I have a client who is looking for a $1.3-$1.6  priced home.  They have 40% down and have been pre-qualified.  However they work a lot of hours and want something in "move-in" condition.  It doesn't have to be new or over 3000 square feet or even have a huge yard.  They just want a nice house that doesn't need a lot of work. 

Sounds pretty reasonable doesn't it.  We have looked at a number of homes that sound perfect only to find that when the home was updated an architect was not part of the process.  Many homeowners are afraid that using an architect will cost too much money.  The truth is that using an architect and obtaining permits  for the work being done are two of the most important and cost effective steps an owner should consider before beginning a project.

A home that has been poorly remodeled with a strange addition will have a harder time selling then one that hasn't been remodeled.  One of the remodel No-No's  is the Walk-Thru bedroom.    Homeowners do it because it is a less expensive initial  choice then other concepts.   However a walk-thru bedroom is rarely a good idea...especially when you are trying to market the home as a 3 bedroom and one of the bedrooms is a walk-thru. Think about it... would you want to sleep in a room that everyone must pass through to get to the rest of the home.  Transitioning from room to room is extremely important in the overall flow of a home.  A good floor plan is worth a lot of money... a bad floor plan will cost you a lot of money.

Even a project as simple as updating a kitchen usually benefits from some expert advice.  Sorry, but  the cabinet people at Home Depot do not qualify.  A good architect can give you excellent advice and make a few changes that can change a kitchen from OK to WOW.  Those are changes that translate to big bucks when you sell and make your home more enjoyable while you live there. 

I recently showed a home with a large "great room" off the kitchen.  The great room was great but you could barely turn around in the kitchen.  Had they widened the kitchen by two feet it would have changed the entire feel of the home and still had space to spare for the great room.   My clients were ready to buy the house but finally decided against it as remodeling the space would now be prohibitively expensive because of other changes done to the property.    

 You will be surprised to find how reasonable the fee is for a small project.  Many large firms give these projects to young architects who are supervised by more experienced members of the firm.  Just a few changes can make a space feel better.  However a bad remodel can last forever. 

  The Mermaid in Hermosa.... Back on the market ..asking price $25,000,000  

Home sales in the Beach Cities are not spectacular but they do seem to be fairly steady. North and South Redondo saw townhome sales almost double in May. Manhattan Beach saw roughly the same number of sales as the previous month with townhome sales increasing although home sales were less the April numbers. All the Beach Cities are seeing increases in pending sales so the numbers over the next 60 days should remain fairly stable.

Interest rates are bouncing all over the place. Last week's Bank Rate Index experts thought rates might go down but so far they are not reacting as the market had expected. Threats of bombing Iran and $200 oil prices tend to muddy the waters just a tick.

Despite all the angst in the marketplace our little slice of heaven just seems to go along with out any major disasters. Prices are definitely down but not in freefall. Sales are slow but seem to be pretty steady averaging about one per day in most cities. Looks as if even the entry level homes are begining to see some movement. Builders are still out of the market giving entry level buyers an opportunity to purchase without competition from them.

If we stay out of a new war zone, get a grip on energy prices and keep the economy on a level keel we may just weather this storm intact... or at least that's the theory.

South Bay-Beach Cities: Sold May 2008

South Bay-Beach Cities: Sold April 2008

South Bay-Beach Cities: SOLD March 2008

South Bay-Beach Cities: Sold February 2008

South Bay-Beach Cities: Sold January 2008

South Bay-Beach Cities: Sold November 2007

South Bay-Beach Cities: October SOLD 2007

South Bay-Beach Cities: September SOLD 2007

South Bay-Beach Cities: August SOLD 2007

South Bay- Beach Cities: July Sold 2007

South Bay-Beach Cities: Sold June 2007

South Bay-Beach Cities: Sold May 2007

South Bay-Beach Cities: Sold April 2007

South Bay-Beach Cities: Sold March 2007

South Bay-Beach Cities: Sold February 2007

South Bay-Beach Cities: Sold January 2007

Affordable townhome in South Redondo just blocks to the Pier and beach..

Public Open House: Sunday 1-4 pm

This is a delightful home with hardwood floors and a new kitchen. There are 2 bedrooms.. each with private bath. The upper level features a "great room" style living area and a powder room.. The kitchen has been totally remodeled with granite counters and tile floors. Each bedroom has a private patio and there are two additional decks off the living room and kitchen.

The property is priced to sell at $624,500.

Please join me Sunday to view this wonderful home. For a private viewing please call me at 310-721-7438 or e-mail me.

During election years it's often hard to put aside our ideologies aside as our passions are engaged by the candidates. This weekend is more then time off from school or work. This is the time we have set aside to honor and remember those who have died in the service of their country.

We have lost a number of our young people to war over the years. For my generation it was Vietnam that took so many lives. Today it is Iraq. It doesn't matter what party your identify with or your stance on the war. Memorial Day is a day to remember all who died in the service of their country.

Last March the government finally agreed to increase the conforming loan limit from $417,000 to $729, 750 for higher priced areas. For a short time it looked as if Manhattan Beach and the Beach Cities along with other high priced California markets and those in other states would finally get a break on mortgages and possibly mortgage rates. The increase in conforming loan amounts would make it easier for a people to refinance and to purchase. Higher conforming rates made a lot of sense to my clients who are buying homes in Manhattan beach and the Beach Cities.

If you are looking for one of those loans.. forget it! At this point you probably have a better chance of winning the lottery then getting a jumbo loan with a decent interest rate. Lenders claim there is just too much risk but I dont really buy that little scenario. Oh, dont get me wrong I know lenders need to be compensated for risk but if the FED is backing the loans then the risk should be acceptable if these loans also have a high down payment. Even if banks charged 1% over current the lower conforming rate it would be better then we are now seeing in the market.

Nope¦ lenders cant possibly make jumbo loans at anything less then very high interest rates¦ unless of course you would be willing to take a short term adjustable rate. That they can do¦ at a pretty decent rate. Hmmm¦Isnt pushing adjustable rates over fixed rates one of the things that got them into trouble in the first place?

We are seeing a little light at the end of the tunnel on foreclosures. One of the things the FED has managed by lowering the discount rate is to lower the prime rate. A number of loans that are and will be soon re-adjusting will do so at a lower rate then they would have even four months ago. This will diminish a number of foreclosures that might have happened. With the tougher underwriting guidelines and higher down payments new jumbo loans are probably a better bet then the conforming loans lenders were jumping all over themselves to make a few years ago. So why dont lenders want to make these loans¦.

I have a theory¦ I dont think it has as much to do with the amount of the loan as it does with the fact that lenders know rates are going to go up and dont want to be stuck with a 6%..30 year fixed rate loan¦ on large amounts of money. I think lenders would like to do away with fixed rate jumbo loans and instead do 10 year adjustable loans in the expectation you will refinance in about 7 years and they wont be stuck with 30 year low fixed rate loans. If rates jump to 8-9% in the future who wants to be stuck with a bunch of 6% loans.

Lenders talk a good story but the truth is they dont like 30 year fixed rate loans. They have always made it far harder to get a fixed rate loan then an adjustable. I have never understood the rational that makes it harder to qualify for a loan that has the same payment over the life of the loan. Whereas an adjustable with a payment that continually changes is far easier to obtain. This has never made sense to me. It seems far less risky to make a fixed rate loan.

Anyway¦ thats my theory.. and Im sticking to it..