From the New York Times - Home inspectors and their weirdest discoveries

Here's some Sunday newspaper reading, one day early.  The article from the New York Times is titled, "Home inspectors on their weirdest discoveries."   The title should link.  The photo above is just one of many from the sometimes bizarro world of real estate.  Enjoy and let's hope that none of this is present during your next inspection.

5544 Ventura Canyon in Sherman Oaks finally closed last week

5544 Ventura Canyon is a beautiful flip done by colleagues/friends of mine.  It closed last week at $888,000.  That was the third time it had been in escrow.  Yes, it fell out of escrow twice, which is a record for me.

Why? The house attracted very well-educated buyers who expected the home to be structurally pretty. They wanted the bones and guts of the house to be as top-notch as the finishes and top-off.  Alas, there were items that were just not up to that standard.  The flippers wound up fixing and redoing a lot of the structural stuff.  Finally, we got just the right buyers and the house closed last week.  The obvious moral of the story is that flipping houses can be very un-lucrative.  If you are considering flipping a house, make sure that you inspect, inspect, inspect beforehand.

Yes on S

If you live in L.A., you probably know about Measure S. It’s the proposition that limits development in the city for two years. Obviously, as a Realtor, I stand to gain everything from this measure going down in flames.  There will be lots of new properties to sell – yay! However, perhaps surprisingly, I support passage of Measure S.

Before I get into why I support this, here is a quote from a column in yesterday’s L.A. Times from none other than Richard Riordan. Mr. Riordan was the L.A. Mayor for two terms.  He says, “The current political environment is rife with corruption and backroom deals servicing land speculatiors and luxury housing developers over the needs of citizens.  If passed, Measure S. will give the decision-making process back to the people.  It will make City Hall work for us, not for the developers, special interests and lobbyists.” Remember, Mr. Riordan has already served his term with the city, seen this up close, and has no dog in this hunt.

Tracy Jeanne Rosenthal is a member of the L.A. Tenants Union and she wrote a column for yesterday’s L.A. Times opinion page as well. Here’s a quote from Ms. Rosenthal: “The housing market doesn’t produce homes; it produces opportunities for investment.  The goals of maximizing profit and making the city livable are at odds.”

I support Measure S for the following reasons.  In my work, I have seen L.A.'s development up close in many neighborhoods.

First, “affordable housing” is anything but.  Builders aren’t building it.  Instead, they are building either McMansions in expensive private neighborhoods or luxury apartments close to transit stops. Developers are not in business out of the goodness of their hearts.  As Ms. Rosenthal indicates, developers need to make a profit.  And they make it by putting maximum-saleable square footage in the most expensive neighborhoods possible.  If the city truly wants affordable housing, it will need to subsidize it in the neighborhoods where people need it. At the risk of stating the obvious, the so-called “housing crisis” is not helped by luxury units or McMansions.

Second, I think high-density proponents need to rethink their support for density, and their opposition to Measure S.  Again, small units in high rises in expensive neighborhoods are a developer’s dream, but not necessarily anybody else’s. There are several other ways to achieve more density in existing L.A. neighborhoods.  Look at the P.U.D.s in Van Nuys, for example. These are single family houses that are next to each other but have limited yard space.  And allowing more granny flats or guest houses in single family neighborhoods with ample lots increases density and helps solve needs of multi-generational families.

Let’s not even get started on traffic.

Finally, developers are running amok. See my blog post from November about my client’s wall being knocked down without their permission. By developers. The clients complained to the city inspector who issued the permit; he never called back.  Let’s keep developers and city officials accountable for their actions.

Whew! That’s it. If you have read this far, thank you.  And please don’t forget to vote on March 7.

Eagle Rock is no longer affordable, as if you didn't know

This A-frame in Eagle Rock just sold for $969k in a bidding war.  Almost a million dollars...in Eagle Rock.  Let that sink in for a minute.  Yes, it's pretty, but this is just another nail in the coffin of affordable L.A. areas.
Photo courtesy of Deasy/Penner & Partners.

What a Realtor conference is like and predictions for 2017

I just came back from the National Association of Realtors Broker Summit in San Diego.  Everybody has been to at least one convention in their lives, right? If not, and in case you are wondering what these are like, here's the skinny.

It was held at the Grand Del Mar Fairmont in northern San Diego.  This is a triple luxury hotel that looks like an Italian palace.  Miles from anything and super-expensive, so I didn't stay there.  Nice cocktail parties, though.  The pic above is the lobby centerpiece.

As with all conventions, there is music over the public address system between speakers.  I always expect hits of the '80s but this time it was hits of the late '60s and early '70s -- Doors, Hendrix, Jefferson Airplane, Creedence...seemed a little weird to me, to be honest.  But then the average age of  the Realtors there was about 55. Perhaps the convention organizers thought it was age-appropriate, but there is something incongruous about hearing "Bad Moon Rising" just before an economist takes the stage.

The speakers were excellent and I learned a a lot.  Here are my take-aways for you.

- 2017 is going to be about the same as 2016 for real estate.

- However, prices will show a slight rise.  So will interest rates, but we knew that.

- Shortness of inventory is a major problem all over the country. (You knew that.)

- Affordability is a major issue, too. (You knew that too.)

- Student debt is stopping many millenials from buying homes.

- Home ownership is down across the country, and expected to go lower.  We may soon become a nation of renters.

- Our recent election and its aftermath has caused uncertainty in all sectors, but not enough to hurt the economy in the long run.

Here's the deal on crystal ball predictions -- they are just predictions.  We won't know what's really happening until it happens. In the meantime, I will continue to give my own predictions and also real stats to keep you engaged and aware.

Another open house, another tailgate party.

See more pics at 427Orange308.com. Thanks so everybody that stopped by!

Glamorous downtown Burbank condo listing tomorrow

Wanna live close to all the action in downtown Burbank? I have a gorgeous, redone, top-floor condo coming on the market tomorrow.  The address is 427 E. Orange Grove, #308.  It features 2 bedrooms, 2 baths, redone kitchen and bathrooms, high ceilings, balcony/patio, 2 side-by-side parking spaces, and a view of the mountains.  Even better: it will list for $490,000 and the HOA is only $325/month.  It is walking distance to restaurants, movies, the public library, shopping, gyms and more.  On Saturdays, the Burbank Farmers Market is right across the street.  It will be open for brokers on Thursday and open for the public from 1:00 to 4:00 on Sunday. Check out more pics and details at www.427orange308.com.

Local home prices jump and sales fall. Yes, again. Or still.

L.A. Times sez: the shortage of available homes for sale here in Los Angeles has caused housing prices to jump.  See the article here.  The same number of buyers chasing limited choices tends to bid up prices, of course.  When will there be more inventory and when will the rise in prices end? According to the article, it won't be this year.  Home prices are expected to rise about 4% by year's end. Photo credit: Jay L. Clendenin / Los Angeles Times.

FHA loans will be a little more expensive on Monday than they were on Friday

In case you didn't know, you can get a fixed-rate mortgage with less than 20% down. You can even get a conventional, 30-year loan up to about $636,000 for as little as 5% down.  Most of these loans are guaranteed by the Federal Housing Administration, or FHA, which we also refer to as Fannie Mae.  The catch is, and always has been, that you need mortgage insurance if you are putting down less than 20% -- and that can add a lot of money to your monthly payment.

The good news was that the mortgage insurance rate was reduced recently, which means a significant savings for home buyers.  But that was last week.  The bad news is that the new administration's Housing and Urban Development Department raised the insurance rate back up to where it was yesterday.😭This erases a savings of about $1500 annually for FHA buyers in L.A.  Read about it here from today's L.A. Times.

And if that wasn't enough...a new price for the new year

5544 Ventura Canyon in Sherman Oaks is now listed at $888,000! This splendid re-do features four beds, 3 baths, all the bells and whistles, and is in a fab neighborhood.  I will be holding it open Friday from 11 to 2 and again on Sunday, the 8th, from 1 to 4 pm.  More details can be found in my previous post and at JudyGraff.com.

Open Friday and Sunday - 5544 Ventura Canyon, Sherman Oaks

Happy New Year! Need a redone, sexy 4 bedroom, 3 bath home in a fab neighborhood? For $909,000? Come visit me on Friday the 6th from 11 to 2 or Sunday the 8th from 1 to 4 at 5544 Ventura Canyon in S.O. With inspired finishes throughout, the home features an open plan with European Oak engineered wood floors, dining room, and a gourmet kitchen with quartz countertops, custom cabinets and Viking stainless steel appliances.  Rebuilt for today's living with upgrades including LED lighting, dual paned windows, new HVAC, new electric 200 amp panel, and a new roof. The spacious master suite has a customized walk in closet, and a luxurious bathroom with marble counter, double sinks, & an over sized shower.  Each bedroom has exquisite sliding glass doors.  Pretty, green backyard is a canvas for future projects or even a pool. I look forward to seeing you.

Debbie Reynolds was from Burbank

This week has marked the sad and sudden passing of Carrie Fisher and her mother, Debbie Reynolds.  Debbie grew up in our little Burbank and above is a picture of her in front of her childhood home.  It is located at 1034 N. Evergreen.  I have sold it twice in the last 14 years -- first to a buyer (not related to the Fisher or Reynolds family) and then sold it for the same person 10 years later. It still has that little touch of mid-century glamour.  As you see from comparing the picture above and below, the outside has barely changed, which is a charming hallmark of many Magnolia Park and Burbank homes.  Although the house has been remodeled over the decades, the inside still has many of the same features that it did when Debbie grew up there, too.

Holiday gift: 5544 Ventura Canyon in Sherman Oaks, 4+3 and $909,000

Does your Santa list contain a sexy, turnkey home in Sherman Oaks? With four bedrooms, three baths and 1840 sf? Well, Santa has delivered a bit early to you this year with 5544 Ventura Canyon in Sherman Oaks.  This gorgeous home features an open plan with European Oak engineered wood floors, dining room, and a gourmet kitchen with quartz countertops, custom cabinets and Viking stainless steel appliances. Rebuilt for today's living with upgrades including LED lighting, dual paned windows, new HVAC, new electric 200 amp panel, and a new roof. The spacious master suite has a customized walk in closet, and a luxurious bathroom with marble counter, double sinks, & an over sized shower. Beautiful green backyard and terrific neighborhood too.  Santa says, "You're welcome." Oh, and happy new year, too!

I am now contributing posts to The Lighter Side of Real Estate

For all of you that have enjoyed my writing here (or not), I am now contributing educational real estate articles to The Lighter Side of Real Estate.  It's a really fun site with lots of tips and tricks for both home owners, buyers and real estate agents.  I am one of Lighter Side's content providers -- much of what I contribute will be for Realtors only to cut and paste for their own blogs or newsletters.

You can still keep coming back to this blog for hyper-local real estate posts and for my usual snark, of course.

L.A. City Council votes against mansionization

Today's L.A. Times has an article titled "L.A. backs measures to "roll back" mansionization in single family neighborhoods."  (The title should link.) The city council will be rewriting a couple of codes so huge, boxy homes will be a little less huge and boxy.  Sounds good, but they will be reducing sizes from 50% to 45% of a lot size.  That doesn't sound like much, does it? Apparently, garages don't count.

One quote in the article from a developer startled me. “To cram four or five people into an 1,100-square-foot house, one of these old bungalows, it’s a joke really,” he said.  Wow. Lots of Californians -- and people all over the world --  have been born and raised in homes even smaller than that.  These people turned out okay. And nobody's laughing.

Holiday real estate activity

What does our housing market look like around holiday time?  If you are a buyer, inventory probably seems lower than ever.  It is.  And if you are a seller, it may seem as if buyer activity has dried up.  It has.  This is par for the course, folks.  Sellers usually do not want to list in December because most buyers are too distracted by holiday activity to shop for real estate, and visa versa.  That doesn't mean that the perfect house or perfect buyer are not out there, it just means that the new year will likely bring much more activity.  So curl up by the fire, watch HGtv, and make your real estate plans for 2017.

Happy Thanksgiving!

Happy Thanksgiving! Here's hoping that you have lots in your life to be thankful for.

13506 Hartland in Valley Village just closed, no thanks to a particular developer

My listing at 13506 Hartland just closed. Although we received an offer on the house right away, a property developer almost ruined the sale.  Backstory: As most folks in L.A. know, there are condo and apartment projects going up all over.  An 8-unit building is being constructed behind and to the west of the Hartland house.

Early one morning after the house listed, I received a call from my seller.  “The contractors behind us just tore down my back wall.” Yep, without notice or permission.  Mercifully, it was not the entire back wall.  The next door neighbor had it worse – they tore down his entire back wall without obtaining permission or giving him advance notice.

The developer told my client that his survey showed a six-inch difference in the lot line, to his advantage of course, and this is why he tore down the fences. It’s highly unlikely that there is a true boundary dispute -- the entire suburban tract neighborhood was laid out, and built, in the 1950’s by the same people. The lot sizes are all very similar and there has never been a lot line dispute in the neighborhood.

But anyway, the back walls were already gone at this point, so it was late in the game to have a new survey done.  An attorney we consulted said a boundary dispute would take 2 years and cost over $1000.  The neighbor called the city building inspector who had approved the permit.  He never heard back.  (To my knowledge, he tried the same person several times and never heard back.) 

The neighbor and my client spoke to the developer and contractor (who is also a dentist) and they worked out this: the developer would put up a new cinderblock wall where the old ones had been.  They would also use the old fence to create a boundary for my clients’ safety while the project was completed.  They would not tear out a tree on the disputed boundary.

So where’s/what’s the problem with the sale? We already had a buyer for the property, and now the sellers and I had to disclose that there may or may not be a lot line dispute. No buyer wants to buy property where contractors can claim portions of it don’t belong to the property.  No buyer wants to know that their new neighborhood is going to be overrun by rogue developers. Our buyers were quite concerned and worried about this issue, and the escrow teetered. They attempted to do their own due diligence, but it takes time to get a full survey. They asked for some of the negotiated sales price back.  We gave it back rather than have to go through this again with another buyer.  And the cinderblock wall is completed.

How will the election affect local real estate?

Here's my hyper-local take on what's going to happen with real estate inventory, prices and interest rates in the wake of the presidential election: I don't know.  And neither does anybody else.

Many questions will be answered over the next several months. Will interest rates go up? Will Los Angeles homes for sale inventory rise? Will lending tighten up or loosen up? Will foreign money leave the luxury and ultra-luxury market here? What about Fannie Mae and Freddie Mac? All this stuff impacts all this other stuff.

So the word here is uncertain.  Hopefully everything will shake out for the better sooner or later.  Yes, I will soon have a post on what buyers and sellers can do in the meantime.

Why home info on the internet is so confusing

I get calls from clients all the time about why their home isn't listed, why is it showing active when it's really pending, etc., etc.  Here's the deal -- different websites list information differently.

First, all the secondary sites (Zillow, Trulia, Realtor.com, Redfin, etc.) pick up their info from the local multiple listing services.  We Realtors enter the info into the mls's. The local mls services are supposed to cooperate with each other, but sometimes add each other's info very slowly.  So while you are seeing something on, say, Zillow, your Realtor may not be able to find it on his/her multiple listing service for a few more hours.

The "fast" sites are Redfin and Zillow.  But remember that it all comes from an mls, so its useful to ask your Realtor to create an automatic search on the mls for you, and look at it first.  Slow sites are some mls's and Realtor.com.

Also, there are different confusing designations.  We all know what "active" and "sold" mean.  What does "active-under contract" mean? It means that it is already pending sale, but the sellers are still taking backup offers.  Some websites show this designation as "active." It isn't, not really.  If you really want to see one of these, ask your Realtor to call the listing agent and ask how their escrow is going. That way, you won't waste your time.

And some sites just misinterpret data. (To be fair, some Realtors mistakenly enter incorrect mls data, too.) They mark search fields differently, don't show all open houses, don't pick up pictures, etc., etc.

Confused? Even Realtors get confused by this.  Don't worry, you will get all the info on a piece of property.  It just may take some sleuthing on the part of you and your Realtor.