Insider’s Guide to Success with Short Sales

Posted on October 29, 2011 by admin

Many real estate agents steer their clients away from a short sale because they think they take too long, that their commissions will be lowered, or simply because they don’t know a lot about the process and what it takes to get a short sale completed successfully.

There are multiple steps involved in a short sale. If you’re a buyer or seller today, it’s helpful to understand the entire process from the inside out. Here are 10 things you should know about short sales.

What exactly is a short sale?

A short sale isn’t a foreclosure, and the property may not be anywhere near the process of being foreclosed upon. In a short sale, the seller needs to sell their home for a variety of reasons — job transfer, divorce, lost job, inability to make payments, and so on. The current market value of their property is less than what they owe the bank because its value has declined; the seller took out additional loans against the property; or both.

To complete the sale, the seller needs to go to their mortgage lender and ask permission for the bank to take less than they are owed — to get “shorted,” in other words.

In my experience, most banks actually want to work with the seller and approve the sale, as opposed to having to foreclose on the property. If the seller falls behind on their payments and the property heads for foreclosure, the bank ends up owning the property. This forces the bank to be in the business of owning real estate, which isn’t what it’s set up to do, and that costs them time and money.

The bank’s perspective

Imagine if you were owed money by someone and they came to you and asked to pay you back less. You wouldn’t be too happy about it and would only go along with it kicking and screaming, right? Well, the same is true with lenders when a customer needs to sell their property in a short sale. They don’t want to lose money, and they’re going to make sure that a short sale is the best of the worst-case scenarios they’re facing. In doing so, the banks have processes and procedures in place, some more bureaucratic than others. They’ll want a review of the seller’s finances, to be certain they truly can’t afford the payments and that their reason for selling is legitimate.

What does the bank want to see?

In order to decide whether you want to take this financial hit, the bank will require the seller to complete a short sale package, much like a loan pre-approval package when you purchase a home. The package includes (but isn’t limited to): a financial worksheet completed by the seller; the past few months bank statements; last two years tax returns; the last few pay stubs; copies of equity/brokerage accounts; and a hardship letter laying out the seller’s case for the short sale.

Additionally, the bank will want to see a purchase agreement, proof of buyer financing, authorization to speak to a third party (namely the listing agent) as well as a HUD-1 — a closing/settlement statement that lays out the finances of the sale. Finally, the bank wants to have the property appraised to confirm that they are receiving the most money for the home.

Short sale review process

Nearly every bank has a team of “negotiators” who are assigned to review each short sale application and make a decision. It’s rare that they will accept the short sale package as is. More likely, they’ll ask for a number of things including a counter offer to the purchase price and a reduction in fees/closing costs. If they lower the listing agent’s commission, it’s almost always reduced below 6 percent (but rarely below 5 percent). Often, the bank will ask the seller to make a financial contribution in order for them to approve the sale. This is generally OK with the seller, and often the seller can agree to a payment plan. Everything is a negotiation here, and the listing agent is generally the one negotiating with the bank on behalf of the seller.

The seller is often required to miss a payment

Many banks will require the seller to miss a payment in order to process the short sale. In essence, the bank is rejecting the short sale and telling the seller to come back and reapply after they’ve gotten behind in their payments. This happens all the time. If you’re a seller with perfect credit but circumstances require you to sell the property as a short sale, the bank wants you to pay for it by negatively affecting your credit with a 30-, 60-, or 90-day late payment.

This is the most troubling, misunderstood, and backwards part of a short sale and part of the reason why they take so long. This will likely set the seller and the potential buyer back by at least 30 days, and the buyer often walks away, sometimes after waiting 60 days.

If you want to avoid this roadblock, start missing your payments as soon as you know a short sale is inevitable. Yes, you heard me right: I’ve literally advised sellers to stop making their mortgage payments.

Facing up against a foreclosure

This is where things get messy and timing is everything.

If you miss your payments for 90 days, a notice of default is filed and the foreclosure process begins. The foreclosure department is likely a completely different arm of the bank and does not always have any knowledge of the short sale offer. Sometimes, they’ll work hand-in-hand to delay the foreclosure if a short sale application is in. But, many times, especially if they are so disconnected, the foreclosure department simply forges ahead. I have heard horror stories about a full price short sale offer on the table, yet the bank forecloses.

Have your ducks in a row before going on the market

Prior to listing the property in a short sale, request a copy of the short sale package from the lender. Start with the customer service telephone number; they can usually get you in touch with the loss mitigation department. Find out what’s required to complete a short sale and get everything that the bank needs up front.

A good real estate agent will have every single piece of information available and ready to send to the bank before they list the property. Once an offer is received, they can add the purchase agreement and the closing statement to the package. Short sales take a long time when the seller or real estate agent have an offer but don’t have any of the paperwork ready to send to the bank.

If you’re a potential short sale buyer, ask the listing agent if they’ve made contact with the bank. Have they received the short sale package? If so, are the seller’s documents ready to be submitted? If the answers to these questions are no, or are received with a blank stare, chances are you’re going down a long and rocky road.

Additional places the short sale gets hung up

The banks require a lot of paperwork in order to present the short sale to the negotiator. If they don’t have an absolutely complete package, they won’t send it on. This means that if you’re missing one document or one bank statement has the wrong date, there will be a hold up.

Also, even though it’s 2011, many banks require the packages to be faxed into their system. This means lost pages or missing documents. And the bank, as busy as it is, isn’t likely to call you and tell you what you’re missing. So the listing agent or the seller needs to stay on top of the bank.

Once the package (sometimes 185 pages) is faxed in, a call should be made confirming the fax was received. Within a few days, another call should be made to ensure the package has been assigned to a processor. The processor’s job is to provide the negotiator with everything needed for review. Check with the processor, to see if they’re missing anything and if not, how long it will take to be assigned to a negotiator. Most banks will tell you five, 10, or 21 days. Staying on top of the bank will help speed up the process. As the saying goes, the squeaky wheel gets the grease.

Final step is getting the approval

The waiting game begins once the file is complete and is on the desk of the negotiator. At this point, there is nothing you can do but wait for their decision/negotiation. Once the approval and all the negotiating has been completed, the regular sale/escrow process begins. Be aware that the bank prefers these to be “as-is,” so there won’t be room to add fees, request credits or adjustments. Having said that, I once went back to a short sale lender and requested (and received) a $20K reduction in purchase price due to some serious termite issues that were uncovered during the property inspection.

Advice to buyers, sellers and agents

Whatever role you’re playing in the short sale drama, be patient but persistent. I’ve seen short sales approved in less than 30 days, others in nine months. It all depends on the bank, the seller and the listing agent.

And if you’re the potential buyer, try not to get too attached to a short-sale property. If you don’t get a sense that the listing agent is familiar with the process, or if you realize the agent and seller don’t have their ducks in a row, you may need to walk away — no matter how good of a deal the short sale is.

Author:Brendon DeSimone

Ikem Chukumerije specializes in luxury residential real estate in Marina Del Rey, Playa Del Rey, Playa Vista, Santa Monica, Manhattan Beach, Beverly Hills, Hollywood Hills, Bel Air, Santa Monica, Malibu, Pacific Palisades, Los Angeles, Westwood, Brentwood, and West Hollywood. Contact Ikem at 323-350-8297 if you’re looking to buy or sell in these communities.

How to Get an Offer on Your Home

Posted on October 7, 2011 by admin

There’s no doubting the fact that the Los Angeles Real Estate market is competitive. But if you are trying to sell your home, don’t despair. Take a deep breath and follow a few simple steps that will make it much easier for you to get an offer on your home.

1. Price it right. Get a professional appraisal before you list your home.

2. Prepare for visitors. Get your house market ready at least two weeks before you begin showing it. This means staging, as well as making any repairs that are noticeable. For more tips see

3. Be flexible about showings. Having your home on the market often requires accommodating last minute showings. But the more flexible you can be about letting people see your home, the sooner you’ll find a buyer.

4. Anticipate the offers. Decide in advance what price and terms you’ll find acceptable.

5. Listen to the market. If your home has been on the market for more than 30 days and you’ve had good traffic without an offer, you should be prepared to lower your asking price. The longer you wait to lower the price, the longer you’ll wait to sell and the lower potential price you may be forced to accept.

Selling Your Los Angeles Home – Los Angeles Real Estate

Posted on October 7, 2011 by admin

You have a home to sell.

You want that home sold quickly, at the highest possible price and with the fewest potential problems.

My 20-Point Marketing Plan reflects how today’s buyer shops for, and purchases, homes in Los Angeles. We’ve seen firsthand what appeals to buyers – and what can cause deals to fall apart. As a result, we take a slightly different approach to marketing your home. Our strategies and tactics are time-tested, employing technology when it’s appropriate, but never forgetting the benefit of the hands-on involvement of a skilled broker. And the results speak for themselves; I have closed 100% of my listing since 2008 and 80% of my listings over my career – twice the market average.

Here’s what I’ll do for you:

1. Professional Appraisal

Before we list your home, I highly recommend having it professionally appraised. Pricing your home correctly is the most important part of a successful marketing campaign. There are four major benefits to having a pre-listing appraisal:

First, you receive an unbiased opinion of the true market value of your home. This is critical and protects you from agents trying to “buy your listing” by telling you a higher price than can be achieved.
Second, knowing the market value of your home enables you to recognize reasonable offers and terms.
Third, any potential buyer is going to obtain an appraisal. If their appraisal is lower than the contract sales price, you may be required to drop your price further - after you have negotiated contract terms that are now no longer attractive to you.
Last, with a recent appraisal in hand, I have enabled sellers to counter a lower buyers’ appraisal – often saving the seller tens of thousands of dollars.

Also, when you list and close with Ikem Chukumerije, he’ll reimburse the cost of the appraisal at closing.

2. Home Staging

Staging is not decorating. Decorating is designed to appeal to the owner of the home while staging is designed to appeal to the buyer of the home. Staged homes photograph better, show better and sell faster than non-staged homes. We will suggest changes, when necessary, to enhance each room in your home for maximum buyer appeal.

3. Professional Photography

90% of home buyers now use the internet at some point in their search. Professional photos will capture, and hold, their attention much better than poorly taken images. We have made a significant investment in professional-grade cameras, lenses, photo editing software and training to produce the best photos of your home. You are assured that the pictures of your home will make a very positive, lasting impression.

4. Custom Video Tours

The photos we take of your property, along with photos of the neighborhood amenities, are used to create a professional-quality video of your home. The video is shared on my YouTube Channel, on social media sites and is embedded into your property detail page on our web site.

5. Pre-Listing Home Inspection

We also highly recommend having your home pre-inspected before listing it. This enables you to identify and correct any potential problems before a prospective buyer sees them. Additionally, in the Los Angeles real estate market, after a buyer negotiates a price for your home, he or she begins their due diligence – appraisals, inspections, etc. If their inspector finds costly repairs, the price of those repairs reduces the negotiated price you had previously agreed to. A pre-listing inspection eliminates, or at the very least reduces, the likelihood of this happening.

And when you list and close with Ikem Chukumerije, he will pay for the inspection as well!

6. Custom Web Site

Now that your home is priced correctly, looks fantastic and we have great photos, let’s show it off! Ordinary agents are limited to the company-provided web sites that pull smaller photos and cryptic information from the Multiple Listing Service. With Ikem Chukumerije, you get a WordPress-based web site with virtually no limitations. It includes highly-descriptive text, full-screen photos, floor plans, video, maps, school and neighborhood information and more. Exactly what buyers are looking for!

7. Strategic Online Placement

Because we never know where your buyer is coming from, we have to be everywhere. Your home is featured on hundreds of the top national and international real estate web sites as well as more than 40,000 agent web sites.

Your listing promoted on thousands of web sites

8. Search Engine Optimization (SEO)

Having a great web site for your property does no good if potential buyers can’t find it. By utilizing a WordPress-based web site, we are able to dramatically increase the visibility of your home on the major search engines, including Google, Bing and Yahoo. As a result, you get substantially increased exposure for your home compared to homes listed with other companies.

9. Custom Mobile Web Site

Over 50 million Americans now use a “smart phone” and the numbers are growing wildly. We will create a web site for your home that can be easily accessed using any web-enabled cell phone, providing potential buyers with immediate information about your home, including photos, descriptions, links to the full web site and more. The instructions are prominently displayed on your yard sign.

Most importantly, we receive an instant alert, with the potential buyers cell phone number, enabling us to follow up immediately. This is a tremendous advantage over paper flyers!

10. Social Media Marketing

Social media is one of the fastest growing marketing tools in business, gaining hundreds of thousands of new users every day. Over 80% of American adults are now using social media. Ikem Chukumerije maintains an active social media presence on Facebook, the dominant social media site, where we enjoy hundreds of fans. We keep our fans updated on the latest in Los Angeles real estate news and have actually sold homes as a result!

11. Ikem Chukumerije – Million Dollar Living web site

Ikem Chukumerije has the only web site focusing exclusively on Los Angeles real estate. Our technology partners are constantly working to improve our rankings in the internet search engines when potential buyers search for Los Angeles real estate. And we’ve made it easy for potential buyers to view neighborhood profiles, school information, area amenities, attractions and businesses, and view full-screen photos and videos of your home.

12. Direct Mail

Professionally-produced postcards are mailed to hundreds of homes in your area, letting your neighbors know about your home. Since they already live in the area, they know the benefits and may be looking to move-up, downsize, or have friends looking for a home. Based on the unique features of your home, we will also identify potential buyer profiles, such as empty-nesters, young families, high-net worth individuals or investors and market to these groups with targeted mailings.

13. Agent Marketing

90% of all Los Angeles real estate sales are co-brokered, meaning there is a listing agent representing the seller – and a selling agent representing the buyer. I know, it’s confusing. We use agent open houses, email flyers, and good old-fashioned networking to ensure the agent community is fully aware of your home.

14. Open Houses

The truth is, there is a very limited window of opportunity when they benefit the seller. After it’s just been listed your home is new, it’s exciting. People want to see it. That’s precisely why it has to be priced correctly and look great. You’ll never get more showings than during the first few weeks you put your home on the market. Those first few weeks create the most favorable opportunity for successful open houses. After that, the agent is using your open house to try to meet buyers – buyers that will buy somebody else’s house, not yours.

15. Market Statistics and Reports

Prepared monthly, we evaluate the listing and sales activity and reveal trends in the local market. When these trends impact your property, we’ll let you know – along with a planned course of action so that you stay ahead of the market – not trailing along behind it. You can subscribe to our reports (link) and receive monthly updates in your email inbox.

16. Respond to all Buyer and Broker Inquiries, Schedule Showings and Obtain Feedback

We highly recommend the use of a lockbox when marketing your home. Many agents will by-pass a home if scheduling a showing cannot be worked into their, or their clients’, schedule. We insist on advance notice of all showings so that, unless your home is vacant, you have plenty of time to prepare. After the showing, we obtain feedback on whether your home fits the needs of the prospective buyer and if an offer is forthcoming.

17. Negotiate Offers

Once an offer has been received, we will review it with you and suggest terms for a counteroffer. We are also big believers in getting all parties together as quickly as possible to discuss and resolve any issues face-to-face. Our experience has shown that this usually results in a faster, less antagonistic, path to a successful compromise.

18. Attend Home Inspections

Once your home is under contract, the buyer will schedule his or her own home inspection. I will attend the inspection and compare the inspectors comments to our pre-listing inspection. If inspector points out a potential code violation, I will ask him to cite the code so that it can be verified. If there are additional repairs that must be made I will coordinate obtaining the necessary bids from qualified contractors.

19. Flexible Commissions

Ordinary agents charge you the same fee regardless of how your home sells, even if you find the buyer! Our flexible commission structure puts you in control. Here’s how it works:

4% if we find the buyer, write the contract and manage the sale through closing. There is no other agent involved.
2% if you find the buyer and there is no other agent involved. We write the contract and manage the sale through to closing.
6% if another agent represents the buyer. We split our fee 50/50 with the buyers’ agent.
0% if you find the buyer and there is no other agent involved. You don’t want our assistance.

If you are buying and selling a home, you can save even more through our Client Rewards program. Give Ikem Chukumerije a call at (323) 350-8297 for details.

20. A Cancel Anytime Policy

We’d rather work to earn your business every day. Ordinary agents lock you in for three to six months and if you’re unhappy, the most their company will do is reassign your listing to another agent at their firm. You may be asking, “why should they be afraid to allow us cancel if we’re dissatisfied?” Our thoughts exactly. We are confident we can provide you with a superior experience. If we fail to do so, we don’t deserve your business. It’s that simple.

5 Staging Tricks for a Quick Sale – Los Angeles Luxury Real Estate

Posted on October 7, 2011 by admin

This real estate slump is a real drag, especially if you’re trying to sell your abode. So stage your pad to beat out the competition and draw in more prospective buyers. Most buyers have a hard time looking past pink walls and green shag carpet, so do the legwork for them and present their “new home” on a silver platter. If done smartly, the money spent staging will be repaid tenfold in the house sale — and you keep all the hot accessories for yourself afterward (or unload them on Craigslist).

Here are some tips I used when staging my San Francisco condo. This unit sold within a month and a half for just below asking price. The exact same (unstaged) unit, located one floor down, never even got an offer. So there you have it.

1. Clear it all out. I mean it, girlfriend, move every single thing out of your place. That goes for your beloved troll doll collection, leopard skin rug and the couch that your mom claims you were born on. As sentimental as these things might seem to you, buyers want to be able to imagine themselves in your space; seeing clothes in the closet, family photos and random tchotchkes prevents them from doing so. Then put back only necessary furniture, keeping in mind that you want the space to look BIG, CLEAN, SPACIOUS and UNCLUTTERED. This isn’t supposed to be a functional room. Nope. As I did in this living area (pictured above), you can lose the TV, stereo, side tables and ottomans if it creates more room.

2. Freshen up the style. You may be a diehard Shabby Chic follower, but even Rachel Ashwell would agree that not everyone is. Aim for a style that most buyers would like, even if it’s not your cup of tea. Furnishings that seem homey and comforting — yet fresh and contemporary — give an aura that your home is updated and well-cared-for. Neutrals work best; just add colorful touches here and there. For this office (above), I used a bright rug to punch in some color and pattern to an otherwise boxy white room. The clear console stands in for a desk. (If buyers saw my real desk stacked with papers and dirty coffee mugs, they’d run for the hills). Curtains hide the closet doors and soften the hard walls. Stick-on mirrors from IKEA reflect light and space.

3. Mirror, mirror on the wall. Who’s the fairest one of all? Your room, that’s who. Use mirrors liberally to make your area look bigger, lighter, brighter, and encourage sunlight to bounce all over the walls. In this small dining area (above), the mirror even adds color by reflecting the painting that’s hanging in the living area. How’s that for working double duty?

4. Don’t forget the details. Set the table. It’s easy to do and makes a big impact. Buyers walk in and instantly feel welcome, as if they’re coming over for dinner. Light clean and unscented candles, place plush towels and fancy soap in the bathrooms, a breakfast tray on the bed, and a pretty book on the coffee table. If all goes as planned, they’ll want to stay over forever.

5. Play with texture. Wallpaper, pillows, rugs, blankets, baskets, and other tactile accessories can play up texture in a room. It’s an easy way for anyone, even my colorblind husband, to add warmth to a blah room. Try grass cloth wallpaper on plain walls that need a little oomph, such as in this master bedroom (right), where buyers expect to see a little more luxury and style.

Photos: Contemporary Space Design by San Francisco photographer Eva

Houzz is a leading online community for home design enthusiasts, bringing together homeowners and design professionals of all disciplines. The Houzz site and mobile apps feature over 175,000 high quality interior and exterior photos, thousands of highly-engaging articles written by design experts, product recommendations, social tools to manage the remodeling and decorating process, and more than 25,000 design professionals who can help turn ideas into reality.

By Houzz

Ikem Chukumerije DRE# 01751046 represents Buyers and Sellers in all luxury real estate communities including Beverly Hills, Marina Del Rey, Malibu, Los Angeles, Bel Air, Santa Monica, Westwood, Brentwood, Venice, Hollywood Hills, West Hollywood, Pacific Palisades, and Manhattan Beach. Contact us at 323-350-8297 about buying or selling real estate in these areas.

Oct. 1: Conforming Mortgage Limit Changes from $729,750 to $625,500

Posted on September 29, 2011 by admin

If you happen to live in one of the more expensive regions of the country, take note.

Come October 1, the temporarily elevated conforming loan limit for home mortgages will drop from as high as $729,750 to $625,500.

While the new limits will vary by market based on area home prices, some major metros will see a reduction of more than $100,000.

For example, in pricey Los Angeles, homeowners will see the maximum conforming loan amount fall a whopping $104,250.

Why It Matters

As a result, your once “conforming mortgage” could soon become a jumbo loan, with mortgage rates on the latter pricing about half a percentage point or higher than the former.

So instead of enjoying an interest rate of 4.00% on your home loan, you may be stuck paying 4.50% or higher for the same mortgage next week.

Conforming mortgages are eligible for purchase by Fannie Mae and Freddie Mac, making them more marketable to investors and thus cheaper for consumers.

Along with that, they’re easier to qualify for, and require smaller down payments than their jumbo brethren.

What You Can Do

While it may be too late to snag a larger conforming mortgage, all hope is not lost.

If possible, consider bringing more money to the table to keep your loan amount at or below the new loan limit.

You may also be able to break up your loan into a first and second mortgage, keeping the first below the new conforming limit.

This should make qualifying easier and will certainly result in a lower interest rate, which could save you a lot of money over the years.

Either way, don’t fret. Lenders have slowly been increasing their appetite for jumbo loans, and will likely become more accommodating in light of this change.

On top of that, only about one percent of loans extended to homeowners over the past three years would have been affected by this change, so most of us won’t even notice.

AUTHOR:COLIN ROBERTSON

1% Listing Promotion – Save Money on Real Estate Commissions

Posted on July 30, 2011 by admin

Are You SELLING Your Property Anywhere in Los Angeles or Orange County? Our Full Service Seller Program at a low 1.0% listing Agent’s fee includes outstanding top of the line REALTOR support with our licensed professional Realtor Team, Custom Marketing, Photo Tours, San Diego MLS, Talented, Skilled Pro Negotiation & all Closing Representation! Complete Broker support from begininng to end!

COMMISSION TALK
1% for me and if another agent bring in a buyer (buyer agent) his commission will be 2.5%. Maximum total commission you will ever pay with me is 3.5%. No tricks. No conditions.

Imagine having an extra $5,000, $10,000 or even $25,000 in your pocket after the sale! Or having that money for negotiations during the offer.

Before moving on ask yourself this:
Will a buyer pay extra for your house just because you have to pay extra commission?
Buyers don’t care how much commission the homeowners are paying. If the market says
the house is worth $800,000 then the buyer will pay $800,000. Wouldn’t you do the same?

WHAT’S THE CATCH?
There is no catch. There are no hidden fees. It is full MLS service. All my listing agreements are in plain english and straightforward. Of course I put my money where my mouth is: If for any reason you are not satisfied with my services my brokerage will cancel the listing. No questions asked and no penalties/fees will be charged.

This benefits you in two ways:
1. It gives you peace of mind
2. It puts pressure on me to keep working hard because I know at any time you can cancel.

Not intended to solicit buyers or sellers already under contract with another Brokerage.

Call for a FREE Home Evaluation. Please call us to discuss our services further at (323) 350-8297 or email ikem@MillionDollarLiving.com

*The 1% Listing Promotion is only for a limited time.

NOTE: To protect your rebate and ensure that we can represent you on a home purchase, it is important that the seller’s Realtor® holding the open house not believe they are the “procuring cause” of your eventual offer on a property. This can be easily resolved by informing the Realtor® that you are already represented by an “independent broker”.

MillionDollarLiving.com Sales of $20-million-plus L.A. homes are rising – Beverly Hills Real Estate

Posted on July 14, 2011 by admin

Real estate experts and agents say the uptick in mega-estate sales may portend a turnaround in the broader housing market.

luxury home

A diamond-encrusted lining is emerging in Southern California’s cloudy real estate market.

At least a half-dozen Westside mega-estates have sold for more than $20 million so far this year — creating a deafening buzz in local realty circles. Only a few home sales in other Southland counties have surpassed the $20-million mark.

On the horizon is the close of Candy Spelling’s larger-than-White-House-sized “Manor,” which has reigned supreme from its $150-million listing price perch in Holmby Hills for more than two years and is expected to eclipse last year’s record $50-million Bel-Air sale by a wide margin. A $100-million home sale this spring in the Silicon Valley is believed to have set a U.S. record.

Even though L.A.-area sales in this upper price sphere are outpacing those of the same period last year, this market sliver is still too small to be considered statistically significant. Yet real estate experts and agents are cautiously optimistic that the spate of sales signals a turning point in the larger market.

“It’s highly likely we would not see this activity if there wasn’t a growing belief that we were close to the bottom of the market, ” said Stuart Gabriel, director of the Ziman Center for Real Estate at UCLA’s Anderson School of Management. “Certainly on the Westside of L.A. we are close to the trough. That doesn’t mean there isn’t a likelihood of future price drops, but the worst is behind us.”

More than four years into the housing downturn, L.A.-area prices are generally back to 2003 levels, he said. Southern California’s median home price has fallen nearly 45%, to $280,000 in May, from the mid-2007 peak of $505,000, according to DataQuick, a San Diego real estate information service. The decline also reflects increased sales at the lowest end of the market, where cheap foreclosures are attracting cash-rich investors.

“All the increase we saw during the boom period,” Gabriel said, “has been purged from the system.”

Lower asking prices at the high end reflect the drop in many cases, said John A. Woodward IV, who teams with his sister Mary and brother Andrew through Coldwell Banker offices in Beverly Hills and Hancock Park. Among his listings is a 112-acre spread in Brentwood that was just reduced to $28.9 million. Priced at $65 million in 2008, the property went into foreclosure last year.

On the buying side, Woodward landed philanthropist Iris Cantor’s home in Bel-Air for a client for $40 million this spring, public records show — 24.5% off the asking price set in 2009. Its 35,000 square feet of living space includes a three-story entry hall, three kitchens, 12 fireplaces, nine bedrooms and 21 bathrooms.

Setting an asking price closer to the sales mark was actress Jennifer Aniston. Although the exact sale price of her Beverly Hills home has yet to appear on public records, the Trousdale Estates mansion is reported to have sold in the high $30 millions, having been listed at $42 million. The 10,000-square-foot house sits on an acre with ponds, fountains and outdoor living spaces.

As rarefied as this echelon may seem, standard real estate scenarios still play out for the most part. Mary Lu Tuthill, of Coldwell Banker Brentwood, encountered multiple offers recently with a Brentwood listing after a price chop.

“We had three offers on it when we sold,” she said of the ocean view compound containing an 18,000-square-foot main house, a 2,000-square-foot guesthouse, a tennis court, a swimming pool and a one-acre vineyard that went for $26 million. The equestrian property had been priced at $34.9 million in 2009 and reduced to $28.9 million this year, according to Multiple Listing Service records.

In addition to more realistic price setting by sellers, pent-up demand accounts for some of the recent activity.

“People who are buying haven’t just started looking — they’ve been looking for the last year and a half,” said Judy Feder, an agent with Nourmand & Associates in Beverly Hills, who has worked high-end and celebrity deals under the radar for years. “They are now stepping up.”

Feder represented the buyer of a Paul Williams-designed estate in Holmby Hills that closed in May at $21.5 million. The 1936 traditional-style residence of about 11,300 square feet sits on more than an acre. Priced at $28.5 million a year ago, it was reduced to $23.95 million in March.

“Wealthy buyers are taking advantage of the new adjustments,” said Billy Rose, an agent with Rose + Chang, Prudential California Realty, Beverly Hills. “They are picking up trophy properties that come on the market only every so often.”

Other sales this year in the $23-million range include a 12,000-square-foot Bel-Air manse sold by talent manager and serial remodeler Sandy Gallin that had come on the market two years ago at $32 million and a Beverly Hills mansion on nearly two acres. Actress Sandra Bullock jumped in as a buyer in this price range, landing a stately two-story home on four acres in Beverly Hills.

In addition to local names, international buyers also are participating in these mammoth deals.

“L.A. real estate is a bargain compared to other major cities around the world,” said Bret Parsons, an agent with John Aaroe Group. Taking exchange rates into consideration, he said, “we have the most value hands down.”

Parsons expects to see more $20-million-plus sales as L.A.’s Hillside Mansionization Ordinance, which took effect in May, makes it more difficult to build in the hills. “Flatter properties will be worth even more money,” he said. “If you can’t build your mansion you are going to have to buy a mansion that already exists.”

Concerns about inflation are another factor spurring real estate purchases among the very wealthy, said Paul Habibi, a UCLA lecturer and real estate expert. Putting excess cash into real estate can be a hedge against inflation.

“The rich are a pretty good proxy for wise economic behavior,” Habibi said. “On the whole, they tend to make good decisions financially.”

Plus, he said, $20-million sales generate enthusiasm, which can be contagious. “Maybe they’ll bring back what’s left of consumer confidence.”

By Lauren Beale, Los Angeles Times

Ikem Chukumerije represents Buyers and Sellers in all luxury real estate communities including Beverly Hills, Marina Del Rey, Malibu, Los Angeles, Bel Air, Santa Monica, Westwood, Brentwood, Venice, Hollywood Hills, West Hollywood, Pacific Palisades, and Manhattan Beach. Contact us at 323-350-8297 about buying or selling real estate in these areas.

MillionDollarLiving.com – Ashton Kutcher’s Bachelor Pad Sells for $2.35 Million Beverly Glen real estate

Posted on June 29, 2011 by admin

After four months on the Beverly Glen real estate market, Ashton Kutcher’s bachelor pad sold June 28 for $2,350,000. The 4-bedroom, 5.5-bath home was originally listed for $2,600,000 in February.

While the premise of buying a celebrity home is always a good draw, it was the custom features that most people were interested in, said listing agent Gary Gold of Hilton & Hyland.

“Marketing it as Ashton’s Kutcher’s bachelor pad brought in a lot of people but at one point the house became a really custom house on a beautiful lot that was gated,” Gold explained. “The advantage of the home was that someone built it but never moved in. It’s like a new house with custom details.”

Kutcher purchased the home in 2004 for $1 million while he was playing Kelso on TV’s “That ’70s Show.”

Then he and his dad, Larry, extensively renovated and remodeled the contemporary Craftsman from the ground up with design firm Duncan McIntosh. However, Kutcher never moved into his posh man cave because shortly after the home was finished, he married Demi Moore.

The two-story home was built in 1954 with an original living space of 2,002 square feet. Kutcher’s renovation expanded it to 3,235 square feet, creating an open floor plan.

The upgrade also included details like trim, moldings and railings made from mahogany, Brazilian cherry and recycled redwood trees. Other features include home theater and a wine tower and cooler, which holds 210 bottles.

Outside, the property has lush landscaping and a tiered infinity-edge spa that spills into the infinity-edge pool and lastly, into an infinity-edge waterfall.

While Kutcher’s celebrity status may have certainly helped sell the home, it also helped raise awareness for the Demi and Ashton Foundation (DNA), a non-profit organization that raises awareness about child sex slavery and helps in the rehabilitation of the victims.. Gold donated half of his commission to the cause.

MillionDollarLiving.com – Katy Perry, Russell Brand Buy in L.A.’s Sunset Strip Area

Posted on June 29, 2011 by admin

What gives us the most hope in these difficult housing times is when someone is still able to purchase a new house before they sell their first one. It feels so, well, so 2003. Count singer Katy Perry and her actor-husband Russell Brand in this club with dwindling membership.

They just bought the 8,835-square-foot house in the Sunset Strip area that belonged to former National Lampoon executive Daniel Laikin for $6.5 million, reports Realtor.com. Their Los Feliz home is on the market for $3,395,000 and apparently going nowhere fast. And last September, they bought a $2.7 million penthouse in Tribeca. I’m counting three mortgages, how about you?

The house they just bought sits on almost three acres just above the Sunset Strip and has seven bedrooms and nine bathrooms. It includes pretty fabulously landscaped grounds and has a swimming pool and rock features.

Perry is on her “Teenage Dream” album tour — moving is the best time to be away on the road, don’t you think? — and Brand is busy filming “Rock of Ages” with Tom Cruise. Color us stressed out.

MillionDollarLiving.com – Jennifer Aniston Sells Beverly Hills Home

Posted on June 29, 2011 by admin

The girl on the move, Jennifer Aniston, sold her Beverly Hills mansion for about 10 percent off its $42 million listing price, reports the Los Angeles Times. Aniston recently bought property in New York’s West Village.

The sales price of her Beverly Hills home has not been officially recorded in public records, but The Times — quoting anonymous area real-estate agents — put it between $37 million and $38 million. Good guess, we’d say, if a bit high. She purchased the property for $13.5 million in 2006 but undertook a major remodel.

The just-about-brand-new 10,000-square-foot house, built originally in 1970, sits on about an acre. It has two living rooms and two kitchens — don’t ask why. There is also a gym, five bedrooms and 7½ bathrooms.
The home has a resort-style swimming pool, a spa, ponds and fountains, as well as an outdoor living room, another kitchen and fireplaces. Aniston is a lady of class and that’s reflected in her heavy hands-on re-do of this house.

Aniston, best-known for her Emmy-winning role in the TV show “Friends,” starred this year in the comedy “Just Go With It” with Adam Sandler.

By Ann Brenoff