My New Blog

Here's your February "About Town" blog exclusively for our fellow Dilbeck agents. It's meant to be entertaining, educational and fun to read. This month's subject is Hollywood Rapid Gentrification & Revitalization.

......“Let there be no doubt; Hollywood loves a comeback, and several real estate developments are contributing to the return of a sophisticated, glamorous lifestyle spearheaded by the opening in 2009 of the complex called the W Hollywood Hotel & Residences at the corner of Hollywood & Vine...Many older buildings also have been converted to lofts and condominiums. Cosmo Lofts was the first live/work loft development in the Hollywood area.

...The W is the first branded residences providing hotel, retail and luxury for-sale residences (at 6520 Hollywood Blvd)...fronting a full city block from Vine to Argyle. Developed by Gatehouse Capital in partnership with HEI Hotels & Resorts, the $350 million development offers world-class lifestyle opportunities...creating a lifestyle environment like no other in Los Angeles. Chic design, luxury finishes, eco-conscious construction, dramatic views, modern art, premier nightlife, exclusive restaurants, premium services. The 143 exclusive residences are paired to the Whatever/Whenever® services and amenities of the adjacent 305-room W Hollywood hotel....visit www.myhollywoodresidence.com

...other complexes are popping up all around the Hollywood & Vine location offering loft-style units, live/work environments and services (with lower HOAs and pricing), such as the Metropol Hollywood starting at $395K a complex that is FHA approved by the way...

...by-the-by...according to DataQuest for year 2009 the median price for condos in zip 90028 is now $639,000...UP 59.8% OVER YEAR 2008...so it looks like Hollywood has a hit on its hands!

...moving westward we are seeing terms like Live/Work, Loft-Style and Evo Designer Residences, the latter focusing on environmental features....popping up all over, especially with new construction.

That's it for this month from Barbara and Allan, your westside team @ westside.team@dilbeck.com or 310-553-7500

...buyers who want full service hi-rise living on the westside of Los Angeles are often surprised not only by the property prices but those $500-$2,000 per month HOA's. For example: buyers interested in the beautiful 22-story "Azzurra" located at waterfront on Marina Point Drive in Marina del Rey are paying anywhere from the lowest $805-per-month unit up to $1,518/mo for one of their 2500sf units...it's biggest competitor, the Marina City Club (built in 1970) generally has lower dues; however, a current penthouse in that complex measuring 3,092sf has HOAs of $2,681/month (CLW09389419)...

...of the 114 condos currently on the market in MDR, the Azzurra has 52 listings...the Marina City Club has 22 listings. So between the two properties 65% are just these 2 complexes...

...now over to Century City where the 17-story Century Park East & West Twin Towers are located (Olympic Blvd & Century Park East)...HOAs run from $519/mo up to $913/mo for current listings...only one and two bedroom units are available. Interesting fact the interior walls of all these units were originally designed to move so owners could reconfigure rooms (this according to Dolores Keleman of Keleman Real Estate, who has been selling property in the two towers for many, many years--we won't say how many Dolores)...

...and by-the-by, built in 1966 the CC Twin Towers has had a facelift complete with new air and heat which has been a big project. Considered under construction, the remodeling of the common areas is being worked on now. Prices are probably lowest for the area because of this. So this could be a really good time to buy. When will the project be done? Soon, everyone says....

That's it for this month from Barbara and Allan, your westside team @ westside.team@dilbeck.com or 310-553-7500

Okay, so you have decided to buy a home (for the first time), or move-up (into a bigger home), or relocate because of a job, marriage, divorce or neighborhood preference. Almost 85% of buyers turn to the internet before contacting a real estate agent.

Real estate agents used to be the gatekeepers of information, but as Internet usage has increased and web sites offer active listings for everyone to access ...buyer's Agents have moved their involvement into the "decision-making" area of the process.

In California, agents are really contract specialists. There are so many disclosures, addendums and advisories that an offer to purchase (sales contract), which is only 8 pages, ends up being closer to 40+ pages by the time the completed offer is submitted through the listing agent for the seller to review.

Putting together a "clean" offer is the mark of an experienced agent. And an agent's ability to negotiate counteroffers marks the beginning of the real process for buying real estate. But even before your offer is written up, your agent should provide you with comps and area information so you can make the lowest, but credible offer for consideration. Your offer must be accompanied by a pre-approval letter from your lender and proof of funds for your downpayment. Once everyone signs off and the offer is accepted, escrow is opened.

This is where your agent really earns their commission, in my opinion, because the 17-day contingency period is when the buyer must do their due diligence with inspections on the property, etc. And get their loan processed, which in today's market is taking longer than 17 days. If contingencies aren't removed after 17 days, the seller can walk away and close the escrow. Keeping the seller "in the game" is the job of both agents. How well they work together can be the success or failure of the transaction. And, a home inspection can turn up small and big items that need to be negotiated. I've never had a buyer walk away from their offer because of what the home inspection discovered, but I have come very, very close. Usually over items that are small, not big. One person's unreasonable is another person's reasonable. Keeping everyone happy is a major challenge. Not every agent can do it.

The last 2 years have been tough for Los Angeles real estate Agents, and many have gotten out of the industry. Many who have survived have become specialists in Short Sales and Foreclosures, which represents about 35% of the market. This is not an arena for the faint of heard or the inexperienced real estate buyer. The most successful buyer of this segment of the market is the all-cash buyer. But there is still the remaining 65% of the market where "traditional sales" are the name of the game.

Keep in mind that anyone selling their home in today's market is doing so under some kind of distress. Divorce, illness, retirement, loss of job, moving into retirement home or assisted living facility, etc. This environment makes sellers very emotional and sensitive. This state of mind affects everyone involved in the process. An agent's ability to be an effective communicator should be a skill that you look for right from the beginning. Pay attention to how your agent handles themselves during showings, how they answer your questions and their ability to research information so that you can make an informed decision. If they do this well, chances are that they can use those skills to your benefit when problems arise during escrow. And they will arise. So, ultimately, it can be the difference between your getting the home of your dreams or loosing it over some small detail.

For a successful transaction, you need a resourceful agent, a truthful lender and a problem-solving escrow officer. For more on escrow officers, see my next blog.

Okay, you're thinking about putting your house on the market as a short sale (meaning your house is worth less than what you paid for it and you want to pitch your lender to accept less than the mortgage balance on your current loans). If your home results in a successful short-sale, your FICO scores will be hit by 140 basis points over the next 2-3 years.

To move forward to list your home as a short-sale, your real estate agent will need to put a packet of information together to send to your lender consisting of the following items:

1. Lender cover letter: Your real estate agent will write and address a letter to your lender's Los Mitigation Officer providing the names of your Selling Agent & Selling Agent's Broker Firm, Escrow Officer, Title Officer, and your Loan Officer. In this letter your agent will make a claim or statement of hardship by the seller(s). 

2. You will write a "To Whom It May Concern" hardship letter explaining the circumstances of the situation that resulted in your inability to make payments or your inability to afford to keep your home. There must be a hardship. You cannot simply decide to not make payments because you think your loan rates are too high.

3. Supporting documention (proof of collecting unemployment, letter from doctor verifying medical condition that caused hardship, divorce papers, etc). You can't just say it's a "hardship," there has to be a cause/effect.

4. Listing agreement. An agreement with your broker showing that your home is being put on the market, in the MLS (if available in your area) and marketed by a real estate agent.

5. Broker price opinion (BPO): a complete study of your home's price potential under current market conditions. A special form is available to realtors for use in creating this document for your lender.

6. Copy of purchase agreement. Your original offer signed by you when you purchased your current home (when you were acting as the buyer).

7. Cost of estimated net sheet. Your closing HUD statement showing what your gross/net costs were when you purchased your existing home.

8. Your (seller's) current financials. Including paycheck stubs, W-2's, bank statements, disability income (if any), unemployments benefits. And, if you are married, all your spouse's information must also be provided.

9. Your financial profile when you purchased the home you are now wanting to sell as a short sale.***

***Remember: AND THIS IS VERY IMPORTANT: If you purchased your existing home with a "stated income" loan, be sure the W2's you're providing reflect the income you said you were making at the time you took out that loan. If there is a difference in what you said you were making (for example, the stated income is MORE than you truly were making at the time) then the bank can file FRAUD charges against you. So, be very careful about this. Be sure to check your records to verify that you provided documentation of income when you took this existing loan out. In other words, you provided paperwork and didn't simply write in a salary figure that was higher than your actual income at the time. Lenders are now referring to these loans as "liar loans" and someone who did indicate an inaccurate salary can have fraud charges filed against them. Some people will not qualify for a "short sale" of their home because they don't want charges filed against them. They will have to let their home go into foreclosure.

Note: Remember in a short sale, a seller can receive NO MONEY.

I hope this is helpful.

The best way to help buyers in today's market is first to help them understand why short sales, foreclosures and bankruptcies are not always the best way to get a great deal on a home. First of all, no one is selling a home in this market unless it is a distressed sales to begin with. By that I mean, a divorce, job transfer, job loss, death of a spouse, or moving into assisted living. There are many reasons why sellers are pre-disposed to moving quickly and getting "a reasonable price."

These "standard sales" are often easier to negotiate because you're not dealing with a bank. Banks move at their own pace and using their own rules. So, it's hard to know what's really going on when you have a bank involved in decision-making about the sale.

So, don't rule out "standard sales" in this market, especially if you really want to buy something.