Posted on January 29th, 2015 No commentsJust finished up with Brokers. My favorite new house on the market is 1719 Reed Street (Brokered By RE/MAX Estate Properties) in the Redondo Beach Golden Hills.
What makes this house special is the lot size. It has 1,000 more square feet than the typical “Tall & Skinny” lot. Because it’s street to alley, you get a nice sized patio and a deeper backyard – it makes a huge difference! Also this home has 4 bedrooms instead of the usual 3. It gets nice light and has a good feel over all!
Posted on January 28th, 2015 No comments
In southern California where the majority of Realtors use CAR’s residential purchase agreement to make an offer, there have been a number of changes to the contract for 2015. (CAR = California Association of Realtors).
One of the biggest changes – which could potentially restructure how buyers and sellers negotiate – is the removal of the WPA form. WPA stands for Wood Destroying Pest Inspection. It’s basically the form buyers includes with their offer that stipulates that sellers will pay for a termite report as well as any Section 1 items identified on that report. Section 1 items must be fixed prior to the close of escrow (lender requirements) and usually include termite infestation and dry rot among other things. These two are usually the big ticket items. And although these points are negotiable (as is everything in the contract), it was standard practice for sellers to pay for Section 1 items. This was handled up front with the offer. Sellers accepted the fact that this was a standard expense to selling a home. Then when buyers come back with a Request for Repairs, all repairs would be over and above the termite work.
But in 2015, the WPA has been eliminated. Potentially, buyers can still request termite work up front in the offer. And this will probably happen for some time to come. Eventually, however, the process will evolve and termite work will become part of the negotiations for repairs.
The biggest impact from this change is that sellers won’t automatically feel it’s their responsibility to do the termite work, i.e. tent their home for infestation, replace rotted wood with fresh wood. And sellers can simply say they won’t do the work. Of course, they will be more apt to do the work in a buyers’ market and probably less willing in a sellers’ market. These can be expensive repairs and buyers may have to get used to incurring this expense as time goes on.
Posted on January 20th, 2015 No comments
It’s the homes that are all dolled up that sell for the most money. I see it time and again. In this market, buyers are flocking to the properties that are plug and play, meaning they don’t need to do any work. There’s an emotional tug that comes with new floors, custom paint, crown moldings, tastefully remodeled bedrooms and baths. Note to seller: if you’re looking for a higher price, you may want to consider some smart upgrades. For many of my listings, I’ve encouraged my clients to do some minor remodeling. If for every dollar they put in, they can get back $3-4, then it’s worth the effort. It may even be worth it if you can double your investment.Case in point, 1918 Farrell Avenue in Redondo Beach came on the market this week. It immediately got a tremendous amount of traffic. This home was purchased at the end of 2012 (just before the crazy growth) for $661,000. The new owners remodeled the home and re-listed it now (3 years later) for $925,000. And it will probably sell for more. For one, there is still very little inventory out there. Two, this house looks all shiny and new. It’s a quality remodel, the owners definitely improved on the house… and they didn’t have to change the footprint at all. Buyers walked through this home and got a warm and fuzzy feeling. By the end of the weekend, there were multiple offers and although the offer prices were not made public knowledge, I can safely assume that they are at least at the asking price, if not higher.
Note to Buyers, if you want a deal, if you have to buy the ugly house. Or maybe I should say, the ugly duckling. Because with some work, it can be just as pretty, but you probably didn’t have to pay as much money. Now, in crazy seller’s markets, you usually have to pay a premium on everything, but we’ve slowed down a little now in the Southern California. There are homes in Hermosa, Redondo and Manhattan Beach that are staying on the market longer. There could be deals to be had, but you have to be willing to pick up a hammer or pay someone to do it for you.