What happened to the 3 Thanksgiving offers?

I've been asked about the property offers I had out for three separate clients when I left for Thanksgiving.
- One offer died in a multiple offer situation with 15 other offers.  The sellers took an all-cash offer considerably over the asking price. Quite a disappointment, but not unexpected.
- Another offer was in a multiple offer situation with 7 other offers.  The sellers accepted an offer considerably over asking with no appraisal contingency.  This, too, was a major disappointment for my buyers, and was less expected since they offered over the asking price.
- The third offer is a go.  Whew!  We had to jump through hoops to get it, including putting the buyer's current home on the market and selling it in two days.  And even then it took the sellers several days to say yes.  Stay tuned...

Why you trust the internet for homes for sale info

I entered a listing -- the new one below at 2101 N. Rose in Burbank -- into the Combined Los Angeles Westside multiple listing service this a.m.  It is supposed to go to the other area multiple listing services right away (there are about three in So. Cal. and different Realtors use different ones for various reasons).

Four hours later, the listing is still not coming up on the other mls's.  But it's on Redfin!  And probably Zillow, Trulia, etc.  No wonder clients want to search for properties themselves -- they're getting info faster from the internet than from the Realtor community. (Yes, I've called the other two mls's to let them know.)

This weekend only -- not on the mls -- 3+1 in Burbank for only $435,000!

Update for Monday, 11/26: this is on the multiple listing service after all.  It went on about 10:30 this a.m. You've heard of pop-up restaurants and pop-up stores...how about a pop-up house for sale?  2101 N. Rose is offered for sale this weekend only and is not on the mls.  It's an adorable three bedroom, 1 bath, 1016 sf house with a two car garage and a big backyard.  The owners are designers and the house is way cute with custom paint, custom lighting, hardwood floors, cool lino in the kitchen and more.  Yes, it's close to the airport and has all the airport sound retrofitting including new windows, a/c, etc.

Why is it offered only this weekend? The sellers of 2101 N. Rose have made an offer on a new purchase and sellers of that home do not want to negotiate with us unless the owners of Rose have an accepted offer on their property.  Will it be on the multiple later this week? Unsure -- but if $435,000 is your price range and you're a solid buyer, you'll want to check it out sooner rather than later.  More pictures will be on my website at JudyGraff.com later today.

I have three offers outstanding...

...and I'm leaving town for the holiday.  One of the many, many things I'm thankful for this holiday is the internet so I can keep in touch with my business!  Please think good thoughts for my buyer clients.  And by the way, what are you thankful for?

The parrots are back in Burbank!

I saw the famous flock of wild parrots yesterday at Burbank and Orchard Blvds.  I wonder where they've been for the last six months?

Do You Feel Lucky? from the Wall Street Journal

From this past weekend's Wall Street Journal.  I just encountered this when a potential buyer wanted to include $888 at the back of an offering number and I said, "Wha?"

Do You Feel Lucky?

In Vegas, home sellers love listings with 7's, but in Asian neighborhoods, beware of 4's. When pricing in residential real estate is purely a numbers game

By SANETTE TANAKA

Just like the lottery, real estate can be a numbers game in which superstition plays a role. According to research by real-estate website Trulia, "luck" is frequently linked to the last nonzero digit of homes for sale (the eight in $528,000, for example). In Asian-majority neighborhoods, 20% of listings end with a lucky eight, compared with 4% of listings in areas where Asians are a minority.

It's not just Asians who rely on luck. Home-sellers in Nevada—especially Las Vegas—look to lucky seven to unload their homes. Listings with a seven before the zeros are 37% more common in Nevada than in the rest of the U.S.

In the Bible Belt, defined as the Southeast and south-central U.S., homes are 27% more likely to include 316 in the listing price, a nod to John 3:16, a touchstone New Testament verse. Surprisingly, the numbers 666—considered to represent evil—are 39% more common in the Bible Belt than elsewhere in the U.S. And throughout the country, the number 13 is about 15% less likely to appear than either 12 or 14.

But the listings superstition appears to be strongest in neighborhoods where Asians make up more than 50% of the population, according to Trulia data of all homes listed for sale, excluding foreclosures, from October 2011 to the present. The affinity for eight comes across most frequently in luxury homes over $1 million, with 37% of listings ending in an eight before the zeros.

The Chinese pronunciation of eight is similar to the word that means "prosperity" or "wealth," says Zili Yang, professor of economics at Binghamton University. Four sounds similar to the Chinese word for "death," making it a very unlucky number in Chinese culture, Prof. Yang adds. "All businesses try to avoid it in all occasions. We don't even want to put it onto our car plates," he says.

Brent Chang, a real-estate agent with his mother, Linda Chang, with Coldwell Banker San Marino in California, says his clients stay away from fours in nearly all circumstances. He says about 85% of his Asian clients use numerology when buying or selling. "If we suggest $2 million for a property, they will want to price it at $2,188,888. They'll put as many eights in there as possible," Mr. Chang says.

Manoj Thomas, a marketing professor at Cornell University, says lucky numbers are a subconscious strategy used by sellers: If a person believes one number brings him luck and uses it more frequently, it will seem intuitive to him, and he will feel more comfortable using it.

But numbers—and their placement—have a subconscious effect on buyers, too. People tend to look at digits on the left, says Prof. Thomas, who studies the psychology of pricing. Prices with lower left-hand-side numbers give buyers the impression that they're getting a better deal.

That's why prices are often listed with multiple nines, like $19.99, says Alan Cooke, a marketing professor at the University of Florida. "People mentally round down, dropping the cents off of $19.99 and seeing it as $19 and not $20," he says.

The same strategy can be seen in homes priced under $1 million, where 54% of homes have prices ending in a nine, according to the Trulia data. But the picture changes for homes at the higher end: Only 25% of homes that cost more than $1 million end in a nine. One theory: Nines are associated with mass consumer goods, making them less appealing to high-end buyers, says Jed Kolko, chief economist and head of analytics at Trulia.

And pricing psychology may be a tougher game as prices go up. "It's harder to make a $3 million home sound inexpensive," Mr. Kolko says.

Instead, high-end home sellers gravitate toward the number five. With homes over $1 million, 55% have a final nonzero digit of five, such as $2.5 million. Under $1 million, only 26% of listings have the five. Five is a common default number when people end their price listing, Mr. Kolko adds.

"Five does have a special status in our minds," Prof. Thomas says. "We see it as the midpoint on the 1 to 10 scale, and we tend to spontaneously compare any single digit as higher or lower than five."

After a homeowner arrives at an approximate value of his house, he can fine-tune the price by changing the numerical pattern, Prof. Thomas says. "The makes a difference," he adds.

Using precise numbers can give the sense of a bargain, he says, because precise numbers are usually used for lower-cost purchases, like a grapefruit, while round numbers are reserved for bigger purchases. "You can list a house for $500,000, or you can list it for $505,550," he says. "The second one seems like a better deal."

But the strategy can backfire if the number is too precise. A sale price of $1,328,972, for example, can turn potential buyers away, Prof. Cooke says. Since that kind of "bizarre" number isn't used often in daily life, it seems harder to work with, and people may subconsciously reject using it.

For some, lucky numbers are purely a way to stand out in the real estate scene. Triple sevens are three times more common in Nevada than in the rest of the country, but Tina Ott, who works with her family within the Coldwell Banker Woodbury office in Minnesota, has been listing homes with the lucky trio since 1995. "Instead of $319,900, we'll do $319,777," Ms. Ott says.

The strategy works twofold: it bumps the 777 listings up before the 999s when listed by price, and it also puts clients at ease in what can be a stressful process.

"When we're getting ready to get to the pricing part, which can be a tense subject, it helps soften the process," Ms. Ott says. "We try to make it a little lighter by asking, 'Shall we try our luck?' "

Crazy 8 Effect on Addresses

The impact of numbers goes beyond pricing. The street address matters, too.

In a paper presented two years ago, called "Superstition in the Housing Market," Nicole Fortin, professor of economics at the University of British Columbia, found that home buyers in Chinese neighborhoods in the metro Vancouver region were willing to pay a premium for lucky numbers in their street addresses.

Ms. Fortin says buyers paid a premium of 2% to 3% for homes prices that ended with an eight, while sellers had to accept a 2% discount if they were selling a house that ended with a four. The trend was most pronounced among luxury homes.

"It's a luxury to get that number. It's considered to be prestigious," she says.

Brent Chang, a real-estate agent in San Marino, Calif., explains the thinking: "If you have a listing, and the address is 180, you know Asian buyers will be very interested in the house because it's so hard to change the address."

 

Ask the home appraiser

Have you been curious about some of the finer points of home appraisals? I have -- and although I deal with them all the time, things change.  My office recently brought in an appraiser to speak, and here are some of the more pertinent questions and answers.  Remember, these answers were given for a Realtor's perspective.  The comments in italics are mine.

• Is there a difference between independent appraisers and bank approved appraisers? How do you get to be an approved appraiser? Answer: Banks get their appraisers from appraisal management companies.  For an appraiser to get approved he has to submit a resume package like anyone else looking for a job.
• What do you do if you get what you consider an undeserved bad appraisal? Should you challenge it with comparables or demand another appraisal? Answer: It is very much better to challenge it with your own comparables.  The management company will ask the appraiser to respond and defind his values.  (Personally, I always give an appraiser comparables before the actual appraisal.)
• On second appraisals (often done if there is a value question), does the 2nd appraiser know what the 1st appraiser came in at? No.
• How much does an appraiser credit a house for on the following? Answer: extra bedroom $5-10,000; extra bathroom $5-10,000, pool $10-15,000 (except in Beverly Hills, where it's $50,000 (the extra bedroom credit is much lower than I had previously thought).
• How do you define baths? What does it have to have? Answer: 1/4 bath means sink only, 1/2 bath means sink and toilet, 3/4 bath and full bath are the same for valuation purposes and mean shower and/or tub, sink and toilet.
• Under what circumstances does a convertible den count as a bedroom, assuming there is a closet? Answer: If it has a closet it counts as a bedroom if it is larger than 80 square feet.
• When looking for comps, would an appraiser extend the radius of surrounding comparables or would the appraiser go back further than 90 days. Answer: The appraiser would extend the mile radius.  He would NOT go back more than 90 days.
• What is the value of "multiple offers" on a property to the appraiser? For the appraised value, only the closed sales figures can be used.  Actives and Pendings are important for the appraiser to note on the appraisal as a matter of interest for the big picture and to see how the neighborhood is trending.
• Can you use new construction as a comp for non-new construction? Answer: no.
• Can you use non-new construction as a comp for new construction? Answer: yes, with an adjustment for the age value.
• What about a total remodel? Answer: No, you cannot use new construction as a comparable.
• Can you count unpermitted structures, unpermitted work, or unpermitted useage or square footage in the value? Answer: No.  All the appraiser can note is that the work was done in a workman-like manner and there is no health hazard.
• What can a seller do to make the property the most appealing? Answer: Appraisers are now required to take a picture of every room, so sellers should prepare the house as if they were having it re-photographed...it must look as good as possible for the appraiser.

4484 Stansbury, Sherman Oaks has had a price reduction already!

Since you guys didn't jump on it at the old price of $780,000, we've reduced the Stansbury price to $680,000.  Yup, $100,000 off the price.  But wait, there's more.  It's now a short sale.  Come and get it while it's hot!

Open today, Sunday, 11/4, 1-4 pm: 4484 Stansbury in Sherman Oaks

This delightful 3 bedroom, 2 bath home with units and a pool will be open today from 1 to 4.  Steve and I will be hosting.  The main house features a redone kitchen, redone baths, tons of closet space, hardwoods, an adorable side patio and more.  The unit above the garage is a gorgeous studio with a full kitchen, redone bath, pull down bed and open-beam ceiling.  The pool house has a 3/4 bath too!  We're asking potential buyers to do their own inspections on permits.  The property also has a 2-car garage, redone pool, shared laundry space, and a wonderful location close to all Sherman Oaks has to offer.  It's listed for $780,000 and I hope to see you there today.

Getting a home loan ain't what it used to be...

The owner of our company, Michael Williamson, is buying a Studio City home to live in.  He talked with our office this a.m. on his challenges in getting a home loan.  Mind you, he has gotten home loans 16 times before and says, "I thought I knew everything." Of course, he's putting down a lot of cash and has a very high FICO score too.

But getting a loan ain't as easy as it used to be, says Michael.  It took him an extra 16 days to get loan approval.  The lender kept asking for one piece of paper after another, and one explanation letter after another.  This even involved asking about ONE missed payment from a tenant on a property he owns in Palm Springs!  And this guy is way more qualified than most buyers.

So if you're a home buyer, and your lender asks you for something that doesn't make sense, don't get frustrated, just provide what you can as quickly as you can.  And if you're a home seller, please know that the lender doesn't particularly care about our contractual deadlines and go easy on your home buyers if loan stuff is late -- it truly is out of their hands.

Re Storm Sandy, it goes without saying...

We all need to be prepared for disasters.  We all need our earthquake and storm kits.  But we all need to make sure those kits are adequate.  My bff Paula is stuck on the 46th floor of her Wall Street apartment with her pets.  Last I heard, she had enough supplies for a couple of days -- but now the news says power won't be back on to Lower Manhattan until Saturday.

So get extra water, rotate your battery stock and keep extra in the freezer, have extra pet food on hand...you know the drill...

Sunday reading on the mortgage interest tax deduction and the housing market

Here are two articles from today's Los Angeles Times.  The first details the mortage interest tax deduction and efforts to -- maybe -- eliminate it.  Here's the title and link: A look at proposals to limit the mortgage interest tax deduction.  Of course, if the deduction is eliminated, California homeowners will be hit harder than homeowners in other states.

The second article is Short-sale purchases can easily fall apart.  Here's the link.  Of course, if you've been trying to buy a home in the greater L.A. area for any amount of time, you probably could have written this.

Perfect 3+2+pool plus 2 units coming next week in Sherman Oaks

Ever wanted to own a perfect 3+2 in Sherman Oaks with a pool? Ever wanted to be a landlord? Here's your chance to do either or both.  I'll be listing 4484 Stansbury early next week for $780,000.  The front house is a delightful 3 bed, 2 bath with an open, redone kitchen, redone bathrooms, and lots of closets.  It's kind of Cape Cod-y, cottage-y style but bigger.  Move-in condition, of course.  Then, there's a gorgeous unit over the two-car garage that's bigger than most studio apartments.  It has a redone full kitchen with new cabinets and Caesarstone countertops, a bathroom with a luxe shower, open beam ceiling and a pull down full bed for floor space flexibility.  It also has a great tree-top view.  As if that wasn't enough, there's a converted pool house with a 3/4 bath too (but no kitchen).  And a redone pool, green backyard, and cute, covered side patio.  Each unit has heat and a/c and it's own entrance from the street/alley for privacy.  We're not sure about the permits for the two units and we're asking the buyers to do their own investigation.  However, even if you didn't rent out the units, they'd make GREAT studios, playrooms, music rooms, etc, etc.  You can see more pics at JudyGraff.com, of course; or visit me at the Nov. 4 open house.

Oops! Realtor board needs to review its website version of the Code of Ethics

One of a Realtor association's many tasks is to make sure its members are aware of, and will uphold, the National Association of Realtors' Code of Ethics.  Where can a Realtor find the Code? On the local associations' sites, of course. 

But oops! It was discovered today that one of the local association's websites is missing many pages of the Code.  Nobody had noticed.  For years.  Not to worry, though, the local board in question is remedying it and will now have the whole COE up. Then every Realtor will be able to read it and follow it.  Yeah, right.

Great house for cats!

I know you really want another housing economics post, but here's (yet another) post having to do with animals in Burbank instead.  This is 229 N. Beachwood in Burbank, and much of it has been built for the owners' cats.  Actually, the front part of the house was built in 1928 and has the typical period windows, arches and wood floors.  The remainder of the house has linoleum flooring and a fanciful paint scheme.  But the best part for kitties and cat lovers is this: a long cat dining hall, which leads to a dedicated room that serves as a playroom, bathroom and lookout post for the home's pets.  The room has windows on three sides and each window has a perch -- perfect for bird- or other-creature watching. (Am I puffing here? This isn't even my listing.) The house is listed for $490,000 and has three bedrooms and three baths for the humans (or, maybe other pets).  Unfortunately for the pets and sellers, it's a foreclosure.

Another short sale fail. This time, it wasn't the bank's fault. And there's a moral to the story, of course

This is 1200 Flores in West Hollywood.  It is up the street from Marix, the fun and famous Mexican restaurant.  My buyer client lives in one of the units and learned early in the year that it would be short-saled.  We submitted an offer as soon as we could -- in April -- and went through the normal short sale waiting (and waiting) period.  The sale was approved in August.  Yay!

However, because the sale hadn't been approved, the listing agent didn't order the documents that the lender needed from the home owners' association until the approval was received.

Fun real estate fact: in addition to buyers, lenders need to review home owners association documents.  They don't want to fund loans on units in buildings with lots of "distressed" (short sale, foreclosure) units, they want to make sure the reserves are adequate, etc.  And they don't want to make loans on buildings with litigation because, obviously, a negative outcome can affect the financial health of the HOA.  

Okay, the documents are ordered and it turns out there IS litigation on the property.  The buyer/tenant had no idea.  Getting info about the lawsuit was like pulling teeth.  The HOA management company wasn't too interested in talking to the lender or me, the listing agent wasn't interested in assisting us, and the HOA president didn't understand the seriousness of the problem.  The lending machinery came to a standstill.  We tried lots of stuff, but couldn't get the litigation to settle.  The listing agent pulled the plug on us last week as he has cash offers and doesn't want the bank to foreclose (in fairness, he had given us extra time to get this sorted out).  After six months of agony, my buyer is content to let this set sail.  He still lives there and will be living there for the time being.  So, no loss, except for many hours and our tolerance for this process.

Moral of story: if there's litigation on a condo complex, even if it's up the street from delicious Mexican food and margaritas, run the other way!

Video of 4140 W. Hood, Toluca Lake

Need a gorgeous 4+3? Please visit 4140 W. Hood, Toluca Lake on Sunday, 10/14, between 1 and 4

Yes, 4140 W. Hood in Toluca Lake is all that.  A kitchen to die for, a huge living room, one downstairs bedroom, three bedrooms upstairs, and almost all new.  I could go on, but you can also see the pictures at JudyGraff.com.  Steve and I will be hosting an open on Sunday from 1 to 4 and hope to see you.

Whew! 2821 Buena Vista closed, and not a moment too soon

Buyers Amy and Jorge closed escrow on 2821 Buena Vista in Burbank yesterday.  It was a wild ride, and I'll have more details later.  But congrats to my wonderful buyers for hanging in like champs, and being very zen when things went crazy, and getting a nice home in this wacky market.

Brand new in Toluca Lake - 4140 W. Hood!

This is 4140 W. Hood, Toluca Lake, 91505. I just listed this beauty for $1,297,000 and it will be open this coming Sunday.  The house has been completely remodeled and expanded and features 4 beds and 3 baths in 3013 square feet.  The living room is huge with high ceilings, bay windows, a fireplace and a curved, custom staircase leading to the 2nd floor.  The kitchen is awesome -- high end appliances, wine refrigerator, 6-burner cooktop, tons of prep space, custom cabinetry with pull-outs and organizers, veggie drawers, -- you can't NOT be a good cook with a kitchen like this!  One bed and bath are downstairs and the other three are upstairs.  One bedroom features a bay window, built-in shelves and a fireplace -- it would make an exquisite upstairs den.  The master features another fireplace, a retreat, a built-in plumbed for a wet bar, and a balcony that practically runs the length of the 2nd story.  There's a huge walk-through closet with custom cabinetry that separates the two bathing areas.  Outside, the gorgeous green yard is also perfect for entertaining, bird-watching or relaxing.  This is very close to Lakeside Country Club and Warner Bros. studios, and the Burbank zipcode means excellent city services and schools.  I'll have it open on Sunday, Oct. 14 from 1 to 4 and I hope to see you there!  More pictures can be found on my website at www.JudyGraff.com.