Robert's Beach Blog

Want to Sell Your Home?

Robert Kissig (Real Estate West) — Sat, 12 Jan 2008 13:38:26 -0600

Find a terrific Publicist (Real Estate Agent) who knows how to create some pizzaz, a unique attraction around your home. You may not realize how special your property is, only your agent appreciates what a jewel you have. This is what goes through his mind as he takes steps to present this for sale.

If your agent is competent and articulate, he/she will be able to present a side of your property that the buyer does not appreciate; the features that make your home a discovery that creates a need that otherwise did not exist. This is creative selling at its best.

There are logical calculated steps you can take to sell your home faster including:
= Reducing the sales price: Check out the neighborhood for comparable properties pricing.
= Repairing and updating to the home: It's surprising what you've overlooked over the years, and not always that expensive to upgrade vis-a-vis return in sales appeal.
= Replacing dated appliances: Ditto the above.
= Home Staging: Staging by a competent decorator can do wonders.
= Offering seller-financing to a buyer: Nothing like a little financial incentive to add appeal.

A Good Time to Buy

Robert Kissig (Real Estate West) — Fri, 30 Nov 2007 08:16:33 -0600

The 2007 National Housing Pulse Survey from October 2007, indicates that 59 percent of Americans think .
And yet, these are the figures that are completely out of sinc with logic :
    = Existing Homes Sales dipped to 4.97 million in October, the lowest since 1999
    = New Homes Sales counted 728,000, just off its 12-year lows
    = The supply of homes on the market is now at 10.8 months

Can you believe the power of the press? Only the negative thoughts are spewed out by print and TV to fill space. And their audience absorbs it. Thus, many are missing some prime opportunities.

Yes, home values are relatively low and so are mortgage rates. What appears to be happening, however, is mortgage guidelines are getting tighter by the week. Even strong credit borrowers coud well have financing difficulty as soon as six weeks from now. It looks like now is a good time to buy if you consider the strong possibility that financing may be too challenging soon for some.

So, Is It A Buyers Market?

Robert Kissig (Real Estate West) — Tue, 06 Nov 2007 09:23:21 -0600

Can it be described as "A market condition characterized by an abundance of goods available for sale”...a reasonable description of a buyer’s market? Is a decline in pricing reflecting a buyer’s market?

Well its a buyer’s market, or was, in terms of availability. This condition has been changing. Rather than reducing the price in the So. Bay, where pricing is all in the Jumbo Loan category, sellers are becoming holders. Its becoming a Holders Market... ‘Why sell now when I can get my price’ is becoming le mot du jour.

So in simple terms, if you can find it, buy it. And don’t overlook the historically low interest rates that are still in place. Do your homework. Determine what the going prices are and go from there. There are certainly buys to be had, but they’re not what they used to be. The buyers who are laying in the weeds waiting for big downturns in pricing are missing some good buys. I’ve sent listings to clients with $25K-$240K reductions, that did not draw a walkthrough. This is making a pass on a Buyers Market. I hope The Media doesn’t exercise the same mind control in the up-coming elections. P.T. Barnum would have had a field day.

Could The Miserable Housing Starts Be An Indicator Of The Housing Market's Recovery?

Robert Kissig (Real Estate West) — Fri, 19 Oct 2007 10:00:15 -0500

Not if you believe everything you read in the press. These writers present only what appears on the surface. Yes, Housing Starts plunged last month. Does this mean the Housing Market is in the toilet?

The government has just released September 2007's Housing Starts data for the country. A "Housing Start" is a new home on which construction has commenced.
= Versus August 2007, starts are down 10.2%
= Versus September 2006, starts are down 30.8%

Headlines are saying that this is bad news for the U.S. economy, proof that real estate is in a tailspin. That the ”nightmare” is ongoing. As usual, the press hasn’t done their homework. If Housing Starts are down, it means that the housing supply will also be down shortly. Add to this scenario, builders who are no longer adding new supply to the housing market, the existing demand for homes are allowed catch up. At this point we see a rebalancing of the Supply and Demand, as home values rise.

The result
= Todays buyers will buy with confidence, realizing the investment value of their purchase.
= As values rise, mortgage lending risks decline and helps more people get approved for more types of mortgages.
= More buyers will be able to get approved for more types of mortgages.
= Rising home values create wealth in the form of home equity. Home prices aren't being supported by the existing demand, which tells us that it's time to cut the supply, and that's what the builders are doing.

So, this is one approach for the media to present a more realistic explanation of what’s current in real estate.

Ah, la fin de fumer!

Robert Kissig (Real Estate West) — Mon, 15 Oct 2007 11:29:39 -0500

Yes, come January, smoking will be banned in all restaurants and bars in France. In theory, the ban has been in effect since 1991...a ban except for specified “smoking” areas. Of course the majority of space in each establishment became the smoking area.

It looks like one of the last poignant characteristics of French life is finito. Come January you risk a 75 euro ($107.00 US) fine if you light up over your demi et cognac. This is the first hit. In recent years tobacco taxes have been jacked up 40 percent, bringing a packet to around five euros ($7.00 US), one of the highest on the continent.

“A world is collapsing,” writer Philippe Delerm wrote in a front-page ode to the cigarette in Le Monde newspaper, referring to the alluring image of the chain-smoking intellectual.

Whatever that look, it’s certain that French bars, impregnated with nicotine since Sartre hung out at Les Deux Magots, Giacometti littered Montparnasse with butts, and Gainsbourg’s grave was lined with Gitanes, are rapidly approaching the end of an epoch.

Nearly everyone it seems would like to quit smoking, what has been accepted over the years as a natural element in French life. With the elimination of the smell and stained interiors, the dingy walls and human odors will be questonable replacements.

Is Le Parfum de Cigarettes Air Spray in the works?

Things Looking Up?

Robert Kissig (Real Estate West) — Sun, 14 Oct 2007 18:03:59 -0500

Things are starting to look up in real estate from what recent reports and the NAR indicate. It may be a temporary positive glich, but with widening credit availability and low interest rates holding steady it sure does look like a recovery is slowly under way. I’m sure this is no news to anyone in the business. Of course everyone likes a positive attitude...why not?

Conforming loans are becoming very available at historically attractive mortgage rates. There have been adjustments in pricing for jumbo mortgages, and subprime mortgages are being replaced by FHA loans.

One thing that gives the market perspective is the news that 2007 will be the fifth highest year on record for existing-home sales. 2005 was an unsustainable peak. It was overloaded with speculative buyers. These spec excesses have been removed from the market, and home sales are starting to return to normal.

NAR President Pat V. Combs , from Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt, said, “Housing is still a good long-term investment, and we’ll be seeing a broad, modest improvement in home prices in 2008. With widely varying conditions, the best advice for consumers is to consult a Realtor® in their area to learn about local market conditions because supply and demand can change from one neighborhood to the next.”

Of course loans in our neighborhood are in excess of double the $417K conforming rate. (Jumbo rates are in the 7.11% range, conforming loans are in the 6.0% range.)
Jumbo loans are a little more problematic than conforming loans.

Only when the creative mortgages experienced in 2005 return (what?), will real estate return. Or, mortgage lenders would be required to follow good faith and fair dealing requirements, with a fiduciary duty toward borrowers.

Anything’s possible.

One man’s opinion.

Who Needs A Partner?

Robert Kissig (Real Estate West) — Wed, 03 Oct 2007 12:19:44 -0500

It seems that partnerships are the way of the future. Why? I’m a loaner myself. I sure don’t want to check-in with a partner every time I make a decision.

So what’s the advantage? Businesses—successful business— are run like a business even if there are no partners. There’s a structure to a business. Things get done on schedule, there’s plan, ergo a business plan.

There is a growing trend from Sole Proprietor (SP) to Business Owner (BO). The thought precesses are totally different. Think about it. The SP has only one-on-one thoughts and the possible repercussions there of — “If I do this, I can expect this.”

There is a shared decision in the case of the BO. When a business relationship is established, a business plan is agreed upon. The weakness and strengths of each member are established at the outset. They marketing their business and the value of teamwork.

New business names are beginning to show up, in combo with the parent broker name.
The business functions as a freestanding business, however. How to create a Marketing Plan and structure a new business approach to real estate can be found at: http://www.buildmybusiness.com

Mortgage Loan Rules Tighten

Robert Kissig (Real Estate West) — Mon, 24 Sep 2007 17:40:25 -0500

Not that long ago, outbidding on properties was common practice with “jumbo” loans—over $417,000. Homes on the market now have became abundant, the sub-prime meltdown has led to tightened lending even for credit-worthy borrowers, including shoppers in their price range who needed so-called jumbo loans.

Lenders recently started to shun these larger deals that, according to Andrew LePage, an analyst with DataQuick Information Systems, accounted for almost 40% of purchase loans in Southern California in the first seven months of 2007. Last month, Southland home sales dropped to their lowest level for any August since 1992 as buyers, sellers and lenders held back in the uncertain market and deals slowed or stalled

Some lenders are slowly starting to return to business, but the rules have changed for borrowers: They need much brighter credit scores, a fuller financial profile and larger down payments. Plus, buyers can expect to pay higher interest rates than they did just a few months ago.

Among the changes, many lenders have backed away from 100% financing; when it is still offered, the terms are much more restrictive.

"I like to tell people that 90[%] is the new 100," said Barry Kaye, a Beverly Hills-based mortgage industry consultant. And the deposit needed on a loan of up to $1 million has gone from 5% to 10% in the last year, he said, assuming the borrower meets the new lending criteria. The changes are being felt largely by those seeking homes costing roughly between $800,000 and $2 million, he added.

New strategies in putting deals together are beginning to show up, including sellers paying points to buy down the buyer's interest rate, making deals contingent on buyers first selling their homes, or even more modest incentives such as paying off homeowner association fees.

“Once, a selection of widely available loan programs that existed, have disappeared or now require larger down payments, higher credit scores and more thorough income and asset documentation, said Ed Craine, vice president for the California Assn. of Mortgage Brokers. "Some people have found the original loan they qualified for no longer exists."

It is still possible to borrow, though that may require a little extra effort.

"Things are in a pretty bad way right now," said Brian Martucci, head of online mortgage broker GetLoans.com, who believes the situation will become much worse before it gets better.

Martucci, based in Washington, D.C., sees more lenders going out of business and a growing supply of homes as a result of foreclosures, developers who overbuilt and buyers who can't find financing.

He predicts it could be another year until the full extent of the foreclosure crisis is known and even longer before the lending market regains its momentum. "There's a lot of unwinding to come. We're all heading for the same pain."

Locally, Gary Bluman, owner and president of , based in Brentwood, takes a more sanguine view.

"We're telling our clients that based on history, values will come back and that now is a good time to buy for the long term," he said. "We're not expecting a big slump."

CAN YOU BELIEVE, “St. GREENSPAN” DIDN’T KNOW?

Robert Kissig (Real Estate West) — Mon, 17 Sep 2007 10:34:42 -0500

Even Alan Greenspan didn’t realize the danger to the nation’s economy as a result of faulty mortgage loans. As Chairman of the Federal Reserve, wouldn’t mortgage fall under his watch? His explanation is in “Fed Speak,” as are all communications from the Federal Reserve.

As I understand it, the idea behind the Federal Reserve is to keep things running smoothly, so banks that are members of the Fed are federally insured, which should be reassuring to depositors. It seems that there were fraudulent practices that were swept under the rug: the Feds ignored, lenders denied, and borrowers are hung out to dry with.

So now we discover that Alan Greenspan wasn’t the financial genius he was thought to be,or he was asleep at the switch? His explanation: "It’s difficult for regulators to control." And unfortunately it seems his replacement is proving no more helpful controlling the mortgage loan business than he was.

As home buyers and sellers ponder what to do next in today's volatile real estate and money markets, the conflicting opinions of industry professionals may not offer much help. Greed, the original raison d'être, continues to triumph.

A number of loan programs, once widely available, have disappeared, or now require larger down payments, higher credit scores and more thorough income and asset documentation. Some people have found the original loan they qualified for no longer exists.

Credit tightening at the jumbo end of the market, means agents are having to learn "different ways of putting deals together." Deals that include sellers paying points to buy down the buyer's interest rate, making deals contingent on buyers first selling their homes, or even more modest incentives such as paying off homeowner association fees.

It looks like the borrowers and their lenders are proving more creative than the Feds when creating a means of dealing with this conundrum.

Chicago Considering Adopting Paris Self-Service Bike Scheme.

Robert Kissig (Real Estate West) — Thu, 13 Sep 2007 13:44:47 -0500

Chicago? (Kind of hard to get around in the snow with a bike. And the humidity without A.C. might be unbearable at times.)

How did the South Bay (So California, USA) overlook this opportunity to put a major dent in the areas of horrendous gas consumption, and to help get the absurd gas guzzling vehicles off the road. After all, who needs $40,000-plus ego satisfying vehicles for transportation? The French know how to do it...small cars are derigueur. (The price of petrol may have something to do with this.)

But this aside, bicycles are practical. Parking isn't a problem, the cost of renting is far less than gas, and vehicle cost is eliminated. And of course, there is no pollution.

In Paris it works like this: Riders can pick up a bike at any time of day or night, after lodging a 150-euro safety deposit. The first half hour is free, with prices rising to one euro (1.4 dollars) for every extra half hour.

The "Velib" scheme in Paris has 10,000 bicycles at 750 hire points dotted around Paris, with plans for 20,000 bikes at 1,400 hire points by year end.

Residents of the South Bay pride themselves in physical fitness and outdoor sports. Here’s a plan with fascinating possibilities. (Of course freeway use is not recommended.)

Housing Inflation?

Robert Kissig (Real Estate West) — Mon, 04 Jun 2007 16:32:24 -0500

Ah yes, I can remember when our home in Westwood Village cost somewhere in the neighborhood of $5,000. Just south of Wilshire Blvd, it was a beauty with a bamboo walled den and porch from this romantic feeling room overlooking a sizeable backyard. The large garage was on the back of the yard. We would drive to the top of Sepulveda Blvd (pre-405 Fwy) and hunt deer, not far from where the current Getty Museum sits. Manhattan Beach was unknown to many in those days. Kids, but not many adults, would ride bicycles down to surf. Prices in either end of these towns are now of course nostalgic.

Those who bought homes in the 90’s saw home values drop...there was a period when they owed more than they could get if they sold. Today, they’re sitting pretty. These nightmare years are a distant memory.

It’s a realistic thing for potential buyers today to consider...it will happen again just as sure as the sun will rise. Buying a home will become an excellent investment in the future...as long as the buyer spends some time in the property. Home ownership has done so much for so many... and will continue to do so. Inflation will continue to work for the buyer rather than against them.

Currently in the South Bay, there are 381 properties available, comprising:

El Segundo: Total 35
Single Family Residences: 22
Median: $1,299,450; Low: $765,000; High: $2,190,000
DOM: 56
Townhome/Condos: 13
Median: $669,000; Low: $439,000; High: $879,900
DOM: 83

Manhattan Beach: Total 122
Single Family Residences: 101
Median: $1,544,000; Low: $799,000; High: $1,995,000
DOM: 26
Townhome/Condos: 21
Median: $1,619,000; Low: $655,000; High: $4,950,000
DOM: 78

Hermosa Beach: Total 100
Single Family Residences: 57
Median: $1,549,000; Low: $659,000; High: $11,000,000
DOM: 93
Townhome/Condos: 43
Median: $1,249,000; Low: $479,000; High: $2,499,900
DOM:60

Redondo Beach South: Total 124
Single Family Residences: 33
Median: $1,225,000; Low: $750,000; High: $2,699,900
DOM:81
Townhome/Condos: 91
Median: $807,000; Low: $683,900; High: $899,900
DOM: 65

"BELOW 500 FICO SCORE?"

Robert Kissig (Real Estate West) — Sun, 20 May 2007 19:00:36 -0500

"CALL, WE CAN HELP!"

"LET US BEAT YOUR BEST QUOTE!"
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• NO FICO SCORES REQURIED!
• 1ST, 2ND OR 3RD TRUST DEEDS!
• NO DOCS / INT. ONLY OPTION OK!
• STATED INCOME / ASSETS OK!
• SAME DAY LOAN DOCS AVAILABLE!
• $4,000,000 MAX LOAN AMOUNT!
• $50,000 MIN LOAN AMOUNT!
• CALIFORNIA PROPERTIES ONLY!
__________________________________________________________

Does the preceding shown on my e-mails today sound familiar? Is there something leading to disaster perhaps?

I think it might make a good leason for more unexperienced clients to study long enough to learn what not to do.

Are people outside the So Bay aware for example that 4-unit properties are starting to come back on the market...it been a couple of years since we’ve had much to look at. And with rentals becoming more and more in demand...the positive aspect of foreclosure properties...multi-unit properties are popular as they become available. What’s it take to get into the market? Money. It takes solid financing unlike the stuff shown in the phony-baloney stuff above. No below 500 FICO scores. No ‘No Fico Scores Required.’ No stated Income.

Income in the So Bay is unlike a good portion of the city to the east, in that the buyers have the financing to back up their offers. Simple.

The nightmares created by funding options shown in the e-mail above, create buyers that soon become major problems.

Currently in the South Bay, there are 374 properties available, comprising:

El Segundo: Total 37
Single Family Residences: 23
Median: $1,499,000; Low: $699,500; High: $2,190,000
DOM: 67
Townhome/Condos: 14
Median: $747,500; Low: $439,000; High: $899,900
DOM: 54

Manhattan Beach: Total 116
Single Family Residences: 92
Median: $2,337,500; Low: $849,999; High: $8,150,000

DOM: 53
Townhome/Condos: 24
Median: $1,707,000; Low: $769,000; High: $4,950,000
DOM: 55

Hermosa Beach: Total 95
Single Family Residences: 57
Median: $1,499,000; Low: $819,000; High: $11,000,000
DOM: 57
Townhome/Condos: 37
Median: $1,305,000; Low: $479,000; High: $2,499,900
DOM: 49

Redondo Beach South: Total 126
Single Family Residences: 29
Median: $1,299,500; Low: $749,000; High: $2,690,000
DOM:45
Townhome/Condos: 97
Median: $899,000; Low: $357,500; High: $4,990,000
DOM: 66

Some Nice Selections

Robert Kissig (Real Estate West) — Thu, 17 May 2007 17:44:15 -0500

I’ve been sending out some of the nice selections locally to a picky market. Hard to figure. People seem to be very selective with no particular reason. Even 4-unit listings are beginning to make an appearance after it seems like a lifetime of sitting in the weeds. Buyers are simply finding it hard to make a buying decision these days. Even the rising prices, and euro’s 36% addition to the dollar have been less detering for US buyers in France, than the attitude created by our mystical press locally.

Poor loan availability is understandable...it should have been this way all along. Mortgages rates are very attractive and prices are only slowly making upward drifting in most cases; in some, they’re drifting down a tad.

In all, nothing dramatic has actually come cruising into the real estate market. It’s simply been the mythical creation of a plastic balloon of some sort engulfing our real estate holdings, threatening to explode at any moment. In the meantime, real estate in the south bay goes on in an undeterred fashion, except for an unexplained atmosphere of purchase avoidance. Amazing, except for the required capacity to qualify for a loan. One of these days, the rainbow will open and buyers will realize the beauty and availability of residences by the sea.

Currently in the South Bay, there are 374 properties available, comprising:

El Segundo: Total 37
Single Family Residences: 23
Median: $1,499,000; Low: $699,500; High: $2,190,000
DOM: 67
Townhome/Condos: 14
Median: $747,500; Low: $439,000; High: $899,900
DOM: 54

Manhattan Beach: Total 116
Single Family Residences: 92
Median: $2,337,500; Low: $849,999; High: $8,150,000
DOM: 53
Townhome/Condos: 24
Median: $1,707,000; Low: $769,000; High: $4,950,000
DOM: 55

Hermosa Beach: Total 95
Single Family Residences: 57
Median: $1,499,000; Low: $819,000; High: $11,000,000
DOM: 57
Townhome/Condos: 37
Median: $1,305,000; Low: $479,000; High: $2,499,900
DOM: 49

Redondo Beach South: Total 126
Single Family Residences: 29
Median: $1,299,500; Low: $749,000; High: $2,690,000
DOM:45
Townhome/Condos: 97
Median: $899,000; Low: $357,500; High: $4,990,000
DOM: 66

An El Primero Town

Robert Kissig (Real Estate West) — Tue, 15 May 2007 17:35:47 -0500

For a little town with nothing fancy going on, and a few entrances that make it look like a grungy scene from the old ‘78 film noir movie with Robert De Niro, “The Deer Hunter,” El Segundo is slowly becoming an El Primero town with one of a kind restaurants that are not found elseware in So. Cal.

Chef Hannes little walk-in spot on Main Street, with two white-linen covered tables on the sidewalk in front, makes anyone who’s been in parts of France find it hard to believe that they’ve not been transported. Waiters fit right in as well. And the food...Italian, French, Calif...chef’s creations of the day, are wonderful. The wine menu was created for the menu.

The same owner is opening an Italian resturant on Richmand Street, with a bandstand, dancing, and fine wine and food. It will be a beauty, judging by the decore. It’s taken over a year to make it ready to open.

And next to it, the 2nd City Bistro, which took a year and a half plus to open, has become a renown restaurant in the few years it’s been open...and it has never advertised. Word of mouth is all a great restaurant needs. The decore is as tasteful as one might expect from a master restaurateur, who also combined a masterful wine list to compliment a fabulous food menu. Restaurant critiques have created a following from out of town. The Wed. night wine tastings have created another loyal following.

The Farm Stand on Main Street, is subtitled “Urban Country Food,” but to be more specific, it is French, Italian, American & Countryside, and don’t forget Persian. The husband (Persian) and wife (French) owners come from restaurant family backgrounds which are reflected in the unusual menu.

So, as you can see, El Segundo is slowly becoming a town with a variety of fabulous restaurants. El Segundo is still quietly existing behind some of the grungy old business real estate architecture. It takes a while to avoid the distraction and unpopular surroundings and enjoy the unique quality of this 2nd City Town. Once away from the surrounding approaches, the neighborhood homes are beautiful, impressive new designs, and beautiful old Spanish with upgraded interiors. And it’s a half mile up from the beach.

Currently, in the South Bay, there are 359 properties available comprising:

El Segundo: Total 35
Single Family Residences: 21
Median: $977,450; Low: $839,000; High: $1,069,890
DOM: 44
Townhome/Condos: 14
Median: $780,000; Low: $439,000; High: $899,900
DOM: 51

Manhattan Beach: Total 112
Single Family Residences: 86
Median: $2,350,000; Low: $899,000; High: $7,199,000
DOM: 63
Townhome/Condos: 26
Median: $1,597,000; Low: $755,500; High: $4,950,000
DOM: 46

Hermosa Beach: Total 96
Single Family Residences: 55
Median: $1,499,000; Low: $819,000; High: $11,000,000
DOM: 57
Townhome/Condos: 41
Median: $1,305,000; Low: $479,000; High: $2,499,900
DOM: 49

Redondo Beach South: Total 116
Single Family Residences: 27
Median: $1,299,500; Low: $749,000; High: $2,690,000
DOM: 51
Townhome/Condos: 89
Median: $899,000; Low: $357,500; High: $4,990,000
DOM: 72

The South Bay Real Estate Market?

Robert Kissig (Real Estate West) — Tue, 08 May 2007 18:47:59 -0500

How’s the South Bay Real Estate Market? Stable would probably be the best word to describe it. In Manhattan Beach, there are 6 fewer properties for sale compared to last month. The median price is $738,250 higher for Single Family Residences, and $200,000 lower for Townhome/Condos. The other So. Bay communities are equally similar to the preceding month. There are relatively modest increases and decreases, depending on the specific home location, style and condition.

Currently, in the South Bay, there are 347 properties available comprising:

El Segundo: Total 34
Single Family Residences: 21
Median: $977,450; Low: $839,000; High: $1,069,890
DOM: 44
Townhome/Condos: 13
Median: $780,000; Low: $439,000; High: $899,900
DOM: 51

Manhattan Beach: Total 111
Single Family Residences: 83
Median: $2,350,000; Low: $899,000; High: $7,199,000
DOM: 63
Townhome/Condos: 28
Median: $1,597,000; Low: $755,500; High: $4,950,000
DOM: 46

Hermosa Beach: Total 94
Single Family Residences: 57
Median: $1,499,000; Low: $819,000; High: $11,000,000
DOM: 57
Townhome/Condos: 37
Median: $1,305,000; Low: $479,000; High: $2,499,900
DOM: 49

Redondo Beach South: Total 108
Single Family Residences: 26
Median: $1,299,500; Low: $749,000; High: $2,690,000
DOM: 51
Townhome/Condos: 82
Median: $899,000; Low: $357,500; High: $4,990,000
DOM: 72

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo.

Make sure you are ready to buy a house. Don’t enter home ownership with a subprime loan. Make sure you have a good credit rating and are not in debt. This is a fine time to purchase a home if you are qualified. Interest rates are low, and pricing is moderating. With a reasonable prime rate loan, the fraud nighmare of subprime loans can be avoided.

Senior Thoughts

Robert Kissig (Real Estate West) — Fri, 04 May 2007 07:57:55 -0500

Every once in a while one just needs to take it easy and examine ‘things of consequence’. Nothing too heavy, but worth the trip.

So you think there’s nothing to do today? Amazing how many seniors get this into their heads and it becomes as permanent as any landfill.

I had a dear friend who unfortunately passed away recently, and every day prior to his death he added to an ongoing novel he’d worked on for years. A fascinating murder mystery in Marin County, the final version I could hardly wait to read. He painted in oils, profusely and daily. His were pictorial descriptions of colorful old parts of California not seen that often by tourists: old neighborhoods in the Mission District of San Francisco, the rusting old Monterey Cannery, the remains of old Chinese fish canneries in nearby inlets of San Francisco Bay. He loved women and was a regular at local nude painting classes in the evening. Charmer that he was, it also became a regular locale for dating younger ladies. He was an avid swimmer and golfer. And at soirées for single parents, he was a regular. His days were full and satisfying.

Oh, and he was a Realtor in Marin, and a friend of unsurpassed presence for anyone who had the good fortune of knowing him at all.

Today in the South Bay

Manhattan Beach 5/04/07
For Sale—Single Family and Townhouses: 116
Sand Section: 37
Tree Section: 33
Hill Section: 12
Village: 4
Heights: 11
Mira Costa: 19
Pending/Sold—Last 2 months: 162

Hermosa Beach 3/22/07
For Sale—Single Family and Townhouses: 63
Sand Section: 33
Valley: 11
East: 19
Pending/Sold—Last 2 months: 53

Redondo Beach South 3/22/07
For Sale—Single Family and Townhouses: 67
No. of Torrance Blvd: 25
So. of Torrance Blvd: 13
So. of PCH: 12
Pending/Sold—Last 2 months: 79

El Segundo 3/22/07
For Sale—Single Family and Townhouses: 30
Pending/Sold—Last 2 months: 39

Subprime Reality

Robert Kissig (Real Estate West) — Sat, 28 Apr 2007 18:22:28 -0500

Let’s face it, a lot of people screwed up. It’s become a tremendous mess and no one wants to take the blame. There are some who can’t avoid the blame. There are others who are looking for a plate full of pitty. And of course, there’s the Govt. Watch Dogs who came in a tad too late, pointing the finger and raising hell like they knew about the scenario all along and are just now doing something about it. Like, who cares?

Subprime Loans, Predatory Lending et al...Why don’t consumers know better than to get involved with misleading mortgage programs? They should know better? Right.

When a subprime fixed rate initial offer has a future configuration with an Adjustable Rate (ARM) which is not explained at the outset, what does the unaware consumer do when new payments are dumped on his head as simply a surprise? And with no warning, as if that could help.

This is the situation the feds are fineally attacking, as if they knew nothing about this procedure for some time. There are even realtors who ask the question, ‘Why didn’t they know better?’ Yeah, that would have been ideal. But look at the frenzy of sales activity, and the equity growth and constant flipping that took place. A call concerning a slump of any kind in the market was for nay sayers that were avoided as were any other negative fist wavers.

Unfortunately, the victims are multiple, and include not only the consumers, but the lenders as well. Both sides are feeling the effects of uncontrolled lending. The momentum of the housing boom created a bizzarre market catering to high-risk borrowers who were only able to qualify for loans with unreal standards. When the offer was made, the consumer signed up without examining the potential downfall.

Lenders are now tightening their standards, with adjustments even with prime standards. Borrowers might do well to work more closely with Realtors in locatiing good lenders.

Subprime, a Result of Predatory Lending

Robert Kissig (Real Estate West) — Tue, 24 Apr 2007 16:43:58 -0500

The ad said, “Easy Financing. Low FICO scores no problem. Stated Income only.” What a deal.

It doesn’t take much imagination to picture the chain of events leading to the ultimate conclusion...Foreclosure, based on Predatory Lending. There has been a landslide of financing in a spectacular unprecedented market. Everyone was willing to take any steps necessary to capitalize on a spectacular scenario.

And finally...a new headline:

"All predictions are that we are facing a tsunami of default and foreclosures in the subprime market as homeowners face steep increases in their monthly payments and housing values remain flat, making refinancing virtually impossible," said Rep. Carolyn Maloney, D-N.Y.. Maloney is vice chairman of the Joint Economic Committee and chairs the House Financial Services Subcommittee on Financial Institutions.

Hearings are being held by the Financial Services Committee, examining predictions by the Center for Responsible Lending, concerning default and foreclosure results, which have been extremely negative. It is thought that these findings are based on ‘unrealistic, worst-case assumption,’ said Mortgage Bankers Association Chairman John Robbins. Robbins contends that RealtyTrac is a company that specializes in marketing foreclosed properties, and overestimates the number of foreclosures by roughly 30 percent.

Well, it’s not as bad as it seemed after all. But tell that to the individuals who’s homes are facing bankruptcy. And tell the ‘good news’ to the once greedy, profitable lenders, many of whom are suddenly out of business.
Some sleigh ride. The effects are still being reviewed by the feds, as the real estate market of yore, settles into a degree of normalcy once again. No more flipping. No huge overnight equity gathering. Just average real estate sales, with average real estate profits. And loans based on good FICOs and income. No surprises.

A 2nd Home in Wine Country?

Robert Kissig (Real Estate West) — Sun, 22 Apr 2007 13:18:27 -0500

Yes, that wine country...Burgundy. What a wonderful idea.

A client in the process of investing in the neighborhood of 2 million euros ($2,724,202, the euro/dollar exchange being the only negative) for a 2nd home in Burgundy, made the observation, “I can remember a couple of years ago in Paris, it was common for non-French speaking Americans to be taken advantage of. There has been a noticeable change in the last two years. French waiters, taxi drivers and people on the street, go out of their way to be friendly with Americans. I have yet to learn their language, but this is something I plan to change. After all, I’m about to become a home owner and have every intention of becoming articulate in the local language”.

This gentleman has spent every year for many years, at the same hotel in the 7ème arrondissement, and loves Paris. The positive change he has noticed in Paris, has been a common attitude in areas throughout the countryside. Much of the shared attitude goes back to the mutual support during WWII. It’s a healthy environment in which to settle down in a 2nd home.

The current election can only improve this relationship.

Traveling from Auvergne or Burgundy to Paris, is comparable to a trip from Los Angeles to San Diego. Think of it, the museums, theaters and marvelous restaurants in Paris would be that available. And to the south, Corsica, the island paradise on the Mediterranean, is a short flight from Clarmont-Ferrand Airport to Figari near the Bonifacio Coast.

Cordialement,

Robert

Foreclosure! A Dreaded Term

Robert Kissig (Real Estate West) — Fri, 20 Apr 2007 10:14:58 -0500

...‘All those years ago, that torture victim kept moving his lips, trying to articulate an explanation, muttering the same words over and over. "It was a mistake," he repeated, and in the next few days I pieced together his sad and foolish tale.’

(From article c.c. “The Torture Debate” by Ariel Dorfman, a Chilean American writer and professor at Duke University)
————
I’ve contacted numerous people who were experiencing everything from the beginning stages of foreclosure, to owners about to loose their homes to auction. The one reaction they had in common, was a lack of willingness to address the problem. They either where not aware of the possibilities, or were not willing to address the most appropriate step outlined. Sad, but true. They dreaded the subject; they dreaded that it was about themselves and it was about to become a reality. And the reality is, THEY LIVED IN FEAR.

After offering the following information as a solution to consumers for their mortgage problems, there was very little reply. - rk
————

Foreclosure Options - There are eight actions you can take when a home is in foreclosure:

1- Reinstatement: Make up payments and any incidental charges.
2- Redemption: Pay off loan in full.
3- Deed in Lieu of Foreclosure: Turn ownership of property over to bank to avoid trauma of foreclosure.
4- Legal Delay: If owner can prove amount in default is inaccurate.
5- File Bankruptcy: Not a permanent cure, but can temporarily halt the foreclosure process.
6- Renegotiate with Lender: Generally the current months payment plus a portion of the past due amount. Lender does not want property back.
7- Sell Property: If there is no other choice, selling property is the smartest move, even at a bargain price. This will avoid losing entire equity and damaging credit at the same time.
8- Do Nothing: This will result in the loss of hard-earned equity and damaged credit, and the lack of ability to purchase another home in the foreseeable future.

————

For those who are able to take advantage of someones misfortune, possibly coming to their aid, the following are simple procedures.

How to Buy a Foreclosure
On RealtyTrac, you can select by county, city, or zip code.
You can also choose by status:
1- Select Pre-Foreclosure for Default Notices, or Lis Pendens
2- Select Auction for Trustee Sales, or Foreclosure Sales.
3- Select Bank Owned for REOs (foreclosures).

= Find the best neighborhood for investing in foreclosures.
= Get an ojective neighborhood profile.
= Find neighborhoods that appreciate the most.
= Find neighborhoods that combine educated neighbors, safety from crime, excellent public schools, and a high proportion of larger, owner-occupied single-family detached homes in the price range and location you are seeking.

Foreclosures are rare in more affluent areas such as the South Bay.

Hermosa Beach Living

Robert Kissig (Real Estate West) — Tue, 17 Apr 2007 18:53:26 -0500

Why do I feel so close to Hermosa Beach? After all, I come from the other end of the bay — Santa Monica. There was a time when they were considered as one, at opposite ends of the same bay; before zip codes designated subtie area differences.

But living in Hermosa Beach is not the same as living in LA neighborhoods to the east. Being a native, I always considered the beach communities to be a world apart. Born and raised on the beach in Santa Monica, with time shared in the Beach Cities to the south, I always had a special connection with the South Bay. My family belonged to the Santa Monica Paddleboard Club, with mom making the Catalina Race every year on her 90-pound hollow-board, with many of her friends from Hermosa Beach. The first Catalina crossing, running from Santa Monica Pier, was won in 1932 by Tom Blake, beating out Pete Peterson in just under 6 hours. Jon Hall from Hollywood was a popular surfer in the Paddleboard Club in those days.

Between Volleyball on the beach at the foot of Santa Monica Canyon — “The Canyon,” and Hermosa Beach to the south, was a special lifestyle. Making the trip from Santa Monica to the South Bay, was more time consuming via road or public transportation, than even with today’s traffic. Owner operated burger restaurants and breakfast diners were limited...fastfood did not exist. Pier Avenue, as an international restaurant and saloon center, was in its inception.

Some of the bungalow homes and income properties of the 40s still exist, with nouveaux residences along the Strand, and pricing that would send original owners into a state of shock, possibly cardiac arrest. Who in their right mind could ever foresee a sale price in the range of $million plus?

While much has not changed in the area — glorious beaches, nostalgic reflections of beach bungalows and lifestyles of a past generation — fabulous architectural creations now exist; top quality, creative restaurants and extensive business opportunities abound.

Sound financing, good FICO scores and in many cases, impressive home equity, have resulted in almost non-existant South Bay subprime loans and foreclosures, as compared to less affluent LA neighborhoods. South Bay lifestyles are based on solid finances and pride of ownership.

Hermosa Beach is still a special neighborhood, a great place to call home.

Negative Amortization Loan Disclosure.

Robert Kissig (Real Estate West) — Sat, 14 Apr 2007 14:56:01 -0500

Borderline consumers with low FICOs, No Doc Stated Income Loans etc, who are in need of a loan to make a mortgage loan work, are likely to be approached with a negative amortization loan.

Why? It’s simple: the lender is about to make a huge profit from higher interest rates, while the consumer makes payments that are doing nothing to reduce the debt. The rate payed to the bank can be 2-3 percent higher than a conservative 30-year fixed-rate loan at 6 percent. The consumer is allowed to make a lower payment due to the highr interest rate. As the consumer continues on the road into more debt, the banks pile up the profit.

Assemblyman Alberto Torrico from San Francisco, earlier this year has proposed bill AB 941, which would require loan advertisements to include a disclosure c.c. the actual interest rates vis-a-vis the payment rates. It will state that should the borrower choose to pay the advertised rate, the principle balance of the loan will increase. Also, the disclosure will not be in fine print, and ‘not smaller than the prevailing font in the printed advertisement.’

The commission to brokers on these loans comes from the higher interest rate being charged, typically between 7.5-9 percent. In the meantime, the banks only pay taxes on the minimum portion of the gross assets received. Billions of dollars of these loans are generated by banks.

Consumers often do not see, realize or quite often, even care about this higher interest rate. And all the while, these over-market interest rates are what cause debt to multiply.

These loan practices have created losses and foreclosures. The economy has been dependant on a booming real estate market, with unfortunately some loan procedures creating false benefits.

If the new law passess, consumers will have valuable disclosures to keep them from
the pitfalls of short-term benefits that leave them with long-term headaches. Real estate is in the process of stabilizing and becoming a healthier, more realistic market environment.

In addition: Interagency Guidance on High Loan-to-Value Residential Real Estate Lending

A 2nd Home in Paradise? Why not?

Robert Kissig (Real Estate West) — Thu, 12 Apr 2007 11:13:54 -0500

I was born a few miles from the beach in Santa Monica, and much to the despair of my mother, I spent most of my time there, including evenings sleeping under the lifeguard tower. We hit the surf early in the a.m. So it’s no wonder that you might wonder what I have in mind posting a blog c.c. property in France?

Well, the answer is complex I suppose. France has been under fire by many in the US in recent years, and for understandable reasons. Disagreement over a war can have a negative effect on relationships. The interesting thing that so many here don’t realize is the close feeling that remains with most of the French I’ve come in contact with out in the country. Their world is so different than that in the center of government in Paris.

A friend in Souvigny—a 10th century town near Moulins in Auvergne in the center of the Bourbonnais—educated his young son in the respect he has for the US, and the wondrous events that transpired during the frenzy of WWII. Our countries shared a common cause. We were as one. This feeling has not faded for most in the area who can recall those trying days.

Souvigny attracts a few from the outside, an example of whom is a famous screen writer from Hollywood, a friend of my local real estate broker(l'immobilier). Souvigny is a marvelous retreat offering peace to such people. The past is always present in Souvigny. A small park in the center of this small village from time to time has medieval and renaissance fairs. Local attire, including the childeren, fits the period. Surrounded by the local architecture, a magical sense of transposition takes place; the modern world ceases to exist.

As you spend time in the French countryside, these feelings will be felt time and time again. No great change has taken place over the years—the wondrous beauty of architectural marvels, unsurpassed cheeses, food, and wine; people who share their friendships and lifestyle without question and without ego or guile.

The properties I represent are in Auvergne and Burgundy. For those who appreciate the finest cheeses in the world, you will be aware of Auvergne in the Bourbonnais. And the fine wines of Burgundy are well known worldwide.

As I post info from time to time c.c. the fabulous properties in Auvergne and Burgundy, I will include the changing aspects of government, increasing positive trends in US/French relations, taxes, lifestyles and medical programs etc.

There is a terrific potential for 2nd homes, time share programs with friends and retirement investments. As an intro to the concept, I’d like to suggest the wonderfully entertaining novels by Peter Mayle—”A Year in Provence,” and “Toujours Provence”.

Bienvenue!

www.RKChateau-Estates.com
www.KissigRealEstate.com

The Hermosa Beach Fire Dept—Since 1907

Robert Kissig (Real Estate West) — Tue, 10 Apr 2007 12:01:55 -0500

What is more symbolic of a community and the courageous men who look after its citizens, than the fire department? The Hermosa Beach Fire Department comprised of volunteers, was incorporated in 1907. The small community grew, along with it its fire department which became better equipped and were referred to as “fathers of the city”. Full-time positions replaced volunteers in 1964.

Organization and Structure

The HBFD Station and Apparatus are symbols of pride. This has become a well equipped department with a staff of proud, highly trained professionals.

Home Safety

Paramedic Program

Reserve Firefighter Program

CPR

Annual Pancake Breakfast

This is a fine time to purchase a home if you are qualified. Interest rates are low, and pricing is moderating.

Hermosa Beach Homes for Sale: Total 100
Single Family Residences: 54
Median: $1,344,000; Low: $759,000; High: $11,000,000
Townhome/Condos: 46
Median: $1,349,000; Low: $515,000; High: $2,499,000

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo.

Prime Rates: The Way to Go

Robert Kissig (Real Estate West) — Sun, 08 Apr 2007 11:25:59 -0500

Until recently, subprimes were the answer for unqualified buyers to sign up for a home loan.

As a result of this alleged panacea, one of the nation’s largerst providers of mortgages to high-risk borrowers, has filed for bankruptcy. There has been a surge of defaults in subprimes. More than two dozen subprime lenders have subsequently shut down.

People are attracted to subprime’s initially low payments, which are more attractive than the higher prime rate loans. What is overlooked is the likelyhood that there will be prepayment penalties, a balloon payment, or both.

Adjustable rate mortgages (ARMs) are another insideaous factor. ARMs often make up a large portion of the subprime market. As a result, payments balloon, and suddenly as in a nightmare, are beyond the means of the borrower. Foreclosures are the blossoming result. The borrower has been exposed to a potential fraud.

Only the positive features of mortgage loans are used in advertising. The only means of identifying “subprime” loans is by the interest rates. If they are above market rate, this indicates a risky loan..

So make sure you are ready to buy a house. Don’t enter home ownership with a subprime loan. Make sure you have a good credit rating and are not in debt.

This is a fine time to purchase a home if you are qualified. Interest rates are low, and pricing is moderating. With a reasonable prime rate loan, the fraud nighmare of subprime loans can be avoided.

Today...

Currently, in the South Bay, there are 304 properties available comprising:

El Segundo: Total 24
Single Family Residences: 15
Median: $1,280,000; Low: $575,000; High: $1,790,000,000
Townhome/Condos: 9
Median: $659,000; Low: $450,000; High: $789,000

Manhattan Beach: Total 117
Single Family Residences: 89
Median: $1,611,750; Low: $969,900; High: $2,495,000
Townhome/Condos: 28
Median: $1,797,000; Low: $700,000; High: $4,950,000

Hermosa Beach: Total 100
Single Family Residences: 54
Median: $1,344,000; Low: $759,000; High: $11,000,000
Townhome/Condos: 46
Median: $1,349,000; Low: $515,000; High: $2,499,000

Redondo Beach South: Total 63
Single Family Residences: 26
Median: $1,144,000; Low: $695,000; High: $2,199,000
Townhome/Condos: 37
Median: $875,000; Low: $369,000; High: $1,625,000

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo.