Why do the carpets in every bank owned home look like this?

By Keith Kyle

Bank owned homes are pretty rare these days but the occassional home that comes on the market always seems to look the same. I understand that people were forced to leave the home without a choice so it’s not surpising to see some damage, things removed, etc. but I can never quite figure out how they get the carpets to look so terrible? People around here can’t live like this can they? I certainly don’t see carpets looking like this so it must mean people are doing it on purpose…but how can you make it look this bad?  Maybe there’s some sort of online tutorial as to how to not just destroy the carpet….but make it look like you repaired cars in the house.  It’s a mystery that I just don’t understand.

The Perfect Way NOT to sell your home

By Keith Kyle

As a long time realtor in Redondo Beach it never ceases to amaze me how little effort sometimes goes into trying to sell a home.  I’m not sure if there’s some very odd situation where owners want or need a home listed but don’t actually want to sell it but once in a while I run into a listing which appears to do everything possible NOT to sell the home.

I just looked at something today on the market and they seem to have done everything to keep the home from selling.  I often see one of the details on listings but it’s been a while since I saw so many aspects of a listing that will keep it from selling.  Keep in mind that this isn’t a short sale.

  1. Price:  This is obviously a common one but the home is probably priced $200,000 over market value
  2. Pictures:  Of course they are terrible
  3. Commission:  They’ve reduced the buyer’s agent commission to 1.5%
  4. Showing:  They’ve made showing the home a serious challenge.  Not only does it require 24 hour notice but they won’t call back and don’t respond to emails or texts.  No lockbox of course.
  5. Out of area agent:  They’re using an agent that doesn’t know the market and doesn’t seem to be putting much time or effort into selling it (and they won’t return my call)
  6. Condition:  I had been through the home long ago (probably 8 months….yes it’s surprisingly been on the market for almost a year) and I wasn’t allowed in one of the bedrooms, all of the blinds are closed and it’s a mess.

So the question is….why put it on the market if you don’t want to sell it?

Why Days on Market Can Be Misleading

By Keith Kyle

I’m sure most MLS systems are different but here in the South Bay the days on market on the CRMLS can be a bit misleading.  Many buyer and agents use days on market as a negotiating tool….the longer the home has been on the market, the more leverage the buyer has to come in low or negotiate other favorable terms.

The problem is that days on market doesn’t always indicate just how long the home has been available and is not necessarily indicative of “active” status.  As realtors when our clients accept an offer we have the option of changing the status to “pending” or “active under contract”.  Pending stops the days on market from accruing, but active under contract does not.  A home can go into escrow on day one, change the status to active under contract (again meaning it’s in escrow) and if it falls out of escrow 20 days later the days on market for the home will show 20.  It’s very misleading as the home has not been available for those 20 days and now puts the seller and listing agent at a disadvantage…..even though it sold the first day.

The other aspect that leads to misinformation is that with this days on market accruing on many home, it does not allow for an accurate picture of the market.  For instance a certain area of town or city itself may show an average days on market for a certain month to be one thing….when many of those homes were not actually available.  It may show days on market at 45 when the reality is that the homes in the community actually go into escrow after 30.

It’s a problem that needs to be addressed as it can change perceptions….both on an individual home and the market in general.

Is $1,250,000+ The New Normal for Detached New Construction Townhomes?

By Keith KyleNorth-Redondo-Townhome

There’s no doubt that this market continues to amaze.  What would have been considered unheard of a year ago is now becoming standard. Nowhere is this more clear than in new construction detached townhomes in North Redondo Beach.  See our real estate explained…two on a lot detached townhome in Redondo Beach to better understand this unique townhome style.  It wasn’t all that long ago that we were fairly surprised by these homes topping the $1,000,000 but those purchases are now looking like steals.  We kept the chart below limited to only new construction in area 151 (of North Redondo Beach) with similar square footage so this was an apples to apples comparison and the price increases are fairly amazing.  2014 priced just under $1,000,000 with 2015 prices starting near $1,060,000 and reaching $1,250,000.  Currently the only 2o16 built home (with around 2500 feet) just hit the market at a whopping $1,399,000.  While we can’t imagine they’ll get anywhere near that, it will be a great indicator as to just what these homes will sell at in 2016.

Address Price $ Per Sq Ft Bed/Bath Year Built Sq Feet Date Sold
2018 Gates AV #B $999,000 $398 4/3,0,1,0 2014 2508 03/04/14
2016 Gates AV #B $999,000 $416 4/3,0,1,0 2014 2400 03/17/14
2018 Gates AV #A $999,000 $401 4/3,0,1,0 2014 2508 03/18/14
2016 Gates AV #A $979,000 $403 4/4,0,1,0 2014 2400 06/03/14
2403 Gates AV #B $999,000 $398 4/3,0,1,0 2014 2508 08/21/14
2403 Gates AV #A $999,000 $398 4/3,0,1,0 2014 2508 08/22/14
2006 Bataan RD #A $1,079,000 $468 4/2,1,1,0 2015 2400 04/30/15
2016 Gates AV #A $1,069,000 $449 4/4,0,1,0 2014 2436 05/07/15
2110 Ernest AV #A $1,150,000 $443 4/3,0,1,0 2015 2534 05/07/15
2006 Bataan RD #B $1,079,000 $467 4/2,1,1,0 2015 2400 05/15/15
2110 Ernest AV #B $1,170,000 $457 4/3,0,0,0 2015 2534 06/16/15
2019 Farrell AV #B $1,200,000 $473 4/3,0,1,0 2015 2534 11/13/15
2019 Farrell AV #A $1,200,000 $485 4/3,0,1,0 2015 2534 11/13/15
1913 Plant AV #A $1,250,000 $481 4/3,0,1,0 2015 2554 12/01/15
1913 Plant AV #B $1,250,000 $489 4/3,0,1,0 2015 2554 12/17/15
Active Listing
1928 Curtis AV #A
 $ 1,399,000
 $        555
4/3,0,1,0 2016 2519 02/01/16

Current New Construction Townhomes for Sale

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Pros and Cons of the Golden Hills in Redondo Beach

As many of my clients are from out of the area or out of state, they seem to have a notion that the South Bay is simply one big city and there Golden-Hillsaren’t all that many differences between Manhattan BeachHermosa Beach and Redondo Beach.  The reality is that even within these cities the individual neighborhoods vary quite a bit.  Due to the sheer size of the city, Redondo Beach is one of the more varied communities in the South Bay in terms of types of housing, size and age, and price.

The area just east of Hermosa and just South of Manhattan (see Golden Hills Map)is a hilly section of Redondo Beach known as the Golden Hills.  Knowing the areas pros and cons is an important step in determining whether the Golden Hills is the right area for you.  The homes in the area have a not entirely flattering nickname and are called “tall and skinnies”.  Drive down any street in the area and you’ll see why.  When the homes were originally built the area was subdivided into 25×100 foot lots.  With no alleys in the rear, this means that the frontage of the home required a 2 car garage and as you’ll notice, the homes look somewhat similar.  So here’s the pros and cons of the area.

Pros:

  1. You get a bigger house for a lower price.  Many of the homes in the area are in the 1700+ square foot range with spacious living rooms, open kitchens and good sized bedrooms.
  2. Prices for these 1700+ square foot houses generally start in the high $600k range and newer, larger homes can sell for over $1,000,000.
  3. Location is excellent.  Being just east of Hermosa Beach, means that the Golden Hills is very close to the beach.  Saying it’s a walk or bike ride is a bit of a reach, but it’s not far off.  Being this close to the beach means cooler summers and warmer winters……and who doesn’t like that.
  4. Upgrades.  Many of the homes in the area have been very nicely upgraded and well taken care of.  Those that haven’t can be purchased for an even greater discount.
  5. Price.  Look just west in Hermosa and the price jumps considerably.  Try to find a home this size in other parts of Redondo and expect to pay $100k more.

Cons:

  1. The biggest complaint that I get to the area is the bedroom configuration.  With a 25 foot wide lot there’s only so many options the original builders had.  The general layout is living room (often with vaulted ceilings), kitchen and master bedroom upstairs, and garage and 2 bedrooms downstairs.  The master on one level with the other bedrooms downstairs is often an obstacle with families with small kids or expectant parents.
  2. Proximity to your neighbors.  Again with lots 25 feet wide, and front doors usually needing to be on the side of the house due to the garage, don’t generally mean much room between you and your neighbor.
  3. Lack of street parking.  With 2 car wide driveways in front of every 25 foot wide lot, it doesn’t leave much room for curbs.  On the other hand a two car garage plus 2 driveway spaces may make that a non factor.
  4. Small yards.  Generally these homes have a small yard in the rear without a front yard to speak of.  Again this can be a positive or a negative, depending on your situation.

Overall the Golden Hills offers a great opportunity to own a good sized home, at a good price and just a short drive to the beach.  See Recent Golden Hills home sales.

For more information on the area of Golden Hills or other neighborhoods in the South Bay, feel free to contact me.

Keith Kyle – Realtor, e-Pro – South Bay Brokers– 2501 N Sepulveda Blvd Manhattan Beach, CA 90266 310-251-2344 – Keith.Kyle@SouthBayBrokers.com

 

For real estate information, open houses, and FREE MLS access visit www.KeithKyleHomes.com

Homes and Real Estate in the Golden Hills of Redondo Beach

By Keith KyleGolden-Hills

Real Estate in the Golden Hills area of Redondo Beach

Located just east of Hermosa Beach, the “Golden Hills” section of Redondo Beach offers great home values for the South Bay. The homes in the Golden Hills are affectionately known as the “tall and skinnies” and many offer great square footage for much less than in neighboring Hermosa and Manhattan. Redondo Beach offers great schools, proximity to the beach, and an abundance of activities. Home prices generally range from the low $700,000’s to over $1M for new construction and the homes are usually 3-4 bedrooms.

View Current Golden Hills Listings

Find your home in the Golden Hills with our simple targeted home search , visit our Redondo Beach real estate information to search by home type, price or neighborhood or search on your own with our free MLS access. If you are looking to buy or sell a home or investment property in the Golden Hills….we can help. Find out why South Bay Brokers should be your Golden Hills Realtors®. From new construction, to “tall and skinnies” to townhomes and condos, we can help.

Free Targeted Golden Hills Home Search

Know about New Golden Hills Homes First with Daily Email Listing Updates

Off Market and Pocket Listing Updates

  • Tell Us About Your Ideal Home

 

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Is the South Bay Real Estate Market Slowing Down?

If August home sales numbers were any indication the market is continuing to go crazy, but from on the ground experience the South Bay real estate market is beginning to slow down a bit.   There are likely several factors that seem to be driving this slowing market:

  1. Seasonal changes:  The market always slows a bit once schools are back in.  Summer home buyers eager to get a home in certain school districts keep the market buzzing in June, July and August.
  2. Interest rates:  While still historically fantastic, it’s taking buyers a little while to grasp that we’re no longer likely to see rates in the 3% range, or even the mid to low 4% range.  Rates had to adjust and although rates are still tremendous, borrowers are still suffering from a lowest rates ever hangover.  In time the current rates will become the new normal and buyers waiting on the sidelines will once again jump into the fray.
  3. Prices:  August year over year prices in the area neared a 25% gain….in just a year.  That’s a pretty incredible increase and between the increases and many buyers frustrated with a market stacked against them have decided to sit it out for a while and hope that we eventually reach a balanced market.

Whether all of this indicates a trend towards a cooler market, or is just a temporary correction remains to be seen, but either way 2013 has been one of the quicker rebounds in real estate that we’ve ever seen.

HB-16th-Street-4th

July 2013 Home Sales in The South Bay – By the Numbers

July was a record month in many South Bay cities as we saw a multi year high number of new listings, pending homes sales and closed home sales.  This may be the increase in home inventory that eventually balances the market as opposed to the drastic seller’s market at the moment. Keith Kyle realtor South Bay Brokers for sale sign

El Segundo  –                      Active Homes for Sale 18   –   Pending Home Sales 14   –   Closed home sales 16

Hermosa Beach   –             Active Homes for Sale 31    –   Pending Home Sales 25    –   Closed home sales 29

Manhattan Beach  –          Active Homes for Sale 68    –   Pending Home Sales 37    –   Closed home sales 45

Palos Verdes Estates  –     Active Homes for Sale 42    –   Pending Home Sales 18    –   Closed home sales 27

Rancho Palos Verdes  –    Active Homes for Sale 101   –   Pending Home Sales 56    –   Closed home sales 44

Redondo Beach  –             Active Homes for Sale 102   –   Pending Home Sales 104   –   Closed home sales 110

Torrance  –                         Active Homes for Sale 159   –   Pending Home Sales 129   –   Closed home sales 158

So What’s All the Fuss about Pocket Listings in Redondo Beach

With the extremely tight inventory of homes for sale in the South Bay, many buyers approach me looking for off market, or pocket listings.  Pocket listings and exclusive listings are the hot trend at the moment as eager buyers clamor for a chance to purchase a home without all of the competition.    In this market knowing about it first may not ultimately make a difference, but it certainly helps.  Many agents seem to be trying to keep listings private as well in the hopes that perhaps they can represent both buyer and seller, which is much easier if fewer agents know that the home is for sale.  So what do the terms actually mean?  A pocket listing can be anything from a realtor simply knowing about a home that a seller might consider selling and not having a listing agreement, to something coming to the market but not yet on the MLS, to the intentional withholding of the listing from the MLS.

But is it beneficial to the seller?  In terms of price, exposure, etc. the answer is generally no.  The more exposure the home gets, the more potential buyers see it, and the likelihood that it will sell for a better price and with more favorable terms for the seller.  Eliminate that competition and generally speaking the chances of such favorable terms decrease.

There are very legitimate reasons for exclusive or “pocket” listings and for keeping the property off the market…..work being completed, tenant issues, or simply a seller who doesn’t want the world touring their home.  Seller’s just need to be sure that the reasons for keeping a home off of the South Bay MLS are beneficial to them….and not just to the listing agents.

Whether keeping a listing from the MLS is good or bad for the seller ultimately depends on the situation and whose best interest is the primary reason, but working with a top local realtor who has the network and knowledge to seek out these possible opportunities is certainly key for the buyer.

Subprime Real Estate Loan- Bolstering The Realtor Cause

Subprime mortgages are a necessity to break into the real estate market. Owning a house has long been regarded as an American dream, a really palpable scope that the economy can ideally provide to every toiling family. Various factors in the rigid financial mechanism drove the country’s housing market to pass through a dramatic bust and boom during the initial phase of 2000s. One of factors that effectuated both the dramatic rise and fall of the market happens to be the tricky lending module. These subprime loans enable those with shaky/low credit ratings to secure home loans. The parameters can tantalizingly point towards unsecured loans, but they are not in reality.

About the system

Subprime lending is the practice of giving money to persons with a depleted or finite credit credentials. A common misconception regarding the term is about its referral to certain interest rates linked to the loans. The term invariably affirms the credit rating of a borrower. Such borrowers generally entail credit scores beneath the 620 mark. You need to note that most consumers entail land between the mid to high parameters of 600-700s. However, during the real estate boom, there were many who could have qualified for a conventional home loan but instead opted for a subprime loan. This was due to the forthright mortgage broker mechanism. It approved loans too easily by not elucidating the comprehensive repayment terms. This shrouded things in obscurity, making them akin to unsecured loans.

Fundamental aspects

There are varying interest rates on the mortgages based on multiple risk-centric factors. These include the down payment amount, frequency of delinquencies alongside forms of delinquencies. Some enumerate a negative feature of the subprime system with the growth in accusations of lenders for target minorities. This practice of predatory lending enables lenders to feast on the inexperience of borrowers. They can overvalue your property, income or lie about the credit rating to set skyrocketing interest rates. The risky disposition is similar to the feasibility of unsecured loans, where lenders generally land up in the receiving end.

Feasibility quotient

In the aftermath of the real estate meltdown, there is no paucity of Americans who are keen on rebuilding their shattered finances. Subprime lenders are emerging once again in response to entail the classic subprime nit grid/trade-off. These are high-priced loans for every high-risk customer. The explosion of mortgage seizures/defaults in late 2006 vaporized a full ambit of subprime experts.

Modern high-risk lenders are different from their predecessors. They regard the previous mortgages as old-school. To be precise, a borrower’s collateral and down payments are clinical alongside the ability and income to repay. Subprime lenders are vigilant since they hold the loans on their own books instead of selling them to potential investors. The loans remain organically unsecured loans, though they differ in market movement. The lenders crave a private securities edifice for such loans.

Auxiliary precedents

Lender’s precedents for determining risk parameters can also rigorously effectuate the size of a proposed loan. It also entails the loan plan as well as repayment module. You have mortgage loan, traditional repayment loan, interest-driven loan, endowment mortgage as well as standard repayment types. These entail certain dogmatic resemblances of unsecured loans, which cater to credit card confinement and amortized loans.