Los Angeles Living

Dear Mr. & Mrs. Seller:

You are about to make one of the biggest decisions of your life.  Your children have moved out, so you don't need such a large house.  But you have such happy memories. A lot of amazing things have happened in this home and it is difficult to leave it behind.  But you must.

Or, you are relocating for work.  Should you rent the house?  Do you want to deal with tenants?  Do you need the money for your new home?

Big decisions!

Now comes an even bigger one.  Who are you going to entrust with selling your prized possession?  There are so many agents to choose from.  You can choose a well-known "area expert".  They should be able to sell your house in a heartbeatk right!  Do you pick a "name brand" real estate company?  They must have buyers lined up out the door, correct!

Every realtor uses the Multiple Listing Service to advertise a new home for sale.  This listing is picked up by various sites, including Realtor.com, and even other real estate companies to include in their own marketing.  This is pretty effective, but also pretty passive marketing.

Before the world of  and other social networking platforms, this was how business was conducted.

However, this is a new world.  The world of social networking.  

Where are people starting their search for a new home?  Online.  Where are realtors most successful in marketing their properties?  Online.  However there are various ways of conducting business online. 
A realtor using the  network opens a whole new world for his or her seller.  A huge network of people, all over the country and overseas who are part of a team. Realtors, mortgage brokers, stagers and marketers.  A realtor using the network  has been indoctrinated into a whole network of sister sites where the listing will be showcased through syndication and localization.

Realtors using   are visible to people all over the world. 
With 163,512 members and the "juice" that it feeds to Google, the exposure is truly viral. I have been on Active Rain now for only three months and look at the visits I have received.

 will never leave you high and dry.  This is a community of experts in all areas.  It there is an unanswered question, and answer is forthcoming in a few minutes.

When you use an   realtor, you are using the world!

Dear Mr. & Mrs. Buyer,

Your are first-time buyers.  You are looking for an investment property.  You are downsizing and looking for a new home.  You are not sure where you want to live.  You may be moving out of state.  You want to know about a specific area.  You are not sure about the best mortgage.  So many questions.

You certainly should use a realtor who knows the area.  Should you use a "top realtor"? Should you use a "brand-name" company?   They can help, right?  Sure they can.

A realtor in the  network is part of a community.  If you are moving away you may not feel comfortable picking a realtor long distance.  You want to make sure that you are in good hands. If you use an  realtor you ARE in good hands.  You are in MANY good hands.  You can talk to someone locally who is part of the community who can put you at ease about whom you will be using, because your local contact is going to know a lot about that realtor because they are probably one of their direct associates.

If you are first-time home buyers, using a realtor in the  network gives you access to  all the information you are going to neeed.  They are associated with mortgage advisors, realtors who are experts in a particular area.  Answers to all your questions are a post away.

Mr. & Mrs. Buyer and Mr. & Mrs. Sellers,  is the now of home buying and selling.

To use the "Allstate" tag line - With Active Rain, You're in Good Hands.

Since I poured water on my poor laptop and it is in intensive care in hospital, I am typing on my Dell Mini Inspiron netbook, so I have to type small.

Oops, that's better, I stretched it a bit.

And now for something completely different.

I thought I would encourage first-time buyers to always make a back-up offer on the house they love.

Don't be afraid to make that first offer.  It is an excellent opportunity to get your feet wet.  And is something like learning to ride a bicyle.  As you go along you feel more and more comfortable, and you never forget! And don't be disheartened if you are not accepted.  Make that backup offer!

Case in point:

My first-time buyers just made an offer on the first house that I, their new agent, showed them.  It is extremely inexpensive by Los Angeles standards, $319,000.  I  told the story in a previous post.

They love the house, but an excellent example of always putting in a backup offer raised its, in this case, ugly head.  

The house had previously been on the market with another Listing Agent who mismanaged the process.  It had fallen through because the house did not appraise. The agent was fired.  However, unbeknownst to the new Listing Agent, there had been a backup offer submitted and accepted. Of course, when the backup buyer/agent saw the new listing they pointed out in no uncertain terms that they were now entitled to buy the house.  This is corrrect.

The buyer still needs to go through inspection, appraisal, etc. and there is no guarantee that this escrow will close either.  But because they had their offer in they have an excellent chance of buying the home they want.

In this new round there were also multiple offers, my buyers' being the lowest with the worst loan. However, the Seller has a soft spot for my buyers for certain lifestyle reasons and would love to sell it to them.

So, guess who is pushing for first backup position.  And imagine if "three's a charm" works here. My buyers are going to be happy campers!

And, they are free to continue looking for another home while they wait. There is nothing to lose!

First-time home buyers, don't be afraid to make an offer.  If nothing else you are getting practice.

I was referred two buyers about ten days ago from clients with whom I just closed a purchase about three months ago.  Their budget is around $325,000 which is nothing for the Los Angeles area, certainly in terms of a house, and a condo is not going to be in the most desirable area at anywhere near that price.

I sent a bunch of listings, in various more affordable areas, most of which were condos. Then, suprise  surprise, a house came on the market at $318,000, in a slowly up and coming area, Mt. Washington.  It is tiny. Probably around 600 and something square feet (additions were not included) and they said they would like to see it.

I met them today, for the first time, at the house.  It is absolutely adorable.  Tiny but adorable.  The grounds are what make it.  The owner is an avid gardener and has done a lovely job.  The house seems to be in great condition and there is potential.

This is the first house my buyers have seen and they are ready to make an offer.  

That is the way to do it.  You see something you like you make an offer.  It just came on the market and there are already a couple of offers.  No wonder at that price!

These are the perfect buyers.  They love it and they want to buy it. 

Let's see what happens.  But whatever does, they know how it feels to put together an offer.

Stay away from Pampa Furniture, Los Angeles

I really hate it when someone gets taken advantage of, and the value this company puts on the customer service is zero.

Without getting into too much detail, my friend purchased $7,000 of bedroom furniture from the West Los Angeles store and was promised an early delivery date.  With this in mind she got rid of her old furniture and was expecting the new pieces to be delivered prior to two sets of expected guests.  The furniture was not delivered, nor was there ever a request for it to be rushed and delivered early.

After contacting the store three times, each time with a promise from the salesperson that they would call her back with an answer which they never did, she contacted the owner.  The owner's response was that a mistake was made followed by "what do you expect me to do about it, with people starving all over the world."  

The furniture was scheduled to be delivered on the following Monday, the original full delivery dates.  Was it delivered - yes SOME of it was, with one incorrect piece.  

Can you imagine an owner of a company not offering some kind of compensation to an inconveniences and unsatisfied customer!

How long do you think we as Realtors would remain in business with this kind of reputation!

Business is about customer service and without customer service we do not deserve the business!

The West Hollywood Annual Halloween Parade is a must-see for those who have never been.

West Hollywood became an incorporated city within Los Angeles County in 1984 and three years later the parade started.

This parade is the world's largest Halloween party attended by over 450,000 people, making it the sixth largest city in California for that night.  West Hollywood has around 39,000 residents!  The parade is also Los Angeles' second largest event after the The Tournament of Roses Parade on January 1st.

What started as a gay and lesbian event has blossomed into one attended by peoples from all walks of life.

A one-mile stretch of Santa Monica Boulevard between La Cienega and Doheny is blocked off and the area becomes a sea of people.  Parking in the area is extremely difficult and, if you are claustrophobic, this is not the place for you.

The week preceding is filled with free events.  Among the highlights:

October 22nd - Annual Pet Halloween Costume  Contest - West Hollywood Park at 10.00 a.m.  Goldfish are included.

October 28th in the evening - Second Annual Drag Race and Pageant.  Sneakers are not allowed.  You must run in 2" heels.  For the pageant there will be prizes for best hair, best pumps, most outrageous, etc.  Picking the most outrageouls will be difficult, since most of the costumes are!

On October 31st, there will be the 19th Annual  Carnaval and costume contest. A king and queen will be crowned.  Don't worry about gender.  Last year Ryan Seacrest was crowned Queen!

The Parade takes place between 6:00 p.m. to midnight, but probably reaches its peak around 9:00 to 10:00 p.m.  

I encourage you to attend.  It is an experience you will not forget!

Parking and Shuttle Information

Public Parking for the West Hollywood Halloween Costume Carnaval will be available at the following locations for a $15 fee:

Kings Road Parking Structure
8383 Santa Monica Boulevard
Corner of Santa Monica Boulevard and Kings Road

West Hollywood Park Parking Lot
647 N. San Vicente Boulevard
Near San Vicente Boulevard and Melrose Avenue

El Tovar Lot
8750 El Tovar Place
Near Melrose Boulevard and Robertson Boulevard

Parking at the following venue will be available for $20:

Pacific Design Center
8687 Melrose Avenue
Between Santa Monica Boulevard and Melrose Avenue

The City of West Hollywood will be offering a CityLine service on Halloween during the usual hours of 5:30 p.m. to 1:30 a.m. The route will operate along Santa Monica Boulevard between La Cienega Boulevard and Fuller Avenue.

Venice California, median home pices rose 17% in the last year.

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The number of homes going under contract in every given month increased 40%

For sale properties dropped 15%.

New properties coming on the market dropped 23%.

Inventory of homes in Venice California is down 46%.

And the months supply of inventory is also down 46%.

We all know what a definition of assume is don't we!

Well I fell in the trap.

I have been talking to couple for a while now who have been slowly working towards buying a house in Los Angeles, and have been sending them listings slowly in two of the more expensive areas, Brentwood and Beverly Hills.

What they have in mind in those areas is unattainable within their price range, around $1.5M and they have finally come around to opening their search to a neighboring area, Westwood, where they may be able to get the kind of home they want.

Finally, I have moved them towards thinking of making an offer on a house that they saw last week in Westwood.  It is not exactly what they want but close enough that they are motivated to see how much they can get it for.  The price was just dropped to $1.6M. 

My feeling is they need to get used to actually making offers instead of waiting for the perfect home to fall in their lap.  It won't.

Well, long story short, being comfortable with these people, and knowing that they have bought and sold property before, I "assumed" that they knew what to do.  

Imagine my surprise when I mentioned the pre-approval letter, and they said "do we need a pre-approval letter to make an offer". And, they don't have any lender contacts.  

So, now we have to take a huge step backwards.  I referred them to a broker who told me he is not sure they are going to qualify in the $1.5M price range!  I will know more tomorrow.

So, their buying power is anything less than $1.5M or $1.6M because the type of house they want in the areas they want it, at anything less, does not exist.

Based on the Culver City Third Quarter Market Report, the median home prices have fallen 6%.

The properties on the market in any given month where a buyer could have written a first position offer to purchase it at any time during that month.  Different from Months Supply of Inventory below.  The number has increased 3%.

The number of properties going into contract on any given month shows the sales activity.  This has increased 100%.

The Culver City Third Quarter Market Report, shows a drop of 28% in the number of new properties coming on the market in any given month.  The shortage of inventory should lead to an increase in home prices.

This measures the speed of the market on a monthly basis.  All the Days on the Market are added up and then divided by the number of properties involved to arrive at the figure.

These figures show how long it would take to sell the present inventory based on the present monthly sale rate. The number of properties on sale on the last day of the month is the remaining inventory.  This figure is divided by current sales rate for the month as determined by the number of properties going under contract.  This shows buyer actitivity.  Some calculations take into account the number of closed sales in a month.  The figure has decreased 84.0%

The median price of homes in Beverly Hills has increased by 123%

The number of properties sold has increased 55%

The properties on the market in any given month where a buyer could have written a first position offer to purchase it at any time during that month.  Different from Months Supply of Inventory below.  The number has increased 3%.

The number of properties going into contract on any given month shows the sales activity.  This has increased 108%.

These figures show how long it would take to sell the present inventory based on the present monthly sale rate. The number of properties on sale on the last day of the month is the remaining inventory.  This figure is divided by current sales rate for the month as determined by the number of properties going under contract.  This shows buyer actitivity.  Some calculations take into account the number of closed sales in a month.  The figure has decreased 56.2%

This chart reflects the number of new listings coming on the market during the month in question.  This figure is down 2%

This indicates the sales velocity for any given month, i.e. how long they will remain on the market until they sell. Properties that went under contact are counted.  All the various days on the market are counted and then divided by the number of properties involved to arrive at the average figure.  The number of days has increaed 62%.  This could be due to overpricing or the difficulty in obtain a mortgage.