Are Contingent Offers Starting to Be a Workable Strategy?

By Keith Kyle

In the past two months I’ve had three contingent offers accepted.  Not only were the offers accepted but my clients homes were not even on the market yet.  I spent much of 2017 submitting contingent offers for these clients only to be rejected time and time again.  Often times we were competing against 15-20 other offers and some were all cash….we didn’t have a chance.

So is that changing?

It may just be timing, luck or the right situation, but sellers seem to be considering contingent offers in the current Redondo Beach real estate market.  It’s key to submit a VERY strong offer in regards to price and terms, but sellers may be realizing that the buyer’s homes will likely sell fairly quickly.

For those that don’t know what a contingent offer is…..there are many situations in which a home buyer needs to sell their home to have enough money for the down payment and to qualify for the loan.  When you submit an offer that requires the buyer to sell their home to make it work…that’s a contingent offer.  It adds a whole additional level of uncertainty to the sellers of the home being purchased.  No longer is their just a home inspection, appraisal and loan on their house……but likely a home inspection, appraisal, and loan on the buyers sale as well.  The uncertainty is the reason most sellers won’t consider it unless it’s the only option.

In a sellers market with multiple offers and high demand, getting a contingent offer accepted is a long shot at best, but maybe the recent wave of acceptances is a sign that things are changing slightly.

Redondo Beach September 2014 Home Prices

The real estate market continued to show strong numbers in Redondo Beach CA with 88 home sales and a median home price of $785,000.  Housing inventory remained low and demand continued to be strong in Redondo.

City Homes
Sold
September
2014 Median
September
2013 Median
Year
over Year % Change
Carson 38 $363,000 $360,000 0.83%
El Segundo 9 $526,250 $730,000 -27.91%
Gardena 34 $365,000 $352,500 3.55%
Harbor City 13 $465,000 $375,000 24.00%
Hawthorne 35 $495,000 $473,500 4.54%
Hermosa Beach 17 $1,020,000 $1,032,500 -1.21%
Lawndale $400,000 $432,500 -7.51%
Lomita 8 $522,750 $430,000 21.57%
Long Beach 314 $420,000 $388,500 8.11%
Manhattan Beach 32 $1,950,000 $1,675,000 16.42%
Marina Del Rey 31 $797,000 $848,000 <-6.01%
Palos Verdes Estates 34 $1,575,000 $1,306,000 20.60%
Playa Del Rey 24 $534,050 $467,000 14.36%
Rancho Palos Verdes 51 $1,038,000 $1,053,000 -1.42%
Redondo Beach 88 $785,000 $750,000 4.67%
San Pedro 56 $448,250 $430,000 4.24%
Torrance 117 $530,000 $525,000 0.95%
Westchester 34 $869,000 $724,000 20.03%

July 2014 Median Home Prices for Redondo and the South Bay

By Keith Kyle

July 2014 saw some big numbers in terms of both number of homes sold as well as median prices.  Redondo Beach had 97 sold homes at a median price of just under $1,000,000 which is a pretty significant number for this coastal community.  Most other South Bay cities also saw some significant year over year increases in prices with the exceptions being Torrance, Marina Del Rey and Playa Del Rey.  To see the actual homes sales in each city visit our recent home sales price and information site.

City Homes Sold July 2014 Median July 2013 Median Year over Year % Change
Carson 48 $382,500 $350,000 9.29%
El Segundo 15 $872,000 $797,000 9.41%
Gardena 50 $385,000 $332,500 15.79%
HarborCity 13 $480,000 $465,000 3.23%
Hawthorne 51 $505,000 $400,000 26.25%
Hermosa Beach 26 $1,230,000 $1,097,500 12.07%
Lawndale 8 $412,000 $331,250 24.38%
Lomita 13 $555,000 $452,000 22.79%
Long Beach 330 $400,000 $365,000 9.59%
Manhattan Beach 43 $1,795,000 $1,521,250 18.00%
Marina Del Rey 33 $757,500 $862,500 -12.17%
Palos Verdes Estates 51 $1,600,000 $1,291,000 23.93%
Playa Del Rey 23 $507,000 $512,000 -0.98%
RanchoPalos Verdes 54 $1,069,000 $1,100,000 -2.82%
Redondo Beach 97 $865,000 $758,000 14.12%
San Pedro 49 $440,000 $420,500 4.64%
Torrance 142 $540,000 $576,250 -6.29%
Westchester 48 $777,500 $715,000 8.74%

Perfection in Manhattan Beach

This home recently sold for over our list price.

If you’re searching for the quintessential beach cottage…. welcome home.  This warm and inviting Manhattan Beach single level home is as charming on the inside as it is from the outside and has been extensively upgraded and expanded and embraces the feeling of life at the beach.   From the moment you enter the  home you are surrounded by a design inspired by coastal living and the beach lifestyle.  Perfect for entertaining, the kitchen opens directly to the living, family and dining areas and offers direct access to the private patio and backyard.   Features include oak hardwood floors throughout, beautiful gas fireplace, remodeled kitchen with stainless steel appliances, custom cabinetry and granite counters, remodeled bathrooms, expanded bedrooms, beautiful front and rear yards, partially covered patio, 2 car garage and so much more.  The home was expanded in the last few years and the owners took great pride in making every space larger and more livable.  Both guest bedrooms are large and bright and the master suite enjoys a walk in closet, beautiful bath, recessed lights and direct access to the backyard patio.  All this and Meadows elementary just 2 blocks away.

What’s so great about the Manhattan Beach “sand” section anyway?

By Keith Kyle

The answer to the question, “what’s so great about the Manhattan Beach sand section anyway?” can be summed up with 3 words……Location, location, location.

The “sand” section of Manhattan Beach gets it’s name from the proximity to the beach. The area stretches from Hermosa Beach to the edge of Manhattan known as El Porto. In this wonderful area you’re never far from the beach, often walking distance to shops, restaurants and bars, enjoy almost perfect weather, are treated to spectacular sunsets, and often have great ocean views.

The biggest drawbacks to this area are the price and the limited space as land is at a premium and just about every inch of lot is taken up by homes. Gone are most of the beach bungalows that actually fit on the lot and most have been replaced by larger and larger homes as wide, deep and tall as they can possibly be. Some of the unique areas are the “walkstreets” in which the homes front a pedestrian only “street” which allows for less noise, no cars, and a much safer atmosphere and the lack of cars make views that much more impressive. El Porto, the most northern area of the sand section, is the most affordable as many of the typical 30×90 foot lots were split and the smaller lots equal smaller homes equal smaller price tags.  Without question the most sought after property in the sand section are the very rare and always impressive homes located beach front on “The Strand”  These homes offer the high end luxury buyer endless and unblockable ocean views.

Sand Section Map

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