Norma Toering's Palos Verdes Blog

Bad markets are good for some people.  Several of my clients are making the recession and housing slump work for them after being worked over by loss of money in the stock market, loss of a lucrative paycheck, business downturns and yes, even loss of their home.  The secret to surviving unfortunate events along our path in this life, is to release the past, accept the present and prepare for the future.

If Plan A goes awry, move on to Plan B, C or D.  Holding on to unrealistic hope that things will change is an optimistic approach than may have a very pessimistic outcome.   Years ago a seasoned real estate agent passed by my desk as I was making a notation in my daily planner in ink.  He paused long enough to offer a bit of life advice, "I always plan in pencil.  Plans and life are subject to change."  Ahh yes, change is constant and it should be expected rather than a surprise.  The real estate cycle moves from high to low and back again with predictable regularity.  Buy low, sell high is good advice, but takes courage laced with abundant knowledge to execute.

 Several of my clients recently purchased income property.  The drop in real estate prices reflects positively on cash flow for income property.  It takes some research to find the right properties and a combination of elbow grease, time and good management are required.  However, often the building can carry the mortgage, taxes, insurance and monthly expenses with little to no cash infusion from the owner.  If equity builds during the ensuing ownership years that's an added perk, but for now it may not be a cash cow, but it is paying its own way. 

A tough economy forces us to take stock of not only our financial picture, but to examine our lifestyle as well.  Clients are downsizing, moving closer to employment and finding creative ways to survive and thrive during challenging times. There are opportunites at every stage of the real estate cycle. Waiting for the experts to declare the bottom is here, may mean you've missed opportunities that will not show themselves again until the next ride down.

Norma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800

PalosVerdesLifestyle - Nominated by Relocation.com as one of the top ten Los Angeles area real estate blogs. Ranked by Technorati in the top 1% of all blogs. As seen in the Daily Breeze newspaper.

South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach. Information is deemed reliable but not guaranteed.

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Sit down, because this may surprise you, but a bank owned fixer or stripped down short sale may not give you the best bang for your buck.  Sometimes it's wiser to swim against the current than drift along with the crowd.  It's Warren Buffet's approach to mass mentality and it might work for you too.

The bank owned property is usually priced close to market value or just below in my area.  That's enticing, but this is where it pays to read the fine print.  The bank will make no repairs including termite work, and that can cost thousands of dollars if fumigation and extensive repairs are needed.  If you want a home warranty to cover appliances and home systems the first year, be prepared to write a check to cover the cost because the seller will ignore your request for this little perk.

If a short sale sounds appealing be prepared to bid over the asking price and muster up the patience of Job.  Your offer may be one of many on an artificially underpriced property, and if selected as the one offer that is submitted to the bank you will most likely be required to wait weeks for the bank to accept or decline your offer.  If you enjoy a bidding war free-for-all then by all means throw an offer in the pile.  Don't expect the owner/seller to make needed repairs--he's broke.  A short sale is only approved by the lender if the owner demonstrate financial hardship.  Trust me, there's no money for deferred maintenance or cosmetic beautification.  That will come from the buyer's bank account.

On the other hand, there are a few sleeper properties on every MLS.  They don't have all the latest bells and whistles, they are often short on improvements, but well maintained by long term owners.  The bank is not nipping at their heels, but the retirement home beckons. A Palos Verdes property I showed last week comes to mind.  It has a great view, lots of space and a prime location.  It also has a 1960s kitchen, similar bathrooms but nothing a little nip/tuck could not fix.  It's important to buy the amenities you can not add later:  location, view and land. 

 Sometimes the asking price is just the beginning of what the property will cost you.

Norma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800

PalosVerdesLifestyle - Nominated by Relocation.com as one of the top ten Los Angeles area real estate blogs. Ranked by Technorati in the top 1% of all blogs. As seen in the Daily Breeze newspaper.

South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach. Information is deemed reliable but not guaranteed.

Find Norma on: Facebook - Twitter - LinkedIn - Email Norma

Palos Verdes Homes for Sale - Palos Verdes Houses
Palos Verdes Horse Property - Palos Verdes Realtor Blog
Palm Desert Area Lots for Sale - Homes with Views in Palos Verdes
Palos Verdes Coastal Homes

So far my local market (Palos Verdes Peninsula) has evaded the onslaught of short sales and bank owned properties.  We currently have 224 single family homes for sale and of that number only 11 are short sales per the MLS, and REOs are rare.  The distressed property market is a small one in Palos Verdes.

28 Condos are listed for sale and six are short sales.   Townhouse statistics are 16 for sale and one is a short sale. 

 Posting those relatively healthy numbers should be reason to celebrate Palos Verdes appears to be dodging the short sale bullet and blitz of bank-owned properties for now.  It will be interesting to see what develops over the next few months.

Norma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800

PalosVerdesLifestyle - Nominated by Relocation.com as one of the top ten Los Angeles area real estate blogs. Ranked by Technorati in the top 1% of all blogs. As seen in the Daily Breeze newspaper.

South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach.

Find Norma on: Facebook - Twitter - LinkedIn - Email Norma

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 Few days pass without a contact from a hopeful buyer wanting a single family home in Palos Verdes at a price that simply does not exist, even in a real estate market that has slipped from the lofty pinnacle of 2006 prices. 

So what does constitute a hot deal in Palos Verdes?  Here are a few things I look for in this market:

Properties priced below $1,000,000 in Palos Verdes Estates:  It does not happen often, but when it does it is always worth the time to investigate the property.  I saw one yesterday and my guess is it will be in escrow within a week---maybe sooner.

Houses with hidden views: It is surprising the number of times a stunning view is hiding behind a wall without sufficient windows, a chimney or overgrown shrubbery. 

Homely houses with head-turner views:  Yes, the kitchen and baths may be original, the wallpaper, shag carpeting and acoustical ceiling tiles may make you shudder, but you can change those features.  The view cannot be added later. 

Small house on big lot:  Palos Verdes is full of canyons and rolling hills. You may love the three bedroom ranch just as it is, but your future buyer sees a master bedroom addition, swimming pool and guesthouse potential when they gaze at your expansive lawn.

If you're looking for a home in Rolling Hills under $2M there are several to choose from, but if you're looking for a home under $1M there are none to show.  If you want a home in Rancho Palos Verdes under $900K we can show you several (Eastview with the option of PV Schools has several under $700K), but the coastal location, top rated schools, spectacular topography and accompanying views provide a strong foundation to support the value of real estate on the Palos Verdes Peninsula.

Norma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800

PalosVerdesLifestyle - Nominated by Relocation.com as one of the top ten Los Angeles area real estate blogs. Ranked by Technorati in the top 1% of all blogs. As seen in the Daily Breeze newspaper.

South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach.

Find Norma on: Facebook - Twitter - LinkedIn - Email Norma

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La Quinta Area Lots for Sale - View Homes in Palos Verdes

The competition is keen for entry level homes in Palos Verdes.  It is not surprising parents want top-rated schools for their children, and year after year the Palos Verdes Unified Schools appear on a variety of "best" lists.  There is not doubt about it---the demand for the PV schools keeps steady pressure on the supply of entry-level homes in Palos Verdes.

Location plays a lead role in determining real estate value, and the stunning hilltop coastal location of the Palos Verdes Peninsula is often breathtaking and always valuable.  This makes the land underneath the entry-level homes pricey. A three bedroom house often has a million dollar price tag. 

Yesterday I showed Palos Verdes homes priced under $900,000 and was impressed with the variety and availability.  However, from an original show list of seven homes, two went under contract before my buyer could tour them. 

There are dozens of multi-million dollar homes to choose from, but only a few under one million dollars.  The competition can be fierce so be prepared to change your approach when buying a home in an area and price range where the supply is limited and the demand is high. 

 A few small changes in your offer may increase your success rate.  If you have identified the house you want to purchase make sure the offer you write reflects cooperation, flexibility and consideration for the seller's needs.  If you want to close in 30 days, but the sellers need 60 days, that's an easy way to score cooperation points and still win the prize.

Norma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800

PalosVerdesLifestyle - Nominated by Relocation.com as one of the top ten Los Angeles area real estate blogs. Ranked by Technorati in the top 1% of all blogs. As seen in the Daily Breeze newspaper.

South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach.

Find Norma on: Facebook - Twitter - LinkedIn - Email Norma

In a declining market it is easy to blame the price if a property does not sell within a reasonable length of time on the market.  Most of the time price is the culprit blocking the sale.  However, there are always exceptions to the rule.

Here are a few that have deterred and deferred my showing plans for various properties:

"Large dog on premises.  Looks vicious."  Enrolling Mr. Vicious in doggie daycare would solve the problem and allow the house to sell without risking life and limb.

"Several pets in house; please make sure all doors are SHUT."  Hmm, I'm wondering what type of pets this owner is keeping, and why the agent thinks I want my clients to wander amid animals as they tour a property. A few years ago I encountered a pot-bellied pig in the kitchen of a home I showed.  It was not penned in the backyard as the showing instructions indicated, and the buyers could not exit fast enough.  You love your pets; the buyer may be put off by them.

"24 hours notice required."  I understand this one, but sometimes a client will call in the morning with the intent to tour properties in the afternoon.  Ease of showing really counts in these instances. 

"To show, call listing agent."  I use this one myself, but I try to respond to all requests within minutes of receiving the call.  It's very frustrating when we can't find the listing agent, and often the sellers miss a showing.  Sometimes we reschedule, sometimes the opportunity does not present itself again.

Price, location and condition are important, but easy and safe access is crucial, especially when a buyer has many choices.

Norma Toering and Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800

South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach.

Palos Verdes Homes Blog - Palos Verdes Real Estate Website
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Palos Verdes Horse Property Blog

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At the time of the listing the seller gave me the pertinent information regarding the lot.  When I inquired about the zoning, he gave it to me.  Since it was not stated on the tax assessor's records I called the planning department to verify the seller's information prior to listing the property on the MLS.  The seller was correct, but by personally speaking with a city official I was able to proceed with the confidence and knowledge the information represented was correct.  Trust, but verify is an excellent way to build consumer confidence and trust in the real estate industry.

The days of glib conversation and unverifiable statements in the real estate industry are over, or at least they should be a thing of the past.  Consumer confidence is at an all time low.  They simply don't believe what we tell them.  We must trust each other in order to achieve common goals. 

It takes time to build trust; but today when that prospective buyer walks into city hall and finds the zoning is exactly as I represented it to be, I believe his trust factor in me, my industry and my word will edge upward.  The offer we discussed will also edge closer to fruition.

Norma Toering and Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800

South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach.

Palos Verdes Homes Blog - Palos Verdes Real Estate Website
Palos Verdes Homes for Sale Search - More information about Palos Verdes
Palos Verdes Horse Property Blog

Boitano Palms - Coachella Valley Equestrian Lots