Tracy King's Blog

Alright, Eagle Rock homeowners, we have proof that our real estate market is getting better. This is truly an amazing sale - and sets the new highest price per square foot for a three bedroom, two bath home in Eagle Rock since 2007! 2035 Ridgeview Avenue, located near Occidental College, features three bedrooms, two baths, completely upgraded and remodeled with style throughout:

We came on the market at $649,000 and received several offers. After a week we raised the price (causing many eyebrows in the community to do the same) to $724,900. Soon after that we opened escrow, with the requirement that there be no appraisal contingency because there were no comparable home sales like this home. No one thought it would appraise at the new asking price - little did they know what we were actually in escrow for!

This week we closed escrow and can finally reveal our sales price - $760,000! That is $562 per square foot (the average price per square foot for a three bedroom, 2 bath home in 2011 was $329). Not only that, but it did appraise for that amount. This shows what a great house with high quality finishes in a great Eagle Rock neighborhood can do.

The whole neighborhood will miss our sellers, but we are also gaining a fantastic new member of the community! And of course they may decide that Eagle Rock is the place to be (as we all know it is...) and work their magic on another home here.

Spring-time is commonly known as the "buying season," and we've definitely seen some more movement in the Northeast LA and Pasadena-area real estate market recently.  Home buyers are out there making offers on homes for sale.  In fact, several Eagle Rock homes have sold in multiple offers for over the listing price.  If you are thinking about making a move, this could be a great time to do so.  We'd be happy to sit down and discuss your home selling options, just call us for a consultation.  In the meantime - get ready to stand out from the competition with these spring cleaning tips:

		Center for the Arts Eagle Rock presents Ponce De Leon + A Balloon Drop & Pop Happening with Miggie Wong Saturday, March 3, 2012 2:00-4:00pm (doors open at 1:30pm) This is a FREE all ages event! Center for the Arts Eagle Rock 2225 Colorado Blvd. Los Angeles, CA 90041 Ponce De Leon: Made Up Songs From a Fake America High concept electro-punk band Ponce de Leon brings its baroque and bizarre music performance to Center for the Arts Eagle Rock with "Made Up Songs From A Fake America"- a selection of songs from a decade of taking strident liberties with the history of America. Balloon Drop & Pop Happening with Miggie Wong A created situation experiencing a collective silence during the drop and the collective explosion during the popping balloons. This project is supported by a grant from the James Irvine Foundation. MORE INFO

Today we went to see a charming brick apartment building located at 5119 Eagle Rock Boulevard and spied some fantastic views from the roof.  The 1923-built apartment building is for sale for $995,000, and has six studio apartments upstairs and five commercial units on street level.  The building has been refurbished by the current owner, and even has a back yard for tenants to use.  Want to see this great opportunity?  Call us at 323.243.1234 to schedule an appointment.

 

In case you were wondering how much your own housing situation would be affected by the big mortgage settlement: probably zilch...
Mortgage settlement is great — for politicians and banks Source: latimes.com I hate a parade. And the parade of rosy self-congratulation staged last week by the creators of the $25-billion mortgage fraud settlement with five big banks is the kind of parade I really hate.

We enjoyed a delicious meal at Halong Bay in Eagle Rock tonight - have you tried it yet?  Great atmosphere, delicious food (I recommend the grilled pork chop), attentive service, good selection of beer and wine, what else could you need!  Check it out next time you want to dine out in Eagle Rock.

If you’ve been sitting on the fence about whether to proceed with selling your house as a short sale, you should read the column by Lew Sichelman printed in the Los Angeles Times last week.

A short sale is a transaction in which the homeowner owes more on the home than they can sell it for on the open market. What is owed includes the mortgage debt owed to the lender as well as the closing costs they will incur when they sell, such as commissions, title and escrow fees, taxes, etc. The property can’t be transferred unless the lender agrees to take less than they are owed.

As the article points out, the 2007 tax relief law expires at the end of 2012, but short sales and foreclosures can take several months to complete. If you have been hanging on to your house, hoping for the market to return to 2007 levels so you can sell it, you may want to reconsider your strategy. In our market area of Northeast Los Angeles, Pasadena and surrounding communities, the average sales prices are mostly still down 20% to 30% from 2007 levels.

There are buyers looking for properties to buy now.  Mortgage interest rates are still very low. Inventory is very low. These conditions make it a perfect time to put your house on the market--if you can sell it for what the market will bring you.

Did you know that many buyers look at Super Bowl Sunday as the beginning of the Spring buying season? Now is the time to make it happen!

Cash buyers are exerting downward pressure on prices, according to a report in DSNews.com, quoting a study from HousingPulse Survey. This article points out that with distressed properties, the investors with cash dominate the market and that sellers often take lower cash offers because the deal can be closed faster with fewer problems. As a result, the first-time and FHA buyers are shut out of the entry-level distressed property market. This is a funny kind of capitalism in action. Free market means that the seller does not have to take the highest offer, they are free to choose a lower offer with cleaner terms.

But if you are a cash buyer and you want a really nice home, you don’t necessarily have the same influence on price. You may still get the deal, but only if you do offer the highest price. I could quote several stories over the last several years in which the winning bid in multiple offers was cash for homes that were not at the low end of the price range. I represented a buyer last year who purchased a couple of homes in La Canada and Pasadena by either paying cash or agreeing to no loan or appraisal contingencies. One of the highest sales in Eagle Rock last year was all cash, and this year I have seen cash buyers competing with each other on good properties, driving up the price as a result.

Where is all this cash coming from? Lots of places: investments that have been earning a fraction of a percent interest in CDs, sales of businesses, inheritances, divorces, lawsuits, and retirement accounts, even savings. Another source is the Bank of Mom and Dad, which sometimes is a gift and sometimes is a gift that is expected to be returned at some future time.

What does all this mean?

1. Don’t make the assumption that if you have cash you will always win at a bargain price.


2. Don’t believe everything you read about how bad the market is. There are a lot of people who are serious buyers today because they have faith in the value of real estate over the long term.  And a lot of them have cash.

When hard times arise, so does crime.

The latest real estate scam strikes at people who are struggling to find a home they can afford in a nice neighborhood.  The fraudulent “owners” find a house for sale that appears to be vacant, look up the owner's name, then advertise it on Craigslist or Hotpads or other free websites as being for rent for a really great price. The ad has an email/phone that goes to them, not the real owner. The “victim,” a.k.a. prospective tenant, is told to go look through the windows and see if they want to rent the property. Then they are advised that they can secure the property by sending a money order to a particular address.

If you think about it, this is almost as lame as the prince of some distant African kingdom needing your help to obtain his inheritance.  The prospective tenant goes to the property, sees the Realtor’s for sale sign, calls the Realtor and finds out that the deal is a scam, and does not send the money to the fraudulent owner.

One woman told us that she lead the scammer on for a little why and he told her to just peek in the windows of the house "since he is in Washington and his wife the "minister" is in Texas so they wouldn't be able to meet her.  He told her he would send her the keys and rental documents via overnight mail if she wired him $2400 through Western Union.

Here's the basic response that people get when they inquire on what looks like an amazing rental deal (click to view larger):

What can I do? I have reported the ad as a scam and the website has not removed the ad. I am not a detective or a law enforcement officer.  All I’ve thought of so far is to courteously tell every person who  calls me that it is for sale not for lease and to congratulate them that they are smart enough to check on a story that sounded too good to be true. And to write this blog to let you know what goes on out there.

The only thing that really can be done is to spread the word about these scams so people can recognize them when they happen.  Please forward this on!