Author: Igor Nastaskin
Which homes won’t be for sale anytime soon?
In my experience, there are several types of properties that are usually not going on the market anytime soon. This can be difficult for potential buyers that are eager to buy property in the South Bay, as prices are steadily creeping up, but use these as gauges to predict which homes will, or will not, be on the market in the Hollywood Riviera anytime soon. I recently had some of my ideas confirmed by an article titled “Why Aren’t There More Homes for Sale?” on Redfin. About 19 percent of homes in the US right now are what is considered “low equity”. This means the owner of the property owes more than 80% of the value of the home and is, therefore, not in a position to sell. Many of these homes were purchased during the last housing bubble and are now worth less than what the owners paid for them. These owners are going to wait until property values go higher than they are now so they can break even, if not make a profit on their investment. Homes with a low mortgage rate are also probably not going on the market soon. About 16% of all homes owned right now have excellent mortgage rates and the owners are not going to sacrifice those great rates for possibly higher ones with a new property. Homes that have been refinanced or purchased in the last 7 years are also probably not a likely contender for listing. Most homeowners stay at least 7 years, on average, in properties they purchase if they live in that property. Last, homes purchased by investors are probably being held as investments, for rental income or potential resale in a future market where home values have raised more. Only “flippers” and new home builders are investors that will be turning out new listings in the near future. Unfortunately, that doesn’t solve our low inventory issues at the moment.
Let Me Show You the Hollywood Riviera I Love
I have sold more homes here in the Hollywood Riviera than any other agent. My success is because I love what I do and I genuinely believe with my whole heart that the Hollywood Riviera is the most wonderful place in the world. Let me show you around in this video so you can share my vision of how truly wonderful this part of town is. I made this video for you – so you can get to know me and get to know my favorite section of the South Bay. Enjoy.
If you list your South Bay property, you just might get all-cash offers
More and more, all-cash offers are king in South Bay real estate, even when it comes to luxury properties. Several of my recent clients have made all-cash offers on properties they fell in love with, and likewise, I’ve listed properties where the cash offers have come pouring in. There is a higher demand than ever for luxury property, especially in the beach cities and areas like the Hollywood Riviera. Let me give you some perspective on the matter: from 2002 to 2003, cash sales made up only 4% of purchases of all real estate in the United States. Today, in 2014, that number is 32%. More and more buyers are able to put down all cash and not bother with a mortgage at all, which is wonderful news for anyone thinking of selling their Redondo Beach luxury property. As the local expert on all things Riviera Village and Redondo Beach, I’d like to ask you to feel free to come to me about any questions you may have about what type of offers you can expect on your home, how long your home may be on the market, and what would be an appropriate listing price for your property right now based on the local trends.
Setting the perfect South Bay home price
The South Bay is one of the areas of Southern California that has recently seen a rapid rise in home value due to high demand. The gorgeous weather, great local school system, and the quality of life by the beach is an undeniable draw, making all South Bay property worth more than comparable homes elsewhere in the state. The closer a home gets to the beach itself, the more expensive it becomes. Ocean views are a massive plus to any balcony or backyard, and they can drive the price of a home up alone. Pricing in the South Bay, however, can be a delicate balance. Sellers have expectations, and so do buyers, and the market may be fluctuating day to day. It’s not a good idea to list the home for more than it is actually worth, but listing it low in the hopes of getting many bids and selling quickly is also a disservice to the seller. It’s my job to make sure that I know the right price to set for each, individual home in my areas of expertise. This involves closely following the market and employing my years of experience as an agent in the area. In my experience, it is never a good idea to be *too* precise. A round number is best and indicates that you are willing to negotiate. A very precise number indicates that you will not be negotiating at all. It’s also a well-known sales strategy to use the number 9 – $999,000 can subconsciously look like a better price than $1,000,000, for instance. No matter what, the buyer should feel that they’re getting a fair deal. I also feel that setting the price too low may generate many offers, but the offer may not be the best one based on the initial price. Sometimes, setting the listing price higher ensures quality offers. Setting a South Bay home listing price is a delicate process and needs a skilled professional, like myself, to work. Let me know how I can help you set your home listing value and help you through the selling process.
Third Thursdays in the Riviera Village
Have you heard of “Third Thursdays” in the Riviera Village in Redondo Beach? They’re just one more charming local tradition. Every third Thursday of every month, there is live music and shops stay open until 8:00 pm. Artists and musicians line the sidewalks and local residents shop and enjoy vendors’ food. Third Thursdays was started in March 2014 by Royce Morales, the owner of local yoga studio Harmony Works, and Stella Tetenbaum, owner of store Le Tete. Normally, shops are not open past 6:00 pm, so this is a real treat. It’s a great way to promote community and local businesses. If you want to experience a Third Thursday for yourself, you can visit Harmony Works, Le Tete, Dion Gallery, Cami Soil, Eyedentity, Nu Shuz, Village Garden, Ten Thousand Villages, Village Runner, Moondancer, M’Pressions, Dance Forever, Always Fabulous, Frings and the French Farmhouse, which will all be open late. Restaurants participating in Third Thursdays include Casa Playa, Sacks at The Beach, Tapas and Vinos, Hennessey’s, Mickey Finns, L&L Barbeque, Pedone’s, Turquoise and Coffee Cartel. You can learn more about Third Thursdays on the official Riviera Village website — www.rivieravillage.org.
The New Harbor Drive Development Project
AES, the owners of the much-maligned power plant along Harbor Drive in Redondo Beach, have a plan for the space once they get rid of the plant: a mixed-use development that would include 600 homes, a hotel, retail space, and open park areas called Harbor Village. Finally, the large power plant will be gone, leaving space for community-boosting buildings and creating a prettier coastline. Pedestrian-friendly, it will have a new esplanade along harbor Drive and continue the greenbelt that currently runs through Manhattan Beach and Hermosa Beach. Harbor Village may never rival the Riviera Village in terms of local charm, walkability, and good restaurants, but it’s a start. The big open public park areas will be a much-loved amenity. Will it live up to the “village” in its name as easily as the Riviera Village does? Only time will tell. For now, though, it promises to add beauty and jump-start the local economy of Redondo Beach.
Redondo Beach Keeps Its Local Charm
Redondo Beach’s Riviera Village neighborhood is filled with charming, local stores all walking distance from the beach and adjacent residential neighborhoods. There are neighborhood festivals, like the Riviera Village Summer Festival and a farmer’s market as well. The Riviera is not struggling with its identity, while the other beach cities, such as Manhattan Beach, are fighting to find a way to keep chains out and local mom and pop stores in. Downtown Manhattan Beach used to be a local haven for local business owners, but they find that they’ve been pushed out by larger chains. Manhattan Beach residents are feeling the change and are not exactly happy with it. Many locals come to the Riviera Village for that small-town charm and feel. In fact, it feels very much like a small, French coastal town. The local support from the Riviera Village Business Improvement District is partly responsible for the benches, wide sidewalks, pedestrian-friendly atmosphere, a wishing well, and even a shuttle service for visitors staying at the Crown Plaza Hotel. You can find out more about the great local events and shops in the Riviera Village at www.rivieravillage.org, and at their Facebook.