Blake and Diana Homes | high-torque real estate sales and marketing

South Bay Home Sales, February 10 to March 9, 2010, with Manhattan Beach focus

NOTE: if you don't want to read the following prose and just want to see the numbers, you'll find my graph at the bottom of the blog entry. 

South Bay real estate sales have been painfully hot over the last 30 days, with Manhattan Beach's 34* sold single family homes, representing over $56,000,000 in inventory, reigning king in the three beach cities that also includes Hermosa Beach and Redondo Beach. 

Looking at the numbers, it's clear that the Manhattan Beach real estate market is in a league of its own. From first hand experience, we represented three buyers during this sample period and each of our presented offers was met by multiple buyers vying for the same property.  Real estate blogs, news papers and financial experts tell the country that we're in a buyer's market—not in Manhattan Beach. Homes that are priced correctly, have updates and are in a "B" location or better are selling. I don't know if this will become an ongoing market trend, or if we're experiencing an anomaly based on pent-up demand, time will tell. 

For now, it's war! The buyer who is willing to fight through the multiple offer battle and put together the most compelling offer wins. 

Our recommendation if you are looking to purchase a home in Manhattan Beach

First and most importantly, only your agent can give you a true picture of the steps that you'll need to take to get the home you're going after. Sites like Redfin, Zillow, Turlia and others never take into account the sophistication of miro-markets like Manhattan Beach, especially homes West of Sepulveda. 

Even if you are a professional negotiator by trade, real estate sales represents a unique and emotional path from offer to acceptance. Trust your agent to decipher the seller's motivation, gauge the overall interest in your subject property, and best case selling price. Unless a home has been on the market for 100's of days, forget the "lowball" offer, it probably won't work for you. In fact, many top agents refuse to put a lowball offer out as it usually upsets a seller and can damage an agents reputation within the real estate community, definitely a slippery slop on all fronts. 

What's the difference between a Pending Sale and Backup offer?

Sorry, there's no simple answer here. From a 5,000 foot perspective, the pending sale is considered to be a little bit more solid, more of a sure thing. When an agent and seller are soliciting a backup offer, they're either concerned that their buyer may not be able to preform on their purchase, or they're simply playing it safe and trying to make sure that if their current deal goes south, that there's a backup deal ready to slide into the first position. Considering that over 25% of all deals fall apart for one reason of another, soliciting backup offers is a pretty prudent path for many home sellers. If there's a home you really like that shows as being in Backup Offer status, have your agent dig into the particulars to see if it's worth puting something down in writing. 

Interpretation

It's way too early to call the market bottom, but the indicators are sure there. It's also interesting to note that the dramatic rise in activity fits the South Bay's normal, annual sales cycle, which accelerates in February and then peaks towards July. We don't anticipate housing prices going up dramatically, but the multiple offers we've been seeing will definitely push the overall market towards larger numbers. On the other side of the sales increase are the homes that are overpriced and sitting. More common than not, this group of sellers purchased at the peak of the market between 2006 and 2007, and are now underwater on their home's value. If the majority of these sellers accept a financial loss in equity or through a short sale, we'd see more sales at prices that could slightly reduce the comparables. On the REO front, homes like 660 33rd and 1026 Duncan are seeing loads of activity and the selling banks are looking for top selling dollars. Word on the street is that 660 33rd sold for well over $2,000,000 and had multiple, super qualified offers. 

Because the economy is not stable, and won't be for years to come, real estate sales will continue to be astronomically influenced by the daily news of the world. Commercial real estate, a double-dip recession, and other financial events that could easily become more than blips on the economic radar need to be watched closely. 

 *there are several additional home sales, including 660 33rd, that sold during this period. However, as they are still represented at Active on the MLS, I have not included them within my analysis. 

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624 Catalina, South Redondo Beach | Video Tour

The video is HD content—click YouTube's full-screen button and pick 720p HD resolution for a better viewing experience. 

About 624 Catalina A+, West of PCH location. This newer, detached townhome was completed in late 2005 and is located in one of South Redondo Beach’s most desirable neighborhoods. This three bedroom home has an oversized master suite with fireplace, vaulted ceilings and a spa-like bath with Jacuzzi style tub. On the ground floor are two large bedrooms with a full bath, laundry area and two car garage with storage. The master suite is on the second floor along with the chef’s kitchen, formal dining area and a great room with a three sided fireplace, which leads to a large, west facing balcony with gas and water services. On the third level is a loft with its own balcony, an ideal location for an office, play area or media den. Just one short block to the beach and a 10 minute walk to Riviera Village. Building features and materials include: granite counters, travertine floors, GE Monogram appliances, wrote iron rails, plus vaulted ceilings. The unit is wired for technology and surround sound. Basis specifications and features Asking Price: $989,000 Built: late 2005 3 bedrooms, 2.5 baths 2,380 square feet of living space Detached, front unit. Feels like a single family home. Only two units in project Inactive HOA, no monthly dues GE Monogram stainless appliances 2 balconies Soft water system Loft with ocean view

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The Right Price Generates A Swarm Of Offers

606 Esplanade number 3, in South Redondo Beach, is a bank owned property that is attracting buyers like bees to honey. Listed for sale with Remax's Marquee Partners in Santa Monica, this two bedroom, ocean view townhome is on the market for the extremely attractive price of $655,000. And although the unit is dated and time-capsuled to the year it was built,1990, they have received 12 offers in the last 24 hours.

What this tells us about the market

• there are at least 12 active buyers who are looking for a South Redondo beach townhome in the $700,000 price range
• As a Bank Owned home, a percentage of the 12 offers are hoping for a significant deal. With 12 offers, we can only assume that the final price will be easily driven up into the $700,000's. Still a good deal considering this home's location and views.
• 11 buyers will still be looking for a new home by week's end

Even in the best of times, we can't remember a time when there 12 quality offers on a home (and counting.) Yes, we too had an offer to contribute, but our client decided that he didn't have much appetite for this home at a $700,000 plus number. 

I'm not sure if I should interpret this home's activity as a sign the the market is turning the corner, or that there's been pent-up demand for a townhome deal below PCH in Redondo Beach. But I can assume that there's probably another 10 buyers, like ours, who decided that they didn't want to jump into uber competitive rounds of negotiations. 

Was this the listing agents strategy? 

Sorry, I don't know this agent beyond a couple of brief phone calls. What we do know is that the home was priced well below market, hence the 12 offers. Listing below market is always a gamble because you never know if your pricing will generate the number of offers you need to push the price back up into normal zone. For this property, by either luck or skill, the agent has priced it perfectly. The final number the home sells for will be a nice surprise for everyone.

How to counter a low real estate offer!

Read More: How to make a low ball offer that works,  How to negotiate the sale of your home

When you list your home for sale, you envision a final sales price that is a blend on your hopes, recent area comps, and your overall motivation. However, when a potential buyer submits an offer that is well below your worst case scenario, how should you react? 

Keep in mind that your next step should be part of a negotiation strategy. If you're able to do it, emotions have no place here. It's simple math. You want "x" and you've been offered "y." But, most buyers who start low are willing to come up. As much as they hope you'll accept their first offer, protocol says that this is just a starting position. 

There are three possible responses you and your agent can put together:

• Ignore the offer number and counter back at a number that makes sense to you, based on the market and your agent's recommendations. 
• Respond back at nearly your asking price or at asking price. This is the least favorable path because it sends a very strong message that you're not willing to negotiate. We sometimes refer to this response as an "FU" response. This doesn't mean the deal is dead, it just tells everyone that there's a lot of emotions driving the decision making process
• Reject the offer without a counter. On page 8 of the Residential Purchase Agreement is a spot for the seller to reject the offer outright. If it's particularly low, some agents will scrawl "Rejected" across the page to send the potential buyers a loud message. Unlike the "FU" option above, this response sends three messages: 1) you're not willing to waste your time with this particular offer; 2) that you and your agent believe this buyer will NOT step-up and negotiate to a middle ground that is acceptable to both sides; 3) that if you, the buyer are really interested in this property, come back with a real offer. This option is only appropriate in situations where you're sure the buyer is playing a game or simply testing you. 

Because every deal and offer are unique, it's important to weigh-out all of your options before you respond or reject. We prefer to keep the ball in the air with most offers, especially those that are backed by solid financing. In most cases we would encourage you to make a good faith counter, which then puts the offer back into the buyers hands to respond. If they respond back at the same low starting position, then maybe it's time to cut bait. 

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Just Sold | Units A and B | 721 North Lucia | South Redondo Beach*

Wonderful ocean view, detached townhomes, 2009 built. Without a doubt, these are the nicest townhomes available, dollar for dollar, in the South Bay. Top quality, amazing fit and finish, roof deck and some of the best views to be found are just a few of the projects highlights.

Note: Representing buyers on these transactions. 

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New to Redondo Beach? Phone list of top Service providers

Ever wonder where to find a quick list of Local Service Provides for things like electricity, cable tv, trash etc., in Redondo Beach, 90277 and 90278?

Click here to be linked to the City of Redondo Beach's website. It has the what you're looking for! <<-- click here

Open House 1 | 624 Catalina, Redondo Beach. This Weekend

624 South Catalina, South Redondo Beach, will be held open this weekend, both Saturday and Sunday.

Saturday: 1:30 to 4:00

Sunday: 11:30 to 2:30

About the Home:

A+, south of PCH location. This newer beach townhome was completed in late 2005 and is located in one of South Redondo Beach's most desirable neighborhoods. Not typical by any means, this three bedroom home has a large master suite with fireplace, a spa-like master bath with Jacuzzi style tub, plus a wonderful and open floor plan. On the ground floor are two large bedrooms, laundry area and two car garage with storage. The master suite is on the second floor along with the chef's kitchen, formal dining area and large family space, which leads to a nice and open balcony. On the third level is a loft space with its own balcony, it's an ideal location for an office, play area or media den. 

KEY FEATURES OF THIS HOME INCLUDE: 

• Three bedrooms, large master suite with spa-like master bath
• 20 foot ceilings above kitchen, dining area and part of living room 
• Travertine floors
• Granite counters
• Blue water ocean view 
• Alder cabinets
• GE Monogram appliances
• Artisan wrote-iron rail work throughout
• A super cool loft/office area
• Smooth stucco exterior finish
• Two car garage with three storage lockers 

ADVANTAGES OF THIS HOME:

• Great location
• Newer construction
• Easy beach access
• Detached townhome
• Walking distance to Redondo Beach pier, Riviera Village, restaurants and shops

PRICING and OTHER INFORMATION

• Attractively priced at $1,049,000 
• For more pictures and additional info, view this property via the South 

Weekend open houses | May 16th and 17th

Open House 1 | Saturday Only, May 16th | 2 to 4 pm

717 Poinsettia, Manhattan Beach, CA 90266

11,000 square foot corner lot home

Open House 2 | Sunday Only, May 17th | 2 to 4 pm

624 Catalina, Redondo Beach, CA 90266

2005 Built townhome, ocean views, great location

Cool Single Family Homes in South Redondo for under $1,200,000

Have a look at the following MLS link to see what sort of single family homes are available in South Redondo Beach for under $1,200,000

Click here to see a list of single family homes that are listed for under $1,200,000 in the 90277<<--

Termite Damage in Manhattan Beach, Hermosa Beach and Redondo Beach

Termites at work, often times just under the surface of the paint

Whether you're selling or buying a home, odds are pretty good that there will be some sort of active termite infestation somewhere on the property. We've worked with many buyers who get a little freaked out when they find out that their dream home has termites, but this is totally normal for any home bought, sold or owned in California. If your home is built from wood, even if it's brand new, there may be termites feasting on the timber. An annual inspection and treatment is all you need. Remember, an once of prevention is worth a pound of cure. 

If you're a home owner looking for a quality termite company, we recommend 

ALL CITY TERMITE CO

310-796-0822

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