When you plan on selling a property in the Los Angeles real estate market, it’s important to remember that most buyers will have to take out a mortgage to buy a home. When a mortgage company or bank looks to help finance a property for a buyer, an appraisal will be necessary to show condition of the property. If there are any condition problems that the lender doesn’t allow, this can delay the closing of your property or kill the deal.

Make sure you understand what major (and sometimes minor) items a lender will look for in the condition of a property, when a buyer is taking out a mortgage. Here is a good list of items that you should review if you plan on selling your property anytime soon.

Major Items to Check on Your Property

• Roof – Lenders are looking for leaks and major damage or major deterioration.
• Windows/Doors – Make sure they are not broken and are working.
• Foundation- is there noticeable cracks in walls, flooring, or ceiling.
• Walls – Make sure the walls don’t have large holes, signs of water damage or unfinished.
• Repairs – Any repairs or improvement projects must be complete. Make sure all fixtures are installed.
• Heating – This must be in working condition. It doesn’t have to be new, but it must work.
• Water – This must be working and flow through the house, without any leaks.
• Hazardous Conditions – Make sure some items like, lead paint, radon gas, radioactive material, landfill, mold, toxic materials, etc. are not in or on the property. This can cause big concerns with the lender.
• Carbon Monoxide and smoke detectors installed.
• Flooring- Make sure there is some flooring in the property.
• Kitchen cabinets and counter top installed. Don’t need appliances though.
• Exterior front and back yard. Make sure clean and no hazardous items that can cause harm to someone walking on property.
• Pool and or Jacuzzi- Make sure they are filled with water.

It’s always recommended that you have your home inspected by a licensed home inspector. This way, you will have peace of mind that there will be little to no problems with the condition of your property when the buyer uses a lender to buy it.

Do you have any nightmare stories in relation to this subject? Please share them below.  I am always looking to add to this list of preventative items. Feel free to contact me always at 310 656-8201.

Photo courtesy of Flickr

Our 2013 Q1 Report for the Los Angeles Westside and Metropolitan areas has been released, and it includes a breakdown of some of the key desirable areas for both Single Family Homes and Condos.

Before you dive into the numbers we provide you an easy-to-read summary per area. We track the number of units sold, average sold price as well as the average number of days it took to sell (AKA days on market).

Why are these stats important? Well to answer your questions here are explanations with actual examples.

Number of Sales

The number of sales helps with understanding how busy an area is in terms of sales. This will depend on how desirable an area is as well as the inventory in that market. We provide you with the number of sales for both 2013 and 2012 as well as a percent-change column so we can see how the market has developed since the same period last year.

For example:

The number of sales in Altadena for Single Family homes went from 48 in Q1 of 2012 to 71 in Q1 of 2013. This is a 48% increase in sales activity! It’s quite the jump and tells us that it’s a desirable area to live in. To further support that argument, the Average Selling Price also went up 11% and the Days on Market dropped from 153 days to 34 days. The Average Selling Price indicates its desirable buyers are willing to pay a higher price then they were last year in the same quarter. Additionally the Days on Market tells us that buyers are motivated to close on a deal so negotiations are quick; you should have a local expert in your corner so they know how to best negotiate a price and quick closing.

Average Selling Price

The Average Selling Price is important to help understand what price point the market is at. Of course in some cases it can be misleading if there were a few really high or low-priced transactions that throw off the average. Despite that, it’s a great starting point so you at least know what to expect. To get an even deeper look you should contact one of our experts to assist you with getting more information on pinpointing your next neighborhood. In some markets, Condos seem to be priced higher then homes; however, keep in mind that just like buyers and sellers, each market is unique and could simply have high-end condos or just more condos than homes in its area.

For example:

In the area of Downtown LA, the Average Selling Price for Q1 2013 was $207,554 for a Single Family Home versus $563,339 for a Condo. Not only are there more Condos in Downtown LA but the homes that do exist are in lower income areas and are also smaller. To take it one step further, take a look at the sales making up those averages; only 12 homes sold vs. 87 condos.

Days on Market

The time it takes to sell/buy a home is important on both sides of the deal. For a seller its important so you have a barometer of how long you can expect to wait for offers or to close a deal. On the buyer side, it’s important so you know that, once you place a bid on a property, you have an idea on how long your closing will take. This of course helps with planning for move in/out time.

The Days on Market of a property is also important to understand if the property is priced effectively or not. If it’s sitting on the market for over the average duration, it may be in need of a price reduction or is not desirable for a certain reason. Always consult with your agent and have them bring in other professionals to help with inspecting the property. As we all know time is money and the longer the property sits on the market the more money is being lost in terms of time and valuation of your property.

Conversely in some markets, Days on Market has increased as buyers are more aware of inspections and taking more time to get that taken care of. Another thing to be aware of is loan approval, which is special for every situation and can take some time, especially with all the documents you must provide. Always consult with your loan officer.

Don’t forget about those outliers as they can easily throw off an average so pay close attention to how many sold properties make up that average!

For example:

Pointing back to the first example, the Altadena Days on Market went from 153 days to 34 days. Again, this tells us that buyers are motivated to close on a deal so negotiations are quick.

So what market are you peeking at? How do you see it performing? Your comments, thoughts and feedback are always welcomed! Let’s discuss!

Palm Springs, California

Pedigree: Distinguished by its curvaceous profile and dramatic overhangs, this futuristic house was created by architect John Lautner for comedian Bob Hope in 1973. Although it has been compared to a UFO and a mushroom, the sprawling concrete edifice was in fact meant to resemble a volcano, with a wide circular opening punctuating the copper-clad roof. The residence stands as one of the Coachella Valley’s most iconic – and expensive – homes.

Property Values: The 4.65 acres, set in the private Southridge community, encompass two pools (one indoor and one outdoor), a pond, a tennis court, and a putting green.

Talking Point: Lautner later distanced himself from the project, after Hope’s wife, Dolores, commissioned alterations to the interiors.

Contact: Partners Trust, 310-413-7666

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Bob Hope’s iconic Southridge house with the flying-saucer roof – possibly the most pointed-at property in Palm Springs – has come to market with an asking price of $50 million.

Architect John Lautner designed the 23,336-square-foot modern house in 1973, but then distanced himself from the project after Dolores Hope famously enlisted other designers to tweak the interior. The Hopes’ daughter, Linda Hope, told the Los Angeles Times that the changes extended the dining room and made it possible “to get from the bedrooms to the front door without crossing a patio.” Construction was completed in 1980.

The Hopes, who owned two other properties in Palm Springs, used the Southridge estate mostly as a weekend escape and a venue to host large events, such as the annual dinner that marked the end of the Bob Hope Classic (now the Human Challenge) golf tournament, as well as a recent fundraiser for Palm Springs Art Museum’s Architecture and Design Council.

The house, which accommodates more than 300 guests, offers jaw-dropping panoramic views of the Coachella Valley and the San Jacinto Mountains. The list of Hollywood luminaries who visited the estate over the years is as impressive as the property itself.

And it’s plenty comfortable, with six bedrooms, 10 bathrooms, three half baths, a luxurious pool, a putting green, and a tennis court.

Bob Hope, the comic performer who became known for entertaining U.S. soldiers during three wars, died in 2003 at 100 years old. Dolores was 102 when she died in 2011.

The house is listed with Ann Eysenring of Partners Trust Real Estate of Beverly Hills, and Patrick Jordan and Stewart Smith of Windermere Real Estate in Palm Springs.

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by Steven Biller

Nestled into the hills of Brentwood is one of the most beautiful, charming and elite pockets of the Los Angeles real estate market.  Situated in this picturesque community, 1832 Old Orchard Road is a stunning traditional home.

Up a private gated driveway, this secluded brand new construction exemplifies the apex of traditional design with the highest quality features and finishes throughout.  This sprawling estate comprises 6 bedrooms and 6.5 bathrooms along with the most coveted high-end amenities and lushly landscaped grounds with spectacular views.

The interiors of the home are clean, open and flooded with natural lighting.  The floor plan is inviting and intuitive, each room flows gracefully into the next.  There are large windows and doors throughout the home.  The high ceilings and recessed lighting give a grand feeling to the space, while the rich wood floors offer a sense of warmth and intimacy.

The kitchen offers top-of-the-line appliances and looks out onto the formal dining room.  The formal living room and family room are large, inviting public rooms.  The basement features a wine cellar and media room.

There are many bedroom suites and the master suite is simply stunning.  The bedroom features a fireplace and there is also a seating area with fireplace, a large walk-in closet as well as a spa like bathroom.  Additionally there is a bonus area upstairs.

Outside the grounds are amazing.  There is a patio and BBQ area for entertaining.  The yard is lushly landscaped and leads down to a large infinity pool and spa all with spectacular views of the gorgeous canyon all the way to the sparkling Pacific Ocean.

 If you want to find out more information about this property or schedule a showing, please contact the listing agent Santiago Arana 310.500.3979.

Anyone who’s been living in Los Angeles for at least a year knows that Cinco De Mayo is huge for us Angelinos.  The city comes alive with colorful decorations, delicious food and good times all around.  Not that we need an excuse to have a good time, but Cinco De Mayo is a great one.

Cinco de Mayo is an annual celebration in the US and regions of Mexico.  It is a celebration of freedom and democracy, specifically the victory at the Battle of Puebla when the Mexican army defeated the French on May 5, 1862.

We have a rich cultural history in California and Cinco De Mayo is a testament to this.  Residents and visitors alike partake in some of the many beautiful cultural traditions of Mexico.  Here are some of the many exciting events happening in the LA area this year:

•  Cinco De Mayo at Olvera Street: Celebration of El Pueblo de Los Angeles on Olvera Street.  May 4-5, Saturday noon-7, Sunday 11-5pm.  It’s free to attend.  Enjoy dancers, fine food, pinatas and other family friend culturally enriching activities.
• West Hollywood Block Party: The City of WeHo and Tortilla Republic are sponsoring this party.  May 5 from 2-7pm in the parking lot behind Tortialla Republic on Robertson.  This outdoor event offers food, entertainment and culture.  Proceeds to benefit charity and will go to Project Angel Food.
• Cinco de Mayo at the Farmers Market: The Farmers Market at the Grove will offer Mexican food and special drinks as well as live entertainment during lucnh and dinner.

These are just a few of the many Cinco De Mayo events happening this weekend in Los Angeles.  Maybe you’re just going for a special meal out or having a party with friends.  However you chose to celebrate, make sure you be safe and have a good time!

How are you celebrating Cinco De Mayo? Will you be going out this year?  Please share your plans and leave your comments below.

Photo courtesy of Flickr

There is an optimistic perception borne by homeowners in major cities across America that Chinese investors are seeking to buy homes in great quantities, and that they’re even prepared to pay premium prices to do so. Certainly an understandable position when we’ve heard how our home prices are quite inexpensive relative to the high cost of housing in China’s major cities, where wealth is being created exponentially.

However, there is an issue with this notion that may dash some of our euphoria. Having now spent a concerted period of time in both Hong Kong and Shanghai speaking with wealth managers, private bankers, and heads of real estate brokerage firms about the mindset of Chinese investors, I have a much better understanding as to what drives them to purchase property in our — or any — market.

Before we dive into looking at the individual types of buyers, it’s important to first understand that there is a generation of Chinese investors that has grown up idolizing and aspiring to everything “American.” At the same time, this group actually can be rather ill informed. Since their information comes from general media and TV, and we all know that, at best, is only a partial portrayal of the actual society, and at worst a gross misrepresentation. Many Chinese, after arriving in the States, face the harsh reality that what they dreamt about does not match reality.

Secondly and somewhat related, Chinese investors tend to cluster. Because of the strength of relationships they trust (more on this key element later), if one of their circle of friends invests in one area, it’s likely that many others will follow. From a property perspective this can be both a blessing and a curse: it can drive prices up beyond their fair market value as the lead investor, in essence, has established a new (Chinese) market value for a particular community just by virtue of moving there. On the other hand this inflated value only applies to other Chinese investors and, in fact, a heavily Chinese community may decrease the attractiveness and therefore the property value for non-Chinese.

As I see it, here are the four types of Chinese investors looking to acquire property in the United States.

1. THE ACCELERATED-RETURN BUYER

Massive short-term wealth has been realized in Hong Kong and Shanghai for thousands of Chinese investors in recent years through the acquisition and sale of property within China’s borders. Accustomed to that fantastic appreciation, the accelerated-return investor looks now to replicate this double-digit return strategy when seeking additional investment abroad – which can be very difficult.

In a recent study about investment strategies of the Chinese über-wealthy, there’s a much greater appetite for “wealth growth” over “wealth preservation.” This focus on “more, more, more” tends to drive investors to look for returns in the 20 to 40 percent range, responding to a 5 to 8 percent return with little interest.

In the residential arena, this investor isn’t interested in a home that can’t create a short-term rate of return (unless you are willing to sell at a deep discount), which therefore takes them out of the potential buying pool and the payment of those hoped-for premium prices.

2. THE FUTURE GENERATIONS BUYER

Consider the Pasadena and San Marino areas of Los Angeles, where the Asian population has growth dramatically in recent years because of the emerging family-oriented community and access to high-caliber schools. Culturally, family and children have the greatest value for wealthy Chinese, who are especially focused on diversification and asset protection due to the government’s ability to give and take at its discretion.

Here the motivation to buy is strongly based on making sure their next generation has the best education to prepare them for getting into the top colleges and universities. An investor will likely pay fair market value (and not more, after having done much analysis of facts and figures) for a home because the return is realized through the support of their children rather than a quick jump in their bank accounts. Because for these buyers, the ultimate reward is providing the absolute best for their family.

3. THE CITIZENSHIP BUYER

The U.S. offers some programs that provide a path to citizenship for those who create new business that provide sustainable jobs over 5-year periods. However, I have been told that foreign investors have lost some $10 billion simply because the programs’ stringent terms cannot be met. This type of news travels fast. As such, this type of investor isn’t looking toward the acquisition of residential real estate as part of the design for citizenship.

4. THE ANECTODAL VALUE BUYER

When those with immense wealth can buy anything they desire, the experience and/or the uniqueness of an asset takes on tremendous value in terms of bragging rights and/or exclusivity that makes one’s heart rate quicken. The ability to play golf with Tiger Woods — if that’s even possible for the average person — is a once-in-a-lifetime opportunity, and wealth pays for that without batting an eyelash.

In the residential space, if you have a trophy property — or one of notoriety, perhaps if a famous celebrity recently owned it — you can attract the attention of the über-wealthy. This seduction is done in a highly discreet manner. And only after the acquisition has been realized, is the circle of friends made aware for all to see.

Relationships are absolutely critical to penetrate the inner circle to even present these types of opportunities.

And unless you’ve gained an insider’s trust, no measurable amount of blind marketing will capture anything more than a passing interest. Trust is earned over time through the demonstration of caring and through requests and favors in the highest spirit of integrity. As it was said to me: “I care for you and you care for me. When I need something, the fact that I would ask you to assist is the highest form compliment I may pay you. And when you need something of me, I hope that you will trust me enough to ask.”

For sellers with these types of “experience” properties, the way to reach this class of foreign buyers is from the inside out — and that takes patience above all else.

These four main types of Chinese buyers all still have one thing in common: a vast amount of wealth. However, this only tells part of their story. For instance there’s the:

Highly Educated and Sophisticated Buyer

• mostly educated overseas (many in the US)

• savvy

• made their money in China, on par with top American buyers

• looking for top level of service

• extremely demanding, wanting to know every detail of the deal

• will rely heavily on their stable of lawyers, financial advisers, etc.

Barely Educated Nouveau Riche

• mostly locally trained

• very little education

• made a lot of money through connections or hard work

• enamored with trophy real estate for sake of bragging rights

• drives the best cars, lives in the largest homes (often gaudy in design)

• tend to be the biggest spenders with the least hassle during negotiations

• usually make “gut” decisions

Well Educated but Local Rich

• representing the wealthy, well-connected intelligentsia of China

• a little lost when coming to the USA and frustrated by that fact

• may need the most advice

• extremely diligent in learning all aspects of life in America as soon as possible

• appreciates consultation and introduction to similar level executives

Identifying the ideal type of foreign buyer for your home is one thing. But there are other challenges to striking deals with these buyers that you should be aware of, as well. One such element is the language barrier, which leads many foreign investors toward Asian-speaking brokers and agents that may or may not be as well versed with the customs and practices of our local communities. Some representatives of these buyers make deals to give portions of their commissions back as a form of “partnership,” which compromises the integrity of the home-buying process. Locally, offers have even been presented with the agent having signed on the buyer’s behalf, or with no buyer’s signature at all.

Also in play is the fact that much of the money needed to finalize these purchases is located in Chinese banks, which can create its own problems. However, in speaking with UBS in Hong Kong, I was assured that, if the money is held with their financial institution, transferring money from China to the United States can take as little as two to three business days. Thankfully, if the funds are with UBS or in a similarly reputable financial institution, this shouldn’t be a major source of frustration. 

It took me coming to these environments, and talking with smart and experienced players in this economy, to better understand the depth and breadth of the foreign investor’s mindset. And candidly, I’m still just scratching the surface. But from what I’ve learned so far, China is poised for tremendous growth for the foreseeable future. The Chinese government, by many accounts, controls the flow of money and resources to support themselves and allow hundreds of thousands of current and emerging millionaires and billionaires to share in the gain. Understanding how they think culturally and what motivates them are keys for our success if we are going to manage our own expectations as to whether our not they become our next home purchaser.

Nestled into a picturesque hillside in Pacific Palisades where PCH meets Sunset Boulevard, sits the newest gem in the Los Angeles real estate market: The Rockwell condos.

The Rockwell is the apex of luxurious beachside living, offering 16 pristine units, each one entirely unique.

The building is simply stunning, where the east meets the west, where the city meets the ocean. The poured concrete offers an NYC coolness, while the interiors are extremely warm with rich reclaimed woods, open spaces flooded with natural lighting, and a focus on the beloved indoor/outdoor Southern California vibe.

The talented 9 Mile Investment crew, led by Jake Mathews, have put over two years of hard work into creating these masterpieces, transforming a once vacant space into a beachside paradise providing the best of coastal living.

This team also joined forces with some titans of the interior design industry: Minotti and BDDW, as well as the art consultant Esthella Provas. The model units have been staged to the nines and will be available to buy furnished for an additional cost.  This trend in design is very hot right now, with high-end designers lending their pieces to residential properties. This truly is luxury, defined.

Be sure to look out for The Rockwell on the cover of the Los Angeles real estate MLS Caravan this week. And to celebrate this and the launch of the condos, Luxe Magazine will be sponsoring a big cocktail party on April 30. Those interested are invited to come check out these incredible spaces and see the latest and greatest in sleek SoCal Condo living.

If you have any questions or would like to schedule a showing, please contact the listing agent Tracy Maltas 310–500–1345.

Foreclosure rates in Los Angeles are down this year, to some of the lowest rates since the last housing boom, which is a promising sign for the rebound of the Los Angeles real estate market.

According to the Los Angeles Times, filing for defaults this quarter was down over 50% from last quarter and down over 60% from last year.   Filing for defaults is one of the first steps a homeowner must take in the foreclosure process.  The number of homes lenders have taken back through foreclosure also fell this quarter.  These drops are reflective of the strength of our recovery, with home prices on the rise and demand extremely strong.

Contributing to these promising stats about decreased foreclosure rates are the new laws California has in place.  The fact that these laws “place new regulations on foreclosure practices appears to have played a big role in the sharp reduction.”  Signed into effect by Governor Brown this year, the “Housing Bill of Rights” are an expansive set of laws to help curb the abuses within the loan servicing system and to help homeowners with renegotiating their mortgages and “Allowing injunctions against foreclosure until violations are corrected.”

How do you think these laws will impact foreclosure rates in the coming year?  How are you experiencing the recovering of the housing market in your community?  Please share your thoughts and leave your comments below.

Photo courtesy of Veteran Journal

The Los Angeles real estate market is home to some of the most breathtaking properties in the world.  Since its origins, renowned architects have flocked to this Southern Californian paradise and built incredibly unique and magical homes.

Located in Mandeville Canyon, an elite and exclusive enclave of Brentwood, this home is truly a masterpiece.

With 5 bedrooms and 5 bathrooms, this home is a traditional gem that has been extensively remodeled, but retains all of the original charm of its Southern California style.

The property sits on 2.3 stunning acres in the beautiful lower Mandeville Canyon neighborhood. Set back from the street down a private and lush lane, the home is 6,000 square feet comprised of the highest quality features and finishes. The home has the classic rustic ranch house charm, but also all the luxury amenities that could be desired.

The floor plan is open and inviting, the bright and warm spaces are flooded with light, walls of glass offer beautiful vistas of the incredible outdoor spaces. There is a Chef’s kitchen and formal dining room, a wine cellar and a media room.

The indoor/outdoor flow of the home is seamless and offers the best of Southern California living. Outside the grounds are extensive, lushy landscaped and ideal for both relaxing and entertaining. There is a sparkling pool and guesthouse. The outdoor dining area is picturesque, host parties and dinners under the idyllic California sky and make use of the vineyard and organic garden and imported pizza oven when creating your traditional, delicious SoCal menu.

This stunning ranch house offers all that Southern California has to offer: it’s a magical retreat and truly a dream home.

If you have any questions or would like to schedule a showing please contact the listing agents Susan Newirth (310)500-1351 or Hugh Evans (310) 801-4201.