Around Los Angeles--Venice (Abbot Kinney area)

I was in Venice this morning dropping off keys to the buyer's agent for the condo I just sold this past Friday. Venice is a beach town first and foremost, but there is a burgeoning modern architecture scene nestled in with vintage Craftsmen buildings and small California bungalows that form an interesting visual mix. It is nowhere more prevalent than on the main shopping thoroughfare of Abbot Kinney. This street has boomed over the last several years, and is now considered one of the hippest and most desired locations in all of Los Angeles to live (there are several live/work & multi-use buildings in the vicinity), as well as hang out for it's options of shopping, coffee, restaurants, and cultural scene. Here are some of the shots I was able to capture today to show the contrasting styles and development of the area, both in commercial spaces and housing. [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4207245686/[/flickr]

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Hollywood's Evolution

I have recently posted a few tweets about different loft/condo projects in Hollywood that I have shown various client's, so thought it was time to post a bit more on the topic. The area of Hollywood has gone from roaring in the 20's with the movie industry's arrival to shaky (to put it mildly) in the 80's, and now evolving into one of the most dynamic and desirable locations in Los Angeles. The fact of the matter is that Hollywood is currently rapidly changing in front of everyone's eyes, with it's influx of soaring buildings, cranes, and massive development in every category. There are literally Billions of dollars in new development that has either recently completed or is currently under construction, namely the $600M W Hotel & Condo project at Hollywood & Vine. That intersection has become the epicenter, and developer's have been capitalizing on the city's adaptive reuse ordinances on that very intersection with the Broadway Lofts (Formerly the Broadway store) at the southwest corner and the Lofts @ Hollywood & Vine (formerly the Equitable Building) on the northeast. Prices in this area range from as low as $399,000 and go all the way up to $6M at the new W building. [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4188411239/[/flickr]

The reemergence was started in 2001 with the Hollywood and Highland retail complex (pictured above). It is not only loft buildings for sale being built, but also apartment buildings, several mixed-use projects with retail below apartments (this I am a huge proponent of), and restaurants and nightlife. Since I live just off Hollywood Blvd. in the thick of the action, it is an absolute joy to be a part of the new Hollywood. It is this knowledge of the city that is crucial to adequately advising my clients. I would definitely recommend buying into this area as a lifestyle, assuming you like urban living and the ability to walk to goods and services, as well as an investment. The city feels alive and only getting better. There will be a new arrival of thousands of residents, which in turn will bring energy and cultural influencers further evolving the city into one of the most desirable places to be in the city of Los Angeles. Enjoy the evolution.

The Art of Pricing

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/3931867177/[/flickr] When placing a property on the market for sale, it is so crucial to come out of the gate with the right price from day one. As a listing lingers on the market for over 30 days, and price reductions must occur, this makes the listing appear stale and as if nobody wants it. But how do you come to the right price? Since every property is essentially different, there is somewhat of an art form to accurately evaluating property values. Depending on the type of property (ie income property, condo, single family home, etc) most will use the standard dollar per sq. ft averages of the recent sales in the immediate area. This is effective to give a starting point; however, one must delve deeper. You have to look at the size of the lot, quality of finishes, perceived value from a buyer's perspective, along with the condition of the market & desirability of the location.

Once, as an agent, I feel I have the right value, then the information has to be clearly expressed to the owner/seller to show them how you came to a particular number. This can be a tricky proposition, as obviously seller's want to maximize their profits, but they also often have a skewed view of the value of their own property. Emotions definitely factor in, and can often overshadow empirical evidence. I do understand the thinking that it is easy to come down, but you can't really go back up; however, again, the longer a property lingers on the market with little to no activity the worse it is perceived by other agents and their clients.

This is why one really needs to come out from the gates with the right amount from day 1. It is imperative!

Readying Your Property for Sale

Before officially listing your property on the market for prospective buyers to come and view it, one would be wise to do a couple of small things to ready the property. These efforts, with their minor costs and work, could end up paying back large dividends. Please see below for a few of the most important steps: 1. Clean. Your property needs to show at it's best, so give it it's best foot forward by showing it in an immaculate state.

2. Remove/Put Away. A buyer will want to move right in, and have the ability to picture themselves there. Many people are 100% visual, and will have trouble looking past what is in front of them; thus, you definitely want to put away excess items that make the property appear cluttered and smaller. It may even be worth it to get a small storage unit on a monthly basis if you don't have the room. Look at the below pic, as it is a perfect example, and looks like a model home.

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4156178432/[/flickr]

3. Painting. Depending on what condition the property is in, it may be wise to consider painting the interior to give it that clean and new look. Stay away from any non-neutral colors, as you want to appeal to the broadest percentage of buyer's as possible--white is usually best.

4. Gardening. If the property is a house, curb appeal is very important. You want the buyer to arrive and instantly think the outside looks great, and I can't wait to enter. If you think about it, you don't want the buyer "turned off" before even entering the premises. So definitely do what you can to manicure the lawn.

These are just a few items that could cost a few hundred dollars and a little bit of time and energy, but could yield many ten's of thousands in terms of enhancing a buyer's perceived value. Remember, perception is reality. Show buyer's the property in it's absolute best condition and increase your chances of selling your home faster and for more money. As the saying goes, ''you never get a second chance to make a first impression," and this applies to real estate as much as dating.

Deals @ Hot Hollywood Loft Building

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4081196218[/flickr] This building was first constructed in 1929, and served as the former Equitable Building. It has recently been turned into an urban dweller's dream when it was converted to lofts in 2007 by Palisades Development Group. That is the start, the design. The designers did it right by keeping the old industrial details, but updating the open spaces with a modern gallery like aesthetic. These features include clean white expoxy flooring, sleek gallery style Viking kitchens, and designer baths w/ Ann Sacks tiles.

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4080436361[/flickr]

The better part is the location and prices. The location is the intersection of Hollywood & Vine, which is booming with development, namely the new $600M W hotel across the street. The neighborhood is alive with new restaurants, shopping, and nightlife popping up all the time. In fact, a new restaurant bar just opened up on the ground floor of this loft building. This adds to the ever growing list; including, Katsuya across the street, Beso, and others. There has recently been over $2 Billion of development in the Hollywood area, and it is sure to increase property values over the long term.

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4080436441[/flickr]

The prices have been greatly reduced since first coming to the market in 2007. For example, currently they have two story lofts of 1300 sq. ft. priced around $500,000 that were originally priced at over $800,000. This is a whopping 38% difference! Real estate values in Hollywood have not declined anywhere near 38%; thus, making this a deal. One could argue that they were too high to begin with and that is not a true value, which I can understand and is right, except for the fact that the W condos are asking and getting the original 2007 prices right now for much smaller units, as well as is the Broadway lofts on the south west corner of Hollywood & Vine. Out of state investor client's of mine instantly recognized the value when they visited the lofts this Monday. It is Friday and we just closed on an amazing unit for 44% under it's original asking price! I think the unit they got a great deal with clear cut built in value in the current real estate market. Beyond price and investment, they got a very cool place to live while in Los Angeles. There are several left at varying sizes and prices ($499,000-$900,000).

Note: I am not representing this project and have no affiliation with the owners, but have assisted buyer's in purchasing here. Please call if you are interested in viewing these lofts.

I have posted videos of a few of the units at http://youtube.com/esmilay.

You can visit the developer's website at http://theloftsathollywoodandvine.com

Truth About Short Sales & Foreclosures For Buyer's

Nowadays everybody is asking for a deal. Of course that makes sense, that is the name of the game right, buy low and sell high. Usually this ends up in a conversation regarding what they heard on the news about short sales or foreclosures. There is a lot of misinformation out there and confusion with regards to the difference, and specifically what is a short sale. Let me explain: Short Sale -- This is a sale in which the seller tries to get the bank to accept less than is owed on the loan. This is happening quite a bit currently, due to the combination of both people unable to pay their mortgage payments and the recent decline in home values. People are damaging their credit in order to essentially jump ship. As a buyer, one must be aware of the process, as well as be very patient. When you see a new listing on the market that is a short sale, usually that means that the price is not yet approved by the lender. In many instances, they have not even begun the short sale process, and will not until they receive their first offer. What I mean by being aware is that even if you offer exactly what the seller is asking, that does not necessarily mean the bank will approve that number--know that going in. Also, even if they do approve it, the process at the bank could take month's, so one must be flexible and patient. I have been in several short sale deals that took a very long time, and my buyer ended up purchasing something else, while waiting for a response. This is an important point also; I always include a short sale addendum with the purchase offer, which states that none of the contingency time lines, exchange of money, etc will happen until the bank has approved the price and then we will open up escrow. That is important.

Foreclosure-- This is a sale in which the bank is the actual owner of the property. The former owner could not make the payments any longer and the bank foreclosed on the owner and took the property back. This can be a much smoother and straight forward deal.

Please note that in most cases in either type of sale, the bank is not likely to make any repairs or provide any credits for repairs. They are losing money, so don't want to shell out anymore.

There are opportunities out there for foreclosures, short sales, as well as regular sales. I have several buyer client's recognizing this, and able to take advantage, and are getting some truly great deals. Speak to your real estate agent, go in with the facts on each property, and get yourself a deal that you can profit from when the market rebounds; not to mention, a home to enjoy in the interim.

Hip Venice adj Condo (In Escrow)

NOT A REO or SHORT SALE. HIP CONDO JUST MINUTES TO THE BEACH,IN GREAT VENICE ADJ. NEIGHBORHOOD. THIS UNIT FEATURES MODERN OPEN FLOOR PLAN, BEAUTIFUL BAMBOO WOOD FLOORING, & A GOURMET KITCHEN W/ GRANITE COUNTERTOPS & STAINLESS STEEL APPLIANCES. FURTHER ADDING TO IT’S APPEAL IS A LUXURY BATH CONTAINING TRAVERTINE STONEWORK IN SHOWER, A CLOSET ORGANIZER, & DESIGNER PAINT THROUGHOUT THE UNIT. VERY LIGHT & BRIGHT–GREAT BUYER’S OPPORTUNITY IN THE ALWAYS DESIRABLE WESTSIDE. SHOWS LIKE A MODEL. Offered @ $335,000. View the full property here