Archive for July, 2008
July 31, 2008
On Tuesday, July 29th, a 5.4 earthquake centered in Chino Hills hit at 11:42 am. Did you feel it?
I was in my Westchester home (46 miles from Chino Hills) at the time and didn’t feel a thing. My neighbors sure did though. (Maybe I was too busy packing boxes?)
So far, I’ve been through two major earthquakes (California native - you guessed it).
In 1989, the Loma Prieta earthquake measured a magnitude of 7.1. The epicenter of the quake was in the Santa Cruz mountains, about 60 miles southeast of my San Francisco home. If you’ve never been near the epicenter of a quake of that magnitude, let me describe it to you. At the time, I still lived at my parent’s two-story wood frame constructed home. I was on the second floor. I literally saw the walls sway back and forth about a foot and a half to two feet. (Or at least it looked that way.) I thought the house was going to come down. Well, I can tell you, the house is still standing there today and seems to be structurally fine.
In 1994, I lived in a high-rise apartment building in downtown Los Angeles. My memory is fuzzy now, but I think I was on the eighth floor. That was when the Northridge earthquake occurred. It had a magnitude of 6.7 and the epicenter was about 25 miles away. I woke up in the wee hours to hear the sound of crunching metal. The power had just gone out, so all I could do was sit up in bed and hope that the objects hanging from the wall stayed there (they did) and that the building stayed intact (it did).
This topic isn’t specifically related to real estate. But everyone here lives somewhere - an apartment, a condo, a house. And someday, we’ll have another big shake, rattle, and roll. So I thought I’d compile a few resources for what to do so you’re prepared in the event of “The Big One.”
1. The Daily Breeze has a great article detailing all you need to know, including what food supplies you need, how to keep in touch with loved ones, and how to create your own emergency water supply.
2. If you’re looking for what to do before, after, and during an earthquake, FEMA has tips on checking for hazards in the home, what to do whether you’re indoors or out, and what you should do after a quake.
3. If you want a way to teach the kiddies what to do in the event of an earthquake, try the Red Cross for educational materials.
If anyone has an earthquake story to share, please do. I’m sure some of you out there have some interesting ones.
Here are some prices that are shakin’ down in the LAX area.
6660 W. 85th Pl./4bd, 1.75bth/$759,000 to $739,000
5806 W. 74th St./2bd, 2bth/$749,000 to $699,000
6431 W. 85th St./2bd, 1.75bth/$699,000 to $679,000
July 30, 2008
There are no July home sales to date in the Montrose area of north Glendale, and I found only two June sales in my search on Redfin. There were 23 sales altogether, most occurring in May, with an average sale price of $342 per sqare foot.
Here are the two June sales:
3531 Rosemary Avenue
$745,000 (sold 6/10/08)
$450 per sq.ft.
Last sold in 1998.
1721 Broadview
$540,000 (sold 6/2/08)
$387 per sq.ft.
Last sold for $551,538 in April 2008; this is likely a foreclosure sale.
South of the 210 freeway, there are 25 active listings in Montrose, but only two (listed below) are close to the price of a starter home. The third and final listing here has been on the market for almost six months.
Averages
Listing price: $669,000
Price per sq.ft.: $433
Days on market: 88
2743 Sycamore
$459,000 (originally $479,000)
2 bed/1 bath
850 sq.ft.
$540 per sq.ft.
On Redfin 12 days
No recent sale records.
3018 Manhattan Avenue
$509,900 (originally $529,000)
2 bed/1 bath
1,750 sq.ft.
$291 per sq.ft.
On Redfin 40 days
The listing states this is a “Fannie Mae owned property,” and “approved for express path financing.”
2752 Sycamore
$710,000
3 bed/1.75 bath
1,547 sq.ft.
$459 per sq.ft.
On Redfin 187 days
This last sold in 2005 for $500,000. It was extensively remodeled in 2006.
July 30, 2008
If you’re familiar with the ABC show “Extreme Makeover: Home Edition,” you know that it builds homes for families who have fallen on hard times. The Harpers of Lake City, Georgia, were one such family who wrote to the show in 2005 about their predicament: Whenever it rained, a defective septic tank would fill their home with raw sewage.
In response, the show mobilized 1,800 volunteers, who spent a week tearing down the Harpers’ old home and building a gigantic four-bedroom, three-bath house. The family was also given money to pay their real estate taxes for 25 years, plus college funds for their children.
It was like the Harpers hit the lottery. But, like many lottery winners, they weren’t prepared to handle the sudden wealth.
Next week, the Harpers’ dream home is scheduled to be auctioned off on the Clayton County courthouse steps. From The Washington Post story:
The Harpers had used their home as collateral on a $450,000 loan from JPMorgan Chase and fell in arrears, [the Atlanta Journal-Constitution] reported. He ran a home security business; she mommed at home. Happy to be on television back then, they declined to be interviewed last week, when a news crew showed up from local station WSB, wanting to know wha’ppen.
The comments this story is receiving on blogs aren’t very kind, calling the Harpers greedy and stupid, among other things. Even the town’s mayor, Willie Oswalt, chimed in: “It’s aggravating. It just makes you mad. You do that much work, and they just squander it.”
What happened to the Harpers is pretty similar to what happened to a lot of people during the housing boom: They succumbed to temptation. They saw a pile of money sitting there, and they couldn’t keep their hands off it.
Every day, we’re bombarded with images of people who live the good life, who take big risks and reap big rewards. We’re told we should designer clothes and designer cars and designer accessories. For people who struggle every day just to make ends meet, the desire for an better life must be powerful.
It’s a shame the Harpers didn’t take a more conservative approach to their new lives. I’m sure they’ll regret it forever. But they’re not the only ones who are clueless about money, and they’re not the only ones who borrowed recklessly against their home — with help from a willing lender.
Recent Redfin posts:
Free Dodger Stadium Trolley Debuts, but 50-Year Plan Ignores Transit
The Standoff
No Takers at Larchmont Lofts
July 29, 2008
You’ve got to admire whoever bought this house. He or she still believes in the power of Los Angeles real estate.
In the midst of one of the worst real estate downturns in recent memory, this buyer took one look at 429 N. Arden Blvd., in east Hollywood not far from Larchmont Village, and saw an opportunity to pocket some fast cash. 
Our buyer closed escrow on this single-family home on March 14 and immediately got to work on a total remodel. Not even three months later, it was back on the market, with four bedrooms and three bathrooms in 1,860 square feet, for $1,449,000. Earlier this month, it was reduced to $1,395,000.
Sure it has a cook’s kitchen with custom counters and Viking appliances, Toto dual-flush toilets (whatever that means) and new custom windows throughout, but will there be any takers in this market?
Turns out there are two nearby homes that have gone for well over $1 million. That was a few months ago. But, hey: Two of the places have only one bathroom. Maybe our flipper isn’t so crazy after all.
346 N. Gower St.
Sold for $1,104,000 on 1/31/08
3BR/2B/1,736 square feet
554 N. Larchmont Blvd.
Sold for $1,350,000 on 3/6/08
3BR/1B/1,436 square feet
327 N. Beachwood Dr.
Sold for $1,510,000 on 3/28/08
3BR/1B/1,691 square feet
July 28, 2008
This low-mileage review covers a local sports venue instead of real estate, but those looking to buy a home in Glendale or Pasadena will be affected by Dodger game traffic if they drive between downtown Los Angeles and the two cities to the north, so excuse the digression, and be warned.
Blogdowntown reported that many fans lined up to catch the first free trolley to Dodger stadium July 25; city officials rode along as well.
The trolley is great news for those of us living farther from the stadium than this intrepid writer, who recently decided to walk two miles to a game instead of driving to the parking lot.
Dodger fans using the service will save a few dollars on parking and gas, but I doubt it will noticeably reduce pre- and post-game gridlock. Eliminating that will take a full-scale transit plan, which does not appear in the Dodger’s “Next 50″ initiative, as blogger Militant Angeleno points out.
Militant Angeleno also wrote that he and other trolley riders didn’t get out of the stadium parking lot any faster than fans driving their own cars on Friday night. Perhaps the Dodgers could clear a special lane for the trolley so riders can save time as well as money.
As I wrote, the trolley service is great news. However, it does not remove the bottleneck that baseball games create in the surrounding neighborhood. The Dodgers’ five year renovation plan includes a new entrance, plaza, restaurants, shops, a museum space, a central ticketing facility, and two terraced parking structures. So within five years, cars will be stacked vertically as well as horizontally, and there will still be no clear alternative to parking.
Why not reduce the number of parking spaces (as Pasadena appears to be considering for its business districts), and increase the number of transit options for fans coming from all directions? That’s certainly more appropriate for a plan intended to take the Dodgers through the next 50 years.
As for bike parking, a StreetsblogLA cyclist at first couldn’t locate the bike racks at Dodger Stadium. When they were located, this post reported they were right next to the designated smoking area. Again, a plan for the Dodgers’ next 50 years should take the growing population of cyclists into account.
I will suggest another building project for the plan, one I’ve seen in place at other major league ballparks: a Little League field, complete with stands, snack bar, restrooms, and scoreboard, built on the grounds of the parking lot. It will further reduce parking lot area, add green space, and give neighborhood leagues another available field.
July 28, 2008
Yesterday, I wrote about my efforts to get the buyer’s agent to remove all contingencies. Here’s a little update on how it finally played out.
July 26th, 5pm: My agent calls. She has let the buyer’s agent know that I would indeed cancel the sale if they did not remove contingencies as required.
July 26th, 5:30pm: The buyer’s agent calls and then assures me again that the deal will go through. He’ll have the signatures for me at 10:00am on Sunday.
July 27th, 10:15am: I call the buyer’s agent. He says he’ll be by my home in half an hour.
July 27th, 10:45am: I call the buyer’s agent again. Yes, he’s coming, he says. (Perhaps I should put him on speed dial?)
July 27th, 10:55am: I call the buyer’s agent a third time, inquiring about his whereabouts. He says he’s on his way and then hangs up the phone quickly. (Ouch!)
July 27th, 11:00am: The buyer’s agent shows up. He has all the paperwork, but insists on a trade-off. I need to sign for an early closing date in order for him to remove contingencies. He explains the buyers need to close early in order to lock in their rate. Reluctant (as usual), I sign.
From what I understand, the prolonged contingency period seemed to have to do with the buyers getting the loan and/or rate they wanted. Oh, and of course there’s that big deposit they’d have to forfeit once they removed contingencies. If anyone here has a better idea, feel free to drop a line.
Oh, and here are some just-listed properties in the LAX area.
Just Listed in Playa del Rey: 8650 Gulana Ave., #L2168/1bd, 1bth/$329,500
Just Listed in Playa Vista: 13173 Pacific Promenade, #224/2bd, 3bth/$768,000
Just Listed in Westchester: 6431 W. 85th St./2bd, 1.75bth/$699,000
July 28, 2008
Yes, this is a real estate blog, but since many would-be homeowners (like me) are renting until prices become more manageable, some of us may have to brush up on landlord-tenant rights.
We recently moved out of our very nice Beverly Grove apartment, where we had lived since moving to L.A. last year, to a Miracle Mile duplex. Why did we move after living there just over a year? Well, we were paying $2,850 per month for a place with no yard and no air conditioning, and contrary to popular belief, sometimes you DO need air conditioning in L.A. (We’re newcomers.) Our new place has a yard and two window units for $2,400 per month.
We were ideal tenants: We paid our rent on time, and, as lifetime homeowners, we treated the place like our own. We thought we had a good relationship with our landlord, who seemed like a decent person, if a bit emotional.
When we gave our 30 days’ notice at the end of May (by email, with a note saying how much we’d enjoyed living there), the landlord asked whether she could show the place to prospective tenants. We wanted to be helpful, so we said we would. We knew the market was tough, so we accommodated her at least a half-dozen times when she wanted to show the place on short notice (I’m told you’re supposed to give 24 hours’ notice). But the place didn’t get rented. (In fact, it still wasn’t rented as of a few days ago; she first advertised it for $100 more than she was getting from us, which was WAY too high, and she’s been too slow to lower the price.)
We moved out June 25; I told her she could show the unit without calling me after that. On June 28, while I was cleaning the place, she stopped in with a prospective tenant. We were out two days early.
After we left, things got a little strange. First, there were the emails about the kitchen cabinet stain. Where had I put it? Um, what cabinet stain? No idea what you’re talking about here. The cabinet guy left it with me, she said. What cabinet guy? I said.
Then, a week later, I got an email — basically, one somewhat incoherent sentence, all capital letters (the email equivalent of yelling) that accused me of stealing the under-the cabinet slide-out kitchen trashcan. I told her that the trashcan was in the storage unit when I left, which it was. At this point, I was getting a bad feeling.
California landlords have 21 days to return your security deposit to you. Ours arrived on Day 22 — and with $600 missing — along with a form listing the deductions.
Cleaning: $200
Painting touch-ups: $100
Water spots on cabinets: $100
Scratches and discoloration of wood floors at entry: $200
This development necessitated a reading of the California civil code pertaining to security deposits. It was pretty clear that landlords aren’t allowed to charge tenants for wear and tear. Painting is unquestionably wear and tear. Since we didn’t do anything out of the ordinary while we were there, such as dragging a rake over the entryway or spraying the kitchen with water, those have to fall under wear and tear as well. And I cleaned the place on June 28, as she herself witnessed.
Furthermore, if I’m reading the code right, she’s supposed to provide detailed receipts that prove that the repairs were made and describe what needed to be done. That didn’t happen.
I sent her a certified letter telling her to fork over my money by August 1. If that doesn’t happen — and I doubt it will — I’ll file in small claims court to try to get it.
Since this happened, I learned that there are all sorts of things I should have done to protect myself that I didn’t do — like move-in and move-out checklists — because I thought this woman wasn’t the type to screw us over.
Either way, the $600 isn’t going to kill us. And maybe some people would just shrug and say, “Oh, well.” But I’m not going to do that. It’s not right. And it’s not OK.
So if any of you have any experience with this, or any insights or suggestions you can offer, I’d appreciate it.
Recent Redfin posts:
The Standoff
Glendale Library Connection Opens Saturday in Adams Square
Downtown’s Deco Developer
July 28, 2008
Great post by our friends at Curbed LA last week about the new condo development at Melrose Ave. and Larchmont, Larchmont Lofts. These are luxury units originally priced from $750,000 to $1.25 million. Guess how many got sold? Zip. None. Nada.
This isn’t the first Hollywood-area condo development that’s run into trouble, and it probably won’t be the last. Many of them hit the market right before or just after it peaked. They may have seemed like a good idea at the time, when prices were rising every month, but now they seem drastically overpriced, especially without the exotic mortgage to get you in the door.
So the developers, in an effort to get some cash flow, are offering to rent the units for $3,200 to $5,000 per month. In other words, a mortgage payment without the down payment.
I’m not confident about this plan. Not only is the rent very high, but the condos’ location on busy Melrose, a longish walk from Larchmont Village, isn’t all that desirable — at least not in that price range. Check out the comments on the Curbed LA post on the subject; they’re pretty entertaining.
Meanwhile, some single-family homes in the area seem to be selling some — and fetching decent prices.
600 N. Lucerne Blvd.
Sold for $694,787 on May 29, 2008
2BR/1B/1,518 square feet
Notes: This weird price means it’s most likely an REO.
646 N. Arden Blvd.
Sold for $730,000 on March 3, 2008
2BR/1B/1,578 square feet
584 N. Cahuenga Blvd.
Sold for $975,000 on 6/27/08
3BR/2B/1,647 square feet
July 27, 2008
Last week, I wrote about my experience haggling with the buyers over flashing. I got an overwhelming response that I should just pay the few hundred dollars to ensure the sale. And I spent the better part of the day (and the next), blogging about why I felt I was making the right decision in refusing to pay the requested repair costs.
Well, last week on Tuesday, I went into a sudden and sure panic because the buyer’s agent was unreachable for two days. And Tuesday was the deadline to remove all contingencies. Contingencies, in case you aren’t aware, are the items in the real estate deal that must be met for the deal to go forward and close. (Keep in mind I’m not an agent, so if an agent here wants to provide a better explanation, please feel free.)
Here’s a little play by play:
July 22nd, 5pm: My initial confidence over negotiating the repairs fades fast. As of 5 pm on July 22nd, I’m sure the deal is dead. After several attempts by my agent to reach the buyer’s agent, we make the next move. We send over a form called the “Notice To Buyer To Perform”. It basically says, “Respond within 48 hours or we will cancel the sale.”
July 23, 10am: I get an email from escrow saying that the buyer’s paperwork was received on the 22nd. Hold on. Perhaps there’s hope yet?
July 23, 2pm: My agent sends me an email. She asks that I call her. I do and leave a message on her voicemail.
July 23, 3pm: My agent calls. The buyer’s agent is found - in Sin City (Las Vegas). No, he’s not gambling away his yet unearned commission. He’s at a real estate convention. And, his message is that the deal is going forward. Everything, including the repairs that I agreed to make has been passed on to the client. And the buyer is “not happy”, but what the heck - the deal is on. The glitch? He’s not able to remove contingencies until he gets back into the office on Saturday, the 26th because of lack of access to communications. I tell my agent it’s not acceptable and please relay the message.
July 23, 3:30pm: The buyer’s agent calls me. (Wow, suddenly it’s really easy to communicate from Vegas!) He explains the deal will go through. He says he’s good for his word. And he assures me he will send a fax on Saturday morning that removes all contingencies. I accept his verbal promise (though hesitantly).
July 26th, 10:00am: I shoot off an email to my agent to contact the buyer’s agent to remind him to remove the contingencies.
July 26th, 12:30pm: I’m frustrated. There is no fax to be found. I contact my agent again to remind the buyer’s agent about removing the contingencies.
July 26th, 3:30pm: I talk to the partner of the buyer’s agent who assures me she has no idea what they’re doing. (That’s real helpful.) She says she’ll pass on the message.
July 26th, 3:35pm: Quite miffed at the buyer’s agent lack of response, I send an email off to my agent telling her to pass on the word again that they need to remove contingencies ASAP. I even hint that they may be causing the deal to fall through. (I know, I know.)
So what happens? Stay tuned. (I know I am.)
Comments? Think you know what happened? (Please keep them constructive.) Thanks.
July 25, 2008
Redfin readers looking for starter homes under $500,000: check out the walkable, mixed-use neighborhood of Adams Square, which is along both Beeline and Metro routes. Glendale’s new branch library at the square opens to the public tomorrow, Saturday, July 26 at 1:30 p.m. The Adams Hill Homeowners Association home page has details on the library party and on the neighborhood.
The library building is a visual anchor for the surrounding small business/residential district. The bottom-line benefit to local business remains to be seen, but aesthetically it is very positive. The benefits to residence include wireless access, internet stations, and an all-new Glendale Public Library facility with city-wide staff dedicated to keeping current on both technology and outreach. The Glendale Public Library blog stays current with reading lists, book reviews, and author quizzes.
Residents here successfully fought to have a mini-park located near the square; its central feature is a very small Art-Deco service station dating from the 1930s. Completed and dedicated in November 2007, it was documented and photographed by a transplant to Adams Hill in his Franklin Avenue blog.
The Glendale News Press reported on July 24 that the median sale price for Adams Square homes in June reached $440,000, a 32.2 percent drop from last year. Nine foreclosures in this neighborhood were recorded in the second quarter of this year.
Two Adams Square foreclosures are listed on Redfin:
1445 Marion Drive
$413,250 (originally listed at $470,000)
2 bed/1 bath
1,311 sq.ft.
$315 per sq.ft.
On Redfin 66 days
This is classified as a fixer-upper, and the listing says it “potentially has some un-permitted additions (buyer to verify permits).”
1505 Wellesley Drive
$250,000
2 bed/1 bath
866 sq.ft.
$289 per sq.ft.
On Redfin 84 days
This bank-owned property is being sold for land value only, strictly as is, cash offers only.
For buyers not interested in building up sweat equity, here are a few listings, including some starter homes under $500,000, that sound move-in ready:
1022 E. Windsor Road
$450,000 (originally $525,000)
2 bed/1 bath
1,303 sq.ft.
$345 per sq.ft.
On Redfin 123 days
1416 E. Garfield
$475,000
2 bed/1 bath
928 sq.ft.
$512 per sq.ft.
On Redfin 19 days
This is a probate sale with no court confirmation necessary.
1203 Princeton Drive
$479,000 (originally $549,000)
2 bed/1 bath
1,128 sq.ft.
$425 per sq.ft.
On Redfin 177 days
This listings says “subject to bankruptcy court approval. property sold as-is.”
1125 Princeton Drive
$599,000
3 bed/1.5 bath
1,460 sq.ft.
$410 per sq.ft.
On Redfin 70 days
This 1929 2-story Spanish home, just a few blocks from the library, has hardwood floors, coved ceilings, and a remodeled kitchen.
1273 Crescent Drive
$795,000 (originally $839,000)
4 bed/2.75 bath
2,419 sq.ft.
$329 per sq.ft.
On Redfin 94 days
This 1929 Mediterranean home has tiled steps, an updated kitchen, and a living room with period details.
