Proto Homes – New modern architecture we can afford!

About a week ago we had the pleasure of attending the “coming out” party for the first Proto Home located in The Baldwin Vista section of Baldwin Hills. You may not have heard of Proto Homes yet, but you will. This is really the beginning of a revolution in home building. The home is AFFORDABLE (especially for brand new construction!),FLEXIBLE meaning that the home will change to fit the owners needs rather than the owner having to fit into what the home dictates and INNOVATIVE for several reasons having to do with the building process itself. We will let you know when this home is open to the public for viewing, but in the meantime here’s a brief description.
The home is built around a patent- pending core or a “brain” if you will. This core is the basis of the homes innovation and affordability. The core is manufactured off site and then dropped in and the house is built around the core. This allows the homes to be completely built in about a four month period. (Affordable!) The core houses everything that runs the house including plumbing, electrical, HVAC, wiring, etc. (Innovative!) There are no wires or plumbing or anything that runs over, under or through the house. Everything is accessible and easy to reach and easy to fix if necessary. Never again do you need to have a trade’s person searching through your crawl space, walls or attic in pursuit of a leaking pipe or faulty wire. Everything is visible and accessible.
The home can change with the owners changing needs. (Flexible!) This particular model can be a one bedroom or a four bedroom house. There are soffits built into the ceiling in the second story of the house and custom walls can be slid in and out of them to create as many rooms as desired. If a couple were to move into this house and then have a few children down the road, they would not need to change their house. They would only need to order a beautiful, custom, affordable wall that becomes closets and shelving for the room it’s creating. They are easy to install and certainly much more cost effective than moving or adding onto a house. (Affordable!)
All of this is very practical and utilitarian, but we want to be very clear, style and aesthetic beauty have not been sacrificed! The home is largely comprised of open and airy space with incredible             natural light provided by long floor to  ceiling windows that let in light and views but they are not so big that they obfuscate privacy. The finishes are all sleek and high end, with marble counters and polished concrete floors, sleek cabinet design and thoughtful use of materials throughout. One of the coolest and sleekest things is that all of the homes are networked and can be controlled from your IPhone or your tablet. Out all day on a sweltering day in early September? No problem, an hour before you return home you can log on and turn on the state of the art cooling system. On vacation and want to make sure the house looks lived in? Switch the lights and music on and off and view the home via the security cameras. It doesn’t walk your dog for you yet, but we won’t be surprised if that’s coming.
Proto Homes will be built to be sold at the median price in any given neighborhood. This is remarkable because typically new construction is sold at the highest price point in any given market. What this means is that the consumer can buy a house that works for them and flexes with their needs for the same price as a house that was built 75 – 100 years ago that requires a lot of maintenance. Stay tuned because we plan to bring you much more information about Proto Homes and how you can have one of your own.

(photos courtesy of Proto Homes)

Deals on L.A. Homes in 2011

So here’s our property report for our first caravan of 2011. (Caravan is every Tuesday when we run around and see new listings on the market.) There are great deals out there and the great deals at the entry level of the market (under 700k) are selling in multiple offers.

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!!

Where are those “patience pills?” Patience required when trying to close a real estate deal.

Ok, so it was lack of regulation that got us into this mess.  Well now there is so much regulation that any ideas of closing a deal early are pretty much pipe dreams unless we’re talking about all cash buyers.

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.

Let’s Hear It For The Seventies!

Aaah, the seventies… a magical era filled with free love, fantastic American films and fearless fashion. But there’s another product of the magical era that doesn’t get the attention or praise it deserves – THE CONDOS. No, not the condoms, they didn’t use those back then. I’m talking about the ubiquitous condo buildings, built as such, (not as apartment buildings that have been converted) throughout the city. It was an era of construction! While some of these units may be relics with faux marble mirrors and shag carpeting, there are some fantastic and overlooked features that they have to offer. The first is space. Yes, plain and simple, space. They just built bigger units back then, with higher ceilings, larger balconies, taller doorways and more, bigger, better closets. There is elegance and grace inherent with that kind of space. Clearly land value and construction costs were so much less then that developers were able to build with less density and still satisfy their margins. Westwood has a wealth of these types of buildings and we have seen several phenomenal opportunities in the past few months for buyers to grab large, spacious, elegant units at excellent prices. Many of them need to be updated, but their potential is enormous. Many of these types of units that are selling now are being sold by the original owners or their heirs. I suppose I have a soft spot for these units too because sometimes I walk into a unit that’s as clean as a hospital, with Wedgewood tchatkies on display and ornately framed Marc Chagall prints on the walls and I feel like I’m in my grandmother’s apartment. I can almost smell the matzo ball soup. But I digress. If you are a buyer out there looking for a condo, don’t pre-judge the seventies. If you are willing to do some cosmetic updating you could end up with a gem, much bigger than any new construction out there and I’ll bet you the building will even have a pool, a spa and a sauna (talk about retro!).

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

The hottest properties in L.A cost 500 – 700k

The real estate market is so happening in the 500k – 700k range – it’s astounding! We had a listing this year in Brentwood around the 2m mark – gorgeous contemporary house and we would get about 80 – 85 hits per week on the listingbook site (which is basically an extension of the mls with tons of functionality). Our current listing is a short sale in West LA on National Blvd. It’s a really good house that needs cosmetic updating but has a great floor plan and really good space. It’s listed at 675k and we get about 425 hits per week on the same website. So far we have received 4 offers on the property. It’s a short sale so the initial accepted offer may or may not be the ultimate owner of the house. More on that next week – we’ll talk about our short sale experience. But back to the point, the amount of buyers in this entry level price range is creating an incredible demand and propping prices up. A large percentage of homes priced in the 600’s are getting multiple offers these days. Today we saw some good ones on Caravan and we’ll explain briefly.
4083 Bledsoe in Culver City is listed at 659k. It’s been on the market for 5 days and it has 3 offers already. (Seems like old times.) The house has an unconventional floor plan, but it’s clean and cute, has good space and it’s on a nice street.
5045 Pickford in Culver City is listed at 658k. It’s a 2 + 1 that’s around 1000 square feet, but the house has great bones and some architectural charm. It’s in a fantastic neighborhood right near Lindberg Park and walking distance from great shopping, public library, etc. It’s been on the market for 9 days and they were expecting an offer today.
6373 W. 84th St. in Westchester listed at 650k is adorable, beautiful, tasteful and charming. It’s also 2 + 1 around 1000 square feet but on a large lot with room to ultimately expand the house. Today was the first day that one was shown. It will sell right away.
If you need more information about these homes or about Los Angeles real estate call or e-mail The Savvy Duo.

Discover a New Neighborhood in Los Angeles Today!

So we haven’t blogged in forever – but WE’RE BAAACK! The week’s blog is about a neighborhood that we feel is yet-to-be-discovered by many. It’s time that the secret was out!! This neighborhood offers FANTASTIC opportunities to Los Angeles homebuyers and if you’re looking for a house you owe it to yourself to consider this area. It is, namely, View Park/Windsor Hills.

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.

Calling all Condo Buyers!

We saw the new development at 11715 Chenault in Brentwood at the corner of Barrington Tuesday – and their beautiful. The least expensive unit is $859,000. It is a 2 bedroom + 2.5 bath in about 1500 square feet. It faces Chenault – not Barrington, which means it’s not noisy. The quality of the building and the finishes are fantastic! The fact that something brand new, with this level of fine detail can be purchased in proper Brentwood in the $800,000 range tells you that condo prices have come down dramatically. The other units top out at $1,399,000 for the penthouse unit that sits above single family homes and has some expansive view. That unit has two balconies, one off the master and one off another bedroom. We felt it was a shame that there was no balcony off of the living room. The ground floor units, though not as bright at the top floor, have huge patios which would serve almost as a small yard.
Our condo, in Mar Vista at 3460 Centinela with an ocean view is still available. It has 2 bedrooms + 2.5 baths, top floor with expansive views in a great building with spa-like pool and tennis court. It’s in the sought-after Mar Vista School District. We received one offer, but it’s still available and it’s the right moment for a buyer to get a great deal on the place!
Ready to talk condos, or see one of these places? Call The Savvy Duo.

Great buys in Brentwood and Beverlywood

We saw some great houses this week, but we saw two deals that are simply fantastic and those are what we’re going to talk about today.
First, 13413 Bayliss in Brentwood is a steal! It’s a 3300 square foot house on a lot that’s almost 15000. The price is $1,595,000. The yard is to-die over, and it’s the focal point of the house. It’s private, lush, flat and has literally a fairy tale feeling. There is a beautiful pool that sets into the environment so naturally, it looks almost like a natural body of water. The house has a great floor plan with 4 bedrooms and a big family room off of the open kitchen. The house is in very good condition but needs updating. There is carpeting in much of the home and dated surfaces. However, not one wall needs to be moved and the work is really surface work. It’s in the Kenter Canyon Elementary district. If you are interested call us now! Even in this market, this house will sell and sell fast. It’s an AMAZING opportunity!

Another AMAZING opportunity is a condo at 1450 S. Beverly Dr. #106 in Beverlywood. The unit is over 1700 square feet and the building was constructed in 2001. It has been on the market for a few months and the price has come down to $589,000. It is a short-sale, which means that the bank is accepting a loss on the property. This building is literally across the street from the Beverly Hills city limit and walking distance to all of the great shopping that Pico Blvd. and downtown Beverly Hills has to offer. The unit is inhabited by the biggest slob ever know to man – and that’s probably why it hasn’t sold. It shows horribly. However, when you look through the stuff (that’s everywhere) there’s a great unit underneath. The bedrooms are on opposite sides of the unit, both en-suite. The entryway is wide and bright, the kitchen is huge for a condo with lovely wood cabinets, granite countertops and an island. The unit is located in the back of the building and the view is quite pleasant. It looks out to greenery and trees and has a long balcony. What this unit needs is a deep cleaning and a buyer with vision. Whoever buys this place is going to get a fabulous deal and live in a great part of town.

Upscale Brentwood new construction & charming Westwood condo

After a couple of weeks of deviation, we’re back to reviewing what we’ve seen on caravan. Yesterday we saw 11925 Currituck in Brentwood. It’s listed at 4.895m. It’s brand new construction, traditional in style, the square footage of the house is approximately 6300 and the lot is approximately 8500. It’s lovely with high –end, high quality finishes and has a grand scale. There is a subterranean garage and the lower level of the house (the basement) is smartly used. There is a screening room, an exercise room and a wine cellar. The lot seems small, but the house is well plotted on the land so there is more yard than one might think from reading the description. It will be really interesting to see how quickly and for how much this sells. We personally feel that the price is too high. There was a house in the neighborhood on Westgate that sold in February for 4m. It was also traditional, brand new construction and beautifully done. That house was on a bigger lot and had a pool and the house itself was only slightly smaller. It was closer to Sunset so there was potentially a little noise in the backyard, although we don’t remember it being significant. It is a comp that will work against Currituck in terms of the way it is priced. At one time the brand new traditionals were flying off the shelves in Brentwood no matter what the price. We think those days have passed, but time will tell.

If you don’t have 4m to spend don’t fret. We found an awesome opportunity yesterday in Westwood! It is a condo that really and truly feels like a home on a beautiful street called Ilona Ave. This condo came on the market last fall for over 700k. It went into escrow in the high 600 range. After a lengthy escrow period, the day before it was scheduled to close, the buyer’s lender pulled the loan and refused to fund. Total nightmare for buyer and seller! The buyer lost his 3% good faith deposit and the seller lost time. Now the seller put the unit back on the market at 595k. It’s a fantastic unit, oozing with charm and character. The building is a mid-century style, built in the ‘50’s. It’s got lovely curb appeal and the street is populated with single family homes, not big buildings. There are 3 bedrooms and the 3 bathrooms, laundry inside and a totally re-done, high-end kitchen with a Viking stove and Sub-zero fridge. The unit is upstairs, has tons of light and lovely views, wood floors, intricate crown mouldings, great closet space and well proportioned rooms. It’s a 1 flight walk-up and there is a 1 car garage. This is not for someone who wants the newest of everything; this is for someone who appreciates quality architecture and wants something unique and with character. We love this unit and will do everything in our power to sell it. It’s an amazing opportunity and a very special place. Please call us if you’d like to see it. It’s worth your time!

Buying and REO (bank owned property)

Everyone wants a deal! And, the REO properties coming on the market seem to be at bargain basement prices. Sounds great, right? To date, our dealings with REO purchases can be summed up perfectly in one word – nebulous.

Don’t get us wrong, people are out there buying REO’s and when the market comes back (no one knows when that will be) those purchasing now stand to gain a good deal on their investments. However, the process is not for the faint of heart, or for those who cannot live in the “unknown” for a while. The banks seem to complicate even the most straightforward of situations and the main difficulty with the REO purchase process is a lack of communication and information. For instance, we put an offer in on an REO duplex for some clients a couple of months back. Our clients LOVED the place and they made a full price offer in order to get it. We never got any response. We called and e-mailed the listing agents many, many times to find out the story, but nothing ever happened. During this period, it was difficult to get our clients to consider other possibilities, because their hearts were set on that place. Long story short is that the duplex was under the jurisdiction of a city agency that handles rental properties in need of repairs. No title insurer will provide a policy to a property that is under this jurisdiction. Therefore, no lender will lend on it. The only type of offer that could be accepted on such a property is an all cash offer, which our clients were incapable of doing. We lost about two months of time dealing with that property which would have been avoided with a simple disclosure. It’s possible that the listing agents didn’t know either. Or it’s possible that they did know and it slipped through the cracks. The listing agents on many of these properties have hundreds of listings in areas that are outside of their normal territories and quite simply it’s next to impossible to keep up on them.

Our advice if you’re looking for REO properties – 1) Get comfortable with not knowing and develop the ability to go with the flow. 2) Don’t get too attached to any one property. 3) Keep looking; until contingencies are removed there is no deal.

If you want to throw your hat into the ring and find an REO The Savvy Duo can help you with your search and we’ll even help you with the mental angst — no extra fee.