Burbank Green Alliance is launching Burbank’s First-Ever Eco-Conscious film series

The Burbank Green Alliance is hosting a monthly environmental film series.  The first free screening is of  "The End Of The Line" on July 14, 2010 at 7:00.  The film's synopsis is: "Learn how responsible choices will save our oceans and seafood industry." How timely, eh?  The screening will be at Woodbury University, 7500 N. Glenoaks Blvd. Reservations: $10 suggested donation (reservations/donations aren’t necessary but always welcome). For more information please visit http://www.burbankgreenalliance.org/.  Here's a tiny url for the flyer/invite: http://bit.ly/aBiLT8.

Mark your calendars for this Sunday open house

I'll be holding 4552 Morse, Studio City open this coming Sunday, June 27, from 2:00 pm to 5:00 pm.  More info and pictures can be found on my website, but this gorgeous 2+1 features a remodeled kitchen and bath, gorgeous hardwoods, a/c, a walled front patio, big back yard with two entertaining areas, and lots more.  List price is $659,000. 

Interest rates are terrific

If you're searching for Studio City homes for sale (and if you are, please check out 4552 Morse), or Burbank real estate, or Toluca Lake real estate, or any other real estate, here's a news flash.  Interest rates have gone down again!  For 30-year fixed mortgages, they are now at 4.5% + 1pt for conforming, 4.625%+1 pt for conforming high limit, 5.5%+1 pt for jumbo (over $729k) and 4.0% + 1 pt. for 15 year mortgages.  We all thought we'd see higher interest rates by this time this year.  What a nice surprise.

Another reason to love the Valley

...It's free of Laker championship violence.  We only riot when our teams lose.  I know what you're thinking, "But Judy, it takes a certain city je ne sais quoi to rampage through an area when your team wins." Fair enough, but that's one less call we need to make to our insurance companies the next day.

Just saw a really pretty house

I don't usually gush, but: 537 E. Fairmount, in Burbank, just came on the market at $779k.  Here are the stats: 3 beds, 3 baths, 1800+ sf, 10,000 sf. lot, updated kitchen and baths, a/c, great neighborhood.  And it's absolutely lovely -- it's one of the nicest houses I've seen lately.  Feels much bigger than 1800+.  You can find more pics by going to my website (JudyGraff.com) and clicking on "search the mls."  Nice listing, Laureen and Doyle!

LAT says home prices surge 22.5%

I was wondering when the stats would be out, so thanks, LA Times.  However, this week we're seeing a bit of a slow down in the areas where I work.  Hmm.

Southern California median home price surges 22.5%

The May increase to $305,000, compared with the year-earlier level, mostly reflects a rush by buyers to take advantage of federal and state tax incentives, MDA DataQuick reports. It's the first time in 20 months the figure has topped $300,000.


The Southland's housing market surged in May, with the median home price soaring 22.5% from its year-earlier level as federal and state tax incentives for buyers ignited sales, a real estate research firm reported Tuesday.

The median price hit $305,000, topping $300,000 for the first time in 20 months, according to MDA DataQuick of San Diego. That represented a 7% jump from April.

The increase in prices reflected less a jump in the actual valuation of homes than a continued shift in the region's sales mix, with fewer homes selling in the Inland Empire and an improvement in pricier markets in San Diego and Orange counties, DataQuick said.

The jump also reflected the steep decrease in the number of foreclosures, which tend to drag prices down because those homes often sell at a big discount.

A total of 22,270 homes sold in the Southland last month, a 7.2% jump from May 2009 and a 9.7% increase from April. Sales last month hit their highest level for a May since 2006.

MDA DataQuick reports its sales figures as contracts close, and the sales surge last month probably reflected a rush of buyers finalizing deals in anticipation of grabbing a federal tax credit for buyers.

The federal credit of up to $8,000 for first-time buyers and up to $6,500 for some current homeowners expired April 30, but those hoping to get the credit must close their deals by June 30. Experts worry that once the effects of the credits diminish, the sales pace will slow and prices could slump again, particularly if interest rates rise.

Also fueling the local market is a separate state tax credit for first-time buyers and those purchasing new homes. The California credit took effect May 1 and provides up to $10,000 over a three-year period for buyers who qualify.

alejandro.lazo@latimes.com

Copyright © 2010, The Los Angeles Times

Elementary Schools in Studio City, Sherman Oaks, Valley Village

I just did a little research on GreatSchools.net regarding public elementary schools in Studio City, Sherman Oaks and Valley Village.  We all know that Carpenter is a fantastic elementary school, but my client and I are looking for other schools in areas outside the Carpenter boundaries.  GreatSchools.net isn't the be-all and end-all of school research, and some of the schools below have very high APIs even though they didn't rate as high as Carpenter.  But anyway, here's what I learned.
Carpenter has a "9" rating.
Rio Vista has a "7."
Dixie Canyon is "8."
Riverside Elementary is "7."
The biggest surprise: Colfax Charter is a "9."

How'd I miss this great blog about Burbank?

Burbank, California -- this is the title of a great new blog that I've just learned about.  I'm not sure who is writing this, but it has lots of great insider information on the workings of Burbank.  Scroll down to June 2009 and find out the real reason the former fire chief and police chiefs are no longer with us.  I don't mean to make this sound like Perez Hilton, Burbank style -- the blog has a very thoughtful, journalistic approach to reporting and stories that you won't read in the Burbank Leader.

Is Valley Village a state of mind?

Where's Valley Village? Is it really Studio City, Los Angeles, or good old North Hollywood? Thanks to the management of the MLS and Wikipedia, we now have a carved-in-stone answer.  Southern boundary: Ventura Fwy.  Northern boundary: Burbank Boulevard.  Eastern boundary: the 170.  Western boundary: the Tujunga wash.  Now, does anybody know the boundaries of Sherman Village?

Wrapping up 724 University

724 University closed last week.  If you're a regular reader of this blog, you'll remember the story of the 17 offers, and the first buyers going away after two days in escrow.  Or you can read about it below. 

Anyway, the 2nd buyers closed on the house at $570,000.  They had offered $580,500, which was the highest purchase price offer.  (The first buyers made a lower offer, but without any contingencies.) And the house was sold "as is."  However, during the course of inspections, it turned out that the main line to the sewer was broken at the street.  And the chimney was broken in three places.  Uh-oh.  Those are expensive items, and they're also health and safety concerns.  The seller decided to work out credits in order to avoid 1) losing great buyers and 2) liability.  Hence, the price reduction.  From there on, the escrow was smooth sailing, it closed right on time, and the house is now owned by two nice young music teachers and their little boy.

We leave the 'hood for meals

 Yesterday, after my open house at 4552 Morse in Studio City, my husband and I ate at one of my favorite places -- Laurel Tavern in Studio City.  And then, after burgers and brews, we got some gelato in Tujunga Village.  (Yes, we can really pack it away.) And today, after running another real estate-related errand, we had a great brunch in Silverlake at Dusty's Bistro.  It would be really great to have these kind of places where we live in Burbank, although Tony's Darts Away is a good start on the gastropub trend.

Okay, this is less about real estate and more about restaurants and the crowds they draw.  Crowd in Studio City: Young to middle aged, but it was early.  Everybody seemed friendly, and deeply engaged in  conversation.  Extremely casual, but in a moneyed way.  And boob jobs. 

Later, on the street in front of the Tujunga Village gelato place, we saw a guy masturbating a girl with a red wallet/clutch.  Outside of her clothes.  They were trying to be discreet, but.  No, I am NOT kidding.  I do not know if they'd just eaten gelato. 

Crowd for brunch in Silverlake:  Really young to not-quite middle-aged -- hipster babies and their tatted-up moms and dads.  And a lot of people who looked like they just rolled out of bed (it was late morning, after all).  Messy hair and porkpie hats, but again in a moneyed way.  Needless to say, we were NOT the coolest people in the room.  Anyway, the food was great there and I can't wait to go back.

4552 Morse Ave., Studio City - Open Sunday, 1 to 4!

This is my new listing at 4552 Morse in Studio City.  It's a completely lovely 2 bedroom, 1 bath home in a gorgeous, green residential neighborhood and is listed at $659,000.  It also features a walled front patio, sunny living room with fireplace, redone kitchen with GE Profile appliances, a redone bath with swanky custom tile, extra storage, a big backyard, and more.  Come see the "more" tomorrow at my open house from 1 to 4 pm.  Also, you can find more pictures on my website at http://www.judygraff.com/ under the "featured properties" tab.  (Yes, Al, you'll have to sign in again.  Sorry.)

Celebrity sighting

Spotted at Aroma Cafe in Studio City today: Eric McCormack.  Handsome as ever.  By the way, Aroma's sister bookstore, Portrait of a Bookstore, now has a blog: http://theotherdayatportrait.wordpress.com.

Coming soon in Studio City

I'll be listing this lovely home in Studio City later this week.  It features 2 bedrooms, 1 bath, a sun-filled living room, a gorgeous front patio, remodeled kitchen, bath, dining room, extra closet space, a/c, a grassy yard with wisteria-covered pergola and more.  Stay tuned to this station -- our listing price will be $659,000 and yes, there will be more and better pictures.

Thinking of buying, and then selling, a fixer?

Thanks to my manager, Mike Napolitano, for the following article.  All in all, I recommend leaving the flipping of fixers to professional groups that do just that.  Most of the foreclosures I've seen lately are properties that were bought by regular folks with the hopes of adding improvements and then selling at a profit.  And on most of these foreclosed properties, you can see exactly where in the house the would-be flipper ran out of money -- usually somewhere in the kitchen.

Fixing to sell: Don't go overboard

Make improvements that pay off

By Dian Hymer, Tuesday, May 11, 2010.

Inman News

Fixer-uppers with upside potential were in high demand when the market was appreciating at a fast pace. Once depreciation took over, speculators disappeared until 2009, when low-end foreclosure properties in some areas became hot properties -- particularly if they were selling at a 50 percent discount from the peak in summer 2006.
In California, 70 percent of the homes bought by investors in 2009 were distressed-sale properties, according to the California Association of Realtors. Some were stripped of appliances and fixtures. But, at half price, there was profit potential for buyers who were up for a redo -- especially seasoned investors buying multiple homes to fix up and resell, or rent out.
Fixers priced over $500,000 aren't as easy to sell today. Most buyers in higher price ranges are buying a home to live in. They want a home in move-in condition that will suit their long-term needs.
There are exceptions. In high-demand market niches with few listings, there is occasionally a fixer-upper that draws a lot of attention. Usually, these fixers sell to buyers who will live in the property and fix it up themselves to save money. Often this is the only way they can afford to move into the neighborhood.
Sellers of fixers in such neighborhoods should make their property as presentable as possible by cleaning out clutter, both inside and out. Many homebuyers can't visualize a property's potential. It's often worth a modest investment to show the house at its best advantage.
Cosmetic improvements, such as painting, replacing outdated floor covering, or refinishing worn hardwood floors can pay off. Some fixers are staged, even though the property needs a lot of work, so that buyers can envision themselves living there.
Presale inspections will help buyers make a decision about whether or not to tackle the project. Make reports available to buyers before they make an offer to avoid having to put the home back on the market if the deal falls apart because the buyer's inspectors discover defects not previously disclosed.
HOUSE HUNTING TIP: How much you spend preparing a fixer for sale depends on several factors. How much did you pay for the property? How much do you owe against the property? Is there demand for fixer-uppers in your area? Finally, how much does your real estate agent think you can sell the home for given current market conditions?
Sellers who have equity in their home and cash to invest in fix-up for-sale work should consider making cost-effective renovations, like a kitchen upgrade, but not an entire renovation. Ask your agent what the home would sell for with and without these improvements before doing anything to it.
The investment may not yield a profit, but could recover the costs when the home sells. In areas where fixers aren't selling, sellers might need to enhance the property to sell at all. A good real estate agent should be able to provide references for reliable, reasonably priced professionals who can do the jobs for sellers who haven't the time or expertise to do the work themselves.
Buyers who bought at the peak may not be able sell for even close to what they paid. One possibility would be to rent the property, if it makes sense financially. You may need to fix up the property somewhat to attract a good tenant. Consult with a certified public accountant about the tax consequences of converting a single-family residence to a rental.
Another option, if you don't have to sell now, is to stay put for awhile and fix the property up gradually over time. Avoid investing a large amount of money in the hopes of getting a bigger return.
THE CLOSING: The housing market in your area may be too uncertain for speculation.
Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author of "House Hunting: The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide."

Realtors and short sales

Twice this past week I've been told by a short sale listing agent that they have hired an outside "negotiator" to handle the dealings with the bank.  When I asked why, each agent told me that they were "too busy" to call the banks.

Too busy? Really? Doing what?  Isn't that kinda, like, our job to make sure these transactions are handled smoothly?  Sure, I can see needing help if you have 10+ short sale listings, but if you have only one or two...?  No, it's no fun to spend 20 minutes on the phone with the bank once or twice a week.  But if a Realtor can't fully service a listing, should s/he be taking it at all?

947 N. Brighton and 4644 Coldwater Canyon #301 both closed this past week

 Both 947 N. Brighton and 4644 Coldwater Canyon, #301 closed escrow this week (that's Brighton, above). I rep'd the buyers for Coldwater and the sellers for Brighton.

4644 Coldwater is a brand new condo building.  As in most brand-new building transactions, the developer/seller gave my buyers lots of incentives: big credits towards closing costs, high-end appliances, all home owners association fees paid for a year, etc.  My clients and I were generally happy with how everything went, all requested touch-ups and fixes were timely done, etc. The seller even let the buyers close late in order to take advantage of the California state tax credit. Mara Escrow handles most new building/unit escrows around here, and I’ve had very mixed performance from them in the past, but this Mara office (Bev Hills) was top-notch.  So was the building’s lender, Corey Reid at Met Life.

The 947 N. Brighton transaction went pretty smoothly, too, and the house closed at $568,000.  A tv music supervisor bought the house and intends to turn the unit over the garage into a sound studio.  Excellent choice, in my opinion.  We delayed the close of escrow, which didn’t thrill the sellers, so the new buyer could take advantage of the state tax credit.  Also, pest work turned out to be more extensive (and expensive) than we thought – there were not only more termites, but there was a bee hive that needed to be removed, too.

More on the tax credits

As you may know, in order to be eligible for the federal tax credit, a sale has to close no later than June 30 (the transaction needed to start by April 30).  This article from the L.A. Times details possible delays, and offers advice on how to avoid them.

Also, don't forget: if your transaction is eligible for the California state tax credit, you need to apply for the credit within 10 days of closing.  Paperwork has to be done by both the buyer and the seller.

How my short sale is going, Chapter 3 (or is it 4? Whatever)

When I last posted about my short sale, the file had just been sent to the closing department at Chase.  This is good news because that's the last step.  And then...nothing.  Nobody assigned to it, bunches of phone calls, etc.  Finally, I managed to have it resent to the closing department.  And this week, I got a name of a closing manager!  AND HE CALLED ME BACK YESTERDAY!  WOO HOO! However, it was just to tell me that the file will be assigned to a closer some time this week.

Does foreclosure lead to terrorism?

...Because if it does, we all better take cover.  Okay, not funny.  But you have to wonder about housing circumstances of the guy that tried to blow up Times Square.  By all accounts, he lived a nice life: house in the suburbs, wife and kids, job, education, etc.  And then it went wrong, or he went wrong, or something.  Couldn't pay the 1st mortgage, couldn't pay the 2nd HELOC, and got foreclosed from there.  Did losing that part of the "American Dream" unhinge him and tip him into radicalism?  Would he have tried to blow up Times Square if he and his family (now no longer in the country) were still settled homeowners and if the bank had done a loan modification?  I'm not being flip, I'm just wondering.

Life Would Be Perfect if I Lived in that House

This should be fun.  One of my favorite L.A.Times columnists, Meghan Daum, has just had her new book released (see picture, left, or click on the title link above).  I can't wait to read the real estate parts.  While the title is ironic, you wouldn't believe how many people think that the right house is the answer to all their prayers.

Info on Cal's $10k home buyer tax rebate program

If you're buying a home which is closing after May 1, here's a link to the info on the Cal State tax credit.  Beware, however: experts predict that this fund will run out of money very shortly, so close and get your application in very soon.  Thanks, client Michael Nomoto, for researching this and for the link!

The west San Fernando Valley was disappointing today, which may not surprise anyone

Showing property in Reseda, Tarzana and Lake Balboa today was a total waste of time.  My client is looking for a small home or condo.  He's willing to do some work, but he's not willing to take on a fixer.  We spend hours combing the mls for him every week and picked out three homes that had promise. 

But no.

7413 Jellico Ave, Lake Balboa: this 3+2 has a huge hole in the roof/ceiling and a "condemned" sign on the outside. 17420 Vanowen #4 in Reseda is a total, gross fixer and we wish the mls had indicated that; and the lockbox at 19044 Archwood in Reseda was empty.  No return calls from any listing agents either.

Upshot on 724 University (pictured below)

See update below!
I listed the house at 724 University, in Burbank, a cosmetic fixer, for $559k.  It received 17 offers within one week.

 

Our seller chose the all cash offer with no contingencies.  That was not the highest purchase price offer, but it was quite a bit over the list price. We have several strong back-up offers, too. Here are some other numbers:

Open house attendees: 130+.  Partner Michele and I couldn't keep track of everybody. 

Offers from extremely financially well-qualified buyers: 16.  I’ve never seen so many high FICO scores (over 775) in my life.

Offers with over 20% down payment: 14.  One was as high as 42% down.

Offers at list price or higher: 14

People disappointed at the outcome: 16.

This process wasn’t fun.  We just really got a sense that the potential buyers had a lot of hopes and dreams riding on this outcome.  Many of the buyers had already put in good offers on other properties and had gotten aced out by other buyers.  Many also have children that they’d like to get into the excellent public school for the neighborhood.  And this gave me the feeling that we were messing up the buyers’ lives who didn’t get the house.  In retrospect, we should have listed it higher, but we believed the asking price was in line with the comps.  Yes, we probably would have still gotten multiple offers, but it wouldn’t quite have been such a carnival of disappointment.  This experience also confirms my belief that underpricing a home for sale isn’t the right thing to do just to draw multiple offers.  My experience lately has been that if a house is priced to sell at or around the asking price, it will sell just as quickly as if it is artificially underpriced.

A couple of other things:  we had virtually no print advertising for the open house.  Our 130+ people came strictly from internet and mls advertising.  I conclude that print advertising really is a thing of the past.

I was surprised when two separate buyer groups showed us proof of funds to close – in other people’s names!  Um, kinda fraudulent, yes?  Did they think we wouldn't actually look at the documentation?
Update April 28, 2010: we're already in escrow with the 1st back up buyers.  What happened: the first buyers were paying all cash and had submitted an offer without any contingencies.  We were dubious about this, but these terms were too good for our seller to pass up. Sure enough, late Monday morning, the buyers' agent called me to say that the buyer wanted $20,000 (!) back based on the physical condition AND wanted to get a loan.  Uh, no.  Here's your deposit back; go in peace.  The buyers in the backup position stepped up (for a higher price, too) and we're now in escrow with them.  (Gossip: the agent who wanted to renegotiate the terms for her buyer the minute we opened escrow is a member of a prominent Glendale real estate family.) Stay tuned!

Weirdest question of the week

The oddest question I received at my Sunday open house: "Would you sell to a molester?" Which made me want to answer: "Why? Are you one?"

For the record, I always like to find out as much as I can about potential buyers.  But we have laws in place to protect people's privacy and civil rights, and I'm not the FBI.

How my short sale is going, Chapter 3

My short sale "file" has now been in the closing department of Chase since 3/29/10.  However, nobody has been assigned to the file yet.  I'm told that the closing department just got a lot of short sale files (you don't say!) and they will hopefully have a negotiator assigned this week.

Foreclosed pets in Florida/Gangs in Chicago

Sad news for foreclosed pets in Florida:

New 'Owners' of Foreclosed Florida Homes: 300,000 Cats

Tuesday, 13 Apr 2010 10:25 AM

By: Julie Crawshaw

Hundreds of thousands of cats roaming beaches in Miami-Dade County, where one in 10 homes are in foreclosure, are living and often breeding in homes abandoned during South Florida’s housing bust.
Professional cat catcher Rob Hammer told justnews.com he estimates there are more than 300,000 feral cats roaming the beaches, and more than 100 cat colonies living in abandoned buildings.

Hammer — who normally takes the cats he captures to local shelters, where about 90 percent of them are put down because of disease — estimates populations are up 20 percent the last two years.

Area hotels and condo sellers are now waging a type of undercover cat cleanup, using Hammer as their main operative.

"Every day I have a different call. I mean, these hotels are now worried about their image. Their beaches are being turned into litter boxes," Hammer says.

At least cats don’t commit crimes. I'll say.

In Chicago, officials say that abandoned houses have become home to squatters, places where gangs and criminals stash drugs, plot crimes and evade the police, The New York Times reports.

The garbage inside attracts rodents (sounds like they need some cats), and the boarded windows symbolize neglect, which has a devastating impact on nearby property values.

Overwhelmed city officials, trying to trace the parties responsible for the dwellings, are facing a challenge unique to this crisis: Complex financial schemes hatched by predatory lenders eager to make home loans have made it tough to trace ownership of abandoned buildings.

© Moneynews. All rights reserved.

Thanks, Dana, for forwarding this.

New listing: location + incredible price!

724 University, Burbank 91504 

Here's my new listing in the Burbank hills. I've co-listed this with my colleague, Michele Crawght. It's an original Benmar, built in 1952, 1522 square feet on a 7000+ square foot lot, and it has 3 bedrooms, 2 baths, HVAC, formal dining room, separate laundry room, 2 car detached garage and hardwood floors under the carpet.  It's a cosmetic fixer and the same family has owned and occupied it for over 50 years.  Here's the best part: it's listed at $559,000, which is about $100,000 less than similar, fixed up homes in the neighborhood are going for (see my listing last year on Birmingham).  The neighborhood is terrific, and Jefferson is the award-winning elementary school.  More pics can be found on my "Featured Listings" page at JudyGraff.com.  If you're looking for a great Burbank neighborhood (location, location, location and all that) a wonderful house, and an incredible price deal, call me. 

I'm outta here

...but just for a couple of days.  I'll be back at this blog later this week/weekend.  Hopefully with a brand-new listing!

You know this already - prices are up

By the time you read this post, you will probably already have read this story from today's LAT about home prices rising in the first part of the year.  If you've been out looking, that won't surprise you.  What surprises me here is how some of the industry statistician-experts refuse to say die (or is that "live") re the r.e. market's downturn.  Sure, there could be another downturn.  But from what I see in the markets I serve, there's nothing indicating that will happen anytime soon.

How my short sale is going, Chapter Two

If you read down the page, you'll see a post regarding my experience listing a short sale property.  Here's the latest: all in all, it's not going that badly, so far.  Yes, I have to call the processor every day and he never calls me back.  But I expected that.  And he tells me that the file has been sent to the closing department.  Huzzah!  But he also tells me that it will be a week to ten days before a closer is assigned.  Again, this is par for the course.

LA Times says home prices are up, but don't just read the headline

Today's L.A. Times has a story in it's business section that states home prices have risen 10% in So. Cal over the last year. But wait!  In L.A. County, the rise has only been 5.4%.  Still, not bad, and better than where a lot of experts said we'd be at this point.

Regarding Bank of America, I eat my words - sort of

If you're a regular reader of this blog, you are probably aware of my awful experiences with Bank of America.

But wait.  BofA closed the transaction on 1441 N. Pass exactly on time and with no drama.  That's a first, and it's rare.  Way to go, BofA.

Of course, it sure doesn't hurt that the buyer/borrower was a BofA executive.

Sunday reading from the NY Times

Here's an article from today's New York Times' business section entitled Great Time to Buy (Famous Last Words).  It's not pro-home buying (and not strongly against it either), but it is worth reading.  And by the way, I never tell people it's a great time to buy.  It's only a great time to buy if it's a great time to buy for the particular buyer. 

Of course, all r.e. markets are local, so I disagree with many of the author's points.  Just about all of us have been renters at some point and most of us have nightmare landlord stories.  And the loss of "opportunity costs" of your mortgage downpayment?  What opportunity?  To go gamble your money away in the stock market?  And the evil of property taxes?  Again, that's a very local issue.  But how else to fund local infrastructure? And wouldn't your landlord be passing along his/her property taxes to you in the form of rent anyway?

One important correction to the text.  I originally read this as a hard copy.  When I went on line to get the url, there was this disclaimer at the bottom: An earlier version of this article misstated the additional amount by which Barry Ritholtz believes homes prices need to drop in the short term in order to return to their historical norms. It is 15 percent, not 50.

Here's how my short sale is going

I have a short sale listing at 10862 Bloomfield.  We have an all-cash offer.  For those interested in the process, here's how it's going so far.  The buyer has two loans; both are with Chase.
- 2/25/10 -All required documents uploaded to Chase Bank
- 2/26/10 - Chase confirmed receipt for the first but not the second.  I resent.
- Last week: I called six different short sale department numbers and still had to send the documentation for the 2nd to Chase.  Twice.  They finally copped to getting them on the 3rd.  And told me that different departments will handle each loan.
- This week: Called six numbers at Chase again; sent parts of the document package that they said they didn't have again.  Was told that a processor has been assigned for the first loan.  Left him a message.
Actually, I don't think this is all that bad.  I just plan on spending a half an hour, minimum, on the phone with Chase for little bites of info.

Open tomorrow: 947 N. Brighton

The listing below, 947 N. Brighton, Burbank, 91506 will be open tomorrow, Sunday, 3/7, from 1 to 4 pm.  I hope to see you there.

947 N. Brighton, Burbank - new listing

Here's the exterior of my new listing at 947 N. Brighton in Burbank.  It's a 3 bedroom, 2 bath, 1648 square foot home Magnolia Park home that also features an unfinished guest house.  Not to puff, but I think this is a steal at $575,000.  The first open house will be March 7, and more pics and info can be found on my website at http://www.judygraff.com/.  Please call or email me for more info.

Short sale listing in Toluca Lake

 

This is the exterior of my new listing at 10862 Bloomfield, #103, Toluca Lake 91602. This 2006-built condo has all the bells and whistles, including 2 beds, 2 baths (since when is that a bell or a whistle? nevermind), 1300 square feet, hardwood floors, patio Italian marble in the kitchen and baths, high ceilings, security building, and a fabulous location in Toluca Lake.  And it's $383,000.  Here's the bad news: it's a short sale, but I'm committed to getting this turned around as soon as possible.  Call me with questions or for showings.

Not good news for buyers or sellers

 

Here's a good article from the business section of today's L.A. Times.  In essence, it says that the government is going to stop buying mortgage bonds in March.  That will likely have the effect of pushing interest rates higher.  And we know what happens when interest rates go higher -- less people qualify for mortgages and homes sit on the market longer and sell for less.  Here are a couple of quotes:

"The Fed plans next month to end a $1.25-trillion mortgage-bond-purchase program that has helped keep mortgage interest rates near a record-low 5%...That exit is expected to push up rates, which could weigh on buyers at a time of high unemployment and anemic consumer spending." And "If those rates jump up to 5.5% or 6%, then [buyers] can't qualify for what they thought they could qualify for, and they're not going to be able to buy as much house as they thought they could."

If you're a seller, now may be the time to list your home. 

What is escrow?

The escrow procedure happens during house sales in California and can seem complex and confusing.  Cal state even supplies an "Escrow Process Complexity" disclosure along with the other 999 disclosures they give (through Realtors) to new buyers.  Margie Dansby, one of my favorite escrow officers, has furnished me with an excellent description/timeline of how a typical escrow process works.  You can find it at Escrow? on my site at JudyGraff.com.

LAUSD and Charter Schools, from friend Sheila

What's a charter school?  What's a magnet?  How do they compare with LAUSD schools in the San Fernando Valley?  I get these questions all the time.  I've asked friend Sheila, mother of a 7 year old in a Northridge Charter, for websites and info.  Here's her (as always hilarious) response:

The charter thing...hmmm. It's like this: if you want to go to a charter school, you go to the California Charter Schools Association and scroll through the thousands of them in CA. That's about the only way to find out about all of them, since LAUSD would rather they didn't exist at all. If you want to know the process, you usually have to contact each school you might be interested in. They are almost all, as far as I know, done by lottery, and the due dates vary but are usually in Feb. or March. Since they are technically 'public', that is, they get funds from the local school district, they cannot act like a private school and pick and choose who they want (wink). Yeah, right. Where can you find out more info on charter schools? That's about the only place I know, that Ca Charter Schools website. LAUSD.net would have very little info, I think. Magnet schools are popular with the school districts because they still maintain control over budgets and curriculum. What makes them a "magnet" is that locally, they were performing so crappy or the parents were unhappy with the school's direction, so they petitioned the school district to make the school some have some kind of bullshit designation (i.e., technology/math, science, high ability). I say bullshit because at the elementary level, there is really no difference in instruction, funding, or facilities, except for the teachers they might attract to the school. That's about it.

Thanks, S!  I'm learning a lot from you.

Thanks for nothing, Flipper!

As I've said before, flippers are back.  My recent experience has been that they are corporations or LLCs with serious cash, and they purchase properties sight-unseen at auctions.  And then put them right back on the market.  No due diligence, no fixing, nada.

My clients just made an offer on a darling condo in the Portofino complex in Pacoima that was owned by a corporate flipper.  But we learned from the Homeowners Association management company that over 24% of the residents there are delinquent in their HOA dues.  This percentage is way too high for my buyers' lender, or any other lender, in fact. The buyers will not be able to get a conventional loan and I don't know anyone who will be able to do so.  And I was the one to tell the corporate flip agent about it.  He hadn't seen the unit and had not researched the complex  I know these folks want to make a quick buck, but c'mon, people!  This takes no time at all to figure these kinds of things out and will save us all a lot of time and trouble!

2400 W. Chandler is finally closing! Yay!

My listing at 2400 W. Chandler, Burbank closes tomorrow for $499,000!  Yes!  We thought it would never happen -- it was supposed to close by December 21.  The buyer and her agent performed like champs as did my sellers and the escrow company.  Bank of America, the buyer's lender, sucked as usual.

Good news and bad news from L.A. Times

Yes, I'm back to being a clipping service.  First, the good news from the front page of today's L.A. Times: home prices in the Southland rose 4% in December.  And, most experts agree that even though the economy is soft, the worst is over for area housing.  I agree, as long as interest rates stay low.

Now for the bad news: restrictions on FHA loans have tightened.  A seller can no longer pay up to 6% of a buyer's closing costs -- the amount has been reduced to 3%.  Buyers will now need to come up with more cash at closing.  Required FICO scores have risen (actually, that's a good thing) and the upfront mortgage premium has risen to 2.25% of the loan.  It was 1.75%.  That will reduce the affordability of many FHA loans.

Statue of Lenin unveiled in Burbank

Burbank City unveiled a brand new statue of Vladimir Lenin last week in Burbank!  This pic is a preview, but now Lenin is in front of a giant American flag and is overlooking Costco.  As if.

Oh, wait, no this is Dr. David Burbank.  He just looks like Lenin.

Open house Sunday

This is 1441 N. Pass Ave. in Burbank.  I'll be holding it open on Sunday, 1/17, from 1:00 to 4:00.  More details on the house can be found on the featured properties page at http://www.judygraff.com/.  Please come by or send your clients.

FHA 203K Curious? -- Redfin comes in handy!

FHA offers a program for buyers of fixers where the cost of the improvements can be wrapped into the loan.  It's called the FHA 203k program.  As you might imagine, these loans are not eazy to get but they are a great way for buyers without a lot of cash to afford to purchase fixers.  To date, I don't know anyone who has applied for one of these nor any Realtors who have closed a transaction with one of these.  At any rate, Redfin.com has lots of details about these loan transactions in their L.A. forum thread.  As soon as I get permission, I'll post the details.

Yet more Californians move to Oregon

Today's L.A. Times reports that San Francisco's iconic Pier 39 sea lion colony has packed up and moved 500 miles up the coast to Oregon.  Like many San Franciscans and Californians before them, they just got tired of waiting for the real estate prices to drop and wanted a slower, more friendly pace of life.

San Fernando Valley diversity and traffic delays, as if you didn't already know

Here's a Burbank Leader article with the title, "Valley residents more diverse, wealthy, delayed."  It contains facts from the U.S. Census Bureau re the demographics of our fair land.  I love that it refers to the SFV as "the nation's largest geographic non-municipal entity."  Other factoids: the SFV has 1.74 million residents (good God, is that all?), we experience longer traffic delays than other local areas (no!), more than half of SFV residents spend 35% or more of their incomes on housing, and Glendale has over 10% unemployment.  But the SFV still has no high-end, gourmet taco trucks.  When will we be worthy?

New Burbank Listing: 3 beds, 1 bath, guest house with full bath, pool

This is 1441 N. Pass Ave., Burbank 91505.  It's listed for $480,000. It's a  sweet 3 bed, 1 bath, pool home with a guest house with full bathroom (buyers to check permits), central hvac, hardwood floors, spacious kitchen, dining room, gorgeous bathroom tile and designer mirror, new interior paint, sliders in master bedroom to deck, entertainers’ patio, 2 car “guys’ retreat” garage, new window treatments and much more! 3rd bedroom is currently used as office. Main house is 1106 sf, lot: 6000 sf, built in 1940. Fabulous neighborhood, regular sale, and Burbank schools and services, too.  More pictures can be found on my website at http://www.judygraff.com/ under featured properties.  For showing info, please contact me at 818-450-2055 or jgraff100@aol.com.  It will be open next Sunday, 1/17, if it has not yet sold.

Nigerian Rental Scams and me

I received an email from Mr. William Smith of the Netherlands regarding the condo I have for lease on Lucile in Silverlake.  Mr. Smith claims to be a world-reknowned paleontologist and sent pictures of his wife and child.  He wanted to rent the unit, sight unseen, and asked if I would please pay cash for his furniture that is about to be delivered.  Yes, according to my research, the Smith letter is yet another Nigerian rental scam has been circulating for some time.  Here's my response.

William, we are so happy to have you rent this unit. Here are a few questions before we proceed:
- Are you originally from Nigeria?
- Will any prawns be living there with you or visiting you for business reasons?
- Will you be selling black market cat food?
- Are you willing to leave a bag of cash at the Metrolink train stop in Glendale at the third pier on the right? I think $10,000 in small bills should be fine. No checks or coins, please. Can we pick it up on Thursday at 10:00 am?
Regards to your lovely wife and child.

I haven't yet heard back from him. What a surprise.

2009 end of year wrap-up and list!

Hey, it’s the time for year-end lists and predictions, right? Why not from a local Realtor? So here are the most important real estate trends that I observed in 2009. Again, this is a very local, personal take, and is not necessarily in order of importance.

Mega-Listers of REOs/Foreclosures. Lots of foreclosures seem to be concentrating in the hands of a very few Realtors. Just try to buy one of these. Heck, just try to find out information on these. If you’re a mega-lister, please hire more staff and train them to answer questions, please. And please don’t pretend something is available when you’ve already sold it yourself. Deplorable.

The experts were wrong. Who was it that said, “Nobody knows anything”? How many times were we told by experts and statisticians that the market was crashing, it would have lost 50% of its value by this time, it would never come back, etc, etc? Yes, I know that there are regions that are in far more dire straits than ours. And the “foreclosure crisis” may not be over. But it appears, in spite of expert predictions and bubble market blogs, the local real estate market bottom has come and gone. To quote Elvis Costello, I used to be disgusted, now I’m really just amused.

Real estate marketing is more and more on line and less and less in print. This trend has been occurring for quite some time but it has become more evident this year. I can’t remember when I last placed a print ad in L.A. Times, for example. And the LAT doesn’t seem to care -- it doesn’t even have a real estate blog anymore, let alone a real estate section. I’m surprised, however, at how few Realtors really take advantage of all of the internet outlets out there. Not really surprising.

People still want to buy houses. Again, many buyers were scared off by bubble predictors and experts (see above). Many, however, still feel that a house is a worthwhile thing to own, even if one is not making money from it. Hey, we all need roofs over our heads, right? And with such low interest rates… Encouraging.

More and more properties are difficult to show. Realtors, most notably foreclosure listers, seem to be getting away from the call-first-then-use-the-supra-lockbox form of showing property (in fairness, this has never been big on the Westside or with high-end listings). Instead, it’s been “call for code” but your calls are returned, or “text for code” and good luck with that. Last weekend, for example, I placed calls to 17 Realtors for codes. Only two ever called back. See my mega-listers comments above. Frustrating.

Flippers are back. Many property flippers lost their shirts in 2007, 2008 and parts of 2009. I think it was because it looked easy, and many amateurs got into the flip business and didn’t realize the time and effort it took. Thanks for nothing, HGtv. But now, the pros are back – they seem to be buying up properties in bulk at court sales. The results have been mixed. I had a very good experience with a pro flipper on a NoHo house this summer – the house was well priced and well remodeled. I also just had a very bad flip experience just recently in Pacoima. Overpriced and NOT well-done. Mixed.

The bloom is off the lofts. Loft living in an urban area is really fun if you’re young, single, and have lots of money for your mortgage (these places aren’t cheap). But the loft concept trend/fad seems to be over – or is it just that there are too many lofts and condos out there fore sale? Predictable.

Multiple offers and deliberate underpricing. See past posts for more details. Who knew we’d ever see multiple offers again in our lifetimes? And as for underpricing, I don’t think it gets a sale made any faster than proper pricing (for example, see my listings on Birmingham, Lincoln and Chandler. Priced at what they’d likely sell for and sold fast). It just creates a lot of excitement, and heartbreak for buyers who would never be able to afford the house anyway. Frustrating.

Okay, this should be the part where I predict what’s going to happen in our local market in 2010. But I truly don’t know – and after the wild 2009 ride, I think I’d be crazy to predict!

My visit to mostly northeast, mostly Hispanic L.A.

Although I don't usually sell properties in San Fernando, Sylmar, Pacoima and Panorama City, clients Melinda and Gerardo and I looked at several townhomes and gated communities there this weekend. Home prices are much lower than they are in, say, Studio City. There are many short sales and foreclosures in all four of the communities. Here are my other impressions.

San Fernando: nicely laid out, quaint and quiet, probably because it's a separate city. It even has a cute trolley! We found several nice, newer townhouse communities and PUDs.* The home we liked the best had three big, beautiful chickens on the patio. What's that got to do with anything? Nothing, I'm just an animal lover.

*PUD stands for planned urban development. These communities consist of several stand-alone homes on smaller lots and have home owners associations and governing rules. They usually don't have more than 20 homes a piece, and a 5-home community is not uncommon. While few have amenities like pools and tennis courts, many have small outdoor yards and green belts. In my opinion, these communities are great ideas as they offer less congestion than condo communities. However, most developers don't agree as they can't make as much money by building them.

Sylmar: Actually in the L.A. city limits, and a little farther out than San Fernando. Again, nice, newer condos and PUD communities. Sylmar also has many communities with land leases. This means that you can purchase a home, but can only lease the land it's on. The upside is that the homes are much less expensive.

Pacoima: More urban, more congested than the other two. Hansen Hills, close to Hansen Dam is the nicer area, but Pacoima also butts up against many industrial areas. There were many street food vendors along Glenoaks Boulevard, and some had some pretty big operations going on. We were actually in escrow on a house in Hansen Hills, but it didn't appraise and it had lots of physical problems. That's right, it was a flip.

Panorama City: Much more congested than the other towns. Lots and lots of large condo developments, many of which are looking a little run down.

Happy and Merry!

Have a great holiday! I'll be back at going on about real estate next week.

Not much new as we head into Xmas

There's only a little r.e. news this week. The LAT and Daily News report that foreclosures are down and prices are up. One of my escrows is still wobbly, thanks to our favorite lender, Bank of America. (Apparently, BofA wants us to put a new roof on a fixer house that was sold at a fixer price.) Another escrow hasn't "set up" yet as we're still dealing with inspection issues. And I'm preparing for two new listings at the beginning of the year. Ho Ho Ho.

Don't flip this house

As has been reported here and elsewhere, the flippers are back. And these aren't the moms and pops who watch a lot of HGtv. These are the hardcore investors who buy properties for all cash at sheriffs' sales, run crews of workers through the house, and put them back on the market a month later for $100k profit. This past summer, I had a very good experience with a pro flipper of a house in North Hollwood.

It seems the fast, cheap and out of control pro flippers are back, too. This past week I've seen two of the sloppier, cheaper flips of the year. Yes, they have nice coats of paint and granite counter tops but, uh, hey the heater hasn't worked in years. They couldn't be bothered to replace funky old windows, scrape ceilings, strap water heaters, or make sure that kitchen cabinets don't bump into appliances when they're opened, among other things. Do they think that potential home buyers don't notice? Yes, when a buyer is initially dazzled by a house, they may over look things. But then there's this little inspection period, see? where the buyer is looking for reasons to walk. And during that period, we'll notice everything. Advice: flippers, do it all the way or don't do it at all.

An NYT explanation of why loan modifications aren't working

I always find Gretchen Morgenson, New York Times business columnist, to be very user friendly and readable. Here's her article from yesterday's New York Times about why loan modifications aren't working out so well. An interesting quote:

"The terms of loan modifications also make them especially failure-prone because the government calculates “affordability” (how much mortgage debt a borrower can actually manage) in a highly unusual way — raising serious questions for the housing market over all and for the program’s effectiveness for borrowers. For example, in devising what it considers an affordable mortgage payment, the program doesn’t account for all of a borrower’s debts — the first mortgage, second lien, credit card debt and automobile payments. Instead, it calculates affordability using only the borrower’s first mortgage payment, insurance and property taxes."

The article also goes on to address the issue of high-interest second mortgages held by major banks.

How to cut your monthly nut by at least one third

Okay, owning a home isn't for everybody. And I know I'll take flak for this. But.

The house in the picture is 9953 Aldea. It just closed. I'd been working with the buyers for quite awhile, and they went through the same thing that all buyers are going through now -- short inventory, rising prices, multiple offers. They finally decided to buy the house that they have been renting and living in for the past three years.

With me so far? Okay, their monthly rent was $3000/mo. Typical for a mid-Valley, 2500+ square foot pool home in good shape. Their mortgage now is $1568/month. Yes, property taxes will add an extra $500+ a month. They paid $565,000 and yes, their down payment was large. But still, thanks to today's low interest rates, they cut their monthly housing expense by about one-third. And that's not even taking into consideration the mortgage tax deduction.

Not bad, if you ask me. Just sayin'.

Rumor: stated income loans may make a comeback

I heard a rumor yesterday that stated-income loans may be available again after the first of the year. These are loans eliminate the verification of income requirement, and were popular until the real estate market started to go south. No lender has made these for many, many moons. I'm told the requirements, such as FICO scores, will be much stricter and there will be no 100% stated-income loans.

Opinion: the jury here is out. This will be good for many folks in the entertainment industry and other industries here in L.A. who have decent incomes, but are 1099'd instead of w-2'd because they go from job to job. The downside is that many folks will also take advantage and wildly overstate their incomes in order to get homes they can't really afford.

2400 W. Chandler is in escrow

A full price offer was signed today. Cross fingers.

806 Harvard sold for all cash

This house is 806 Harvard, Burbank. It's a very pretty, nicely maintained two-bedroom that listed last week for $659k. It sold last night for full price, all cash, no contingencies. Wow, where is all this cash coming from?

Realtors, forget listing new buildings

If you're a Realtor, you've probably salivated at the prospect of listing an entire new condo project for sale. All those units...all those commissions...but in reality, it's all that work. And it doesn't stop after the units close.

My buyer recently closed on a condo in a brand new North Hollywood building. The building is listed by the stalwart Aaron Scott, and he and I have probably talked more since the unit closed than we did during escrow -- mostly all about newly discovered construction problems. See the previous post on this subject.

On behalf of my client, Aaron and I have discussed construction issues, parking issues, alarm removals, contractors, cabinets, refrigerator doors, stoves that smoked, non-working toilets, intercom info, etc. etc. The Realtors on these new buildings handle everything -- they set up appointments with contractors, track down info, and communicate with the buyers and the buyers' agents about it all. In theory, a Realtor's responsibility ends when a property closes. But obviously, there's no such "statute of limitations" on these new places.

Tax credit for move-up -- or even move-down -- buyers

Yes, here's another article from the L.A. Times. This one is about the brand new tax credit -- up to $6,500 -- for home buyers that want to move up. Or even move down. The key word is "move." The article highlights some of the program details. For clarification, please check with your accounting professional (although this is so new that they may not know details, either).

LALand is defunct

My favorite real estate blog, The L.A. Times' real estate blog, LaLand, is no more. It is moving in with Money & Co., the Times' economic blog. I'm sorry to see it go, but I guess we all should have suspected this would happen -- everybody knows LAT is cutting itself down to the bone.

Peter Viles was the original editor of the blog, then Peter Hong, then Lauren Beale. They all had really good grasps on our local market and its various permutations. Yes, LALand's posters were infuriating more often than not, and I was occasionally a poster target for my perceived pro-real-estate market, anti-bubble posts. But it was stimulating, to say the least.

At least we still have L.A. Curbed.

Got rental income? Got extended family?

I've just listed this two-on-a-lot at 2400 W. Chandler in Burbank's Magnolia Park for $499k. The main house is a fixer with 800+ sf, living room with fireplace, spacious galley kitchen and separate laundry room. The side house is 500+sf with new kitchen cabinets, counter tops and appliances, a darling patio, plus other upgrades. The lot is 6865 sf and has lots of yard, greenery (the squirrels are hilarious) and a two-car garage. The neighborhood is superb and the property is opposite the Chandler bike and walking path. The schools and city services here are top-notch, too. More details and pictures can be found at www.judygraff.com.

Maybe this is why Glendalians are such bad drivers

Remember about a month ago when an informal poll showed that Glendale drivers are the worst in the county? Well, now we know why, thanks to the L.A. Times. Read about Glendale's drug problems here.

"According to the city's Quality of Life report, which was released Oct. 30 and uses 2005 data from the L.A. County Department of Public Health, Glendale had L.A. County's highest percentage of adults who reported using marijuana and cocaine." Considering, it's probably a good idea to avoid Glenoaks Boulevard whenever possible.

Another great thing about North Hollyw...uh, I mean Toluca Terrace

...is the public dog park at Victory and Whitnall. I checked it out last night and was very amused by all the doggies getting their runs in and seeing their doggie friends. There's a spot for little dogs and one for big dogs, although yesterday seemed to be German Shepherd day there.

TJ Maxx is coming to Burbank

Burbank and the east SFV are finally getting a TJ Maxx. It's going into Empire Center, in one of the (several) spaces that have been vacant there since last year. Now, we won't have to drive to La Canada (unless we want the real designer stuff) or Granada Hills to get our Maxx on.

Burbank still has lots and lots of empty large retail spaces. Is there anything else that can fill those besides Korean churches and fly-by-night schools? I think we pretty much have all the other retail chains.

What's taking so long, not that we even care anymore

My clients made an offer a week ago Monday on the house above. It was a decent offer, a little less than full price. At the time we were told that there were 3 other offers. I was also told that the seller, who is flipping this, would look at the offers mid-week.

It's eight days later and we still haven't gotten a counter. I can only imagine how many offers there are in on this property now. I was told that the listing agent isn't in the office much because he spends his days at trustee sales and doesn't come in until after 4:30. And then I was told that the seller only reviews offers on weekends. And then I was told that we'd have a counter offer at full price yesterday after 5:30. It didn't arrive. What a way for a listing agent to service a listing!

But all is well. My clients have not only lost interest, but are already in escrow on another home.

Problems with new construction

My clients Briana and Michael closed yesterday on a unit here at 5227 Denny in North Hollywood. It's a brand new building and the escrow went very smoothly (the developer was smart and secured FHA financing before marketing any of the units). However, in spite of our inspections, walk throughs with the contractors, lists of repairs, etc., many items still remain to be fixed or done in the unit. At our walk-through the contractor indicated it all would be done before closing. Now, the story is that all the remaining work has to be arranged, scheduled, and coordinated with the other recently sold units in the building. Am I naive to think this should have been done before closing?

Since I know you don't believe me, here's...

This is from non-client friend Joselle about her brand new purchase and what she had to go through to get it.

"It's a little 1950 house with some nice period details. Big lot (for L.A.) It's... in a lovely neighborhood in Sherman Oaks. We will be just the third owners! It was the 4th house we bid on. Each had many offers. We lost one even though we went $110,000.00 over asking price! Crazy market here!"

Her purchase price is in the high $400's.