This will be short and brief but I wanted to let you know I’m excited!!  Finally, the market is moving a bit and I’m starting to see value in the market.  In the time period from 1/1/10 to 2/21/10 we had 17 recorded sold properties in Malibu as compared to last year, during the same time period, we had 11 recorded sold properties.  Also, there are at least 3 properties in escrow right now that are bank owned and very close to the $1M range with ocean views and/or centrally located. 

Rick Wallace, another local Malibu real estate agent that has been compiling data for years and years, states that “Malibu's residential real estate market saw a 33 percent plummet in values in 2009”, and that “The Malibu median price, the point at which half the homes sell for more and half sell for less, is just above the level of 2004.” (The Malibu Times, February 10, 2010)

I believe that the sellers, or ‘bankers’ as the owners may be, have finally gotten the message in Malibu and realize that to sell a home you must be willing to negotiate with what the market is willing to pay, not the values of days past.  So buyers, now’s the time to find that CASH, I see the opportunity for significantly more discounts on homes for those that can afford to purchase with all cash.  Even if you wanted to consider working with a group of investors to jointly purchase, remodel, hold and then sell in several years, depending on the risks you’re interested in taking, I am seeing some opportunities.

Thank you for your time, and I look forward to hearing from you. 

Janet Siderman
(310)924-4631
janet@callmalibuhome.com

It’s been a long time since I’ve put an emailer together or summarized the Malibu Real Estate market.  Just like everyone else, life has been busy trying to keep afloat in our economy today.  Before I share my news with you, I’d like to share a few discussions I’ve had with several clients and the outcome of these discussions.

First, I had a conversation with a potential seller, almost a year ago, about the home marketplace and his property.  At that time, the desire was to lease his property and to sell, “only for the right price”.  I indicated to him that I felt his lease price was approximately $2,000/month more than the market would bare.  We then began a lengthy discussion about the economic environment, how the market has changed, and that, even though he had enjoyed the high lease prices in the past, these prices are not realistic for today's market.  I asked him if he would or could afford to have his place vacant for an undetermined amount of time or would he prefer to have some income coming in.  Long story short, he never leased his property and in the end he was forced to foreclose on the property and the bank now owns his beautiful ocean front condo near Zuma Beach (if anyone wants more information about this property please call me).

The other interesting conversation I had was with a seller that, approximately 2 years ago, had an unsolicited offer on their property and had entered into an escrow for his property.  After the escrow was far enough along and all the contingencies were removed, the seller went ahead and purchased a new home in another state.  Unfortunately for this seller, his buyer still canceled the escrow and left this seller with 2 homes.  Now, the seller is trying to sell both but is having a hard time understanding why no one will offer him a price anywhere near the price he negotiated in his past escrow.  This seller calls this market a “fake” price market and claims that his house is worth more money if it weren’t for the "buyer's market".  To try and help the seller understand more about our economy today, I used the following example.  “Imagine that you are in a place where everyone has plenty of food and doesn’t need more.  You have grown oranges, you have too many of them, they are perishable, and you desire to sell them.  The only way someone will be interested in buying these oranges from you is if you discount the price, such that people feel it’s worth paying for oranges even when they already have food.”   I then went on to explain that today's real estate market is similar.  Price is determined by what buyers are willing to pay, not what other homes in the area are listed for.  We have more homes listed on the market today than we have had in many years and the average days on market is over 1 year.  If you want to sell your home in today’s market then you must reduce your home’s price.  Outcome of this story is still unknown:)

What’s the Good News?
My Coldwell Banker office manager recently did a quick review of the sales as recorded in the MLS for the 1^st 5 months of 2009 as compared to the 1^st 5 months of 2008 and here’s what he found:

• For Single Family Homes on the beach, there are 5 sold homes and 4 pending sales for 2009.  In 2008, there were 16 homes sold during the same 5 month timeframe. 
• For Single Family Homes on the landside, there are 30 sold homes and 22 pending sales for 2009.  In 2008, there were 30 homes sold during the same 5 month timeframe.

Good News:  Malibu is seeing more market activity this year over last year.

What’s the Bad News?
Home inventory is high (approximately 260 homes for sale currently), days on market has increased (average DOM is a little more than 1 year), lending practices have tightened, and reports that we might still be having another run of foreclosures hitting the market are just some of the factors that are effecting the housing market today.  Rick Wallace's recent article in the Malibu Times summarizes our marketplace very well. (http://www.malibutimes.com/articles/2009/06/22/news/news8.txt)

What Should I DO?
If you are a seller in this marketplace, you should ask to see all the recent home sales for your area prior to determining the listing price.  If you are a Malibu seller, I would also ask to see the homes that sold in 2004 in your area and the sold prices then.  Once you’ve done this, you can determine a listing price that is closer to what buyers are paying.  Also, it’s good to set out a plan prior to listing your home for price decreases.  No one wants their home to become ‘stale’ on the market and in today’s world re-assessing the listing price on your home every 2 weeks is a wise strategy. 

If you are a buyer in this marketplace, determine what you are looking for in a property or home and then start looking at every option.  Don’t be afraid to look at properties that seem to be out of your price range because everything is negotiable in this market.  Also, start your loan process now.  Find a mortgage broker or bank and start working with them so that you have a really solid understanding of your purchasing power.  Many sellers are accepting offers for much less than the list price because the buyers are coming in with a financing package already put together and the seller knows that in this market that is very difficult to do.

As always, feel free to call me (310)924-4631 or email me janet@callmalibuhome.com, if you have any questions, I’d gladly talk to you in more detail about your specific needs.

You can save a lot of money by installing or improving insulation. Insulation retards the flow of heat and is one of the most cost-effective investments that you can make. The effectiveness of insulation is measured by its tested resistance to heat flow and is known by its "R" value. The greater the "R" value, the greater the effectiveness. One of the easiest and most effective places to install insulation is in the attic, since heat rises from the heated rooms below. Insulation comes in many different forms including the familiar fiberglass, Styrofoam, vermiculite, pouring wool, cellulose materials such as shredded newspaper, and numerous "foamed-in-place" types. Particularly within the fiberglass and rigid foamed board types, there are a variety of choices of heat-reflective coatings. Properly installed insulation always improves comfort and reduces heating and cooling costs.

Estimated Cost Savings:
Heating buildings is one of the largest expenditures of energy in the nation and one of the greatest opportunities for saving. The average U.S. household spent more than $2,350 in 1999 for energy: $1,200 for home energy and $1,150 for motor gasoline to run vehiclesOf the $1,200 spent in the home, nearly half is spent for heating and and in aggregate, amounted to more than $50 billion in 1999.  In general terms, when you double the R value of your insulation, the heat flow through the insulated surface will halve. Your bill, however, may not halve because of other, less well-insulated surfaces in the building. Typical savings for retrofit insulation are on the order of 20-30% of your heating bill. For a monthly heating bill of $200, this can amount to $40-$60 in savings.

To get a home energy assessment or to find out more about energy efficiency, contact me at: 310.924.4631or email me at: janet@callmalibuhome.com.

Today everyone wants to know how they can help protect our environment.  This emailer is dedicated to providing tips on how you can make an impact on our environment.  For more detailed information please go to www.malibugreensolutions.com and find out how my new business venture can help you.

How is my home effecting the environment?
Did you know that the building sector uses 76 percent of all the electricity generated annually by U.S. power plants and that residential and commercial buildings are responsible for almost half of all green house gases produced annually--nearly twice the levels created by transportation.

Did you know that our homes use:

• 3.7-7 gallons of water per flush on older toilets
• 8-14 gallons of water per cycle for dishwashers
• 45 gallons/load of water for top-loading washers
• 15-21 gallons per day wasted water on a dripping faucet

What's your Carbon Footprint?

Al Gore's documentary film "An Inconvenient Truth" raised awareness of the correlation between global warming and carbon dioxide gas, the main culprit of global warming. The film pointed out that global warming can be halted or reversed by reducing the amount of carbon dioxide released into the atmosphere, that is, by reducing our collective and individual carbon footprint.

A carbon footprint is the "measure of the impact human activities have on the environment in terms of the amount of green house gases produced, measured in units of carbon dioxide," according to the Web site www.carbonfootprint.com. The average American emits 9.44 tons of carbon dioxide annually. To determine how large your carbon footprint is and to learn ways to reduce its size, visit: http://www.carbonfootprint.com/ or http://www.epa.gov/climatechange/emissions/ind_calculator.html.

Here are a few items that will cost you no money at all and will in fact save you money.

• Turn it off when not in use (lights, television, DVD player, Hi Fi, computer etc. etc. ...)
• Turn down the central heating slightly (try just 1 to 2 degrees C)
• Turn down the water heating setting (just 2 degrees will make a significant saving)
• Check the central heating timer setting - remember there is no point heating the house after you have left for work
• Fill your dish washer and washing machine with a full load - this will save you water, electricity, and washing powder
• Fill the kettle with only as much water as you need
• Unplug your mobile phone as soon as it has finished charging
• Defrost your fridge/freezer regularly
• Do your weekly shopping in a single trip
• Hang out the washing to dry rather than tumble drying it
• Go for a run rather than drive to the gym
   

The following is a list of items that may take an initial investment.  Call me at: 310.924.4631 to get local referrals.  They should pay for themselves over the course of 1-4 years through savings on your energy bills.

• Fit energy saving light bulbs
• Install thermostatic valves on your radiators
• Insulate your hot water tank, your loft and your walls.  35% of heat generated in the house is lost through the walls.
• By installing 180mm thick loft insulation you could stop about 25% of your heating escaping through the roof
• Recycle your grey water
• Replace your old fridge / freezer (if it is over 15 years old), with a new one with energy efficiency rating of "A"
• Replace your old boiler with a new energy efficient condensing boiler

Not to worry, some of the things we can do are quite simple and easily accomplished, like turning off lights and using energy efficient lighting like LED or CFLs. The best part is that any savings in energy also equates to a savings in money. Not only can we help the environment, but at the same time we can add to our pocketbooks.

I was preparing comparable sheets for a house I held open in the Pacific Palisades several weeks ago and I was really struck by the homes and their prices.  For the same type of money in Malibu, one would be able to get close to an acre of land, views of the ocean, a great school district and much more. 

I’ve lived in Malibu for more than 10 years now and have come to love the slower pace, small community, natural beauty, great schools, and families that I have met.  I know Malibu sometimes gets the reputation of only being for the rich and famous, but I’d like to help you think of Malibu as a great place to make your life. 

Below are a few of the current listings in Malibu that I consider to be great places to call home:

20537 LITTLE ROCK WAY (Big Rock Canyon)
List Price: $1,699,000 (approximately $1,000 per square foot)
3 bedroom, 2 bathroom, 1,700 sq. ft, Lot Size: 31,559
Beautiful remodeled family home with lots of grass to run and play.  Close to town, ocean views, travertine floors, and much more.

 
29343 BLUEWATER RD (Point Dume)
List Price: $2,590,000 (approximately $1,000 per square foot)
3 bedroom, 2 bathroom plus artist studio, 2,593 sq. ft, Lot Size 48,325
Lowest priced home on Point Dume.  Great school, lots of land, mature landscaping and fruit trees.  Single story ranch home with open floor plan.


25321 MALIBU RD (Old Malibu Road)
List Price: $3,095,000 (approximately $1,350 per square foot) 
3 bedroom, 2 bathroom, 2,288 sq. ft, Lot Size 15,258
Classic Post and Beam construction with exotic tropical vibe and excellent indoor/outdoor flow.  Whitewater views with large deck for sunbathing, entertaining and watching sunsets.  Easy access to the beach across the street.

6311 GAYTON PL (1 mile up Kanan)
List Price: $4,400,000 (approximately $730 per square foot)
6 bedroom, 7.5 bathroom, 6,053 sq. ft, Lot Size 60,548
Hampton’s in Malibu with this beautifully complete home.  Ocean and Bonsall Canyon views from almost every window.  Lush landscaping, pool, guest quarters, spa and sauna, and surrounded by a white fence ideal for horses.

 

So You Are Selling Your Home!!!

Lately, there has been so much information in the news about the real estate market and how depressed it is.  However, people are still selling their properties and new properties are being listed every day.  So, how do you sell your home in this market?

As a seller you must take into consideration that we have a different type of real estate market than the last couple of years.  This is a buyer's market, which means you need to think of your home more like a commodity and less like a unique item.  While everyone feels their home has special qualities that make it stand out from other properties in their area, a buyer's market doesn't allow for a seller to use these qualities to price their home higher than the home next door.  How do you present your home to help the buyers feel like they're making a wise purchase and getting more for their money?

Remember, first impressions are everything.  Understand that your home will get the most activity in the first two weeks it is on the market and if it is overpriced in the initial weeks, you may lose out on many potential buyers.

Second, if a comparable home sold recently, the sale price of that home was negotiated approximately 60 days earlier and that price is probably not an accurate reflection of the market today.

Third, buyers want to feel that they are getting a good price, not watching their money disappear in front of their eyes.

Lastly, the real estate market follows the economic principles of supply and demand like most other markets.  Currently, we have a higher inventory of homes and a longer "days on market" than in the past.  Until the inventory of homes and "days of market" start to decrease, we will be in a buyer's market.

Moral of the Story for you as a Seller: Homes will continue to be considered a commodity and selling your home is all about setting it at the right price!

To ask me more questions or to get an assessment of the value of your home, email me at: janet@callmalibuhome.com or call me at 310.924.4631