(photos courtesy of Proto Homes)

One thing I love about these areas, and particularly the Miracle Mile, is the architecture. There are many, many pristine, late ‘20’s early ‘30’s Spanish and Tudor style homes that have been lovingly preserved. However, sometimes a house sits on a beautiful street with great homes and looks gorgeous on the outside, but when you get in it’s a real let-down – kind of like people. Thankfully, it’s not always like (homes and people). But for me, on Tuesday, it was.

118 N. Martel in Miracle Mile was a perfect example. The street is a little busy as it’s used as a cut-through, but the homes and trees lining it are gorgeous. This house is a classic Country English with fabulous curb appeal. Unfortunately when you walk in, the house feels like its all hallway. The finishes are not high quality and they are not consistent with the structural quality of the home. It’s priced at $975,000 which I don’t think is unfair for the size and location. The home needs some style. Hopefully whoever buys it will have it.

849 S. Cochran in Miracle Mile was the same story. It’s adjacent to an alley which off the bat is not primo, but that  can be screened with proper landscaping. The home, a Spanish style, looks lovely from the outside but it all falls apart when you enter. The floor plan has surely been altered from what it was originally and the finishes are downright cheap in this one. The tile on the floors and in the baths is reminiscent of what’s in an apartment – and not a new one. It’s spacious and has curb appeal but that’s about it. It’s priced at $949,000 and I have no idea who will buy this house. It’s one of those homes that I feel has to be drastically under the neighborhood comps to sell.

Hopefully next week I will see some homes that dazzle me and I will rave about value and beauty. This just wasn’t one of those weeks.

The winner of the day was 5260 Glenford St. in the Baldwin Vista hills area. This house is a true mid-century modern, built in 1956 up in the hills right off of La Cienega with killer views of downtown, the gorgeous mountains behind downtown and a panorama of the entire city! The house is about 1800 square feet, needs some updating but great architecture with lots of glass to enjoy the views. It’s priced at an unbelievable $499,000. The house came on the market on Sunday 1/9. We saw it on Tuesday 1/11. By then it already had 4 offers. That says it all. If you want a deal you can get one, but you cannot wait. You must be poised to act and in a case like this, the house will go to the highest bidder. We expect this house to sell around $550,000 and it’s a great deal at that price.

The other fabulous bargain is on 2419 Banyan Dr. in the Brentwood hills. This one is also a true mid-century modern, built in 1965. It’s got 4 bedrooms, 4 baths and is approximately 2600 square feet and in the Kenter Canyon School District. It has vaulted ceilings and a great flow and plenty of glass to bring the outside in. It also needs some updating, but definitely is a house you can move into. The price of this house is $1,249,000. This is an unbelievable price for the home and the neighborhood. A few years ago houses just like this in the same condition were selling between $1,500,000 and $1,600,000. This house has fallen out of escrow 3 times due not to a defect with the house but due to buyers who either flaked or had a drastic change in their situation. Someone is going to get an incredible deal on this place!!

FHA loans have always been a bit of a pain, but now, we spoiled people in high-end markets like West Los Angeles actually have to deal with them.  The loan limits for a FHA are $729,000.  People can now actually buy a house or a condo in our area with these loan programs.  What we’ve learned, through experience, is tha FHA appraisals are EXTREMELY specific.  There are all kinds of conditions that need to be met.  For instance, if there’s anything that’s non-permitted on a property it’s going to be an issue on a FHA appraisal.  If there are any non-permitted garage conversions (which is like 50% of the homes in WLA) FHA will not consider it a garage nor will they consider it a room.  It may need to be converted back to a regular old garage for parking or the property may get appraised as not having a garage at all.   It’s something to be aware of if you’re buying or selling.   We’re currently in a deal with a FHA buyer and they are making some minor repairs to the property before they close in order to get approval from the appraiser.   It will close about a week late.  Thankfully the sellers and the listing agent have been patient.

Other regulations in today’s market can be more frustrating because they make no sense!!  In order to prevent fraud, nowadays when a buyer tries to obtain a mortgage there is a form called the 4506 that must be submitted to the IRS.  The tax returns that the buyer submits to the mortgage lender must match the tax returns submitted to the IRS.  The 4506 form is submitted electronically to the IRS.  The form is often rejected without reason.  There is a lot of room in the process for human error.  If one number transcribed incorrectly, or if the borrower has moved and changed address the 4506 will be rejected and without an approved 4506 a buyer cannot obtain the loan.  Protection against fraud is a good thing, but trying to deal with the IRS and find out why — now that takes PATIENCE!  We have some buyers in that situation too.  Hopefully we’ll know something more in a few days.

In short, even people who have great credit and plenty of money for a down payment need to be prepared to be scrutinized and take their patience pill before they start the process.

(The image above is 1551 Greenfield #302, over 2k sq. ft. sold in 12/09 for 710k)

Our listing 11453 National

and a host of others -  has nothing to do with the price at which the property will actually sell.  We have one short sale listing and a couple of buyers “in escrow” on short sales and in each case the bank has come back for more money that the list price.  We have called on other short sale listings and talked to brokers who have explained that though it’s listed at x, the real price for which the bank will sell is x + y.  I have talked with brokers who have explained that for a buyer to actually get a property they need to pay in excess of 50k higher than the list price.  On our own listing at 11453 National we listed at 675k but in order for a buyer to get an acceptance from the bank they will need to pay 680k plus whatever termite work is needed.  We have a buyer who has offered full price on a condo downtown listed at 196k.  The bank came back asking for 204k, higher than any other comp in the building.  She has agreed to that price, but still we do not have a formal approval and we’re waiting.  So what’s the point of all this??  Buyers beware!!!  There is so much misleading information out there.  Nothing is what it seems at face value and it’s important to work with a realtor who can get to the truth about each situation quickly so that a lot of time and energy is not wasted.  Each case is individual and banks have a different value proposition on each property, so there is no rule regarding how much they will take relative to the outstanding loan amount.  Sometimes we wonder if it benefits banks to show more of a loss and therefore they refuse seemingly good offers.  It’s challenging dealing with buyers right now because they are all very attracted to short sales – thinking they’re a great deal.  Often it’s best to deal with regular old sellers, and we’re not coming from the perspective that it’s easier for us.  If a seller needs to sell their property then that’s what they will do.  They will evaluate what the market brings them, try to get the most money they can, and then if they really must sell they will sell.

This neighborhood is situated between Angeles Vista on the south, Stocker on the north, La Brea on the west and Crenshaw on the east. If you have never driven through these streets please do yourself a favor, pull out your Thomas Guide and go (pg. 673). There are plenty of mid-century homes, built in the late ‘50’s & early ‘60’s. There are also lots of streets with English Tudor, Spanish and stately Traditionals built earlier, between the ‘30’s and ‘40’s. You may be wondering if the homes in a neighborhood called View Park have a view. And, yes, many of them do. The neighborhood is at the top of a rolling hill and depending on orientation there are views of Downtown, the San Gabriel Mountains and Mt. Wilson to the north. To the south and west one can see the Marina Del Rey, LAX, Santa Monica Beach and the Santa Monica Mountains. The streets are windy, curvy and hilly with houses that vary dramatically from one to the next in terms of architectural style. The neighborhood has such authentic charm that we have coined it “Westwood South.” It really looks like the hilly neighborhood know as “Westwood Hills” adjacent to UCLA.

View Park is literally minutes from Culver City, Westchester and The Marina. And, the most incredible thing is that it’s possible to get a very lovely house between 500k – 700k. Of course things like view, condition and lot size factor greatly into pricing. There are deals there as low as the 300k – 400k range and prices top out around 1m. The value here is astounding to someone coming from the Westside. One would have to far outside of the normal Westside realm to compete. And the really, truly beautiful thing is that View Park is not far! If you are looking for a great home at a great value let us know and we’ll turn you on to something new and wonderful. And, look out for future blogs about undiscovered, hidden gem neighborhoods.

So, that said, the only well priced property we saw this week was 1436 Alllenford Ave. Ok, it’s on Allenford, a busy street and yes it’s next to Paul Revere Middle School. However, you don’t see the school at all from the property and you do not hear the street from inside the house or from the backyard. The house is over 2300 square feet and the lot is over 14k. It’s not all flat, but a significant portion is and there is room to install a pool. The house is an original mid-century modern built in ’54. The floorplan is excellent. There is lots of glass in the common rooms and everything is oriented to the backyard. The kitchen is open and has an eating area. It’s a one story house that’s calling out for remodeling. It has potential to be the hippest of the hip. It’s priced at $1,299,000. It’s not so easy to sell a house on a busier street, so this house may be obtainable under list price. For anyone who appreciates mid-century and wants to create something really cool – this is a great bet.

If you’re interested in this property, or other homes on the westside of Los Angeles, call The Savvy Duo.