There isn’t a week, and sometimes a day, when I don’t learn something in this business. Often it’s a lesson learned directly from a client. That’s one of the great things about my business; I benefit from meeting folks from all walks of life and all professions. It’s really quite remarkable and every transaction is different. It’s what has made serving my clientele since 1980, truly a rewarding experience. Even though, the lessons learned are sometimes learned the hard way.
Let’s take for example the lesson I learned this week. We’ve all heard the expression, “… when you ‘assume’ something, you make an a** out of ‘u’ and ‘me’”
So true. I made assumptions this week about what a client of mine knew and didn’t know and those assumptions led to my client not getting a home they really liked. Let me share the “behind the scenes” set up here. We’re in a market right now that is just abysmally undersupplied. The price appreciation vector as a result of this undersupply is such (check my March 17 blog entry and scroll down to the bottom of the page for the chart depicting listing volume) that in my opinion, continued price appreciation is “baked in” to the market for quite some time.
In fact if you read my April 8 blog entry, you will see why I believe this to be true. At any rate, if you’re a buyer of real estate today in a market in which supplies are short, price appreciation trajectories are strongly positive, then you need to understand the choices you can make when your broker is completing the “RPA” (Residential Purchase Agreement). As part of my customer service then, let me share some of the elements in the RPA that you, as a buyer, have to think about and if you’re a seller, what you too have to measure when studying offers presented to you. As you read through the table, the first column refers to paragraphs in the RPA which you can check here
For those of you reading this that are selling or buying now, this is critically important to understand. If you know anyone that is considering buying or selling, please share this email with them. Learn from my mistake!
But first, did you know that of the 61 Palos Verdes homes sold in the last 30 days 1/3rd of them sold for list price or over list price?! For the last 30 days, here’s the most frequent price ranges (scroll to bottom of this article for chart). If you’re on a mobile device and having a hard time reading the table, go here
Multiple Offers 12 Tips for Buyers and Sellers
Paragraph # in Purchase Agreement
Earnest Money Deposit
Needs to be 3%, less and you create question in Seller’s mind about your ability to pay and your liquidity. We’ve always done 3% but I don’t want to leave a stone unturned in this discussion
Clearly Seller’s perceive a lower Loan to Value ratio better. It alleviates fears of appraisal shortfalls, ability of a buyer to make up shortfalls by cash. This is contradicted by a Buyer’s desire to leverage as much as possible. In today’s transactions in the price levels we’re looking at, 35% down payment is bare minimum. Yes, you can get financing with less down payment and a preapproval letter will speak to that but listing agents and sellers will always have suspect about 20-25% down. This will be a choice to make going forward
Interest rate caps
I’ve never included one in any of the offers I’ve written for you and the reason why is that I wanted to provide peace of mind to a seller that so long as you were qualified, no matter what the interest rate was, you would close. If you put too tight of an interest rate here, let’s say 4.25, then if rates go to 4.250001, you would have an out to the deal, sellers know that and would tend not to choose you as a buyer
Well that’s the big one isn’t it. You will always be faced with the choice of whether or not you want to write an offer at a price that will blow the competition away, and by definition that will tend to be a bit above market. Do you accept that as an option with the knowledge that at least you won the property and in a market where inventory is so low that price appreciation is baked in to the market for another 3 years or so (based on past historical trends). That’s a choice you will have to make on a house by house basis
Verification of Down Payment
Must, must, must have ready to go. The contract says you will tender that within 3 days of acceptance, but no listing agent will accept that. Have with the offer
In an appreciating market like ours, with appraisers looking backward in time and old sales, there is a built in tendency for appraisals to come in less than purchase price. Is the offer/purchase price one you’re happy with? Then do you really care what an appraiser thinks? You know what a property is worth to you, an option then will be to waive this contingency and of course this obligates you to cover the shortage with additional cash. A lender will, depending on size of loan, lend 70-80% of purchase price or appraised value whichever is lower. Do you have the cash to cover the shortfall? If so, to make an offer stronger, a choice will be to waive appraisal as a contingency
How confident are you, more importantly how confident is your loan broker at getting you approved for the loan? Having a financing contingency allows a seller to infer that you’re not confident about your qualifications notwithstanding your preapproval letter. A choice will be, in order to make your offer stronger, to waive the financing contingency. Which of course has the consequence of, if not approved, loss of your earnest money deposit. How confident are you? Offers with no appraisal and no financing contingency often win the day, sometimes even a slightly lower price than the competitive offers.
Allocation of costs
Sometimes buyers will choose to absorb costs normally associated with a seller’s side of a ledger. This is a marginal issue. Financing and Appraisal contingency along with purchase price have much larger weight
Seller remaining in possession
There are times when allowing the seller to remain in the home for a short time after the close, is perceived by the seller as a great value and can compensate the seller for choosing you over a higher priced offer or an offer with otherwise better terms. This is another choice which needs to be investigated with the listing agent to determine if there is a perceived benefit by the seller to remain in possession
Time to conduct due diligence
This actually applies to any contingency. The shorter the contingency period, the more you are willing to encumber yourself with the inconvenience of getting things done fast, the better your chances of winning the property. No seller likes that due diligence period in which for days on end they’re wondering if they really have a deal. Cutting this period down, creates well being feelings with a seller which in turn might be leveraged in negotiations to better terms elsewhere for you
I will leave that to a discussion you may or may not want to have with an attorney to advise you.
Close of Escrow
Intuitively, for most cases, a shorter escrow is perceived as better by a seller vs a longer escrow. We all know “Murphy’s Law” exists and a longer escrow is considered by a seller, fertile ground for Murphy’s Law effects to happen. With some sellers however, too short of an escrow may cause stress, so this is where we investigate with a listing agent, what a seller’s preference is. This too then is a choice you will have to make as to length of escrow
Located in the heart of RHE, on the corner of a quiet cul-de-sac is this 60’s inspired one-level home. Curb appeal and a cool vibe rarely seen in Palos Verdes set the scene. An enormous living room with wet-bar is situated in the middle of the house, and creates the perfect gathering spot. The adjacent kitchen and formal dining room make entertaining a breeze. The entire southern side of the house is glass, and looks out to the pool and backyard with putting green. 3 spacious bedrooms (including a large master suite) and 3 baths, high ceilings and much more. The two car garage is actually more like a drive-through, but can be easily converted into a garage.
A VIEW to INFINITY and BEYOND. Situated on over 1/4 acre with huge, flat front and side yards and overlooking Trump National, you will feel like you are cruising the Pacific in this stunning, one level home with unobstructed, sweeping ocean and Catalina views. First time on the market, since its original ownership, this four bedroom two bath home has been updated throughout. A remodeled kitchen with new granite and stainless steel appliances is gourmet ready and leads to an inviting family room with fireplace. New hardwood flooring, carpeting, and paint distinguishes its move-in condition. A courtyard and spacious entry lead to a sprawling living and formal dining room framed by the spectacular view. The same ocean view can be enjoyed from the master bedroom creating a peaceful and serene atmosphere. Its in suite bath has been enhanced with new flooring and vanity. The other three bedrooms are bright and comfortable. The second bathroom also boasts new flooring, double vanity and expansive mirror. An attached two car garage completes this picture perfect package. Don't miss this unique opportunity to move into this truly lovely, turn-key view home located in the prestigious Mediterrania neighborhood on a street where property rarely comes on the market.
This home redefines the word immaculate! Designed by these original owners, their pride-of-ownership is apparent! An inviting front courtyard welcomes you to a home filled with light, warmth, and a sense of comfortable living. The first floor offers a formal entry, den or office, living room with vaulted beamed ceilings and dramatic stone fireplace, formal dining room, kitchen with breakfast nook, a butler's pantry, and views of the ocean from almost every room! The downstairs features a large master suite, two other good-sized bedrooms, a laundry room, and a bonus room with over 570SF of unfinished space that you could almost put a handball court in! Other features include hardwood floors, double balconies, three-car garage, a large fenced backyard with fruit trees and rolling lawns, and a great location in the heart of Palos Verdes Estates! With it close proximity to Margate School and PV High, there is nothing not to like about this property!
This Valmonte home has big, dramatic city-lights views from floor-to-ceiling windows that captures your attention immediately when walking into the house. You'll spend your evenings entertaining in the wide open Living Room and Dining Area enjoying the wood burning fire place and twinkling lights outside. Three bedrooms and two bathrooms on this same floor. The Master Bedroom has an updated bathroom and enjoys the same great views. The Kitchen is updated with a small eat in counter that could be made into a larger center island and eating area if wanted. In the center of the living space are the stairs that take you down to the large Family Room with the second of two fire places - opening with sliding glass doors to the beautiful pool and sunning deck - very nicely landscaped. Off the Family Room is a big Mother-in-laws room with access to the pool as well. Ideal for a lucky older teenager, in-laws, or guests. The separate bathroom downstairs services the Bedroom and/or the Pool Guests. The Laundry area is located at the bottom of the stairs by the Family Room. Flooded with natural light through out. This home is perfect for those needing to get off the hill quickly with access to PCH and Hawthorne just blocks aways. Surprisingly quiet. Enjoy all the perks of living in Palos Verdes Estates and join the magnificent PV Beach Club or PV Golf & Tennis clubs. Easy access to the Beach. Award winning Palos Verdes Unified School District. WELCOME HOME!
PRICE REDUCED! When you enter through the double doors you are welcomed by the sun drenched open and airy freshness of this home. The updated kitchen has a double oven, Sub Zero refrigerator, tons of custom cabinets and breakfast bar. The dining room features a beautiful chandelier. There are 4 generously sized bedrooms, 2 on each floor. Each level has a huge sliding glass door that opens to reveal the beauty of the landscape or views of the ocean. Each floor has a spacious living area with a gas burning fireplace. The master bedroom is enhanced with, a cedar walk in closet, Jacuzzi tub, separate shower and Toto Neorest 500 commode. Many special touches and updates elevate the lifestyle in this home. Some include freshly painted rooms, gleaming wood floors, newer heating and air conditioning system with new ducting, sprinkler system with rain sensors, laundry on each floor, newer windows, tray ceilings, wainscoting, crown molding and lush landscaping. Conveniently located in the quaint area of Malaga Cove and surrounded by trails. Only a short distance to enjoy the views of Rossler Point Gazebo and Malaga Cove Beach. Close by you will find the Malaga Library, restaurants, golf courses and award winning schools.
POOL Home where you can wake up to a glorious sunrise overlooking spectacular canyon views! Perfectly nestled on quiet street in the well adored Ranchview neighborhood of Rolling Hills Estates. Situated on a mostly flat over ¼ acre lot new fully remolded home is a perfect blend of indoor/outdoor living. 3 bedrooms, 3 baths, home office, open concept floor plan, you'll be amazed. Living room blends into the gourmet kitchen w/ custom 7 ft island, custom cabinets, 36 Sub Zero fridge, 4 burner/griddle 36 WOLF Range, farm sink & breakfast nook that offers optional entertaining needs. Kitchen will surely pull the heart of the home together, walk in pantry, new Anderson windows & french doors, new mechanical, plumbing, electrical inside. All hardwood flooring throughout. 2 master suites, both sitting on one end of the house. The main master bathroom features dual sinks, Marble counters, 2-person tub, oversized designer shower w/ ceramic tiles. French doors lead you out to the backyard w/ breath taking views from your bed. 3rd bedroom is private & can be the perfect guest room. Outside living space can be accessed from french doors off the dining. Beautifully new landscaped front & backyard, gorgeous POOL which is perfect for south facing sun, tons of scenic views, trees, even a peak-a-boo view of the ocean from the backyard. The backyard has room for barn/guest house & is zoned for horses w/ canyon access. This home is perfect! You will feel instantly inspired to entertain!
Conveniently located on a cul-de-sac in Rolling Hills Estates, this 5 bedroom, 4.5 bath two story home has an ideal floor plan. The main level consisting of formal living and dining rooms, spacious eat-in kitchen, large delightful family room and a bedroom with bath plus powder room all flowing seamlessly outdoors. The yard has lots of room for barbecuing, playing games, or just relaxing while enjoying the pastoral and city views. Fireplaces in the family room, living room and master bedroom add warmth and charm to this delightful home. The upper level with 4 bedrooms and 3 baths includes a master suite with balcony and a laundry area. On a clear day you can see the Hollywood sign. Evenings boast delightful sunsets. Easy commute area. Something for everyone to enjoy.
Enchanting city and ocean views simply begin the list of wonderful features of this single level home with guest house located in Westfield, one of the most charming and unique neighborhood on the Palos Verdes Peninsula. High upon the hill, this home is built around a sparkling pool with beautiful French doors leading to the pool deck from most major rooms of the house and guest house. The main house features an outstanding floor plan with large living room and adjacent dining room, separate family room, kitchen with breakfast area, master suite and 2 additional bedrooms. The permitted guest house, currently called the “Tiki Room” with pool/party area, full bath, quarter bath and office, has endless possibilities for use. Comfortable and inviting best describes the feeling of this amazing home. Once here, you won’t want to leave!
Remarkably elegant and classic home is flawless! Impressive custom details throughout create private sanctuary you won’t want to leave. Enter into bright, open living area and chic dining space where large custom windows invite the outside in. Relax and enjoy a meal there, or flow out through the doors to the patio next to the pool to enjoy garden views and PV days and evenings. Spotless, sunny kitchen is spacious and well-appointed with custom detailing, countertops, and cabinetry. Kitchen with breakfast bar flows into family room with cozy fireplace perfect for unwinding. Family room also enjoys walk-out access to fine outdoor living area where pool, patio, lounging area, and hillside garden meet. A charming sitting/ reading room and a custom wine room add further to the home’s peaceful vibe. Home also features rare, exquisite library/ office with custom paneling and hidden room. Immaculate master suite features fireplace, extra large walk-in closet, gleaming bathroom, and views of private hillside. Additional bedrooms are faultless, with clean skylights and/ or large windows. Even the 3-car garage is impeccable and has been finished to include flooring, ample built-in cabinetry, and large closets. Don't miss out on this picturesque home!
Country living - privacy, quiet, city and some ocean views! Lovely 4 bedroom ranch home secluded at the end of a private road. Open beam ceilings in family kitchen and very large living room. Kitchen has Viking appliances, 2 ovens, new large center island with bar stools. This home feels like you are in a forest looking over the city and ocean views, ....in your own private retreat. There is a yard for kids, pool, entertaining area. Many substantial upgrades have been done recently. New roof, pool resurfaced, new pool equipment and coping, new hardwood floors, new kitchen center island and freshly painted. Large living room with fireplace looking onto city, harbor and ocean. This home has everything - privacy, views, yard, pool, one level with tons of natural light everywhere.
Situated at the end of a quiet cul-de-sac in upper Lunada Bay, this charming Cape Cod style home has a warm, country feel. The spacious living room is immediately off the entry and features crown molding and a marble fireplace. The formal dining room leads to a spacious kitchen with center island, which opens to the family room with fireplace. French doors lead to the backyard with used brick patio, in ground spa and large grassy area. The entry level also features a laundry room, a den or 4th bedroom, and an office or 5th bedroom with private 3/4 bathroom. Upstairs you’ll find 3 bedrooms and two bathrooms, including a master suite with walk-in closet and private bathroom. The gated driveway leads to a detached garage. Hardwood floors, wainscoting, French doors and windows, and much more.
A MILLION-DOLLAR PANORAMIC VIEW that overlooks the coastline, harbor, and the Los Angeles basin is breathtaking from this 6 bedroom home located in prestigious Miraleste Hills. The secluded yet convenient location is minutes away from freeway access and is close to Trump Golf Course and Terranea Resort. Situated within the award-winning Palos Verdes School District, the home is close to schools including Miraleste Intermediate. The double door entry leads to formal living and dining areas with a double-sided fireplace, vaulted ceilings, and doors that open to a large veranda overlooking the gorgeous view. A spacious open-concept family room, informal eating area, and kitchen open onto the back patio and grassy yard. Also on the main floor is a large bedroom or executive-sized office with a bathroom and access to a private balcony and the view. The huge Master Suite on the upper level includes a sitting area with fireplace, ample closets and a master bath with a spa tub, separate toilet room, and double vanity. The expansive balcony adjacent to the Master bedroom is perfect for morning exercises or simply enjoying the view. Four additional bedrooms and a bath complete the upper floors. There is a two car garage with storage area and an additional storage space is under the house. A separate yard off the front of the property has fruit trees and is perfect for a large cutting garden or as a children play area.
GORGEOUS HOME OFFERING AN INCREDIBLE LIFESTYLE! MOSTLY BRAND NEW CONSTRUCTION. This is a MUST SEE! The first floor of the home is all brand new. High quality throughout: beautiful cabinetry, marble counters, light fixtures, crown molding, stonework, and other tasteful details. The 2 bedrooms & bathroom upstairs are beautifully finished, with wonderful views from each room. The home also features 1,000 sqft. of brand new wrap-around Trex decking for indoor/outdoor living space. The large & private flat back yard is equipped with a new sprinkler system and is professionally landscaped. In addition, a new roof, new stucco exterior, new hardwood floors, new Milgard windows/sliding doors, new shutters, new recessed lighting, new electrical wiring, new plumbing, new central heating & downstairs A/C system. The large living room features a gas fireplace, wine cooler and bar and access to a private side zen deck area. The expansive kitchen includes new top of the line stainless steel appliances, Thermador 36 inch gas oven & Frigidaire refrigerator. The beautiful white cabinets & marble counters are stunning, walk-in pantry & a large breakfast bar. The master suite is designed as a private retreat which features an over-sized shower, beautiful tile floor, dual sinks, walk-in closet and complete with its own deck to enjoy the fantastic views. With this beautiful newly constructed & remodeled home, all you have to do is move in and enjoy the lifestyle it will provide for years to come!
Hart to show this home - We took pictures last FRIDAY (04/27/17) . Click the pictures. It closed real home. Then let's set up to show. Good Ocean View home, This is AS-IS sale NO credit or repair will be done. located behind PV Library & only minutes walking distance from the Malaga cove Plaza & restaurants. Natural light upon entry with centralized courtyard perfect for entertaining friends and family.3 fireplaces, high vaulted ceiling ,large balcony with nice ocean view.2 car attached garage, Seller has contractual right and All seller's choice of services. This home appraised $1.8 Million from last year, 2350 Sqft ( appraisal report),Buyer shall verified all information.
Spanish Modern Ranch- Don't miss this amazing home and location! Spacious 5 bedrooms, 4 baths, 3,183 sq. ft. on a 31,155 sq.ft. lot with expansive views of landscaped Rolling Hills canyon homes, Santa Monica Bay with twinkling light views. The excellent floor plan includes 3 bedrooms, a master suite and 2 bedrooms with 2 .5 baths, kitchen, laundry and living areas on the main level and 2 bedrooms and 1 bath, family room, gym downstairs. Beautifully updated home in 2017, with new hardwood flooring, custom paint and colors inside and out,carpet and lighting.The custom kitchen opens up to the views, has a sunny breakfast room and relaxing deck facing south. An all new master bath and other baths have also been updated, with quartz counters, cabinets, fixtures and lighting. Viewing from both floors, and decks abound off the upstairs bedrooms and living rooms, dining and breakfast room. Hot tub with patio on front hillside. Walking trails abound. The sense of tranquility is wonderful.
Surrounded by canyons, this beautiful California ranch style home sits in the heart of the Palos Verdes Peninsula offering privacy and equestrian amenities. This remodeled home sits on over half an acre of land with an open floorplan that encompasses 3 bedrooms, 2.5 bathrooms and 2,255 sq. ft. of living space. This functional home is enveloped in light and comfort with an open floor plan throughout that creates a timeless style. From the entrance, you are led to the great room which includes the living room, dining area, and gourmet kitchen with newer countertops, cabinets, and appliances. Off the great room, you are led to the spacious family room with access to the exterior. Enjoy the equestrian amenities this home offers including; a 3-stall barn, 2-stall wash rack, a tack room and riding ring. If you continue down the property line you will meet wonderful horse trails. This prestigious neighborhood offers a prime location on the hill, giving ease of access to schools, freeway, shopping and parks. Perfect for those looking for room to enjoy their land with the ease of modern amenities.
Spectacular 4 bedroom home situated on the riding trails of prestigious Rolling Hills Estates. You will know this home is special from the moment you walk in. The formal entry way, with impressive staircase leads to the formal living room. The living room features a granite fireplace & privacy artfully sketched french doors. There is a separate family room with a fireplace, hardwood floors, custom cabinetry which opens to the lush backyard. The cook's kitchen features granite counters, custom white cabinetry, breakfast bars, built-ins, service porch & opens to the dining area. Dining room has custom cabinetry for plenty of storage and leads to the backyard patio area. There are 2 guest bathrooms downstairs along with a main floor bedroom. All 4 bedrooms have their own private bath. The master suite and 2 other bedrooms are upstairs. Spacious master features a walk-in closet, peek-a-boo views and a beautifully tile & granite bathroom. There is an abundance of natural light from the dual-pane windows & sliders throughout. Gleaming hardwood flooring & newer carpet. Laundry is in the 2 car attached, direct access garage. Wrap around backyard patio. All this & more on a 10K plus sq foot horse property lot. Plans for a pool avail.
This remodeled home with bamboo wood floors and new carpet enjoys a tranquil and quiet canyon ridge setting. The two wrap around decks reveal a spectacular daytime and nighttime city, harbor, and coastal views. This 4 bedroom, 3 bath home has a formal living room, dining room, and large kitchen with eating areas. There is a large family room with wet bar. An exceptionally large storage area not included in the square footage can serve many purposes. The yard includes avocado, fruit and citrus trees. The wrap around views are a big WOW in this home.
Why do we love living here and being owners of Palos Verdes Homes? I've been a resident of Palos Verdes since 1968 attending 6th grade, graduating from Palos Verdes High School, graduating from UCLA and then coming back to Palos Verdes Estates to begin my real estate career in 1980. Talking with thousands of people and many hundreds of clients has confirmed for me what I've always known about owning any of the many fine Palos Verdes homes. We appreciate our strong school district ranked in the top 100 of all districts in these United States, we love our clean ocean breeze swept air, we love our approximate 70+ miles of hiking and equestrian trails, we love our quiet, peaceful, safe cities and bedroom communities and we love the strong sense of neighborhood that exist in the many varied neighborhoods here in Palos Verdes. From Palos Verdes ocean view homes in Palos Verdes Estates to the ranchos in Rolling Hills, there really is something for everyone. And, as "boring" as we might be, we have some great restaurants, and entertainment centers too. I can't wait to talk with you more about our many different communities. Meanwhile feel welcome to explore this website and if you own one of the many Palos Verdes homes and want an estimate of Palos Verdes home values, you will see a tab here to engage a few widgets to check and balance. Use the contact blue buttons to get a hold of me today