Posted on March 20th, 2014 No comments
A couple of new listings that came on the market this week in North Redondo Beach have set price tags that are pushing the envelope. It will be a great litmus test to see if the market is in deed still climbing at a steady pace as we move into the heart of 2014.
2022 Warfield Ave, #1 is a corner, detached townhome. These corner units are extremely popular because they feel like single families with their own, private driveway and what feels like a defined space, separate from your neighbor who shares the lot with you. The townhome on Warfield has a lot of space. The floor plan is not cookie cutter, and the kitchen has been updated. On the other hand, there is carpet throughout instead of hardwood (albeit, new carpet), and the bathrooms are original. This is a 1990 build. No other corner townhomes, built from 1988-1995 with less than 2600 sq feet have sold for more than $836,000, according to the MLS. This was the sales price for 2509 Phelan Lane which sold in October 2013. However, 2023 Nelson Ave, also a corner 1990 build, went into escrow after 12 Days on Market with an asking price of $899,000. This townhome also has an updated kitchen, but bathrooms.
Then we have 2114 Huntington Lane, #A. This is a detached front townhome that was built in 1990 as well. It has the older floor plan with the living room, family room, formal dining room and breakfast nook. The bathrooms haven’t been updated in this one either. The kitchen has granite counters, and laminate floors were installed throughout the downstairs. The home does have a nice feel. It gets good light. The seller is asking $849,000. The last attached townhome that sold with similar condition and square footage was 1908 Havemeyer Lane, #A which sold for $830,000 in June 2013.
The trend is becoming clear. Buyers are spending more money and getting less. If you want to buy a newer townhome or one with an upgraded kitchen and bathrooms, you will be easily pushing $900,000. Case in point, 2517 Huntington Lane, #A is a 2005 built, detached townhome. It shows very well with some nice upgrades. However, it’s only two blocks from Inglewood Avenue. This property still got 7 offers, at least a few of them were over the asking price of $899,000.
If inventory stays as tight as it has been, prices will continue to rise. What you could buy for $905,000 today could be $935,000 a few months down the road.
Once this listings close, I will circle back around to this analysis and confirm if the trend is still moving on up.
Posted on March 17th, 2014 No comments
In a typical real estate transaction in southern California, the buyer has 17 days to do all their due diligence. This includes hiring inspectors to evaluate the condition of the home. Here are some of the inspections that you can consider doing:
This is the bread & butter of inspections. Everyone should have a home inspection. This is a generalist who will assess the following: foundation, roof, plumbing, electrical, appliances. This inspector is not a specialist in any of these areas, but will be able to tell you the general condition of these items and point out any safety concerns and recommended upgrading. The home inspector will recommend you seek an expert in any of these areas if there is some concern about the condition of these items. For instance, if the inspector sees droppings in the attic, he will recommend a termite inspection. If the inspector, sees moisture under a sink, he will recommend a plumber for further investigation. But often, a buyer can base his Request for Repairs on the home inspection report. Keep in mind, that not all home inspectors are created equal. Make sure you use an inspector who is licensed and bonded. Also, it’s a good idea to use someone that either your agent or friend/family member has had experience with.
Mold inspections are not done as regularly as home inspections. But they should be! I always insist that my clients get a mold inspection. Water is a homeowner’s worst enemy and often water damage can go undetected, wreaking havoc behind the scenes. A good mold inspector helps give you a more well-rounded picture of your soon to be new home. And often it can save you from walking into some nightmarish repairs.
Video Sewer Line Inspection
If you want to know the condition of your sewer line, you can have a plumber or sewer line specialist come to the property and put a video camera into the sewer line. You will be able to see if there are any blockages in the line or possibly even tree roots that are impeding the sewer line. I usually recommend this to people who are buying older homes with mature trees on the property.
If you have any questions about the condition of the roof that your home inspector can’t answer or if your home inspector recommends further investigation by a roofer, it’s a good idea to bring someone out who can quote you the cost of a new roof or needed repairs. Often, you can get a roofer to come out for a free estimate.
If you are concerned with some visible cracks or the home inspector thinks there could be some foundation issues, it can be a good idea to hire a foundation inspector. I think it’s helpful to find a foundation inspector who’s also a structural engineer.
Depending on where this house is located, a geologic inspection is something you may want to consider. If there’s concern with the soil or condition of the land, this can be a worthy investment. Areas like Malibu would be a good place to do a geologic inspection.
Normally, the seller will pay for a termite inspection. This report will show signs of termite damage, termite infestation, and dry rot. Keep in mind, when a Wood Destroying Pest Addendum is included in a contract, the lender will require that all termite work be done prior to funding the loan. Typically, a seller will agree to pay for these items. It’s just a matter of coordinating the work prior to escrow closing.
These represent a good number of inspections that you can do as a buyer. Basically, if you have any questions or concerns, you can always bring in an expert for further evaluation. The money you spend on inspections can add up, but it’s a good insurance policy against purchasing a home that will be a money pit of repairs.
Posted on March 14th, 2014 No comments
Brokers Open today in Hermosa Beach had a strong showing. There were a handful of great properties that just hit the market and are sure to fly off the shelf. My favorite was 1018 17th Street in the Hermosa Hills. It’s a townhome built in 2005. I’m dying to know who the builder is because it has a unique look and feel rather than the typical cookie cutter floor plans and generic finishings. There is a master bedroom and 2nd large bedroom on the entry level. Two more bedrooms and bathroom and are located on the lower level. Then on the top floor you have the Great Room. It’s all open but you feel like each area gets its own space rather than all being jam packed next to each other. Well placed skylights keep the room light and airy. The balcony offers an intimate setting for outdoor entertaining with new ocean views.
Posted on March 14th, 2014 No comments
405 S Gertruda Avenue in South Redondo Beach has been on and off the market over the past few years. It’s a lovely home with a lot to offer. And yet it hasn’t had an offer that has sealed the deal. This gives us an opportunity to look at one property over 3 distinct time periods in the South Redondo Beach real estate market.
Here’s the history: The home was purchased in September 2005 for $1,480,000. As we all know, this was a market on an upswing. Sellers could do no wrong. Homes sold themselves and prices climbed quickly. Then in January 2010, the homeowner put the home on the market for $1,765,000. It was on the market for approximately 3 months. It didn’t sell, and not surprisingly. The market had pretty much come to a stand still, and in many cases prices had dropped back down to 2005 levels. There was no way this home would sell for $300,000 more than what it sold for in 2005 – not in this market. And it wasn’t going to sell at $1,685,000 later in the year when it was put back on the market again.
Fast forward three years, and the home was listed for sale in July 2013 for $1,875,000. This was in the middle of a very hot market. But it’s also been a fickle market. Buyers have gone gangbusters on many properties and activity is rather subdued on others. And South Redondo seemed to languish behind North Redondo, Manhattan Beach and Hermosa Beach. After four months the listing was canceled. And now, in March 2014, it’s back on the market for the same price.
Is there going to be anything different this time? One of its neighbors, 413 S Gertruda, sold in October 2013 for $1,700,000. It’s newer but smaller by about 500 sq feet. If 405 S Gertruda ultimately sells close to its asking price, then we are still in a very upward mobile market. But based on this recent comp, I would deduce that the value is below the $1.8 mark and not above it.
405 S Gertruda shows very well. The views are gorgeous and the roof top deck is extremely usable. I’m not a fan of all the spiral staircases. (Loved them when I was a kid… could run up and down them all day long. But now I just get an awesome case of vertigo.) The neighborhood views are also picturesque. The kitchen is beautifully updated. The master bathroom is lovely. This house gives you a lot of space on a great street with great views. But it’s my feeling that it’s going to need to come down in price before someone is ready to step up to the plate. With that being said, there have been plenty of people stepping up this past year, setting new benchmarks. Only time will tell.
Posted on March 10th, 2014 No comments
Joey J. of Van Nuys won my February drawing for a $50 gift card to Target! Thanks to everyone who signed up for my newsletter this month. And if you haven’t done so already, go to www.LuvWhereULive.com and sign up today!
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