Request come in all the time for homes with ocean views. Granted few thing are more enjoyable than seeing the sunset over the Pacific Ocean from your living room.  Add to that, unobstructed, cool ocean breezes that justify the lack of air conditioning, and you have a dilemma on your hands. Just how much is an ocean view worth?

Here in the Hermosa Surf a unit for sale is challenging that question.  Unit 501 is a 1 bedroom 1 bath top floor ocean view condo, that originally listed at an aggressive $579,000. Keep in mind other single bedroom units in this complex have sold between $409-$459000 in recent months.   After some thought, price reduced to $539,000 without success.  Now, 103 days later the asking price is now a reasonable $499,000.  Will it sell at this price? I think so, however the unit does need updates to fit the more modern buyer.  Still this unit is more affordable than similar units in the neighboring Commodore and Apple Tree complexes. 

This home can be viewed by clicking here

The bank owned, 2 bedroom, 2 bath unit in the Hermosa Surf took a price reduction from $579,500 down to $549,900. As suspected the original price of $579,500 was unattainable. This previous foreclosure remains as the most updated unit after receiving an overhaul over the past few months.

The condos for sale in the recently painted Commodore are finding their days on the market increasing with no end in site. These units, ranging from 1 to 2 bedrooms have not reduced their asking price leaving some wiggle room for potential buyers.

Condos for sale in the Commodore include;
Unit #202 1 bed 1 bath $459,500
Unit #319 2 bed 1 bath $479,000
Unit #310 2 bed 2 bath $570,000

As always, these homes can be seen on www.RealtorRichie.com

The previously foreclosed condo in the Hermosa Surf is now up for grabs to the delight of its neighbors. This REO on 1707 Pacific Coast Highway #304 under went a massive face lift. With spa tubs, new wall heaters, a new kitchen and bath with the usual granite countertops, this condo is practically brand new. If sold at the listed price of $579,500, this 2 bedroom 2 bathroom condo will rank as the second highest priced condo sold in the Hermosa Surf. The bank is on the hook at just over $500,000 plus the cost of its remodel, so while you may be able to negotiate a deal, don’t get too carried away.

The Commodore, located on 1600 Ardmore in Hermosa Beach recently received fresh paint to hide the old white with green trim. The new colors of beige and olive provide a subtle but welcomed change. Just in time to hopefully benefit from the upgrade are two units that recently hit the market. The first is unit 310, a 2 bedroom with 2 bath condo that will need to be upgraded according to your taste, but certainly in move in condition. Asking price is $579,000. The other unit for sale is #202. Priced at $459,500, this one bedroom corner unit is adequately priced when compared to recent sales. With the state of the current market, both units will entertain all offers. Who knows they might bite.

www.RealtorRichie.com

It has always been my stance that the housing woes affecting California and the rest of the country are less prevalent here in the beach cities. Yes, we do have foreclosures, but far less than what you see in the rest of the country. Many buyers in the beach cities and other parts of the South Bay did not sign those risky mortgages or 100% financed loans. In addition the beach cities remain a highly desirable area to live, therefore maintaining their value.

According to Trendgraphix (Trendgraphix.com), which helps analyze real estate trends. Condos have been selling at about 95-99% of the asking price over the past year. This tells us that we are not seeing great discounts in the Hermosa Beach condo market. The number of condos for sale in a given month average 4, so supply remains low. One immeasurable statistic concerns the seller’s motivation and I have seen that the Hermosa Beach condo owner would rather hold on to their condo than go through a substantial price reduction in order to sell it.

With the holiday season in full swing expect sales to slow further. Yet some buyers will find these next few weeks ideal since there will be less competition out there.

Many have asked about the foreclosed home in the Hermosa Surf that is now bank owned. That unit received a face lift and will hit the market soon. Stay tuned for details.

www.RealtorRichie.com

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The other unit for sale #118, is also updated but does not have new appliances and since it is on the first floor offers no views and no direct ocean breeze. Priced at $515,000 it is priced correctly based on previous sales. With the last one bedroom selling at $530,000, both units for sale seem like better buys because they are both upgraded to the point where little or no work is needed.

Now if you are one those who think the housing market’s sky will be falling, you will probably find these homes overpriced. As someone who watches this condo market closely, I can tell you that somebody will buy these condos for close to asking price. Stay tuned and I’ll keep you updated.

The Appletree is located on 1720 Ardmore, Hermosa Beach, CA 90254

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Over at the Commodore is a 2 bedroom, one bath unit at 710 square feet. While this unit is also clean and presentable it boosts less luxury as the Appletree condo. Listed at $479,000, this unit may be a better buy especially for those who feel there will be a market shift here in the Beach cities. The Commodore is located 1600 Ardmore right next door to the Appletree.

We have recently noticed lessening numbers of units for sale from these three complexes than in the past. Owners not knowing how the market will shift have decided to hold and stay. This will certainly put a damper on those wanting to move into Hermosa Beach at an entry level price. This should bode well for property values as the scarce supply of entry level condos forces values to maintain, at least for now.

As always, these homes can be seen on www.RealtorRichie.com

Arguably the most pet friendly of all the condos in its price range, it sits east of Pacific Coast Highway, thus furthest from the beach. Considered by some the least desirable location of all the condos, still others find that the cleaner look and more reasonable prices warrant a consideration. Some further argue that the colonial style Victorian utilizes better floor plans, with larger kitchens and distinct master bedrooms. The dining areas generally lack size, but many, including myself, believe it is the least used room anyway. Balconies are on the smaller size, similar to the Commodore but still useable.
The usual swimming pool with nearby BBQ grills are its main amenities.

The 64 unit Victorian has its own shops and eateries within walking distance. While they may not be social hotspots unlike those along Pier Ave, if you want coffee or a quick bite to eat, they are just a hop, skip away.

The highest recorded two bedroom sale was $505,000 and $386,000 for a one bedroom. At over $100,000 less than the highest recorded sale at the Apple Tree, Hermosa Surf, or Commodore, the Victorian provides a more cost effective alternative. Just how close to the beach do you need to be anyway? Hermosa Beach isn’t much larger than a 1.3 square miles.

visit www.RealtorRichie.com to see this home.

As a realtor, change is what drives our business. Progress occurs, houses are constantly torn down then rebuilt, and families come and go. Here, in this older house in an established part of San Pedro, change has brought a community closer. They lived in a period of time before these new styled homes found their way over here, before builders discovered you can add square footage by building towards the sky. They celebrated an achievement that many of us would not dare to do in our older age and they preferred to do it in an older home. The one thing an older home has that newer homes don’t is a large yard to hold summer BBQ’s parties.

Hearing past memories beats any old photograph and when I left that night I had a better fondness for San Pedro. I wish these memories can be placed on a hard drive for future generations to hear. Hmmm might be a future project there. So far my only contribution to history is my attempt at refurbishing my ’68 Camaro.

At least I now have a sponsor at the Elk Club.

www.RealtorRichie.com

The International Surf Festival arrives this weekend with a complete array of beach activities.  Beginning 7pm on Friday August 3 until Sunday August 5, various competitions will occur all along the beaches of Torrance, Redondo, Hermosa Beach, and Manhattan Beach.  Visit http://surffestival.org/ for times and information.  Attractions include beach volleyball, surfing, and lifeguard events. I suggest parking in Hermosa Beach or Manhattan Beach depending on your event of choice, then walking over to the neighboring beaches for the other events.  Parking disappears quickly, so here are a few suggestions to place your vehicle.

In Hermosa Beach, a parking structure stands just north of Pier Ave at 14th Ct and Hermosa Ave, while a parking lot sits south of Pier Ave at Hermosa and 11th St.  Needless to say, they fill quickly.  A lesser known spot is at 14th and Manhattan Ave, however there aren’t many spaces.  Try the parking lot behind the Coffee Bean as well.  The entrance for this is at 14^th St.  Follow the road and it will take you around the parking structure and onto the parking lot.  This is also an alternative way to get into the parking structure on 14^th Ct. and Hermosa when they block off entry from the front.  Further east, but still west of Pacific Coast Hwy more options pop up.  At Ardmore and Pier Ave, meters find themselves near the skate park and tennis courts.  16th and Ardmore has 2  parking structures, one across from the Commodore complex and the other just north of the complex where the 24 hour fitness is located.  Both these structures are for the corresponding businesses, but as long as you pay, you can park there.  Some hidden areas known to locals are along Valley Blvd between 8th and 11th street.  On weekends you can park in the employee section of City Hall and in the front row of the Public Storage.  Please read all signs carefully.  Herondo St (HERmosa + RedONDO how clever) has ample room for those willing to walk further.

Manhattan Beach boosts larger parking structures.  Main structures are to the left and right of Morningside Dr at 12th St.  The west side has a tall parking structure, while underground parking is on the east side.  There is also parking to the left and right of Manhattan Beach Blvd right at the sand area, but they fill quickly.  Spots are also found between Ardmore and Valley to the north and south of Manhattan Beach Blvd.  If you are headed north the parking entrance is on the left side along Ardmore.  If you are headed south the entrance is on the left along Valley.  There are also little metered spots scattered about, but the spaces are so limited its not worth mentioning. 

In either city, park at your own risk and read signs carefully.  Parking enforcement will no doubt be in full force ready to enforce the rules.

www.RealtorRichie.com

Clearly yes if, and it’s a big “IF”, you obtain the condo at the right price. Before we look at the numbers, here are a couple of reasons why a condo flip seems attractive.

Condos are generally smaller, thus requiring less materials, time, labor and ultimately money. Also with smaller spaces, anything that makes the unit seems larger or more open, suddenly differentiates you from the other units. Demolishing walls or making pass throughs make dramatic changes to the feel or comfort of any home. Explore all possibilities to open up a condo. In the Hermosa Surf for example, most units have a wall at the entry that separates the hallway from the dining room. Upon entering, all you see are two sunlight obstructing walls. Opening this wall allows a full view of the condo therefore affecting the feel of the home.

Some drawbacks with condos include an inability to increase square footage, or adding rooms or baths. This does however make decisions simpler when it comes to deciding what to upgrade. Essentially, improve the bathrooms and the kitchen. Work with what you have and make it better. Another drawback is the lack of control that you have over the exterior of the unit. Curb appeal is important, but with so many other home owners, implementing dramatic changes often proves difficult.

Now let us take a look at the possibility of obtaining a condo in Hermosa Beach at a low enough price to allow profit. Over the last year and a half, the highest priced 2 bedroom 2 bath condo sold at around $580,000. During this same time period the least expensive 2 bedroom 2 bathroom comparable sold at $480,000. Let’s use this home for our flip example. It probably cost the seller $10,000 in escrow fees to purchase this $480,000 condo. Let’s also say that it will cost $20,000 to upgrade this condo. Your total investment will now be $510,000. If this condo sells for $580,000, after realtor fees and escrow cost which will total about $35-40,000, you end with a $30-35,000 profit. Now this estimate assumes many things. One is that people will see this flipped unit as being in the same desirable location as the highest priced condo. Secondly, carrying costs such as mortgages and interest on other money borrowed will not exceed one month’s time. Lastly, this assumes that the market is stable. Do not expect to sell your flip for more than the highest priced recorded sale or you will guarantee longer marketing times.

For some this profit margin seems too risky. Now think about it, you have no room for error. Increased market time or an underestimation of costs will quickly eat away your profit. As you can see though, the numbers can add up in your favor. Tread carefully and make sure you know what you are doing.

www.RealtorRichie.com

The other aspects of flipping a home is still important, don’t get me wrong.  You should, if possible, improve the use of space by rearranging the layout, or better yet add square footage or additional bedrooms and baths.  Kitchen, and bathroom remodels still provide the most striking reactions, while enhancing curb appeal adds to the notion that a particular house is equally nice inside.  Successful flippers make these upgrades while staying in a particular budget.  They have a reliable construction team and Realtor, both of which can cut their fees in exchange for future business.

Along the way unexpected repairs may arise or the home stays on the market longer than expected, which drive up costs.  Just count on it.  Buying your flip at the right price will overcome these unexpected costs or market changes.  You will have the flexibility and a higher ceiling to combat the unexpected.

So how do you know what the right price is?  First find the highest priced comparable home and see if your potential flip can almost match its price.  The keyword here is match.  Expecting to be the highest priced home in the neighborhood is dangerous.  You open yourself up to longer marketing times and will have to defend your stance that you have the best home in the neighborhood.  Secondly, estimate the costs of upgrading the home while taking into account Realtor fees, mortgage and taxes.  Then subtract these costs along with what you want to profit, and you have your buying price.  More often than not, you’re buying price will be lower than the current asking price.  Remember we realtors price homes based on comparable properties, while taking into account any work that it needs.  We do not calculate a flippers’ profit when we price a home for sale.      

So as I watch these home flipping shows my biggest question always is “how did they buy that home for so cheap?”  Keep that in mind when you consider flipping a home.

www.RealtorRichie.com

Still available is the 2 bedroom unit in the Hermosa Surf for $589,000, as is the one bedroom unit in the Commodore for $525,000.  The Commodore also has a penthouse for $775,000.  All of them have varied ocean views.

Regardless of what market we are in, or job strength, overall economy, interest rates, anything and everything that affects the housing economy.  A nicely priced home is a nicely priced home.   They will withstand short term fluctuations in the market, and maintain a steady growth.   

1. Find the foreclosed home.
2. Determine if there is potential profit.
3. Negotiate with its owner on how you are to obtain it.
4. Rent, sell or live on the property.

Finding a foreclosed home is the easiest process which numerous websites offer. Retran.net is a good source as well as Foreclosures.com. Realtors may also tell you where the preforeclosed and foreclosed homes are, although don’t expect too much since there isn’t any profit in it for them.

Step two requires knowledge of the area as well as knowledge of the specific home. Basically you want to figure out what the home is worth and if there is any equity left once the loans, taxes, or any moneys owed are distributed. You may be able to gather some information depending on the source you used to find the home, but the only way to be sure is by speaking directly to the people the money is owed to. In order to do that, you must speak to the owner of the home first. You may also need the help of a Realtor to determine the value of the home and a title company to to evaluate title.

Step three is the stage that I find most difficult. Think about it, how willing would you be if a stranger approached you about obtaining your home and asking how they can take it from you? You may present to them how you can save their credit, help them start new, or rid them of their problem, but ultimately they are going to lose their home. On occasion you will find a cooperative person and when you do negotiate, find out what it will take for them to deed the home to you. Remember you need to take into account that once you take this home, all of its obligations are now yours. Even if the loans aren’t in your name, you are now responsible for them. You will need to make all payments current. Most homes also need some degree of improvement. Now think about this, if the owners struggled to make payments, what are the chances that money costing maintenance was performed? This process requires in depth planning, something I can not advise in a short blog. You will benefit from expert help at this point to avoid any legal matters.

Finally, you take possession, so how do you make money? Well, if you followed my golden rule “You make money on the purchase of the home, not the sale” then you obtained this home below its market price and now have equity. If you bought this foreclosure to live in it, then go right ahead. Get a new loan or switch the loan to your name otherwise you risk having to pay the home in full. Some will tell you don’t have to, but the mortgage companies have every right to call on the loan. Just be prepared.

Should you sell, make sure you have enough money to pay for the carrying costs and Realtor fees. These calculations should have been made in the previous steps. Now is not the time to figure out you don’t have enough money. Also don’t forget you have taxes to pay.

In conclusion, don’t be fooled into thinking anyone can make foreclosures a business. This is a full time job and without some type of guidance you run the risk of breaking the law, getting sued, or simply wasting your time.

www.RealtorRichie.com

If you want to get into Hermosa Beach, this may be your chance.  Priced at $499,000, this 2 bedroom 2 bath (yes 2 beds and 2 baths) is priced below any other 2 bedroom that has sold recently.  It even beats out many of the one bedroom condos that have recently sold.  I believe you will have to compete with other buyers on this one, but again you never know until you you just do it.

One might think that with a price this low it needs work, but actually it is a nice unit that is certainly ready for immediate move-in.  I wouldn’t wait on this one.

You can search on my website for more information on this condo.   www.RealtorRichie.com

Everybody has certain beliefs about foreclosed homes. Think hard, you have some too.  No matter what you believe, good or bad, at one point or another it happened to somebody.  Whether someone struck a goldmine or gone broke, working a foreclosure is all that and then some. 

In a nutshell, here is the process;

1. Find the foreclosed home.
2. Determine if there is potential profit.
3. Negotiate with its owner on how you are to obtain it.
4. Rent, sell or live on the property.

Sounds easy until you actually breakdown each step.  Each step will have its challenges, its up to you to overcome them. This isn’t a quick process, in fact it is equivalent to a full-time job. Many Realtors won’t even attempt to help you because there is no way for them to get paid unless you pay them to help you or promise them the listing.

I will break down each step in (part 2) shortly.

We have a foreclosure here in the Hermosa Surf.  After months of nonpayment, the bank has issued a foreclosure and a trustee sale was conducted.  No word yet on the final result.  My guess is as long as people did their homework, no one bid on the $498,000 minimum.  Therefore the bank now owns this and will have to sell it themselves.

2 bedroom units run any where from $520-$585,000 in the Hermosa Surf.  This foreclosed unit is not in a highly desired spot.  Therefore, it will not fetch the highest value, even if an investor decided to give this unit a spectacular makeover, which it sorely needs.  Now is the time to see what this home ultimately goes on sale for.  There may be a deal waiting here.

I’ll keep you updated.

A client asked today if I thought the condos currently for sale at the Hermosa Surf was priced correctly.  Looking at the current list of condos, we see a 1 bedroom for sale at $469,000, and a 2 bedroom ocean view for $589,000.  If we compare this to what has recently sold in the Hermosa Surf.  I can tell you that the 1 bedroom is $5-$10k over priced, while the two bedroom is definitely over priced.  However, when you compare the Hermosa Surf with the recently sold condos in the Commodore and Apple Tree, we find that the Hermosa Surf condos are quite comparable.  There are 2 condos for sale at the Commodore.  One is a penthouse with an asking price of $775,000, we will throw this out of the equation because it is a penthouse and therefore unique.  The other condo is a 1 bedroom unit for $525,000.  It doesn’t have an ocean view worthy of a price increase, but it does have nice sunset views as it overlooks the beltway.  Previous 2 bedroom units have sold for $518,000 and $579,000.  The neighboring Apple Tree recently sold 2 bedroom units for $517,000 (no view) and $550,000 (greenbelt view), while a 1 bedroom sold for $530,000. 

Bottom line is, do you find the 3 condo complexes equal to each other?  If so, then the condos for sale in Hermosa Surf are competitively priced.  If you feel they are not equal, then they are overpriced.  Isn’t this what home buying is about? Your personal belief of what a home is worth to you? This is where the savvy buyer makes their money.  Take the emotion out and look at the facts.  The Hermosa Surf condos are treading never before seen prices.  Based on that you as a buyer have justification to offer slightly less than what they are asking.  Remember your potential profit largely depends on what you paid for a house, not what you ultimately sell it for.  Buy wisely and you won’t be too dependent on its sales price in the future. 

www.RealtorRichie.com

Over at the beach, the professional volleyball players are putting in a few hours of practice.  Surfers have invaded the water, even before the seals and dolphins have had their chance to frolic.  This just isn’t during the summer, this is year round, Hermosa Beach living.  I’m reminded of last January when I showed the city to a relocating couple from Boston and commented how much more people would be out when the weather warmed up.  They replied, “You mean when it gets warmer by a couple of degrees?”  Um, yeah….Hermosa Beach weather in a nutshell.  I think we’re spoiled. 

I can’t forget to mention the food, though I would like to forget how much I do eat!  Walking down Pier Ave, a wide variety of restaurants that appeal to many people exists.  Whether you want something quick or out to impress, finding a restaurant should be no problem.  My personal favorites are the Fritto Misto which serves a great Lasagna in Bolognese sauce, Big Mike’s (one of the best sandwiches and burgers in town), the Cantina Real, and Fat Face Fenners (for fish and chips).  There’s even a Farmer’s Market every Friday. 

If boutique shopping is your style, you’ll find that here too.  There is even a store, PINK, that donates its sale for breast cancer research and support.  We have friends that visit regularly just to go shopping.  I guess they need another reason besides friendship to make it down here.

Its easy to drive past Hermosa Beach, being no more than a mile in size.  That is how some people like it.  It is somewhat hidden to many, yet receives just enough exposure to keep things interesting.  I look forward to the yearly Hermosa Beach Fiestas as they attract all kinds of vendors each with their own unique crafts.  If your lucky enough to live here, don’t move and if you don’t live here, please visit, you’ll grow to love it. 

Stay tuned for updates on Hermosa Beach condos for sale.  I welcome you to give me your input.

www.RealtorRichie.com

Hermosa Surf is one of three condo complexes that neighbor each other.  The Commodore and The Apple Tree sit a few feet west, but away from Pacific Coast Highway.  Expect to pay more for a condo in those complexes.  This may be due to the fact that entering the Hermosa Surf means manuevering the traffic from PCH, whereas both the Commodore and Apple Tree residents enter from less busy streets.  This driving situation may be the most glaring difference between the Hermosa Surf and the other complexes. 

As far as ammenities the Hermosa Surf has the usual pool, hot tub, excercise room, meeting and recreation room that most complexes have and just like most complexes, they are used by less than 10% of the residents.  More importantly the condos are walking distance to the 24 hour fitness, Von’s, Blockbuster and other convenient shops.  Also one can’t forget to mention that it is only a ten minute walk to the Hemosa Beach Pier, with its beaches and restaurants.  A very convienient location that one soon realizes during those summer months when parking is difficult and the yearly festivities require park and ride buses just to get to Pier Ave.      

www.RealtorRichie.com