

I actually had 2 properties that closed escrow on Friday the 13th. I guess that's good luck. (And if you are keeping track, 3 closed escrows so far in 2012.)

1806 Vanderbilt Lane was a rather unique situation. The owner was in bankruptcy but had about $100K in equity. The challenge was getting the BK dismissed and preventing the creditors from moving in and foreclosing. The note was owned by Freddie Mac and Wells was the servicer. Even though we had a full price offer almost immediately, Wells was totally unwilling to delay the trustee sale (NTS) because it had been delayed 6 times in the past (although not while I was representing the seller.) Unfortunately, they did not tell us the foreclosure sale would not be delayed until multiple calls, maybe 2-3 dozen were made. I even had escalated this through all the channels and connections I have including title companies, lenders, etc.

When the seller realized that the trustee sale would not be delayed, she attempted to pay the reinstatement amount but representatives of the trustee were unwilling or unable to provide the amount owed and would not accept an over payment. Then LPS got involved and as you can imagine the situation got even worse.

In any case, we were able to figure out a strategy to get the escrow to close (although we had trouble getting a payoff amount from Wells) and the deed for the new owners recorded. All's well that ends well (I guess).

The property is a two bedroom end unit townhouse with a standard floor plan and an extra bonus room (not included in the square feet) off the over sized garage. Listed and sold in one week for $449,000. If you or anyone you know has received a NOD, NTS or are behind in your mortgage payments, I can help you either through a short sale or other means but you have to make the call: 310 975 5139.

For more on Redondo Beach Real Estate visit www.90278realestate.com or facebook.com/socalistings.

1714 Massena Ave, South Redondo Beach Closed Escrow 1/13/2012

Well occasionally I get an "easy" one: a sale that goes smoothly, the sellers are great to deal with and the buyers and their agent do everything they are supposed to and on time. Add to that no surprises in escrow or from inspections or the buyer's lender and that's about as easy as it gets. In other words, what we used to refer to as the good old days (lol).

1714 Massena Ave is a very unique 5 bedroom property located on a cul de sac in South Redondo Beach within walking or biking distance to Riviera Village or the beach. The location is also unique in that it is within walking distance to Tulita Elementary and just around the corner from the Torrance Christmas lights neighborhood. In other words enjiy the festivities without the driving.

As with many properties in the area, the original single family house had an addition of a second floor a while ago. While those are often don't play well with subsequent buyers, this particular addition made a  lot of sense. The previous owner added a second floor with two bedrooms and kept the 3 original bedrooms that are downstairs.

With many buyers looking at multi generational living, this floor plan offers a great opprotunity to have parents, adult children returning home, or just teenagers downstairs while maintaining privacy upstairs and using the second bedroom as either an office or a baby room.

Sounds great, right?

There were a few issues with the property that concerned me when I originally sogned the listing. The forst was that while the lot measured approximately 5500 sq ft, most of the backyard was straight up a hill (under the St Lawrence parking lot). So while this did create a good deal of privacy, I felt there was a disconnect between the need for five bedrooms and the usable backyard.

I was also concerned that the living room might be considered small by today's standards. While the LR has a nice feeling and French doors that open to the backyard patio, it may not easily accomodate the huge flat panel TV's and entertainment centers found in many homes today.

I was probably not the only Realtor with these reservations. The sellers shared with me that they had interviewed a number of agents (and who doesn't) and the consensus was to list the home in the low $800's. I was thinking maybe $829-839K and even did a back of the matchbook net for the sellers showing a worst case scenario of $799K. Hey, what can I say, we've all been beat up so much on price.

But, the sellers were very smart and did everything right before the house was placed on the market including painting the exterior, cleaing the Spanish tile roof, new landscaping, significant declutter (my favorite and least expensive option) and other things to make the home show better. Additionally, they took my advice in terms of getting a home inspection before we placed the house on the market. We always have to disclose that inspection and the findings but truthfully that also offers an extra layer of protection for everyone.

The listing was made active in the MLS on November 15th and we had immediate interest. In fact, by the (rainy) weekend of the first open house we already had offers over the list price of $879,000.

The sellers accepted what we considered the strongest offer but unfortunately that buyer canceled within about 10 days. (Well it was almost an easy sale.) I immediately contacted one of the backup over list price offers and we had our buyer secured and a new escrow opened immediately after cancelling the prior one.

For more information on South Redondo Beach Real Estate or to search the MLS visit www.90277realestate.com. To buy, sell, or invest in Beach Cities, South Bay, or Palos Verdes Real Estate call me at 310 975 5139 or email socalistings@yahoo.com.

Closed Escrow: 1806 Belmont Lane Unit A, Redondo Beach CA, 90278

Well this one finally closed escrow after quite a long time on the market and is an unfortunate example of bad timing and sellers who did not take all of my pricing input. They did, however, make many last minute investments and subsequently I was able to get them a price that allowed them to relocate out of state which was their dream (after they accepted a very fair offer for the property). So, a little bit about this townhouse.

This is a very unique detached three on a lot in the Jefferson School District. Yes, detached three on a lot. I have not seen any other configuration like this and neither did any other agents who showed the property. As a result, many buyers did not know what to make of it and how to value the home.

The subjct property is entirely detached from the other units which are attached to each other. As a result, Unit A has an ample front, side and back yard and no common walls. Kind of like a small stand alone house. Curiously, the detached garage is attached to Unit B's garage which is attached to unit B. As a result, there is no direct acces from the garage.

The townhouse itself is 1620 sq ft with a standard floor plan having all three bedrooms upstairs and the living room, dining room, and kitchen downstairs. There are two fireplaces - one in the family room and one in the master bedroom. The downstairs has very nice real hardwood floors and French doors leading out to a patio area with built in barbecue and a hot tub included in the sale.

The downstairs has west and south facing windows and as a result is very light and bright.

Upstairs there are three bedrooms. As I mentioned, the master has a fireplace and the bathroom had been upgraded.

The unit was built in 1977 but the sellers recently put in a new furnace, water, and wood floors upstairs in the hallway. The kitchen was certainly dated but my understanding is that the new owners would be doing a significant remodel which will instantly increase the value.

Here's a little bit about the sales history. The sellers initially priced the property at $639,000 although I had recommended $619,000. There were sibsequent price reductions but we always seemed to be just behind the market. The fact that a week after the listing hit the MLS, the house next door was kncoked down and new construction by Casner started. That didn't help my marketing effort either as most people don't want to live next to construction. Once the new construction was completed, some repairs and replacements done, and the list price was brought into line, we were able to secure multiple offers.

I advise all sellers to price their property to sell immediately by being right at the market or slightly below. The current trends clearly indicate that listings priced right will sell quickly with multiple offers and often above the list price in the MLS. Really.

As with all real estate, it's abaout location and 1806 Belmont is in a great location. The escrow closed on January 6th and the sales price was $579,000.

New Sale in San Pedro, CA

Just before New Year's my clients had an offer accepted for this cute 1920's craftsman 2 bedroom, 1 bath 960 sq ft home on a 4500 sq ft lot located in the desirable Vista del Oro area of San Pedro. This property offers an updated large kitchen, updated bathroom, formal dining room with original built-ins, vinyl dual-paned windows, copper plumbing, new water heater, recessed lighting, faux fireplace and ceiling fans in both bedrooms. Best of all , it is in move in condition and listed under $300K. I remember a few years ago when I was selling similar properties in Pedro for the high $500's.

Right now, many properties in the area are short sales or foreclosures. This one was a standard sale bought by an investor as a flip. My math indicates that the investor may be breaking even at best. So, a word to investors - the market is still declining in many areas.

This one is scheduled to close in late January. The buyers are financing with FHA which sometimes can extend these escrows. Curiously, the seller is concerned about the FHA 90 day flip rule which I don't think will apply in this instance.

The property was listed by Keller Williams and as you know if you've been reading this blog, I'm still with Shorewood Realtors in Hermosa Beach.

SoCal Merry Xmas Home Sales Data from Ellis Posner

The number of homes sold in Southern California rose modestly last month from both October and a year earlier as investors and first-time buyers targeted homes priced below $400,000. Sales above $500,000 fell nearly 16 %from a year earlier amid a troubled market for larger home loans, a real estate information service reported.

A total of 16,884 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in November. That was up 0.3 %from 16,829 in October and up 4.2 %from 16,208 in November 2010, according to San Diego-based DataQuick.

While November sales of existing (not new) houses and condos combined rose 5.8% from a year earlier, sales of newly built homes fell 15.2% to the lowest level on record for a November.

"'Tis still the season to go bargain hunting -- or at least that's what the November home sales data suggest. The portion of homes sold to investors continued to hover near an all-time high. Lower prices and amazingly low mortgage rates tempted those with the confidence to buy and the ability to qualify for a loan, or to pay cash," said John Walsh, DataQuick president.

"But these sales levels remain subpar, with new-home sales stuck at record lows. Part of it is the economy and would-be buyers' uncertainty -- about jobs, home prices and a potential surge in foreclosed properties hitting the market. Part of it is the folks who can't move up because they're upside down with their mortgages. And many who want to buy more expensive homes struggle with the financing."

When viewed by price segment, sales trends varied considerably. The number of homes that sold for less than $400,000 last month rose 6.1% from a year earlier, while transactions above $500,000 fell 15.7%. Above $800,000, sales fell 17.6% year-over-year. November sales fell 22.8% from a year earlier in the $600,000-$750,000 range, which in coastal counties was impacted by the recent lowering of conforming loan limits.

Closed Escrow - 2106 Rockefeller Lane, Redondo Beach CA 90278

This 2 bedroom, 2.5 bathroom attached condo-townhouse in N Redondo Beach just closed escrow. I represented the buyers. It was built in 1980 and measures 1387 sq ft and features a reverse floor plan with the living area upstairs and the bedrooms downstairs. There's a private patio off the master bedroom and a two car direct access garage with extra storage. This was a great deal for the buyers who paid $405,500. I also was able to negotiate a $10,000 credit for closing costs for them. They were able to finance with a 5% down non FHA (only upfront PMI) program offered by MetLife.

The $400K and under price point in Redondo Beach is very hot right now and there are good, if not great deals, available in both North and South Redondo Beach. Here's what I consider a good or great deal: your mortgage payment is less than it would be to rent a similar property.

What makes 2106 Rockefeller Unit D unique is that many of the other two bedrooms, particulalry  those on Meyer Lane or in Area 151 on Voorhees, Nelson, or Ruhland, have a standard floor plan with the bedrooms upstairs and living area downstairs. A benefit of those other complexes is that they have a bonus room downstairs that is not included in the sq ft and those complexes have pools. This unit, on the other hand is in a great location and there is a neghborhood view from the upstairs and great sunsets. Congratulations to the new owners.