To sell or not to sell….This is the question.

Boy have we run into the sellers who want to sell and then they don’t.  They get a little taste of how the market is going and they give up quickly.  Most sellers need to sell before they buy and when they see that there are not a lot of options out there, they panic and retreat back to staying put.  You see, there are lots of properties on the market but not alot of good or special properties, which is what everyone is looking for.  The good and special ones sell quickly and so if your house isn’t sold, that seller loses. Most sellers are not willing to do what it takes to make the move with little risks but a lot of hard work.

The scenario that works best is the 2 step process.  Sell their house and then go into a rental until their perfect home comes on the market or their agent can find one for them. (Believe it or not, some are still selling quietly).  Selling and then renting is a pain but sellers should look at this as part of the job and getting a good price for their house is like getting paid for all the hassle.  Selling then renting in a declining market has its payoffs. When the perfect house comes up, they are the perfect buyer with cash in the bank and ready to go. Negotiating a better deal is likely since they have no contingency baggage.

Most sellers don’t want to do it this way and therefore all comes to a screeching halt.

Another difficulty in this market is if the seller still prices his/her property too high, the longer it languishes on the market and the more impatient everyone gets.  Having a home on the market in which you live in is a HUGE overtaking in itself.  Always having to clean and have everything perfect and organized day in and day out.  Slap a few kids in there and most sellers are ready to pull their hair out.  This is another good reason to price it to sell.

So these are a few tips and circumstances that happen in the day and the life of a Real Estate agent who deals with each and every seller with their ultimate goals.
Some sell…some don’t.

Ok here we are at the end of a very stormy year.  The financial world is not so good but I must say that the real estate world here in the Beach Cities is still doing fine.  Of course, values have softened but nothing like inland areas.  Our foreclosures are slim, although there are some out there.  Short sales are out there too but non of these are a dime a dozen.
I look at it like real estate is “on sale” right now some at 10% or 20% off.  That’s a nice discount!
As they say….buy low,  sell high and now is your chance to do it.
Dan and I have stayed consistent with our sales this year as in years past.  Currently, as of November 2008 we have 4 properties in escrow which is normal for us.
We are still growing and are moving to a new, larger location in Hermosa Beach.
As of December 1, 2008 we will be located at 3201 Manhattan Ave, Hermosa Beach 90254.

So your money is not doing well in the stock market but it can buy a better product in the real estate market with growth around the corner.  Real estate is tangible and can create a nice future retirement.  I bought some units in 1993, when the market was in the tank and that is what will be my nice retirement income.  People have to live somewhere so rents here in the Beach Cities stay strong.
Think about it….Its delicious food for thought!

Lorie O’Connor

So here we are, so many people talking about gloom and doom.
Well if its gloomy out there, lots of people don’t know about it.
In the last 3 months, Dan and I have either been involved in or have witnessed at least a dozen properties that are receiving multiple offers.
Yes, you heard me.
Now you might say that I’m just saying that to try and drum up more business. I’m not just saying that. Its so true and it is killing me.
Recently we listed a town home in South Redondo Beach, it was priced well and had 3 offers in the 3rd week and sold close to the asking price. Deal closed!
We also had a house in North Redondo in which we had a buyer who could not qualify for the loan (lousy credit) and so we canceled because we had a excellent back up offer. Deal closed!
Then we had a buyer for a home in Hermosa Beach that was listed a bit under market. It fetched 9 offers for nearly $200,000 over the asking price. We didn’t get that one!
Then there was a home in the tree section that was listed very attractively. it received 12 offers and sold for over $200,000 over asking.
Same story on a home in east Manhattan Beach and there are more stories like this one.
We had a client who was looking at a home in San Pedro. Before we wrote an offer, we made sure all his financial ducks were in a row. Just as we were ready to write, the listing agent called us to tell us they received a full price all cash offer and that they couldn’t wait for us. Shocking.
Units in San Diego….multiple offers.
House in Costa Mesa….multiple offers.
It is crazy out there and I think you should know especially when you ask if you can low ball a primo house in an A+ location. . It just ain’t happening no matter what the NEWS stations are saying. No the sky isn’t falling in the South Bay Area.

What you can get in today’s market is a well priced home compared to years ago.

Lorie O’Connor 7/22/08

So here we are in the middle of 2008 already. The word on the street is that we are winding down to the end of what may have been a recession. To be honest with you, it may have slowed a bit but it is still very steady here in the beach cities. If property is priced correctly, it will sell. Unlike the Inland Empire or the Desert where no matter the price, no sale. Here, we have seen a very steady smooth moving market. Of course some of the primo properties still get big prices and in some cases, multiple offers.
117 7th Street in Manhattan Beach was listed for 3,995,000. It fetched around 5 offers and sold over 4 million. The actual sale price is not posted yet since it is still in escrow. 900 Pacific, the all time highest hill section property, listed at 10,900,000 just went into escrow today.
Over the weekend several tree section homes have sold. Sand section properties are also moving quickly. Even our friends in east Manhattan are seeing movement over there. Lately there is a nice demand for 50 x 150 foot lots with nice house and pools. Pools are back in. Families are enjoying the convenience of a pool for their kids rather than packing up and hitting the beach every weekend. Two weeks ago there was a listing priced very aggressively in east Manhattan with a pool. It had 13 offers and sold over asking. These properties are not anomalies because there are more than just the few I’m speaking about.
Ask around, talk with your Realtor, ask your friends. Its exciting out there.
Did I mention Hermosa? Sweet Hermosa is also moving right along.
and of course Redondo is doing fine again too! There has been numerous sales in the golden triangle of Redondo Beach in the last couple of weeks.

So, as you can see from my little report here, that the beach is the place to buy real estate and now if a great time to be a buyer since you can get a little better deal.
If you like to know more details of the market, don’t hesitate to call me or Dan.

I asked Lorie to give me a quick recap on what she noticed going on in the market right now.
(For those who are reading this and don’t know who me or Lorie are CLICK HERE )

Well I’m no expert on really what is going on, I just know that property is still moving at a decent pace. I have clients call me and ask if a home they saw last year was still available? For the most part, the property sold but some just took them off the market. Its funny, when a home has some unique features such as a huge city view or ocean view, a west facing yard with the perfect access from a family room or a great floor plan. All of these type features are not always easy to find. So if its what you’re looking for why not buy it?
Their not a dime a dozen around here in the beach area.
Another thing that blows my mind are the people who spend anywhere from $3800 to $5500 per month or more for rent. Lets see, lets take the $3800 per month figure times 12 and that’s $45600 a year in rent, money down the drain, no interest write off. If you bought a house and it dropped $45,000 dollars while you are living there, at least you have the write off, a home to call your own and the opportunity that when the market turns around (AND IT WILL) you will reap the benefits rather than starting to look at homes that are rising instead of falling. Falling real estate prices are an opportunity for any buyer.
Of course let me say that here in the beach cities, we are not suffering like some of the other market areas. Those areas were saturated with tract homes and zero down buyers. We don’t have that over saturation here nor did most of the buyers jump into the market here with zero down. Look around you won’t find a lot of foreclosures here. If a seller doesn’t get a price that will make them somewhat happy, they will take it off the market or at a minimum, rent it.
I had an open house last weekend and 20 sets of “real” buyers” came through. It is totally a sign of buyers recognizing that now is a very good time to buy!

Hello….
After several bits of nagging from Dan, I have decided to add to his blog with some of my input of what’s happening in today’s market. First I must say, I’ve seen all the markets since 1979. I am officially reaching my 30 year mark of selling real estate, next year. I entered into the real estate field in 1975 but was not ready to jump into the trenches until 1979. I must have been selling real estate, which feels like 5 minutes, when the market in the early 80′s started to go south. Interest rates rose to a delightful 13% on first trust deeds and 18 to 20% on seconds. I know because I had an 18% second….yikes! (not to mention a 13.5% first).

That was then, this is now. Should I mention I also was at the party of the early 90′s when I didn’t think anyone had a job and everyone was fleeing California for Colorado, Oregon, and Washington. I had my best years in real estate. People still needed to buy and people still needed to sell. Prices were falling and deals were made. For all; those people who had the guts to buy in the 90′s…kudos to them! They well deserved the big pricing that occurred in 2000+. Yes, they deserved every penny of the equity they received. It was very hard to buy in the 90′s when prices fell and a “real” recession was here. We’re those the years of gas lines that made you wait 30 to 60 minutes, wrapped around the block, on your even or odd day?
Guts I say!
People bought homes for an investment but mostly for a place to live and call their own. If the market continued to drop…so what? We aren’t paying rent. When it turns around we hang on for the ride.

In 1993, A single mother of 2, commission sales in real estate and no alimony or any other source…I took the plunge and sold my small home to by a family home for me and my kids. I remember standing in the shower saying “I will make it, I will make it” and so I did, nose to grind, top producer in the biggest slump, I recognized myself and indicated to many of my clients, now was a great time to be a buyer. Did it pay off? I should say so.

So here today when the market is showing signs of some dropping, here I go again with my same speech. Why buy when the market is rising with in seconds and you are up against 5 to 10 other buyers for the same house, stressing beyond normalcy only to not get it OR to pay way beyond your means. Why not buy when the pressure is off, terms on YOUR terms and a chance to think about it. A chance to sit in the living room and get a feel for the home. 2 years ago, you made a decision about one of your most major purchases faster than making a decision on what pair of shoes to buy.

So if you get my drift, now is a great time to be a buyer. If you are also a seller, its all relative. Buy high, sell high, Buy low, sell low. If you sell for less now, you may not have as big as a capital gain tax. If you buy low you should have a lower property tax hit. If you buy now, you will probably get an interest rate in the 6′s. Hurry before they go to 13!!!!!!