Know What You Can & Can't Afford Before Looking

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/3931945503/[/flickr] It is imperative that one speaks to a lender before beginning their housing search. This is true for a number of reasons, but mainly for knowing the actual costs associated with various purchase prices. Most people are mainly concerned with how much is the place going to cost them every month. A lender can look at your situation in less than 15 minutes, get you pre-approved for a specific amount, as well as discuss what the current interest rates are. This last point is the key point. Just a few tenths of a percentage point can significantly increase or decrease your monthly outlay. I have previously written on this topic that available financing is just as important as the purchase price.

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Also, you don’t want to look at million dollar homes, if you can only qualify and afford half a million dollars. Not only is this a waste of time for you, your realtor, the listing agent, etc, but once you see those homes, all of a sudden the half as nice homes aren’t going to be nice enough anymore. There is nothing wrong with admitting that you can only afford a certain level, as I am sure most people wish they had $20M plus homes, but for most (including me), this just isn’t an option, and so it is not even worth discussing. When searching for properties, one must be real about what they can and can’t do, and take it down from the hypothetical to reality.

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4018289792/[/flickr]

With that information in hand, one can then go out and find the best available home in or close to the area where they want to live. Once you find the home you like and are ready to make an offer, including a pre-approval letter with your offer will make it all that much stronger. It shows the seller that this person is serious, has done their due diligence, and if we accept, they are more likely to be able to close the deal. At the end of the day, closing the deal is what everybody involved in the transaction’s main concern is.

Searching For & Recognizing Value in Today's Real Estate Market

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/3931867083/[/flickr] In todays economic, and specifically real estate, environment every buyer/leaser wants to negotiate. No matter what the price is, people want to offer less, just because they feel like they can. There are many instances when homes are priced well, and are deals at the asking price. I would caution against missing out on a deal, while trying to negotiate a steal. That is very important. I understand the concept of buying low and selling high as well as anyone, so trust me I get it. Negotiating on behalf of my buyer client’s is on e of my favorite parts about being a real estate professional. In some instances one can negotiate much lower than the asking price, but in others they may just lose out on the house they really wanted. The thing is, every seller on the market is not necessarily desperate, and with a plethora of information available, Los Angeles is one of the most knowledgeable markets in the country in terms of people knowing what houses are worth in the areas they are looking. Let me give you a specific example.

Recently, I represented buyers on a purchase of a foreclosed property in the Hollywood Hills. The asking price was $700,000 and the listing described it as a “fixer”. The listing agent for the bank told me he never even visited the property. I knew the house very well having previously met the original builder, as well as leased out the home twice for the investor /buyer that eventually foreclosed. It needed new carpets, but was not a fixer at all, and had designer baths, imported stone work, and a gourmet chef’s kitchen. It also had the roof engineered to be a deck, but did not have stairs to go up there; nobody could have known that but me, since I met the original builder when it was first completed. I told my client’s that I am not a hard salesman type, but this is an absolute deal and if you are interested, you will need to act quickly as this will sell fast. That was not just salesman jargon, but a real fact. They recognized the value and called me 20 minutes after we saw it to make an offer. We ended up offering $720,000 (yes, $20,000 over asking price) as there were 7 offers in a matter of days. Some of those offers were under asking, which is my point. We got it, and the property appraised by a bank at $850,000. Banks are conservative by nature, so the home is probably worth closer to $950,000. While some were negotiating off the asking price trying to get a steal, my client’s knew I was telling them the truth, recognized the value and offered over asking and got an amazing deal!

Beyond the basic dollars and cents of the deal, it is also not like buying stock, and if it is the home where you want to live, that has intrinsic value in and of itself. In closing, definitely use your negotiating power as a qualified buyer/leaser in today’s market, but when a deal arises, don’t miss out on it thinking you can negotiate it down even lower. If you find the house you like, it is priced well, and you want to live there with your family for years, then take advantage of historically low interest rates, lock it down and enjoy.

Newly Listed Modern Architecturals in Mar Vista

Today is Tuesday, which means it is Broker Open House day from 11-2. I don't always go to these, unless I have a buyer for something, or a competing listing, but I am glad I did today. It was interesting, and good to see the new homes out there. They all range from $1.9M-$2.2M and have their pluses and minuses. In general though, except for the first house below, I all thought they weren't really as cool or designer as the prices suggest. They were definitely nice, but none of them really had the top tier finishes. The builders, and even their agents, may think they are the best of the best, but to be honest they really weren't. In general, except for the first one, they didn't have that "WOW" factor I guess is the best way I can put it. What do you think? Greenfield Modern Listed at $1,895,000 in the Westside Village, this 2600 sq. ft award winning architectural had a real point of difference, and was easily the best of the day. [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4270378022/[/flickr]

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4270378766/[/flickr]

The best part, how the walls literally disappear, and make the space feel larger as well as that Cali indoor/outdoor feel.

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4270379824/[/flickr]

Maplewood Listing Listed at $2,195,000 on a hilltop in a great location, this 3000 sq. ft home had some real nice outdoor space no question, but in general I though the finishes used were nowhere near top of the line. For this price, in this location,they should be. Master bedroom was quite small as well, which will be a problem for selling I believe.

On a side note, this gentleman fell off his bike right after I took this pic. He was 70 years old, and was super nice, and appreciative of me helping him up. [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4269636809/[/flickr]

Huge rooftop deck with nice views. [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4269637847[/flickr]

Brooklake Modern Listed at $2,199,000. This house is 3800 sq. ft and was okay. It is big, but it tried to be architectural and designer and frankly it just isn't. I actually liked the inside better than the outside. The master was nice though, very large, and again with the pocket doors that slide away and lead out to a nice deck with views.

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4269638929/[/flickr]

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4269639917[/flickr]

Mountain View "Green House" This property was listed at $3.4M and boasting of "green" features in 2008, but is now in foreclosure and listed at $1,930,500 by the bank. It is still a mammoth house at 5,000 sq. ft, and in a great location (arguably the best location compared to the others). It needs some touching up, and as you can see has great views, but the developer took out most of the fixtures to probably use on another house. This is not uncommon for developers to do. May be the "best buy" of all enclosed on this list, due to location and size.

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4269642845/[/flickr]

Appliances Gone. [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4269640865/[/flickr]

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4270386150/[/flickr]

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Agent & Seller Interests, Are They Aligned?

I was speaking to a client yesterday regarding the sale of a property, when they said something that made me think as well as kinda bothered me a bit. I am paraphrasing, but they said something to the effect of, I understand you want to reduce the price as you just want to make the deal regardless, while I as the seller want to maximize the highest possible sale. I understand where they are coming from on the surface, but had to disagree. Obviously, the real estate agent only gets paid when a deal occurs; thus, the incentive is to make the deal. I get that. That being said, I believe both parties interests should be, and with me at least, are aligned. I want to get all my client's the highest possible return on their homes, period! Nothing else makes me happier. In fact, I really don't like having the "we need to reduce the price" conversation with any of my sellers. Sometimes though it is just plain necessary, assuming both parties have the same objective--selling the home! Often, this conversation stems from seller's wanting to list their homes higher than suggested from the start. Unfortunately since real estate exploded into the mainstream consciousness in the past few years, and so much information available, everyone feels like an expert. That coupled with the emotional connection/bias that many have to their homes, and the recent decline in values, always makes pricing a somewhat contentious conversation. It is an accepted fact that if there is no interest from the market, a price reduction to attract a buyer's interest is usually necessery. If nobody is calling for appointments to view the property, either it is not a great product, or more likely the price is too high. Now, if a seller just wants to swing for the proverbial fences and if they get their number great, but if not they are content to stay, this is a different story. In this instance, I would say the objectives may be different. As an agent the profession is to adequately represent and inform their client in order to get the highest amount possible, but at the end of the day get it sold for their client's at an acceptable price. If a seller calls me to sell a property for them, I would think they would want my professional advice, and to sell the property. What good does it do either party to have a listing that doesn't sell?

The bottom line is, at the end of the day in a good faith business transaction, both parties interests should be exactly aligned. We are on the same team and should be working towards the exact same goal.

San Diego Highrise Condo

Designer Condo in boutique building on Pacific Coast Highway in San Diego.

Mar Vista Modern Lease

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/3931867083/[/flickr]Lying in the coveted "view" streets is this gated and private architectural masterpiece. Created in Aug. '05, this 3500 sq. ft is the perfect blend of style & substance. Home features loft like open floor plan downstairs with soaring exposed wood beamed ceilings giving warmth to the cool concrete flooring. Huge glass doors allow an abundance of natural light into the property. Gourmet chef's kitchen features Viking six burner oven, Fisher & Paykel dishwasher, and an abundance of work space. In contrast, upstairs has dark rich wood flooring and features sprawling master suite with two walk in closets, spa like master bath, fireplace, and sitting area. Each of the upstairs bedrooms have large private decks for saoking up the ocean & mountain views. This is a great opportunity for someone who appreciates design, style, & privacy--a must see!

Offered @ $7,000/mo

For a detailed tour, please visit www.mountainviewmodern.com

New Apts Coming to Hollywood

In the next few month's there could potentially be thousands of new residents and visitors flocking to Hollywood to either stay at the new W hotel or call the area home, as multiple new apartment buildings are coming. I have previously posted a picture of the apartments at 1600 Vine, and now here is a look at the construction activity of two more apartments underway just north of Hollywood Blvd & East of Highland. Here is also a first look at the stucco exterior of the one closes to Highland, Jefferson at Hollywood.

Jefferson At Hollywood (see http:jeffersonathollywood.com/ for more info). [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4223735280[/flickr]

Jefferson At Hollywood Apt [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4222976419/[/flickr]

Construction On Both Sides of the Street [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4222977829/[/flickr]

Apt Building Across from the Jefferson [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4223736704/[/flickr]

Tale of Two Sides The 6600 Block of Hollywood Blvd

As Hollywood continues to grow and redevelop I thought it would be interesting to show the transition process. This transition is clearly prevalent in the differences of the type of restaurants, stores, and entertainment venues that reside on the north side of the 6600 block of famed Hollywood Blvd. versus those on south side of the street. Besides Kress (restaurant & nightclub), there are really no name brand stores or modern upscale venues on the south side, but instead the buildings are still occupied by an abundance of tattoo shops, smoke shops, costume stores, and other "mom and pop" retail spots. This is in contrast to the north side, which is flourishing with several newer high end restaurants, name brand retailers, & modern updated architecture. North Side of the Streeet

East Restaurant [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4222945315[/flickr]

American Apparel [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4222948705[/flickr]

Lucky Devils Restaurant [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4222946945[/flickr]

Napolean Beauty Shop [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4222953165[/flickr]

Loteria Restaurant & Formerly Mood Nightclub Being Remodeled Currently [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4223726494[/flickr]

Geisha House Restaurant Front [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4223721824/[/flickr]

Essex House Restaurant [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4222991519[/flickr]

Bella Restaurant [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4223749992[/flickr]

South Side of the Streeet

Various Shops Surround Vacant Ritz Theatre [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4223747198/[/flickr]

Wig Shop & Others [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4223713158/[/flickr]

Small Shoe & Clothing Stores [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4223723518/[/flickr]

Supply Store & Others [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4222985925[/flickr]

Hollywood & Vine Expansion Pictures

Just a few of the pictures I took today of the Sunset/Hollywood & Vine area of booming Hollywood to visually represent previous posts about the area's rise. This is obviously just a snapshot of a small area, and I will have more of new shopping on Cahuenga, new loft buildings, hotels, and more soon. I live in and around this area, so shooting in Hollywood is easy. [flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/4207472826/[/flickr]

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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.

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.

EVO #1810 Lease

[flickr size="small" float="left"]http://www.flickr.com/photos/42659427@N02/3931599805/[/flickr] Amazing 2 bedroom/2 bath loft available for lease at downtown's newest and nicest high rise building, EVO. Lying just around the corner from the Staples Center & new LA Live in downtown's best neighborhood, South Park; is this stunning new loft with designer finishes and out of this world views. Property is on the 18th floor with floor to ceiling windows and a huge balcony overlooking LA. Property itself features rich wood flooring throughout, designer kitchen with all new stainless steel appliances, spa like bathrooms, and an ideal open floor plan. Building features some of the nicest community areas in any building; including huge sunny pool area, and rooftop lounge. List price includes all basic utilities as well! Offered @ $3,000/mo Click here for more images...