More news about the Burbank Collection

The Burbank Collection, the newer loft-condo development in downtown Burbank, is now offering a $15,000 credit that is no longer sale-date dependent (see post below).  At least at this point.  However, Burbank, California, a local blog (see my blogroll), has a few troubling posts about financing for this development.  I don't quite know what's happening as I'm not up to date on the backstory, but stay tuned for news on this.  In the meantime, immediate closings are available at Burbank Collection and the $15k will just about cover any buyer's closing costs.  Did I mention that prices start at $319,000? That's about half of what they started at when the building was newly completed.

The real estate news is bad...or IS it?

By now, everybody knows that the national housing stats released yesterday were pretty dreadful.  Slowest month since whenever, etc., etc.  And yes, I've seen that the market has slowed down this summer (although the end of August is almost always slow).  But wait! Today's Burbank Leader's headline is Local Housing Market Better than Most.  It goes on to detail how Burbank real estate and Glendale real estate sales have actually been pretty good, and how homprices have actually risen year over year.  Not by much, but still...

And then there's another AP article buried deep in today's L.A. Times Business section, titled More Mortgage Modifications Seem to be Sticking.  It goes on to say that this news possibly debunks predictions of a huge wave of defaults to come.

So maybe there is another side to the story.  And if you're thinking about real estate in Studio City, Burbank, Hollywood Hills or pretty much anywhere in greater L.A., keep in mind the other big housing statistic: interest rates are at historic lows.

LA Times is a little behind on their front page news re flippers

Today's L.A. Times headline (in the SFV print edition) is Professionals moving into house flipping.  The reporting is spot-on -- and about six months behind.  I reported in this blog some time ago that I'd observed that the pro's were buying up many/most foreclosures.  And what the article only briefly touches on is that many of these professionals are losing money now in a big way.  Prices aren't soaring, loans (especially on condo projects) aren't easy to get, and many of the flippers didn't research the properties they bought.  But I'm sure most professional flippers have calculated their risks/rewards.

If you're thinking of buying a distressed property, rehabbing it, and selling it for a profit, trust me: it's not as easy as it sounds (I've thought about it myself), and nowhere as "easy" as it looks on HGtv.  Leave it to the pros.

Green Alliance in Burbank will be screening the film "Crude"

Our friends at Burbank's Green Alliance have just sent me this notice:

FILM SCREENING & DISCUSSION ON BIG OIL
Film:              Crude – The Real Price of Oil

Synopsis        CRUDE is an award-winning documentary film that chronicles the epic battle to hold oil giant Chevron (formerly Texaco) accountable for its systematic contamination of the Ecuadorian Amazon – an environmental tragedy experts call "the Rainforest Chernobyl.

Date:                     Wednesday, September 15, 2010

Time:                    7:00pm – 9:30pm

Location:            Ahmanson Space, Woodbury University 7500 N. Glenoaks Blvd. Burbank, CA

91504

Speakers:            Stefanie Sekich Quinn, Surfrider Foundation HQ and Jack Eidt, Wild Heritage Planners

 Reservations:    $10 Suggested Donation (reservations and donations are not necessary but

always welcome)

RSVP Online:     www.gathergreen.com (or email info@burbankgreenalliance.org)

                Flyer/Invite:      http://tiny.cc/oyos0

                For More Info:  www.burbankgreenalliance.org

The Burbank Collection is doing a big promotion

The Burbank Collection is the mega condo loft project in downtown Burbank, right across from the AMC theaters and above Barney's Beanery.  The sellers are running a promotion which involves a $15,000 rebate and they are cooperating with brokers again -- meaning that they will pay us commissions if we bring a buyer.  (The sellers didn't cooperate for a long time.  Then they did.  Then they didn't.  Not unusual for a new building that's cutting prices in order to sell 100% of the units.) If you're interested in living in downtown Burbank, please contact me.
Update: the Collection is offering a $15,000 credit, not a rebate.  And it's only good for sales on Saturday, August 21.

Sunday reading from Gretchen Morgenson at the New York Times

Gretchen Morgenson, the NY Times business columnist, has written an article entitled "In this Play, One Role is Enough."  Link here in case the title above doesn't work.  It details a bill introduced in the U.S. Congress by Rep. Brad Miller (D-NC).  If passed, the bill will help unwind the second mortgage mess that's holding up so many short sales.  Go, Rep. Miller!

Everybody makes mistakes, even title companies and management companies

Long, boring story short and boring: my buyer client has an accepted offer on 1809 Peyton in Burbank, but the condo must "go" FHA in order for him to get a loan.  Fine.  Reams and reams of paperwork need to be submitted to FHA and the condo documents have to be examined in very close detail.  Fine.  But it's been about 60 days now, and the listing agent is really steaming over how long this is taking. Fine, but don't tell him that.

Just yesterday, the FHA folks noticed that the preliminary title report from the title company was wrong -- it had a map of a building down the street. Considering how much title insurance costs and how many people view the title company documents, this is pretty surprising.  And, the building's management company had certified that the complex had 46 units in it when it only has 42.  Nice to know they are collecting the HOA dues in that building.  Aberdeen has made several paperwork mistakes in this transaction, but you'd think they'd at least know how many units are in one project.

So these conditions have now been caught and remedied by the lender at Prospect Mortgage, Dana Dukelow, and his staff.  But the listing agent would still like to kick us out of escrow.  Stay tuned...

Celebrity sighting at The Smokehouse in Burbank

We spotted none other than Eddie Van Halen on Saturday night at the Smokehouse.  He looks good.

Blood sucking vampire realtor and short sales

Really nice house in Glendale

Colleagues Laureen and Doyle just listed this beauty at 3028 E. Chevy Chase in Glendale.  We saw it on our office caravan, and it is jaw-droppingly lovely.  It features 3698 square feet and is up against a lush, green hillside.  It is listed at $1,590,000.  Wish I could afford it. 

Btw, although Glendale is known for it's 1920's-1930's Spanish style and Monterey Colonials (not to mention it's 1990's columned palaces), I spotted two Lloyd Wright homes very close to this home -- what a welcome surprise!

Not about San Fernando Valley real estate, but about my two other favorite thing: my husband and cats

Check Wednesday's (we think) Burbank Leader for a Joyce Rudolph-bylined story about The World Is Still Your Litterbox.  This is the sequel to The World is Your Litterbox, the hilarious how-to book dictated to my husband, Steve Fisher, by his cat, Quasi.  And by the way, I'm not the only blogger in the house -- Quasi has his own blog, and probably has more readers than me, damn him.

Sellers waiting for prices to rise

The title above links to an article from Wall Street Journal.  It discusses "side-lined" sellers, who want to sell but want to wait for home prices to rise even though they may already have equity.  At this point, since our inventory continues to grow here in the San Fernando Valley, I don't think price rises are likely -- at least not until the beginning of 2011, if then.  Thanks, Kendyl; your "tweet" that alerted me to this article.

Burbank low flow toilet and water saving devices -- new rules from Burbank city council

This week, Burbank city council passed new water saving retrofit requirements.  Burbank will now require low-flow toilets and other water-saving devices in every home, just like the city of L.A..  These will need to be installed when a residence sells or otherwise changes hands.  Here's the article from the Burbank Leader.  On behalf of our clients, we Realtors have opposed this due to the cost, hassle and dubious actual water savings, but see the 2009 video above -- Dave Golonski, for one, did not care what Realtors think.

Short sales in Burbank, Studio City and the east San Fernando Valley: new HAFA program details

I've just posted details about the new Home Affordable Foreclosure Alternative (HAFA) program on my website's short sale page. Here's a slightly edited version:


The new HAFA program revamps the short sale market.  In 2009, the Treasury Department introduced the HAFA program to provide a viable short sale option for homeowners who are unable to keep their homes through loan modification -- the Home Affordable Modification Program (HAMP). The goal is to reduce the number of foreclosures by incentivizing banks to pursue short sales instead of foreclosures. And yes, the devil will be in the details.

Here are some of the differences between HAFA and the way short sales have been previously handled by lenders and borrowers.

• Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.  A borrower will no longer have to submit a second package if they have already submitted a complete first package.
• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).  This is huge for both the borrower and the real estate agent as we’ll now know the minimum the bank will accept.
• Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
• Uses standardized documents, processes and timeframes/deadlines.  There should be no difference now between the way, say, BofA handles a short sale as versus Wells Fargo.
• Mortgage servicers are required to make a preliminary decision regarding allowing the short sale within 15 days of receiving a borrower’s completed package!  We’ll see if the lenders institute enough internal procedures to guarantee that this holds up.
• Provides the following financial incentives:

• $3,000 for borrower relocation assistance;
• $1,500 for servicers to cover administrative and processing costs;
• Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.  In other words, the Treasury will match one dollar to each two dollars the first mortgagor gives the second mortgagor, up to $6,000.  However, 2^nd mortgages are still “the elephant in the room.”
• Requires loan servicers participating in HAMP (the loan modification program) to implement HAFA in accordance with their own policy and investor guidelines. (Remember, the lender’s main concern is not the borrower.  It is the lender’s investor.) What constitutes investor guidelines? It includes factors like total potential loss, local market conditions, timing of foreclosure actions, etc.

Here are a couple of links that you may find useful:

www.makinghomeaffordable.com/contact_servicer.html.
Home Affordable Foreclosures Alternatives Program: Guidelines and Forms 

Tired of links to outside sites in responses to my posts? Me too.

Ray and Al, this doesn't apply to you.  Lately, I've noticed that I'm getting a lot of responses that just have links to products, services and vendors and don't have anything to do with the post.  Rather than set this blog up to approve all posts beforehand, I'm just going to delete some of the worst offender posts, such as the "Shooting in Burbank" post.  You guys have already read it anyway, right?

My Toluca Lake short sale closed!

If you're a regular reader of this blog, you may have been following my "how my short sale is going" posts for 10862 Bloomfield #103 in Toluca Lake.  IT CLOSED! 

Last Monday, Chase, the lender, finally sent the approval letter to me.  It had been a little over 4 and 1/2 months since the short sale package plus offer was submitted to Chase.  While we had verbal approval at the end of May, it just took forever to get Chase's letter -- and you can't close a short sale transaction without having an okay from the lender in writing.  Since the buyer was paying cash, we -- meaning, mostly, the escrow officer -- was able to slam this shut on Friday. (Paying cash is a much faster transaction than getting a loan.)  We had worked in advance with both buyer and seller and had all disclosures and other contractual items reviewed and signed off in June.

A couple of details.  Yes, there were two loans.  Both, however, were with Chase, so Chase just wrote the 2nd off.  The seller/borrower was still current on her HOA payments and mostly current on her taxes, and there were no other outstanding liens against the property.  The seller could definitely prove her hardship, as she was denied a loan modification in 2009 and was laid off this year.  Since I represented both the buyer and seller, the commission was cut in half.  Bah.  But it's closed now and everybody is happy.

Open Sunday 2:00 to 5:00: 4552 Morse Ave., Studio City

Beat the heat by checking out my lovely, airconditioned listing at 4552 Morse in Studio City.  We'll be open 2:00 to 5:00 pm.  This is a truly lovely home in a fabulous neighborhood.  More info can be found on my website at JudyGraff.com.

California real estate tax credits may still be available!

Check this out from Cyberhomes.com's blog: http://www.cyberhomes.com/content/blog/10-07-14/california-home-tax-credit.aspx.  If you've purchased a home in California this year, there may still be time to claim the credit.

New "HAFA" short sale conditions

"HAFA" stands for Home Affordability Foreclosure Alternatives and it's the latest set of short sale rules to come along.  These will be implemented by most loan servicers on August 1, 2010.  We Realtors have been strongly encouraged by our brokerage management to get up to speed on the new rules.  I'm currently on module six of an eight-module webinar.  So far, it certainly looks like the devil with be in the details, but here are two things I know now:

• Paperwork and timelines will be standardized;
• The short sale process will be shorter.

I'll have more info as I become more educated.  I'll also be updating my Short Sale and Foreclosure page on my website very soon.

How my Toluca Lake condo short sale is going, Chapter 4

If you're a regular reader of this blog, you may recall posts about my short sale with Chase bank.  I rep both the buyer and the seller on this Toluca Lake condo, and we had a complete package (all seller financials, all buyer financials, offer, etc.) submitted at the end of February.

Anyway, we finally had a negotiator assigned in May, he asked for a few more pieces, and verbally told me at the end of May that we were approved for the short sale purchase.  Yay!  Time for dancing in the streets!

Note the word "verbal." Even the negotiator has to kick things upstairs for a final sign-off and that department issues an approval letter.  Nothing can happen until the letter is received by seller.  The negotiator has expected the letter any minute -- for the last five weeks. 

One thing did happen.  After three weeks of waiting, "upstairs" kicked the approval out unless I agreed to halve my commission.  What's a Realtor to do?  Unhappily, I agreed of course.  And we got reapproved.  Verbally. 

Then, no letters could be issued at the end of June or the beginning of July because it is the end of the fiscal year and all Chase employees had other responsibilities.

So we're still waiting for the letter.  Seller, buyer and escrow are ready to close.  Jay, my Chase negotiator, and I talk every day re status.  I have his number memorized.  I know the names of his kids. 

To be continued.

Huge reduction on overpriced Glendale condos

The Excelsior at Americana has just reduced prices on all of its condos.  High time.  Prices used to run $842,000 to $1,124,000 for units from 1,338 sf to 1,529 sf.  Oh, yes, that's right -- they did have a view of the common area.  Was there really a market clamoring for condos at that price point in Glendale?  Are there really lots of buyers who wish to live over a shopping mall (actually, that might be fun) and pay a premium on Glendale real estate to do so?  Anyway, the prices are now $585,000 to $695,000 -- still high, but not out of line with prices on condos in the area. 

Models as real estate agents?

Somehow, I just don't think this will work quite as well here in the San Fernando Valley as it does in NYC.

Short sales, Fannie Mae and HAFA

Fannie Mae's New HAFA Program

As you may have heard, by August 1, 2010 Fannie Mae and Freddie Mac, the formerly Home Affordable Foreclosure Alternatives Program (HAFA) exempt mortgage giants, are set to implement their own HAFA programs. For borrowers who are eligible for the Home Affordable Modification Program (HAMP) but were unable to secure a Loan Modification on their Fannie or Freddie loan, this is potentially promising news.
Today we’ll examine Fannie’s recently released HAFA Program Summary. Their stated goal with joining the program is to provide financial incentives for and simplify the process of short sales and deed-in-lieu (DIL) options in the face of foreclosure. For the most part, the Fannie version is in line with the wider HAFA program which includes the following:

• Any borrower who wishes to utilize the new program must have already been evaluated for HAMP, which gives them more options in the event of an unsuccessful evaluation and also removes the need for further eligibility investigation as the HAFA program will use the HAMP documentation. In addition, the program standardizes the steps, documents, and timeframes of short sale or DIL approval;
• Before the property is even listed, the borrower will be able to get pre-approved short sale terms;
• The servicer cannot condition their approval of a short sale on a reduction of the real estate commission outlined in the listing agreement;
• Fannie will release those who are successful in a HAFA short sale from future liability for the debt, and;
• Servicer and borrower will be entitled to certain incentives:
• Servicers will receive a $2,200 fee for a short sale, or a $1,500 fee for DIL
• Borrowers will receive $3,000 to assist with relocation expenses

Fannie’s documents and a full Program outline can be found at their website. Given the amount of foreclosures Fannie has been aggressively pursuing across the country (even being known to refuse to postpone a trustee’s sale with a viable short sale offer before them), one might be forgiven for questioning the sincerity of their commitment to providing foreclosure alternatives.

What does all this mean? I will be obtaining a HAFA certification through California Association of Realtors soon and I'll let you know then.  Thanks, Activerain, for providing this blog post.

Celebrate the 4th of July

Eager to watch fireworks on the fourth? Here’s a list of east San Fernando Valley displays and celebrations.

Annual San Fernando Valley Independence Day Celebration
A holiday celebration in the San Fernando Valley featuring music and other live entertainment, food, and fireworks. Take a swim(eww! or, uh, maybe not) in the 1.5-acre swim lake available for use during the day.
When: July 4, 10 am – 10:00 pm
Where: Hansen Dam Recreation Area, 11770 Foothill Blvd., Lake View Terrace
Cost: Free
Info: 1-888-LA PARKS (527-2757), www.laparks.org

Studio City - This is a fun-filled (and relatively expensive) family festival featuring exhibits, music, food, fireworks, a children’s fun zone, and a business exposition is held on the back lot at CBS Studios.
When: July 4, 5:00 – 9:30 pm, gates open at 4:30 pm
Where: CBS Studio Center, 4024 Radford Ave., Studio City, Los Angeles
Cost: Adults $15 advance, $20 at the gate, Children 6-12 $8 advance, $10 at the gate, add $20 for rooftop viewing access or pay $100 for VIP tickets.
Parking: Free
Info: 818-655-5916, www.studiocitychamber.com

Burbank, CA -  Burbank’s annual firework display and Starlight Bowl concert is one of the city’s favorite traditions. This concert kicks off the Starlight Bowl Summer Concert Series. On July 4, gates open at 6:00 pm, entertainment runs from 6:30 - 9:00 pm, and the fireworks show follows at 9:00 pm (weather permitting). This year, the Burbank Philharmonic Orchestra will kick off the concert, which always features crowd favorite music and sing alongs. You can purchase your tickets online. Tickets cost between $10 - $20 each, with discounts available for seniors and students.

Just want fireworks? Do as we do – just pull up a piece of curb anywhere on the residential streets of the Burbank Benmar hills.  Best viewing is around Cambridge and Sunset Canyon.  Get wherever you’re going early, though – thousands of people do this every year and parking along the city streets gets quite tight.

Toluca Lake – Every year, the Lakeside Golf Club (4500 Lakeside, Burbank) has a terrific fireworks display that you can enjoy without being a country club member.  Just pull up a piece of curb on a residential street around the lake.  As in Burbank, this is quite popular, so get to the neighborhood early for best position and viewing.

845 N. Frederic, Burbank just closed

This adorable house is 845 N. Frederic in Magnolia Park and it was just bought by my clients, the Jordan family.  Their picture can be found on my website on the Our New Home page.   The sale closed Friday for $629,000.  The escrow went smoothly all the way through.  Bank of America even closed the loan right on time!  The sellers purchased an out-of-area short sale.

Uh-oh.

Although the sellers' short sale purchase has received  verbal approval from the lien-holders, it still does not have that all-important written approval.  So the sellers are renting back from the buyers for two weeks while they wait for the bank to get its act together.  We are all hoping that they don't have to rent back for longer.  Cross your fingers.

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.