Pasadena Real Estate Trends: Sept 2009- Nov 2010

New Amazing Price!

The Great Recession at 30

Since the 'Great Recession' began more than 30 months ago, 55% of all adults in the labor force report that they suffered a period of unemployment, a reduction in pay or hours, or they became involuntary part-time workers, according to a new survey by the Pew Research Center's Social and Demographic Trends Project.

The survey of 2,967 adults was conducted from mid May to the end of May 2010, on cellular and landline telephones. The study found Americans reported a new frugality and a revised balance sheet. With many reporting it will take several years, at a minimum, for their family finances and house values to recover. Key findings include:

• About half the public, 48% say they are in worse financial shape now than before the recession began; 21% said they are in better shape.
• Of those who say their family finances have lost ground during the recession, 63% say it will take at least 3 years to recover
• About half of all homeowners, 48% said their home values declined during the recession. Of those, 47% believe it will take 3-5 years to return to pre-recession levels, while 39% think it will take 6 years or longer.
• 62% of the respondents say they expect their financial situation to improve this year.

Partnerships in Real Estate

Newly formed Partnerships in the Industry:

• Yahoo! Partners with CoreLogic and Zillow

Yahoo! Real Estate recently announced two partnerships. The first, with CoreLogic, will allow the Internet company to post CoreLogic's distressed housing data. Specifically, Yahoo! users will have access to CoreLogic's RealQuest platform, which contains data for 145 million residential properties in the U.S. Under the deal, Yahoo! users will access a subset of the data and be offered a subscription option for more complete data. The second partnership, an exclusive partnership with Zillow, will offer advertisers a single channel to reach both sites' audiences, with listings placed on one site populating the other site.

• Trulia Partners with CNNMoney

Trulia has teamed up with CNNMoney to become the exclusive provider of real estate listings to CNNMoney and real estate data for MONEY's "Best Places to Live" list.

• Inman Partners with C.A.R.

Inman News announced it will provide a daily news feed for C.A.R.'s latest Smartphone application, AgentNTouch, a consumer-focused app that allows subscribers to personalize the app and share housing trends, real estate advice, and listing information with their clients. 

Pre-Craftsman Beauties

I love homes, it's probably one of the biggest reasons I have entered this profession. The architecture of a home can make me giddy (seriously, I turn into a 5 yr old in a toy store). My favorite styles are Spanish, Craftsman, Art Deco, and especially Victorians. So when I read about the city of Pasadena's Historic Preservation survey, I was quite intrigued.

After nearly a year of work, a fascinating survey and report on Pasadena homes built between 1883 and 1904 has been completed. The Planning Department secured a federal grant last fall through the California Office of Historic Preservation to study late 19th and early 20th century architecture. Since then, the team has evaluated more than 870 homes. (I'm very jealous)

The final report details architectural styles popular in that era, including the Queen Anne, Colonial Revival, American Foursquare, Shingle and Eastlake styles, as well as simpler Folk Victorian houses and gable-and-hipped roofed cottages. The report also cites important architects, such as Greene and Greene.

Based on the team's findings, they have nominated two Pasadena neighborhoods and ten indiviual homes for the National Register of Historic Places. They also discovered 44 homes that may be eligible for nomination, and 38 that could be named city landmarks.

When the project is completed, all homes will be added to the California Historical Resources Inventory Database. How exciting!

Pasadena: Big City or Small Town

During the summer and fall of 2009, more than 3,000 people helped identify what they cherish about Pasadena, and what they would like to see improved. These operations were known as phase one of the General Plan Land Use and Mobility Elements update. Then all comments were organized into an Outreach Summary Report approved in May 2010 by the Pasadena City Council.

Now it's time for phase two. This will entail considering the options, making tough decisions and creating a city that reflects the community's diverse wishes.

One of the biggest questions is-

Should Pasadena continue to grow into a more metropolitan city or slow down to maintain the small town feel? Is there a healthy balance between the two?

Pasadena residents can state their opinion during one of two community workshops at the Pasadena Senior Center, located at 85 East Holly Street.

•Saturday, September 25, at 9am

•Thursday, September 30, at 6:30pm

Each workshop will include a short presentation on some of the challenges facing Pasadena, such as housing affordability, the local economy, housing laws and climate change. Then breakout groups will discuss the existing guiding principles of the General Plan, pinpoint areas of the city that are fine just the way they are, and determine if, how and where any new growth should occur. Input from these workshops will be used to draft alternatives that address concerns in the Outreach Summary Report.

In spring 2011, there will be another round of workshops to choose which alternatives will be included in the updated General Plan. Stay involved by visiting www.cityofpasadena.net/generalplan where you can find more details on workshops and pour through documents. Make your mark on Pasadena's future!



California Mortgage Rates updated 9/2/10

California Mortgage Rates & Payment Calculator

provided by Informa Research Services, Inc. | updated Thursday, September 2, 2010 (what's this?)

Mortgage Type	Today	Last Week	Change	Graph
15 Year Fixed	4.107%	4.133%	-0.026%	graph
30 Year Fixed	4.565%	4.576%	-0.011%	graph
1 Year ARM	3.131%	3.243%	-0.112%	graph
3/1 Year ARM	3.267%	3.306%	-0.039%	graph
5/1 Year ARM	3.349%	3.392%	-0.043%	graph

YourPieceOfCalifornia.com

The last page of the August 2010 'California Real Estate' magazine read,

"Your Guide-yourpieceofcalifornia.com"

Even before reading on, I visited the web site, so I can read the article while browsing the site. So here's a jumble of what I took from both outlets.
The web site is sponsored and created by the CALIFORNIA ASSOCIATION OF REALTORS. It is designed to assist prospective and current homeowners with the home-buying and home-selling process. The four main tabs read; Buying a Home, Neighborhood Information, Selling a Home, Working with a Realtor. Also including two links at the top right of the page; Find a Local Realtor and Property Listings. These link to REALTOR.com, where buyers and sellers can search for a local realtor to work with, or search for listings nationwide. Another great aspect is within a few clicks you can access current real estate news, such as median home price data. Overall I think it's another helpful website that both consumers and practitioners should visit.

I've already visited, will you?

Retailers Need to Think Old

My neighborhood, Old Town Pasadena has seen some new construction in the last few years. Including work/live spaces and luxury condominiums. But the majority of buildings are commerical. Most of these commerical buildings have been around since the turn of the last century. I came across an article in the July/August edition of REALTOR magazine, 'Retailers Need to Think Old'.

It isn't buildings that need to be re-engineered to serve the world's burgeoning senior population, it's the retail uses inside them. Adding wider doorways for wheelchairs and more handicapped parking spaces are a great start, but retailers also need to consider displays and labeling goods so they're accessible to people with disabilites. Changes like larger more colorful labeling for fading eyesight and lower racks that caqn be reached from a wheelchair or motorized cart.

Plus, aren't old buildings just more charming..?

Housing Myths Busted!

Two e-mail chains are spreading misinformation about pending legislation. One claims that the energy bill that's working its way through Congress would require home sellers to obtain an energy audit or make energy retrofits before they can sell their home. In reality, the bill includes a provision that requires new construction to be energy-labeled but prohibits states from requiring new ratings when the house is resold.

The second e-mail states that the health care bill contains a 4% transfer tax for some high-income households that have "net investment income." The tax, which goes into effect in 2013, applies only to households with adjusted gross income of more than $250,000 or $200,000 for individuals. Also, since the the capital gains exclusion rule is still in effect, the tax would be charged only on home sale proceeds that exceed the exclusion amount of $500,000 or $250,000 for individuals.

Remember folks, knowledge is power!

More Time for Tax Credit Deals??

Slow-moving short sales have made it impossible for many buyers to meet the June 30 closing deadline to qualify for the government tax credit. So it was a relief when a bill was introduced in the Senate in June to extend the closing deadline to September 30 for contracts that were already in place. The National Association of Realtors estimates as many as 180,000 households could benefit if the bill passes. Meanwhile, members of the military, intelligence agencies, and the Foreign Service who spent at least 90 days overseas last year have until the end of April 2011 to get a contract in writing in order to qualify for the tax credit.

Loan Modifications Under Fire

In the Real Estate Industry, whether you're an agent, broker, or loan officer, you've heard of "Loan Mods". 'Home Affordable Modification Program' otherwise known as HAMP, is the government program for helping hard-hit homeowners avoid foreclosure is encouraging strategic defaults. Loan Modifications made through HAMP are based on the home owner's first lien debt, not OVERALL debt. So even when lenders modify first mortgage debt to 31% of income, many borrowers continue to carry unmanageable debt-to-income ratios. The result too often is borrowers defaulting in order to qualify for a short sale or federal assistance. Asset Management giant BlackRock Inc. is shopping a proposal in Congress to replace HAMP with a temporary type of bankruptcy that requires subordinate debt to be eliminated first.

A Jumbo Recovery

In Late Spring, the first jumbo loan securitization closed since 2008. Marking what could be the beginning of a recovery for jumbo loans. The $238 million deal is collateralized by 255 loans that exceed the Fannie Mae and Freddie Mac's conforming high-cost loan limit of $729,750. Since 2008, jumbo originations have been limited to portfolio loans made by large national lenders. Now that investors are showing a willingness to purchase secuities of nongovernment-backed loans, a wider variety of lenders could return to the market.

What do you think?

The Paperless Transaction

The elusive "Paperless Transaction" has been a mirage on the technology highway for more than a decade. Even though transaction management platforms have arrived on the scene and both consumers and real estate practitioners alike, have adapted to the digital age. Two examples being electronic banking and online shopping. The promise of the paperless transaction has yet to be fulfilled. For practitioners, consumers, and county recorders, the biggest obstacle has been digital signatures.

Recently zipForm 6 began offering Realtors an alternative solution for signing C.A.R. forms digitally: 'zipLogix Digital Ink' inside zipForm 6. Digital signatures are based on public key cryptology, which allows users to know without question if a document has been modified. Both buyers and sellers can receive forms without ever printing, or using a fax machine. Both paper and time will surely be saved!

Real Estate Trends - Brokerages

I just received my August edition of 'California Real Estate' magazine, produced by the California Association of Realtors. The first page, following the table of contents, contained a bar chart representing California brokerages by size. The bold headline read, "Did You Know?". A recent analysis, taken from membership records, of the state's real estate brokerages found that small is big. The majority of firms are small, with four or fewer agents. Although mega brokerages are present in most of the state's market, small firms or single agent firms dominate in numbers.

Will this change the Real Estate Industry?

19th Annual Craftsman Weekend

Pasadena Heritage's Nineteenth Annual Craftsman Weekend

October 15-17, 2010

Immerse yourself in the American Arts & Crafts Movement

A tribute to Pasadena's unique contributions to the American Arts & Crafts Movement, Craftsmen Weekend is the largest and most comprehensive celebration of the Craftsman Movement in the Western United States. The Craftsman Weekend's offerings will include a tour of significant Craftsman-era houses, a variety of bus and walking tours, and exclusive evening receptions at historic sites. New this year is the expanded Craftsman Exposition, a major exhibition and sale of furniture and decorative arts which has moved to the Pasadena Convention Center.

Exclusive Tours include:

*The Robert R. Blacker House

*The Greene & Greene Lucy Wheeler House

*The Heineman and Heineman House

*Historic 1915 Lanterman House

As well as Bungalow Court Tours, Craftsman Style Women's Club Tours, and the celebrated Architects Tour.

This year Pasadena Heritage will partner up with the West Adams Historical District to include even more Craftsman Masterpieces.

Sounds Spectular....need tickets? Visit PasadenaHeritage.org or call 626.441.6333 for more information.

Aboard the World

I was flipping through the CHRISTIE'S GREAT ESTATES magazine, drooling over all the fabulous residences for sale, when an advertisement caught my eye.  The heading read, "Travel the world without leaving home".  Sounds good to me, so I read on...

"The World, the only private residential ship, offers you a travel lifestyle like no other. A life which allows you to explore the globe with 200 like-minded adventure seekers. Join us aboard our private yacht and live a life more extraordinary. Exquisitely designed studios, two and three bedroom apartments available."

I was sold, I had to visit the website as soon as possible. I browsed the floor plans and photo galleries. Jumped back and forth from tab to tab, to scan the information. What did I find...

Endless amenities and perks for owners and renters alike!

This summer, The World embarks on a polar expedition to the remote ice hewn coasts of Greenland. A world of breathtaking beauty carved by Ice Age glaciers and characterized by its challenging environment, Greenland lies mostly north of the Arctic Circle.

The World’s September 2010, 18-day Greenland Expedition will offer Residents and Guests a voyage to one of the planet’s most breathtaking destinations, in the company of their knowledgeable Expedition Team who will be guides during the voyage and present a series of informative lectures.

 

 

Sounds amazing! Any takers?

Pasadena 'Vista del Arroyo' Condominiums to be AUCTIONED

SUNDAY JULY 11
Vista del Arroyo in Pasadena


In today's volatile real estate market, ingenuity can help get a property sold. It's a sign of the times when you see such listings as 'Vista del Arroyo' be put up on the auction block. If you have ever peered over the side of the Colorado Bridge, a.k.a. Suicide Bridge, you'd notice a tiny colony of Spanish Revival Condominiums draping the hillside. Or if you ever frequent the Rose Bowl, then you probably drive past them.

12 Beautiful Condominiums will be auctioned, starting bids from $295,000. These units were previously priced from $799,000-$1,350,000. They feature 1-3 bedrooms and 2-4 bathrooms with up to 3585 sqft. Each unit was crafted with extraordinary custom features. The complex is centrally located in the heart of the Arroyo Seco, offering dramatic views.

To find out more about these properties visit www.VistaDelArroyoAuction.com or stop by the model unit #104, open daily from 11am-6pm.

Vista Del Arroyo
44 Arroyo Drive
Pasadena 91105
To find more information about auctions, visit www.KennedyWilson.com

Metro Gold Line Foothill Extension - Pasadena to Azusa

"GROUNDBREAKING" literally...

I had a post card come across my desk this morning, smack dab in the center of the paper, read that word, in bold font of course. Metro Gold Line is having a 'Groundbreaking' ceremony for the Foothill extension. Saturday June 26 from 10am-1pm at Newcastle Park, 101 West Colorado Blvd, Arcadia. The event opens at 10am, shortly after at 10:30am ceremonial groundbreaking, followed by food, entertainment, and family friendly activities. Free parking is available on-street, as well as at The Santa Anita Church. The City of Arcadia Transit is providing shuttle service along Colorado Boulevard.

Sidewalk Murals at Paseo Colorado

Do you have any plans this weekend? Will you be in the Pasadena area? If so, find your way to Paseo Colorado to enjoy the 18th annual Pasadena Chalk Festival. This Saturday June 19 & Sunday June 20 from 10am to 7pm.  It's free of charge and open to the public. About 600 artists will decorate walkways all around the shopping center.

This year the 2010 Pasadena Chalk Festival will attempt to make history by setting the Guinness World Record for the Largest Display of Chalk Pavement Art!

At the conclusion of the festival, participating artists will select the outstanding murals of the festival, including Best Overall, Best Technique, Best Use of Color and more. Festival visitors will have the opportunity to vote for their favorite murals as well. Pasadena Chalk Festival “Paseo Colorado People’s Choice” ballots will be available in the Center’s retailers.

2009 Best in Festival

Mucha by Arlou Somo

2009 Paseo Colorado People's Choice

2009 Best Technique

Let it Be by Shuji Nishimura

 

CA residents qualify for up to $18,000 in Homebuying Tax Credits

$18,000 IN COMBINED HOMEBUYER TAX CREDITS FOR A LIMITED TIME

Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state homebuyer tax credits. To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.

Under the federal law slated to soon expire, a first-time homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to $6,500, for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010. Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1(a)(4)). California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)). Other terms and restrictions apply to both tax credits.


For more information, C.A.R. offers a Homebuyer Tax Credit Chart with a side-by-side summary of the federal and California laws. C.A.R. also offers a legal article entitled Homebuyer Tax Credit Update.

Happy House Hunting!

First-Time Buyers: What Research Tells Us

First-Time Buyers

In 2009, first-time homebuyers comprised a whopping 47% of the market. Most likely due to the federal tax credit and historic affordability, according to the NATIONAL ASSOCIATION OF REALTORS 2009 PROFILE OF HOME BUYERS AND SELLERS. Housing economists predict that 2010 will be an even bigger year for first-timers.

So...WHO are these people? And WHAT do they want?

• MOST ARE MARRIED: 49% are married couples. Single females make up about 25%, while single males account for just 12%.
• THEY'RE YOUNG: More than half, 53% are between the ages of 24 and 34, and 12% are younger than 24.
• THEY'RE DIVERSE: 22% are part of a minority group. 6% speak a languauge other than English, and 12% were not born in the United States.
• THEY LIKE THE 'BURBS: Even though 22% purchase in an urban area, the suburbs continue to be the most popular location, with 52% buying there. The 3rd most popular spot is a 'small town'.
• THEY TAKE THEIR TIME: First-time buyers take an average of 2-4 weeks longer to find their home than repeat buyers.
• THEY'RE NOT AFRAID OF FORECLOSURES: 11% of first-timers bought a home in foreclosure, and 56% considered it. Compared to repeat buyers, only 9% bought a foreclosed home, and only 41% considered it.
• THEY'RE MOST LIKELY TO USE A REFERRAL: 53% found their agent through a referral.

Dining in SOCAL

Dining in SOCAL

THAI FOOD

My mouth waters everytime I drive by Saladang on Fair Oaks Avenue in beautiful Pasadena. Located just south of Del Mar Boulevard, this restaurant set up is in an old industrial office warehouse. Across the driveway is the sister restuarant, Saladang Song, known for more traditional dishes. Open for dinner or lunch, when you can get the famous Lunch Special starting at $7.95, which includes a salad (with the best peanut sauce dressing) your entree item with choice of rice, two egg rolls, and a mini scoop of ice cream..MMMM! My favorites include:

*Dried Chili Cashew Nut w/ Beef

*Sizzling Beef

*Pad Thai

*Pri King Pork

*Satay Chicken Skewers

*Mung Bean Cake

If your in the mood for good Thai, or in the area, drop in and enjoy! Trust me, you won't be disappointed.

Check them out at Saladangsong.com

CELEBRITY REAL ESTATE

CELEBRITY REAL ESTATE

Kourtney Kardashian Lists Her Calabasas Home

More real estate shenanigans for the Kardashian clan. Kourtney Kardashian, the eldest sister, is moving on from her Calabasas home. TMZ reported that she has listed her three-bedroom house for sale. Property records show that she bought the home in 2006 for $829,000. She and her boyfriend Scott Disick are looking for more room for themselves and their young son, Mason.

The 2,245 square foot home has three bedrooms and is located in the gated Creekside community in Calabasas. It has hardwood floors, a refrigerated wine closet and a marble bar. Like her sister Kim, this Kardashian has a love of animal prints, heavy draperies and nods to Hollywood glamour in the form of black and white posters. This home is listed for $795,000 with the Shevins who also still hold the listing for the main Kardashian home in Hidden Hills.

California's Homebuyer Tax Credit

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

A message from the 2010 CAR President, Steve Goddard

"I’m gratified to report that late this afternoon [March 25,2010], Gov. Schwarzenegger signed Assembly Bill 183, the Homebuyer Tax Credit legislation, into law. His actions today are the result of our efforts in Sacramento over the last several weeks as members and our team in the capital worked for the bill’s passage before it landed on the governor’s desk.

AB 183 will provide $200 million for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who purchases a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before Dec. 31, 2010, will be able to take the allowed tax credit. The credit is equal to the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years. Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).

The positive impact of the federal home buyer tax credit is clear. Nearly 40 percent of first-time home buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered, according to C.A.R. research conducted last year.

The state’s previous home buyer tax credit program was so successful that it ran out of tax credits by the end of June 2009, eight months before it was set to expire and just as housing markets appeared to be turning a corner. Unlike last year’s legislation, AB 183 adds a tax credit for the purchase of an existing home by a first-time home buyer.


AB 183 will significantly contribute to the effort to stimulate jobs-creation within California's housing market by helping to incentivize first-time home buyers to purchase homes that have been abandoned, foreclosed upon and returned to the lender, or have been sitting on the market for extended periods of time. It is these homes that will require substantial rehabilitation by the new owners, which will in turn generate a tremendous increase in jobs and accessory purchases connected to home improvement activities."

Does the tax credit make a difference to you? Does it motivate you to buy? It will be interesting to see what effects it has on the CA real estate market. I guess we'll have to wait and see...

Save the Date

The WEST PASADENA RESIDENTS' ASSOCIATION is holding their annual meeting on Sunday May 4, 2010. The reception is scheduled for 5:30pm, followed by the program at 6:30pm. The theme of this year's meeting is Pasadena Development: The Good, the Bad and the Ugly. (should be very interesting!) The highlights of the discussion will include proposed developments at Ambassador West and the Monty's restaurant site. City leaders will be on hand to present new plans for the renovation of the Rose Bowl and the update of Pasadena's General Plan. The program will allow ample time for a Q&A session. Residents are encouraged to submit questions in advance by email (questions@wpra.net). Exhibitors at the reception will include the Rose Bowl Operating Company, the Pasadena Planning Department, Arlington Garden, and other community groups.

The Annual Meeting is FREE and OPEN TO THE PUBLIC. The location is Mayfield Senior School, 500 Bellefontaine Street Pasadena 91105 (This is historic mansion, used in such movies as Jurassic Park: The Lost World. It's a beautiful location!! pictured below)

For more info, visit http://www.wpra.net/

FHA Loans

FHA LOANS

FHA 203(k) Loan Defined...

In today's Southern California Real Estate Market, distressed properties are flooding the marketplace. With loan restrictions and requirements becoming more strigent, finding the extra funds to fix up a foreclosed property seems out of reach. But don't hang your head just yet! The Federal Housing Administration (aka FHA) has a great program known as HUD 203(k) that assists buyers in financing the purchase of a "fixer-upper" and the costs needed to rehab the property. If you're willing to do a little extra work gathering estimates for repairs, this loan may be the key to buying your next home. There are plenty of bargains to be had purchasing "fixer-upper" properties, and you can save thousands of dollars on the purchase price of a home that has fallen into disrepair, been through foreclosure, government seizure, or a property sold in a non-traditional way like an auction.

FAQs:

CAN A HOMEBUYER TAKE ADVANTAGE OF THE BENEFITS OF AN FHA MORTGAGE ON A "FIXER UPPER?"

Absolutely. A program known as HUD 203(k) lets qualified buyers purchase fixer-uppers with FHA guaranteed loans, and even has built-in protection for the borrower should the repair and renovation process cost more than expected.


IS AN FHA "FIXER UPPER" LOAN DIFFRENT THAN A STANDARD FHA MORTGAGE?

A 203(k) has the same kind of application and approval process as other FHA home loans. You need to locate an FHA-approved lender and fill out the paperwork. The usual credit check and debt-to-income ratio considerations apply, and the low FHA mortgage down payment is also part of the deal. But with an FHA loan for a HUD 203(k), there are some additional requirements.


IS THERE EXTRA PAPERWORK REQUIRED TO APPLY FOR AN FHA INSURED HUD 203(K)?

Because the home must be repaired, the borrower is required to submit a detailed list of repairs and cost estimates with the application. That means putting in some extra research time prior to the FHA loan approval process. With the purchase of a new home with an FHA loan, the property appraiser does much of the work in determining how much the home is worth. In the case of a HUD 203(k), you need to have the property examined, labor and repair costs estimated, and have the repair list broken down so that your lender and the FHA can see how you plan to proceed once the sale is final.


WHAT DOES MY FHA "FIXER UPPER" LOAN PAY FOR?

Once you pass the usual credit check and you get approval for your FHA mortgage, you proceed to closing with a loan that not only covers the cost of buying the property, but also for remodeling expenses and closing costs allowed by the terms of your FHA home loan. The best part of these “fixer upper” loans? The approved FHA loan amount also includes a percentage of the total remodeling costs (as spelled out in your submitted plan) set aside just in case there is extra work needed. If you didn’t foresee some additional expense or one kind of repairs lead to an additional requirement, you’re covered with that extra money.


WHEN DO I GET THE MONEY?

When you’re ready to close the deal, the FHA loan money isn’t paid out all at once. The costs of the purchase are covered, but the remaining funds from your new FHA guaranteed loan are deposited into an escrow account and can be used to pay for the work done as you rehab or remodel the property.


WHAT ELSE SHOULD I KNOW ABOU THIS TYPE OF LOAN?

It’s understood that you may not be able to occupy your new home while you are having it fixed or remodeled. That’s why the guidelines for this type of FHA home loan include the option to include up to six mortgage payments added to the cost of doing the rehab work. The amount of mortgage payments built into the loan must not exceed the number of months estimated to get the work completed. You can’t add four months if the work will be done in three.



If you’ve got your eye on a fixer-upper property and you meet the FHA’s income and other requirements, you can take advantage of lower interest rates and other advantages of an FHA guaranteed loan. You don’t have to purchase a brand new property to get the benefit of an FHA mortgage.


Check out http://www.fha.com/ for more information, as well a list of FHA approved lenders in your area.

Things to Do

Things to Do - Sunday Edition

The Los Angeles Conservancy presents:
The Biltmore Hotel Walking Tour

The Biltmore Hotel tour explores the architecture and rich history of this magnificent hotel, known in its early days as “The Host of the Coast.”

The Biltmore Hotel opened in 1923 as a 1,000-room hotel that was “first class in every respect.” This was the first hotel commission for the newly founded architecture firm of Schultze and Weaver, who later went on to design such grand hotels as the Park Lane and Waldorf Astoria in New York, and the Miami Biltmore in Coral Gables, Florida. In addition to the lobby and grand hallway designed to resemble a Spanish palace, the hotel has several ballrooms, each decorated in sumptuous Beaux-Arts splendor.

Over the years, the Biltmore played non-stop host to high society, international political figures, movie stars, and royalty (including Rudolph Valentino, the Prince of Wales, J. Paul Getty, Howard Hughes, Herbert Hoover, and Eleanor Roosevelt), and it was the 1960 Democratic Convention headquarters of John F. Kennedy. In local crime lore, the Biltmore is known as the last place Elizabeth Short (the Black Dahlia) was seen alive.

The tour starts at 2:00pm sharp every Sunday and lasts about 2 hours. It's an easy walk that covers roughly 1/3 mile. Reservations are required for this tour. Meeting and parking information will be provided with your reservation confirmation. After the tour, stay for high tea in the hotel's magnificent Rendezvous Court (additional cost for tea reservations call the Millenium Biltmore at 213-612-1562).

Sounds Interesting....

'The Residences' at the W Hotel in Hollywood

Listed by my Twitter buddy, Russ Filice of Sotheby's International Realty-Sunset Strip, The Residences at the W Hotel in Hollywood is an exclusive condo project, committed to providing a VIP experience in the heart of Hollywood. The units range from studios to 3 bedroom penthouses, with price tags from $800,000-$9,000,000. Amenties include access to the W Hotel and all it has to offer, private rooftop access, high end design, and a location to die for. More info can be found at WHollywoodResidences.com.

OPENING MARCH 31, 2010

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Buyer Sales Procedure

Breakdown of the Buyer Sales Procedure:

Step 1: Buyer applies for a Loan
Step 2: House Hunt (my favorite)
Step 3: Submit Offer(s)
Step 4: Offer Accepted
Step 5: Open Escrow
Step 6: Order Title Report
Step 7: Inspection & Bank Appraisal
Step 8: Mortgage Loan Approval
Step 9: Title Company records deed & Lender funds new loan
Step 10: Close Escrow & take possession of your new home!

P.S. Hiring a buyer's agent doesn't cost you a sent!

Degree in Real Estate Development

USC offers Master of Real Estate Development

Real estate developers are the impresarios of the built environment. They orchestrate the talents of many players and balance the needs and interests of the various constituents touched by a development project. It is their job to discover how we want to live and work – and to provide the settings accordingly.


In many ways, a real estate developer is a creator of the urban landscape, working within a complex system of governance to tackle the challenge of converting undeveloped or under-utilized resources into homes, employment centers, civic areas, and places of recreation and commerce. With the excitement of finding place-based solutions to the unique set of problems presented by a development project, there also are the risks, rewards, and responsibilities that come with making our built environments more habitable and prosperous.

With greater frequency, community groups, government agencies, other property owners, and even the media are becoming involved in the development process. The capital markets, political and regulatory context, and major players change so rapidly that it is difficult to remain informed, let alone competitive. To deal with the complexity of the field and its far-reaching effects, today's industry professionals require advanced training to prepare them to operate in increasingly technical and interrelated areas.

What makes the MRED program so unique?

SPPD's Master of Real Estate Development program prepares graduates for key positions in real estate development. The MRED program is carefully designed to bring together the three main elements of real estate development: design, finance, and policy. Students are exposed to the full range of development functions – market analysis, finance and deal structuring, site planning, and project management and operations – and to all product types – residential, commercial, retail, office and industrial. Whether in the context of urban redevelopment, historic preservation, or suburban growth, MRED students learn from the developer’s perspective the importance of relevant issues in real estate law, economics, finance, marketing, negotiation, architecture, urban history, planning, project management, and construction technology.

The MRED program offers a number of distinct features, including:
An Exceptional Faculty:

Full-time USC faculty are joined by developers, lawyers, architects, planners, and other prominent professionals who bring cutting-edge relevance to the classroom and bridge learning with practice.

Lusk Center for Real Estate:

USC's Lusk Center for Real Estate serves as the liaison between the academic program and the real estate industry. It provides MRED students with a forum for professional development and offers them unique opportunities to connect with the real estate development community.

Distinguished Tradition:

Created in 1986, USC's MRED degree is among the oldest, most respected, and one of few graduate degrees focused on real estate development in the country.

Southern California:

The Los Angeles metropolitan area and its surrounding counties provide a rich urban environment within which to study real estate development. In this world-class hub of real estate innovation and activity, MRED students study an exceptionally wide range of projects - learning equally from failures as well as successes.

International Focus:

Recognizing the increasingly global nature of real estate development, the School is dedicated to preparing professionals to be effective practitioners throughout the world through the international study tour. Study tour courses include a 10-day professional-level overseas visit, and have focused on Sydney, Hong Kong, and Dortmund/Berlin in recent years. Students meet with leading developers, government officials, prominent business people, and consultants actively involved in the development community of the international site, thereby enhancing their global perspective and network while gaining valuable practical experience in the field.

Historic Listings

1837 Historic Adobe for Sale
Pomona, CA

Casa Alvarado, Circa 1837. A rare architectural find in the Hacienda Historic District of Pomona, California. The hacienda is on the National Register of Historic Places and is a city of Pomona Historic Site. This adobe is rich in history with residence of famous artist, writers and poets. This house is a rare survivor exemplifying the fully developed adobe frame ranch house in its final courtyard form. It embodies all the significant characteristics, showing the development of this form from the Mexican frontier period. This hacienda home is all the more rare as it retains much of its original fabric, including hand planed beams, shutters, doors and hardware. Surrounded with gracious deep verandahs this home is one of the original adobe haciendas in the state of California. On a large lot, the grounds include many early plantings, including a rare 150-year-old orange tree from San Gabriel mission. With a devotion to preserving the original design, the home is in need of restoration. This property is eligible for the Mills Act and historic restoration grants. Listed at $599,000


This historic adobe is perfect for a B&B. The location is accessible to major freeways, conference centers and is half way between Los Angeles and Palm Springs.

Listed by:
Linda Garner ZipRealty


Mobile: 909-762-3528
Fax: 866-837-8480
Email: linda.garner@ziprealty.com

CELEBRITY REAL ESTATE

Thanks to BergProperties.com/blog for this interesting piece of info...

Conan O’Brien formally lists his duplex penthouse in The Majestic building in Manhattan for $29.5M (Wowser!!)


Weeks after Conan O’Brien was reported to have been quietly listing his duplex penthouse in The Majestic building in Manhattan, the wan will o’ the wisp (as we once read him described) has officially listed the unit for $29,500,000.
Props to Chloe Malle over at the New York Observer for reporting last week on O’Brien’s new “formal” price tag for the 17th and 18-floor penthouse, which is in the Art Deco-style building at 115 Central Park West. He is listing the unit through Brown Harris Stevens’ “private directory,” and using power agent John Burger (loyal readers know how seldom we ever mention agents by name). Features in the seven-bedroom unit include eight baths, three terraces, two libraries and park views.

In 2002, Conan purchased the first portion of his spread — namely, two 17th-floor units (#17B and #17C) — for an undisclosed price. Then, in early 2007, through a variation of his name (”C. Christopher O’Brien”), the funnyman purchased the penthouse unit (#18C) above his 17th-floor unit for around $10 million. We first wrote about that purchase back in December 2006.

The question remains: is Conan done in L.A.? We don’t think anyone knows the answer to that question yet. Obviously, his six-bedroom mansion on Tigertail Road in Los Angeles’ Brentwood area, which he purchased in 2008 for $10,750,000, would have to go if he were to do a future show from NYC. However, we’re betting that a show for FOX ends up being based in L.A. Stay tuned.

Any offers? LOL

2010: The year of the turnaround?

A spurt in home sales in 2009, aided by low interest rates and the first-time homebuyer tax credit, has led some economists to forecast a turnaround in the housing market this year. Other forecasters feel this is too optimistic a projection.


Among those who see improvement in the 2010 market is Lawrence Yun, chief economist for the NATIONAL ASSOCIATION OF REALTORS® (NAR). Yun hopes that the extension of the first-time homebuyer tax credit will provide a new pool of buyers to absorb the additional foreclosures that will hit the market this year.

He expects existing-home sales to rise 13.6 percent in 2010; home prices should go up 3 to 5 percent, with wide geographic differences. The average rate on 30-year fixed mortgages will range from 5.3 percent in the first quarter to 5.8 percent by year end. This forecast assumes there will be no major economic surprises. The weak job market remains a concern.
The Mortgage Bankers Association (MBA) has a slightly different take on the 2010 housing market. MBA predicts existing-home sales will increase approximately 11.2 percent. Interest rates should be about 5.6 percent by the end of 2010. The unemployment rate is expected to peak at 10.2 percent and gradually decline in 2011. National average home prices should stop sliding during the first part of the year and stabilize, depending on area and price range.
The November 2009 Economic and Housing Market Outlook from Freddie Mac expects there will be an increase in foreclosures and short sales this year, even though foreclosures declined significantly in some of the worst foreclosure markets (like Las Vegas) at the end of last year. RealtyTrac reported that foreclosures nationwide decreased 8 percent in November 2009.
Zillow.com, an online real estate marketplace, reported in December 2009 that stabilization and increased home prices were found in 48 of the 154 markets tracked. However, Zillow forecasts a decline in demand as interest rates rise. Foreclosures are expected to stay high and could challenge recent stabilization.

Some economists think prices will continue to decline in some areas through this year. Others feel that at best, the economic and housing recovery will be a bumpy ride. And, we could bounce along the bottom for some time. Few expect home prices to rebound quickly.


HOUSE HUNTING TIP: There will be significant variation from one market to the next. Areas that have a good diversified economic base and limited inventory of homes for sale could stabilize in 2010 and see an improvement in home prices. Areas that are bloated with foreclosure and short-sale inventory and have a weak local economy probably won't see a turnaround this year.
Credit tightening would put a damper on the market. On Dec. 12, 2009, Fannie Mae took steps to make mortgage qualification more difficult. A significant change is that the maximum allowable debt-to-income ratio is being lowered to 45 percent from up to 64 percent. This means that the housing cost plus all other debt can't exceed 45 percent of the borrower's income. Buyers with strong credit and assets have a chance of approval with a debt-to-income ratio of 50 percent.

2010 is not expected to be a banner year for housing. But it could be a year of improvement for some niche markets and some price ranges. Expect to see more purchase offers made contingent on the sale of the buyers' home. Credit tightening has made it impossible for most buyers to qualify to own two homes at once.
There will likely be an increase in short-sale listings. Buyers have shied away from these listings in the past because they took so long to process, and were often denied by the lender. Lenders are now more open to approving short sales than they were a year ago.

THE CLOSING: Hopefully, they'll improve their performance in 2010.

Homebuyer Checklist

Homebuyer Checklist

Important questions you should be asking

What you should ask the seller or the listing agent when you're interested in a home?

If you know why a seller wants to sell, it can help you negotiate a better offer. The more motivated the seller, the more you can negotiate. It may take some finesse, but see if you can work these questions into conversation with the seller or the listing agent.

Which of these reasons apply to the seller?
These can go either way. You will have to get a sense from your conversation how quickly they want to sell the house if they:

___ Need more space

___ Need less space

___ Want to relocate

___ Are unhappy with neighbors or the neighborhood


You may be able to negotiate to have the seller finance part of your purchase. Explore this possibility if they:
___ Have lived there a long time

___ Owe little or nothing on the house
___ Are retiring


You may have some leverage when negotiating if the seller needs to sell the house quickly because of:
___ Relocating involuntarily (for example, a job transfer)

___ Changing marital status

___ Financial reasons

___ Health reasons

___ A death in family
___ Is the seller highly motivated to sell? A highly motivated seller MUST sell soon. Job transfer, divorce and financial difficulties put pressure on the seller, which can benefit you when you make an offer.
___ Has the seller bought another house that has yet to close? The seller will be more anxious to facilitate your purchase if the seller needs to complete the purchase of another house soon.

___ Is the seller trying to cash in on this investment? If so, you will have trouble negotiating too many concessions.

___ Has the seller lived there a long time? If a seller has been in a home a long time and accumulated a lot of equity, you may be able to negotiate to have the seller finance part of your purchase.