Blake and Diana Homes | high-torque real estate sales and marketing

Manhattan Beach Townhome Sales | October 2009

2009-11-11T09:50:38-08:00

Total townhome sales in Manhattan Beach is down by 14% when compared to October 2008. The Average selling price declined by 10% for this same sample period. The average reduction from the original listing price is 8%.

Click on either image to see an enlarged version

Here's a quick summary of averages for October 2009

For comparison, summary of averages for October 2008

Auction Home in Manhattan Beach | 1801 Elm

2009-11-11T08:13:56-08:00

1801 Elm is a probate sale that will be sold at an auction held at the property December 6th, 2009. What's interesting here is the MLS price of $399,000, but there's no minimum bid and no set "asking price," according to the agent notes on the MLS. The sale is "as-is" and is also subject to court confirmation. I'd guess that an overbid is also a possibility, which can muck things up sometimes. However, if there's no overbid, the auction winner is the winner.

If you're interested in the property, have your agent research the details.

Considering the listing price, I'd guess this home will generate a lot of interest

Information from the MLS, click here to view <<---

Redondo Beach Townhome Sales | October 2009

2009-11-09T09:40:14-08:00

Lots of sales activity this October in the Redondo Beach Townhome and Condo market. The average reduction from the original listing price is 6%. But, it's also interesting to note that six homes that sold above their original listing price. By comparison, October 2008 had a total of 41 townhome/condo sales with an average days on market count of 61, and an average selling price of $815,173. The total sales volume for the period was $31,826,750. 2009's average selling price is $660,534, a decline of 19%.

Click on either image to see an enlarged version

Here's a quick summary of averages for October 2009

Manhattan Beach Single Family Home Sales | October 2009

2009-11-08T19:12:13-08:00

Curious about Manhattan Beach home sales? The graphics below cover the 28 closed Manhattan Beach sales of single family homes for October, 2009. Most of the information should be pretty self explanatory. The average reduction from the original listing price is 11%. The data comes directly from the MLS and is prone to containing omissions. For example, it's not uncommon for credits towards closing costs to be issued to a buyer in-lieu of lowering the selling price. Most lenders limit these sorts credits to approximately 3% of the purchase price. Cash purchases have no restrictions on how credits vs. sales prices can be manipulated in order for the seller to maintain a desired closing price. By comparison, October 2008 had a total of 19 single family sales with an average days on market count of 80, and an average selling price of $1,566,358. The total sales volume for the period was $29,760,800. 2009's average selling price is $1,471,111, an average decline of 6% for the year.

Click on either image to see an enlarged version

Here's a quick summary of averages for October 2009

Average Day on Market: 98

Average Selling Price: $1,471,111

Average Original Listing Price: $1,682,127

NOTE: this information has been updated to reflect the removal of one of the 633 15th listings, which appeared twice in original entry I posted.

For Sale | The Contemporary on 8th | 1120 8th Street, Hermosa Beach | $1,700,000

2009-11-06T13:42:19-08:00

Nearing the final phase of construction, the Contemporary on 8th is almost ready. If you'd like to view more information on this special home, please view our sales presentation online at: Sales Presentation for 1120 8th Street, Hermosa Beach, click here <<-- It's a draft, and like the home itself, we're still working towards the final, polished product.

Prefer PDF's, no worries, here's a PDF version of the unbranded sales presentation: 1120 8th Street PDF Presentation - Click here <<--

Notice: All features and specifications are subject to change without notice - Document provided for informational purposes only.

Historic Homes of Redondo Beach, California | The List

2009-10-17T14:26:41-07:00

Interested in knowing which homes and properties the city of Redondo Beach has decreed as being Historical? Checkout the following link for a full explanation of the city's ranking system and the homes that are on the current list:

List of Historic Sites in Redondo Beach (pdf) <<-- click here

If you're looking at buying a home that's made it's way to the historic list, you may be entitled to substantial property tax savings once you become the new owner. But, you may also be extremely limited to change the property in any way that would alter it from it's current basic design/form.

Realtors and their over-the-top property descriptions - here's my contribution (1120 8th in Hermosa Beach)

2009-10-12T19:46:39-07:00

As some of you may know, we have a fantastic new listing coming to the market shortly in Hermosa Beach. The home is near completion and is called "The Contemporary on 8th" Located at 1120 8th, this is one of only remaining new construction projects in the area, and it will become a true architectural reference point in the area for years to come.

Rather than simply write a typical Realtor description, I've also been working on the the following "over-the-top" version and would love some feedback. What do you love in the MLS descriptions that you read and what do you hate? Based on the feedback I get, I'll compile a list of the most liked and disliked real estate descriptors we read most often here in the South Bay.

Standard version (the basic entry most listings have)

Just completed, wonderful Contemporary Single Family home in the Hills of Hermosa Beach. Finest materials throughout including Brazilian hardwood floors, designer ceramic tiles in the entry, kitchen and bathrooms. The large chef's kitchen features stainless appliances by Thermador including dual convection ovens, loads of storage, a walk-in pantry and a four seat breakfast bar. Built using a reverse floor plan, the second level features a large great-room with ocean views, a centerpiece fireplace, direct access to the roof deck, the kitchen and the fifth bedroom. On the ground floor are three bedrooms plus the large owner's suite that has it's own private yard and an inviting spa like bath. Designer paint and top quality materials throughout complete the package on this excellent home.

A horrible version

LOCATION, LOCATION, LOCATION!!! VIEW, VIEW VIEW! THIS JUST BUILT HOME WILL NOT LAST. BRING YOUR MOST PICKY BUYERS. PROFESSIONAL CHEF'S KITCHEN WITH MICROWAVE AND STAINLESS APPLIANCES. ROOF DECK WITH SPECTACULAR VIEWS. SMELL THE OCEAN AIR. LOCATION, LOCATION, LOCATION!!! VIEW, VIEW VIEW! DID I MENTION IT'S BRAND NEW TOO!!!

The over-the-top approach

1120 8th Street, Hermosa Beach, California 90254

California Dreaming, The Contemporary on 8th | Eureka! A Home You Will Love

Like Hungarians and their goulash or Australians and their vegemite sandwiches, South Bay home buyers crave roof decks and ocean views, which is why we say Eureka! about this new soft contemporary home at the sun drenched junction of 8th and Prospect in Hermosa Beach. Built with dynamic lines and modern design cues, the home is firstly and most importantly, livable. Featuring a reversed floor plan, the home’s oversized and totally customizable common room is on the second level— there are stunning views of the Pacific Ocean and the hills of Palos Verdes, cool ocean breezes and copious amounts of California sunshine, this is a home you will enjoy as much as you can.
In contrast to the city’s traditional Mediterranean and cape cod design pallets, the home’s contemporary lines and intelligent use of Brazilian hardwood on the facade adds a sophisticated element of texture and contrast to the neighborhood.
Outfitted with high-end appliances and fixtures by Thermador, Bosh and Kohler, the home flows with a mix of Brazilian hardwood floors, designer ceramic tiles and plush carpet in the large bedrooms. The owner’s suite has its own private and landscaped retreat. 1120 8th Street in Hermosa Beach makes life easy with urban destinations to be had in all directions.
This is Hermosa Beach!
“I build each of my projects with the flow, style and features I’ve included in my personal residences—everything comes together naturally because I develop homes that are a balance between cost and features, while always maintaing the highest levels of quality. I am particularly found of this home’s expansive common room, which I’ve built to be totally customizable and configurable, yet maintain an intimate vibe”
- From the builder of 1120 8th Street
Features*

Huge Great Room with wrap-around balcony

4 bedrooms on the first level, one guest suite on the second

4 bath rooms, 3 full and 1 3/4 with large shower and glass tile

Owner's bath features limestone at the sinks and fireplace

Great room features a black granite, floor to ceiing, fireplace

Large roof deck -Caesar Stone in the kitchen (www.caesarstone.com)

Silestone in the shared bath and 2nd floor bath

Alarm System

Built-in house vacuum (central vac)

Top quality throughout

Large bedrooms and owner's suite with spa like bath

Ocean views

Completion date: Winter 2009

*Until completion, all features are subject to change without notice.

Foreclosure activity for 90277 (Redondo Beach), updated with Excel spreadsheet

2009-10-09T16:43:11-07:00

Foreclosure activity in South Redondo Beach is currently pegged at 99 homes. Like most foreclosures we see in the South Bay, the 90277 list is heavily weighted towards "preforeclosure," which is typically a notice of default, also known as the first step a lender takes towards taking a home back.

To view an excel spreadsheet of the raw data I pulled from a realtor tax research tool, click the link below. Sorry, the information is not guaranteed to be accurate, and I've provided it here for informational purposes only.

Download Redondo Beach 90277 Foreclosures, late 2009 <<-- click here

Looking for Foreclosure information on North Redondo Beach, 90278? I've got that for you too.

Download Redondo Beach 90278 Foreclosures, late 2009 <<-- click here

The Right Price Generates A Swarm Of Offers

2009-09-29T11:12:09-07:00

606 Esplanade number 3, in South Redondo Beach, is a bank owned property that is attracting buyers like bees to honey. Listed for sale with Remax's Marquee Partners in Santa Monica, this two bedroom, ocean view townhome is on the market for the extremely attractive price of $655,000. And although the unit is dated and time-capsuled to the year it was built,1990, they have received 12 offers in the last 24 hours.

What this tells us about the market

there are at least 12 active buyers who are looking for a South Redondo beach townhome in the $700,000 price range
As a Bank Owned home, a percentage of the 12 offers are hoping for a significant deal. With 12 offers, we can only assume that the final price will be easily driven up into the $700,000's. Still a good deal considering this home's location and views.
11 buyers will still be looking for a new home by week's end

Even in the best of times, we can't remember a time when there 12 quality offers on a home (and counting.) Yes, we too had an offer to contribute, but our client decided that he didn't have much appetite for this home at a $700,000 plus number.

I'm not sure if I should interpret this home's activity as a sign the the market is turning the corner, or that there's been pent-up demand for a townhome deal below PCH in Redondo Beach. But I can assume that there's probably another 10 buyers, like ours, who decided that they didn't want to jump into uber competitive rounds of negotiations.

Was this the listing agents strategy?

Sorry, I don't know this agent beyond a couple of brief phone calls. What we do know is that the home was priced well below market, hence the 12 offers. Listing below market is always a gamble because you never know if your pricing will generate the number of offers you need to push the price back up into normal zone. For this property, by either luck or skill, the agent has priced it perfectly. The final number the home sells for will be a nice surprise for everyone.

Cookie and Coco Need(ed) a Home

2009-09-28T19:21:49-07:00

Funny I thought to myself, something's definitely amiss with a series of similar emails I'd received over the last few days about a family who's moving overseas and desperately looking for a home for their cherished family pets, Cookie and Coco. So, I did a little research.

Well, seems that this is someone's idea of a good joke. The story was true, but the dogs did find a home, and that was a long time ago. Today, this email is spam, the kind that won't die.

Check it out on Snopes.com <<--click here

Foreclosure activity for 90254 (Hermosa Beach), updated with Excel spreadsheet

2009-09-27T13:26:07-07:00

Foreclosure active in Hermosa Beach has been nearly flat over the last month with 67 versus 65 documented foreclosures. This list is current as of 9/27/2009 and it has not been edited or manipulated.

Based on 2000 census data, Hermosa Beach has 9,476 households. Rounding this up to 9,500, which is probably a more accurate house count, gives us a local foreclosure rate of approximately 0.7%. Or, 1 in every 146 homes is in some level foreclosure.

Download 90254 Foreclosure Activity—Excel Spreadsheet <<--

From last months entry

Remember, it's not the data that causes people to panic, it's what's done with it. Manipulating data to build a case either way is pretty easy, which is why I'm not trying to put a Realtor spin on this information. The facts are clear, 1 in every 146 homes is involved in some degree of foreclosure activity. By comparison, your odds of being on a plane with a drunk pilot are 117 to 1, and your odds of writing a New York times best seller are 220 to 1.

Other odds, check out Odds of things happening to you <<-- click here

How to counter a low real estate offer!

2009-09-27T12:36:52-07:00

When you list your home for sale, you envision a final sales price that is a blend on your hopes, recent area comps, and your overall motivation. However, when a potential buyer submits an offer that is well below your worst case scenario, how should you react?

Keep in mind that your next step should be part of a negotiation strategy. If you're able to do it, emotions have no place here. It's simple math. You want "x" and you've been offered "y." But, most buyers who start low are willing to come up. As much as they hope you'll accept their first offer, protocol says that this is just a starting position.

There are three possible responses you and your agent can put together:

Ignore the offer number and counter back at a number that makes sense to you, based on the market and your agent's recommendations.
Respond back at nearly your asking price or at asking price. This is the least favorable path because it sends a very strong message that you're not willing to negotiate. We sometimes refer to this response as an "FU" response. This doesn't mean the deal is dead, it just tells everyone that there's a lot of emotions driving the decision making process
Reject the offer without a counter. On page 8 of the Residential Purchase Agreement is a spot for the seller to reject the offer outright. If it's particularly low, some agents will scrawl "Rejected" across the page to send the potential buyers a loud message. Unlike the "FU" option above, this response sends three messages: 1) you're not willing to waste your time with this particular offer; 2) that you and your agent believe this buyer will NOT step-up and negotiate to a middle ground that is acceptable to both sides; 3) that if you, the buyer are really interested in this property, come back with a real offer. This option is only appropriate in situations where you're sure the buyer is playing a game or simply testing you.

Because every deal and offer are unique, it's important to weigh-out all of your options before you respond or reject. We prefer to keep the ball in the air with most offers, especially those that are backed by solid financing. In most cases we would encourage you to make a good faith counter, which then puts the offer back into the buyers hands to respond. If they respond back at the same low starting position, then maybe it's time to cut bait.

Foreclosure activity for 90266 (Manhattan Beach, updated with Excel spreadsheet

2009-09-19T12:20:21-07:00

Contrary to my greatest hopes, foreclosure activity for Manhattan Beach is up a little over the last four weeks, with 89 homes in some stage of foreclosure. Also, the map image above is missing 39 of the 89 homes in the list because the tool I used can only show 50 homes at a time. See our previous entry on Manhattan Beach foreclosure activity here: July and August Foreclosure activity <<-- click here

If you'd like more detailed information, have a look at the linked spreadsheet. If there's a particular home you'd like more information on, please let us know.

Download Foreclosures for 90266 SEPT09 <<-- click here (EXCEL File)

When you explore the list, you'll see that over 50% of the entries are labeled "preforeclosure," which probably means a notice of default has been issued. In today's economy, it's pretty common for local families to be experiencing some degree of constrained cash flow. I would guess, as I have before, that the bulk of the owners who have received a notice of default will cure the default by bringing their mortgage current, or they will work towards selling their home well before the bank sends the home to auction.

There are a couple of surprises in the list, which look like they are going to be saved by the bell*.

For those of you who are fixated on foreclosures and are trying to purchase a foreclosure property, please consider the following:

Is there something wrong with the location?
Was it originally priced so far above market that people stayed away when it was listed?
Why did it sell for at auction? Why didn't the bank keep it as an REO? I can't think of a single "great" property that has become bank owned—there's always a "catch."
If the home has gone through foreclosure and it's now investor owned, how much did the investor pay for it? Again, why didn't anyone else want it if it was auctioned so far below market.
What kind of foreclosure was it, can the owner reclaim the property during the next year? This is called the redemption period and is not normally the way foreclosure sales go, but it's worth asking.
Have you looked at the tax records, is the title clear? If you're curious, you can try out www.propertyshark.com, which has lots of great tax info. A full title search as part of the purchase will be needed to verify that the home can be sold. I know you all know most of this, but I thought I'd put it down in a list
The property is probably going to be sold "as-is." Meaning that there will no repairs, and because the investor or bank has no knowledge of defects in the property, there won't be much in the way disclosures.
Many foreclosure homes have damage, for example it's pretty common for the previous owners to have pulled all of the appliances, what other damage may have been done to home?
If you're going after new construction, has the Certificate of Occupancy been issued by the city? If not, what's missing and what will it cost to bring the house up to code? Check with your lender about this. Some lenders will not lend on the property without a final certificate occupancy in place.

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*When our ancestors realized that they were burying a great deal of people before their time had actually come, they came up with a solution. They tied a string onto the "dead" person's hand, buried them, and tied the other end of the string to a bell and then tied it to nearby tree branch. If the person revived enough to ring the bell, their survivors would rush out and dig them up. Hence... "saved by the bell" From Goodwords.com (http://www.goodwords.com/sayings/)

502 24th has Sold | Say Goodnight Frances

2009-09-19T10:07:12-07:00

Sold with a capital S | 502 24th Street, Manhattan Beach, California

At long last, one of our ultimate favorite homes has found itself with an expected and accepted offer. Sorry, we can't share any details, but we do believe that price was the only thing keeping this home on the market. Clearly, a buyer either stepped up, or the sellers accepted a final number below their worst expectations.

Our congratulations go out to the buyers, who have purchased one of the most unique and coolest homes in the area.

Buyer's Agents vs. Seller's Agents — Which is best for you?

2009-09-18T14:26:06-07:00

The selection process most South Bay home buyers and sellers use is pretty straight forward when it comes to picking their real estate agent—they pick the first agent they meet, they pick the agent whose name they hear or see the most, or they'll pick the first agent they are referred to by a friend or trusted source. This group is a good ~70% of the people out there.

The other ~30% of home buyers and sellers approach their selection of an agent as a detailed project, carefully evaluating the market, deciphering Realtor speak, comparing notes with friends, and finally picking an agent with whom they feel they'll have the best repour.

For the 30% group, they'll interview at least 3 agents, if not many more. They'll also start to realize that many agents they meet will plunk themselves into a category called the buyers agent. Lets take a quick look at the positioning a conventional agent would use compared to a buyers agent.

Buyers Agent (why they think they are best suited to be your agent)

Okay, this is just one man's opinion, and I'm totally generalizing, but I believe Realtors who call themselves buyers agents either work for a leading agent as part of their team, or they are not particularly productive and are unable to capture quality listings. Every top agent I know has a solid mix of buyers and sellers. Think about it, if you're a Realtor, why would you arbitrarily tell half of your potential target audience that you only work with buyers?

If you meet with a buyers agent, here's what they might say:

I only work with buyers like you, so I am more experienced than agents who dilute their focus between buyers and sellers.
I'm a better negotiator because I'm focused on the buyers needs
I'm part of a bigger team who can address all of your needs

Conventional Agent, AKA the sellers agent (why they think they are best suited to be your agent)

Listing agents don't normally discriminate between buyers and sellers, they just want your business. The exception here is based on the dollar value or "pain threshold" of your transaction. If you are looking for a $400,000 town home and the agent normally does $3,000,000 estate home sales, they might have you work with a dedicated "buyers agent" who is either their employee, or a member of their team. This is especially true for agents who do more than 1 or 2 transactions per month. For the South Bay, 12 to 24 transactions per year is huge. Agents with this level of productivity are top 100 ranked

With the exception of the last year, listings are always the name of the game because the listing agent has a contract with the seller and the agent is able to market the home to buyers, both those with and without an agent.

If you meet with a sellers agent, here's what they might say:

I work with both buyers and sellers
I have more knowledge because I work with both buyers and sellers
Many buyers agents are junior to a lead agent in their organization, why would you choose to work with a junior agent?

I know that I'm kind of a broken record on this topic, but experience isn't based on what you call yourself, it's based on your agents current level of activity and knowledge within the local real estate community. For example, if you meet someone who tells you their exclusively a buyers agent and they complete 10 to 20 transactions per year, then their probably a great choice. But, I'd bet that most buyers agents are only completing a handful of transactions annually, if.

So what am I really saying?

Pick an agent who works with both buyers and sellers, who always has something in escrow or that is listed, and who really knows the market. Follow this simple path and you'll find yourself great, balanced representation.

Why am I writing about this?

Diana and I were recently interviewed by a family who is looking to buy a South Bay home. They asked us if were were more buyers agents or sellers agents, which got me thinking, and I'm a little dangerous when I think too much.