The Real Estate world is always full of confusing jargon, particularly at the moment it seems that there is a complete alphabet soup of abbreviations about – BPO’s, REO’s and more!

Well we are here to help de-mystify it all for you!

Realty Times has recently written an article discussing investing in Bank Owned Properties (REO’s) and Short Sales. However with much press at the moment about foreclosures how are you to know the difference? Well, here is, in short, a description of both types of properties:

Bank Owned Properties:

Ownership: Typically a bank or a national servicer.

Formulation of an Offer, Paperwork/Rules for Offer Submission: Standard purchase and sale agreements are used as well as the banks’ own addendums and disclosures. Before a Bank forecloses they have one or more brokers provide an opinion of value. (BPO) Then at the time of foreclosure/listing they have the listing broker determine if that value is still valid. Most of the time the Bank is pricing the property near market value and is expecting to sell the property close to the asking price. Note that with regards to repair contingencies, the Bank prefers not to make repairs so an “as-is” sale is best.

Money: Earnest money will need to be in the form of a cashier’s check. Proof of funds for the down payment and loan approval for the balance will also need to accompany the offer. If financing may be difficult for you as a buyer then the deal may not work, so be realistic! Don’t get your hopes up!

Closing Date: Fewer days on the market mean lower holding costs for the Bank which works to your favor. Many institutions are beginning to have penalties for closings that run beyond some date so make sure your lender can perform in that time frame and that you are ready to go at a moments notice.

Response and Timing: Once a buyer’s broker has submitted all the appropriate paperwork in accordance with the bank’s rules you may receive an answer within hours or it may take up to a week. Be patient! These are not normal transactions so do not relate it to how fast you closed on your existing home in the past!
Short-Sales:

Ownership: Legally the property is owned by a person or entity (e.g. company – LLC, Corporation, Trust, etc) and the house could be occupied by an owner or tenant or it could be vacant. However, the owner is in a negative equity situation (the sales price less closing costs is less than the debt on the property) and needs lender approval to affect the sale.

Formulation of an Offer, Paperwork / Rules for Offer Submission: A standard purchase and sale agreement is used along with an addendum acknowledging the fact that this is a short-sale transaction. It’s listing price for the property may be well above market, well below market or at market. Similarly as with REO’s, although it might be nice to have repairs made, often the seller doesn’t have the resources to make them and the lender is very unlikely to do any, so don’t get your hopes up! Therefore “as-is” contracts are common.

Money: Earnest Money should be in the form of a note that is converted to cash (check to Escrow) after acceptance or even after removal of the inspection contingency. Also you should supply proof of funds for down payment and pre-approval from the lender for any new loan to make your offer stronger. Being prepared with paperwork is key here and supplying as much information about how strong a buyer you are will help.

Closing Date: Closing can occur within 30 days but the 30 day clock will not start until the lender gives their approval – The approval process may take one week or it may take up to three months. One thing to keep in mind is that while all parties are waiting for an approval of the offer another department of the lender/bank is working on the foreclosure and may actually foreclose on the property with offers in for approval. If that happens, the deal is dead and the listing terminated as the former seller is no longer the owner of the property and does not have authority to sell.

In short – have patience and persistance and you may be successful! The National Association of Realtors has published a “field guide for short sales” available here.

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

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Judy Kunisaki – CA DRE license 00963582

Summer is here and the Malibu Real Estate market is really heating up!

Despite the issues with financing at the moment many deals are going cash as buyers are taking advantage of the current market conditions. Sales are increasing nationwide and in Malibu the increase in activity has industry professionals optimistic that the market is well and truly on the turn.

According to MLS/CLAW (Combined Los Angeles Westside Multiple Listing Service) figures, 69 single-family residences sold between Jan. 1 and July 31. Last year 62 homes sold, including at Heathercliff and Paradise Cove mobile home parks, and 18 condos sold so far this year, compared to 15 last year at this time.

Also if you are looking for a beachfront property, now is the time -  on the beach there are over 50 homes for sale, where three or four years ago there were maybe less than 20 homes for sale. With some agents reporting cash sales making up around 80% of their deals it is not surprising that financing worries are on everyones mind. Interest rates are fantastic at the moment, however qualifying can be a pain, even if you have money and good credit.

Well priced properties by realistic and patient sellers are seeing rewards for their hard work. Sure home sales are picking up but the process may be a little bit slower than previous due to financing issues. The moral of the story is to be patient and work with your agent.

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

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Judy Kunisaki – CA DRE license 00963582

It is all happening in Malibu!

The long awaited Lumberyard Mall is just days away from opening. The project has been years in the making and finally the developers Richard Weintraub and Richard Sperber will at last celebrate the ribbon cutting will take place at 9:30 a.m. Saturday with the official opening set for Tuesday, April 21 where, in addition to the developers there will be a host of celebrities there including David Spade and Matthew McConaughey.

The Lumberyard mall is opening with 15 retail and food establishments and they are as follows: Cafe Habana, MILK, Adrianna Shamaris; Maxfield, Tory Burch, Intermix, James Perse, alice + olivia, J.Crew, Kitson Men, Planet Blue Kids and Theory; and Crumbs Bake Shop. There will also be a family-style restaurant is planned for upstairs with sweeping views of the Pacific Coast Highway.

The Trancas Country Market has news of its own. It is looking to expand its existing building space by 37,000 square feet, and possibly add another 11,000 square feet by 2012! It is inviting Malibu businesses to move into the development. The expansion and renovation plan calls for a 37,372 square foot addition to existing buildings on the 14-acre shopping center with ground breaking for the development starting as early as this fall, subject to the planning commissions blessing.

With all of this development occurring in Malibu it is no wonder people want to relocate to the area!

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If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

Selling a home is stressful, most want to make their home as attractive as possible – usually through home staging. However in addition to the regular tips which we have provided over the years, including: decluttering, taking down personal photos, applying a fresh coat of paint, making minor repairs, and keeping a pleasant aroma etc

There are other ways in which you can help buyers through the door. Buyers – even as a seller, you were a buyer when you looked at your property, remember how that felt. Buyers want space, light, open floor plans and more storage capability. Even if you live in a cookie-cutter home, you can make it stand out. Americans are projected to spend $217 billion on home remodeling in 2009.

Have you considered doing the following?:

1. Go green. Energy efficient products and household goods are attractive to buyers. Things such as better insulation, replacing old windows, caulking, and adding skylights can increase value.

2. Crown molding and wider baseboards. The basic baseboard that builders often use in tract homes doesn’t draw attention. Adding a wider baseboard and a fresh coat of paint makes the room come to life.

3. Textured paint. Faux finishes, accented walls, or even just a little fresh paint on them makes a lasting impression. Choose colors and textures wisely. Don’t get too carried away!

4. Improved flooring. Wood, tile, and new carpet can be a showstopper, inspect your flooring for faults!

5. Add a deck area. Adding a deck can add value to your home. It’s a nice feature in a yard and many buyers are happy to purchase a home that already has a deck so that they don’t have to take on that home improvement project – imagine those lazy summer days barbecuing on the deck? If you can, you can bet your buyer will!

Hopefully with these tips you will have a great head start in preparing your home for a quick sale!

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

This stunning Pacific Palisades home owned by famous movie producer Dylan Sellers has been listed for sale at $2.995 Million.

This luscious property is a new construction and is set in a beautiful lot surrounded by plenty of greenery. The main home is a five bedroom four and a half bathroom property which has a great inside and outside flow and features gorgeous views of the surrounding area – including mountain and ocean vistas. The interior of the property has a homely feel and features custom tile work, walnut floors and three fire places! (Click here to see the virtual tour and here to see the MLS page.)

This property takes advantage of the bright and sunny climate enjoyed by Southern California with lots of natural light. The home is a spacious 3,990 square feet and the Mediterranean flair is enhanced by the drought resistant planting of agave and olive trees in the grounds. The rear of the property has a private garden with a free form pool and spa giving the new owners a chance to cool off from the hot Southern Californian Sunshine!

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

Ex Boston Red Sox/Baltimore Orioles/Cleveland Indians Major League Baseball Star Brady Anderson is looking to offload his Malibu Mansion for a handsome $8,999,000.

The home is featured in the LA Times Property Section and is a stunning coastal property featuring glorious view of the Pacific Ocean. The contemporary two-story estate contains a 3,500-square-foot home with three bedrooms, three bathrooms featuring vaulted ceilings, glass sliding doors in the living room, a gourmet kitchen with top-of-the-line appliances and a terrace off the kitchen. There is also an outdoor dining area with a fire pit and a spa observation deck to enjoy those ocean views!

The star had a hand in redesigning this glorious home into its current “zen”-like state. It is definitely a home worth viewing. (see a virtual tour here)

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

We have mentioned previously on this blog about Foreign investment in Malibu and the surrounding areas. However, with a great selection of homes on the market right now and traditionally strong currencies wealthy investors are really looking at snapping up trophy real estate in Malibu, Beverly Hills and Hollywood.
The secret – if you like – is out according to this article (click here). Property is being sold for a little less these days than it was before and foreign investors are scared by the stock market and are looking at putting their money back into real bricks and mortar.

Traditionally as we are all aware real estate has always performed well, however in addition to the investment value, investors are looking at their purchase luxury property in the prestigious areas in Westside as a lifestyle choice, a trophy property for their portfolio where they can rub shoulders with the rich and famous.

The US also offers a favorable tax regime in general, a tried and tested political system which is stable and a very much open doors policy to foreign investment, therefore it is a great choice for investors around the globe to put their money into property. Also, whilst they are at it they could take advantage of the sunshine that the Southern Californian coast has to offer!

Where are these buyers coming from? Well as far off as London, the Middle East and Asia and recently, Canada – back when the Loonie (Canadian Dollar) reached parity for the first time in years against the US Dollar.

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

There is a real spur of activity in Malibu Celebrity Real Estate this week! Olivia Newton John has finally sold her gorgeous Malibu property which, when initially re-marketed for over $12 million – which we announced on this blog.

Olivia Newton-John has sold the property for a knock down $10 million after being listed for 354 days. The property features a five bedroom, six bathroom main residence with a decent 6482 square feet of living space in a 1.28 acre compound. The buyer is a trust representing Patrick Kevin Morris and his wife, Gaby Morgerman – both entertainment industry heavyweights.

Also, Musician Beck has decided that to get a expedited sale on his Malibu home he has decided to reduce the properties asking price down from around $2.4 million to $2.345 million. The “hip mid century” 1600 square foot ranch style home is a great buy in a gorgeous location.

If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

Another year is here and more Celebrity Real Estate in Westside is up for grabs!

This beautiful Hollywood Hills home owned by CEO of the Rockstar Energy Drink, Russell Weiner is up for sale and sold at a knock down price of $8 million – down from the original price of just under $15 million.

The property is a huge 9,800 square foot (estimated) home featuring seven bedrooms, 8 bathrooms as well as gorgeous city and ocean views. The bedrooms are arranged as 5 in the main house and 2 in the guest property. The architect designed the property with cavernous rooms with cathedral ceilings with large windows to flood the space with natural light as well as some stone flooring. As a real quirk, the entrance foyer to the main house doubles as a night club, a new media room as well as gorgeous landscaped gardens with a koi pond – a nice feature indeed.

The buyer is a 29 year old entrepreneur, who clearly fell in love with the property. What is certain is that there are many great unique properties for sale right now and that now is the best time to purchase your home in Malibu and the surrounding Westside LA area!

If you are interested in purchasing a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.

The Federal Reserve Board have lowered rates again!

The National Association of Realtors has applauded the decision by the Federal Reserve Board to lower interest rates further to a near record breaking level. In the third quarter of 2008 mortgage rates had averaged 6.3% but have now fallen to around 4% in some parts of the country – these really are some of the best rates that have been seen for decades! In fact you would have to travel back 50 years to see rates this low. The new target range for rates is now between 0% and 0.25%.

All in all it really means that those who are thinking about purchasing a new home with a low fixed rate loan and a great selection of property available on the market are getting the best deal in years! The National Association of Realtors is also calling for the $7,500 first time buyer tax credit repayment clause to be changed so that the credit does not need to be repaid. Also, the cuts, asides from boosting the economy and the housing market are expected to create a wave of refinances.

If you are interested in purchasing a property in Malibu, Pacific Palisades or the surrounding southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.