People often ask me how things are in Real Estate.  When I tell them that things are great, they look at me doubtfully.  It is so interesting to me, to find out how people get their Real Estate info.  It seems to me that everyone has a friend who is a realtor or that someone they know has not been able to sell their house. (tell them to call me!)  Why do people prefer to only listen to the bad out there?  Frankly, last year was a
fantastic year for Real Estate.  The year before that was great too.  Last year (2011) I closed 20 deals and the year before that (2010) I closed 18 deals.  I know that I am not the only person out there selling Real Estate, I just can’t be.
Many thousands of homes were bought and sold in LA county last year.
If you want real info on the market, take a look at the numbers below.  As you can see, properties are selling (see # of units sold), but Days On Market (DOM) are up, and cost per sq foot is down slightly.  Is the market in a downward spiral?  I don’t think so.  Sellers are still selling.  Buyers are still buying.  Interest rates are at an all time low of about 4% (or less!).  If you are thinking of getting into your first home, this is a great time to do so.  If you are thinking of moving into a bigger house, this is a great time too.  We are so fortunate to live in an area where people will always want to live.  Will there ever be a time when they will be giving away properties?  Not likely.  Although I do often tell buyers that the places where they are giving away property are not the places where they would want to buy or live.

If you are curious about the market, let’s set up a time to meet and I will gladly share some some of my real estate stories from the past year.  Although I closed a good number of deals, I did not say it was easy.  To be able to close deals in this market, you need to be a  proven negotiator and a solution oriented Realtor.  It is amazing to me how sometimes all it takes to get a deal closed is a little creativity and a good sense of humour.

Avg price persf                     $715                                           $670 

Recently a friend of mine had the opportunity to meet Oprah Winfrey in person (twice in one week!) and she told me how she shared with Oprah, her “A-Ha” moment.
Suddenly, I realized that I had just had my own “A-Ha” moment. This is something that I have been practicing for a long time now, but only until earlier this year, did I find a way to articulate my philosophy.

I was in escrow with a first time home buyer.  My client was very very nervous about the large purchase that he was about to make.   His last contingency was
coming due, but he was still nervous about releasing it.  He stalled on removing the contingency.  I warned him that at some point the seller would run out of patience and serve him with a notice to perform.  A notice to perform is like a written warning telling the buyer that if he does not remove his contingency (or perform whichever duty is late) by a certain time, that the seller can legally cancel the deal.  My “A-Ha” moment suddenly came to me.  I explained to him that we always have to keep some goodwill in the bank, no matter what, and if he does not respond soon, the seller would serve him with a notice to perform.  I advised him to make a decision about removing his contingency right away and before the seller served him with a notice to perform.  This way, he can stay in the seller’s good graces and if he needs anything between now and the end of the deal, the goodwill that we have in the bank will likely pay for the favor that we might need down the line.

Sure enough, the buyer’s lender was running late and we had to ask for an extension on our close date (which was granted to us).  How did I know that he would need a favor from the seller before we closed?  I can’t really explain this, except to say that we never know when we will need a favor or when we will need to make use of our goodwill bank account.  It is critical when making deals between parties that we negotiate in good faith and that we do the best that we can.  Keeping the deal positive and polite is one way to do this.  Another way, is to remember that selling Real Estate is not about the Agent, but it is about the buyer and the seller coming to an agreement and helping each achieve their goal of buying or selling.  I can’t tell you how many cancelled deals I have heard about from other Realtors due to agents not getting along.  In a deal, there is no room for agent egos, and also, there are times when buyers and sellers need to be reminded that their emotions can get in the way of their ultimate objectives.  I guess that is why it is best to have a Realtor that understands this, represent you in your purchase or sale.  Listen to that person and let them guide you to a successful close.  I promise you that once your escrow has closed, you will not remember any of the minute details that may have consumed you at an earlier date.  Do what you can to give in on a point that is not that important to you.  If you can figure out your most important deal breakers and focus on those, you are way ahead of any buyer or seller out there.  And remember to always keep some goodwill in the bank, you never know when you will need it.

“Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it. And, like any great relationship, it just gets better and better as the years roll on.”    Steve Jobs Stanford Commencement address June 12, 2005.

That is how I feel about Real Estate. It is truly a culmination of the best
parts of every job that I have ever held in my life. And every year is better than the last. Here are some examples..

-My first job out of university was at a hotel. I quickly rose up the ranks and before long, I was managing the executive lounge. I have always had a passion for customer service, but working for a company like Sheraton, I was able to really learn how to listen to the customer and to exceed their expectations. I was empowered to do whatever was needed to make my guests happy. Working as a Realtor, I am my own boss, and I have the power to make my clients experiences the best that they can be. I live for how happy I can make my clients.

-I used to work as an Account Executive for a job placement company. My job included matching up candidates with jobs. The best placements were the ones where the employee fit into the culture of the company that they were to work in. I use these skills daily when listening to buyers talk about their next home. We discuss their “top 5 dealbreakers*” and other things about their lives and families that are essential when choosing where they will live next.

-Ok, this one was not a job, but I have a degree in Psychology. I have always been interested in people, learning about thought processes, and understanding people’s motivations. Problem solving is one of my specialties. I use these skills daily when I deal with other agents. I use these skills daily when I get to know my clients and their lives. Real Estate is a very intense process. It is critical that you like the agent that you work with and vice versa. You will be spending a lot of time with your Realtor, dealing with a tedious process (see below), so pick someone that you can have some fun with!

I often come across people that look like they feel bad for me when I tell them that I sell Real Estate for a living. Aside from the misconception about the Real Estate market on the Westside, I truly think that there are still Realtors out there that don’t like what they do for a living and as a result, make an already tedious process, that much worse for their clients. I always tell my clients that the home buying and selling process can be excrutiating for them, but the good news is that it is temporary. The end result will either be the proceeds of your sale in your bank account, or the keys to your dream home in your hand. My clients often say that they can’t imagine ever doing what I do for a living. To them, the process is an absolute nightmare. To me, well, I can’t imagine doing anything else. I feel so lucky to have found my calling. Take all of that, plus I get to help people realize their dream of home ownership, and I get paid too? I really do have the best job in the world. Lucky me! If you are curious to see what my clients are saying about me, click here to read some testimonials.

*For more info on what a “Top 5 dealbreaker” list is, contact me at [email protected], or on the phone at 310-838-3056.

People seem to be so curious about the Real Estate market and what is really going on out there. I thought I would share my thoughts on the market and give you an idea as to what has been going on in the past couple of weeks.

Interest rates are so low now that I like to say that “money is on sale”. Rates like these do not happen often, and if you are waiting for prices to go down, know that there is never a perfect time to buy. You need to think about your personal situation and where you plan to live for the next 5-7 years. The average homeowner moves every
5-7 years, but of course, some move every 10 plus years. Such low rates can significantly affect your monthly mortgage payment (in a good way!).

Last month I posted about my newest listing 2818 Forrester www.2818Forrester.com. I listed the property at $2.5 Million and within 4 days we had a full price offer in hand. We are now in escrow and we will be closed by the early part of October. Most people are shocked when I tell them how quickly we sold and at what price. Why are they shocked? Here is what I think…I have found that people are only listening to the negative news reports about the economy and the Real Estate Market. I can tell you from personal experience that people are snapping up well priced properties in as little as 1 day on the market. I know this because I am working with several buyers in prices ranging from $400,000 and all the way up to several million. I do my best to advise my clients about when to make an offer quickly and at the price that I think they will be able to buy the property for. Some clients need to lose out on a couple of properties before they are emotionally ready to buy their next home. Others just need to see for themselves that the Real Estate Market in the West Los Angeles area is not affected in the same way as the rest of the country. We are so lucky to live in such a beautiful place with the most amazing weather. People from all over the world move to Los Angeles because of all the wonderful things we have here.

One of my clients in the $650,000 range was interested in 2 properties that we saw this week. We went out to see them and before she could get her husband on the phone, I got in touch with the agents to find out that they all had multiple offers and all were over asking. I am not writing this to discourage you from getting in on the market. Quite the opposite. I am encouraging you to stop paying someone else’s mortgage and start paying yours! I have several clients that are actually saving money on a monthly basis by buying as opposed to renting! (The savings even takes property taxes into consideration.)

If you are thinking of selling, allow me to share with you how I am able to sell properties at full price in the first week on the market. I have a specialized plan and strategy that most Realtors have never heard of and would never take the time to put together. I am happy to give you references to speak with as I have hundreds of thrilled clients from over the years.

Be sure to click here to read some of my clients’ testimonial letters about their experiences with me as their Realtor.

Revi Mendelsohn, Realtor
Rodeo Realty Fine Estates
310-838-3056
[email protected]
www.ReviMendelsohn.com

No, it is not absolutely necessary, but I don’t recommend it either. The only time an offer should be submitted without a pre-approval letter is when you are making an ALL CASH offer.

A pre-approval letter shows the seller that you are a serious buyer and that you have the wherewithal to actually buy their property. Without the letter, they can’t really consider your offer.
Additionally, there may be other offers that the seller is reviewing. Chances are that the other offers include pre-approval letters, and therefore, the sellers will likely move forward with them first. In my opinion, every good
Realtor will require that you have your finances figured out prior to helping you search for a property, let alone make
an offer on your behalf.

So, how do you get a pre-approval letter? As a Realtor, I come across this question quite a bit. I have been fortunate to have worked with many mortgage brokers. Some better than others. What I look for in a mortgage broker is first and foremost, a passion for customer service. Real Estate is a service based business and the subsidiary businesses associated with Real Estate are no exception. If you can’t reach your mortgage person easily BEFORE opening escrow, then how easy will it be to get a hold of them AFTER opening escrow? Accessibility to your mortgage broker can make or break a deal.

If you have questions about anything Real Estate related, feel free to email or call me.

Selling your home can be scary. Sellers often ask themselves “What should I disclose to the buyer? Should I tell them that my Aunt Bea died in the house? What about that toilet that backs up twice a year? Or what about the mangy dog next door that is always barking?”

The answer is to disclose ALL OF THE ABOVE and more.

Now before you start panicking and thinking that you will never be able to sell your home if people know all of this history, think again.

When it comes to disclosures, there is a general rule of thumb……”if you have to ask if you should disclose it, then you should disclose it.” In the case of old Aunt Bea, if you don’t disclose it, you can bet your life that your neighbors will be the first to bring it up to the buyer before the moving truck is out of the driveway.
Not too long ago, I was sitting a very busy Open House and in walks the next door neighbor. He makes a beeline to me and states in a very loud voice, “Do you have to disclose that Pat died in the house before your client bought it?”. This was the first I had heard of “Pat” and my seller had no idea. As I walked away from him, I muttered to myself…”I do now”.  Not knowing if Pat died in the house in the past 3 years (that is the time limit on the death disclosure), I simply wrote down exactly what happened. “Neighbor walked into house and asked if I had to disclose that Pat died in the house”.

As soon as you withhold information and the buyer finds out about it, they then become suspicious of any and all information that they have gotten from you. There have been many cases where the house closes, the buyer moves in, only to find out that some condition exists in the house that they did not know about and the Seller did not share. Guess what happens next?
Attorneys, Court cases, Settlements and in some cases, the Seller has to take the house back (and return the money that they got for it too).  I don’t think I can imagine anything more painful for a Seller.

So the question remains…why not disclose it all? Well that is actually a great idea. When taking a new listing, I present the sellers with a Transfer Disclosure Statement (TDS) and Seller Property Questionnaire (SPQ). The former is a legal requirement of the seller, and the latter is not. I like to have both prepared as the buyer (if they are working with a good agent) will ask for both. I also think that the questions in the SPQ can often remind the seller of things they would have otherwise forgotten.

Sellers, take your time filling out these forms. There are many things to report about the history of the house. Try to put yourself in the buyer’s shoes and think about what you would like to know if you were to the one buying it.

Questions about this post or any other Real Estate matter, email me directly at [email protected].