Palos Verdes Source

We are so lucky as homeowners of Palos Verdes real estate that Palos Verdes’ 8th Graders get to choose between two fabulous high schools. At this time, there is open enrollment within the Palos Verdes Peninsula School District as to whether your child goes to Palos Verdes High School or Palos Verdes Peninsula High School. And both were named in U.S. News & World Report’s Top 100 Schools in the United States as well as one of the Top Twelve High Schools in the Los Angeles area in 2008. Palos Verdes Peninsula High School, formerly Rolling Hills High School, was our only high school after the 3 area high schools were rolled into one after declining enrollment in the ’80s. Palos Verdes High was reopened in 2002 when Peninsula High grew to 3,000 students. Currently there 2400 students at Peninsula and 1900 students at PV High.

My son is now in the decision making process and it feels like college recruitment. He shadowed at PV High and decided that was the school for him. He went to the Open House at Peninsula and decided that was the school for him. Now he will be shadowing at Peninsula and going to the PV High Open House. Both schools are so good that he is actually having a difficult time deciding. PV High has an API Score of 853 and Peninsula High has a score of 879. Palos Verdes High has the block system which is 3 2-hour classes per day (more in line with college) and Peninsula High has the traditional classes.

A decision must be made by February 20th – that’s less three weeks away.

The Property Information Book is key for my Sellers. When I get a new listing for Palos Verdes real estate, I have my Sellers fill out all the disclosures and order all reports on the property prior to the property actually hitting the Multiple Listing Service. The Property Information Book stays at the property for potential buyers to view and packets of these reports/disclosures are available for buyers to read before making an offer. It is a huge advantage to both Buyers and Sellers.

The Seller now knows what the strengths and weaknesses of his property are. We order a Termite Report, Property Inspection, Preliminary Title Report, Property ID Natural Hazards Disclosure Report, CLUE Report (prior insurance claims), mandated City Reports & permits and Home Owner Association documents (if appropriate). The Seller also fills out Seller Property Questionnaire, Transfer Disclosure Statement, Statewide Buyer and Seller Advisory, Mold Disclosure, Water Heater/Smoke Detector Statement of Compliance, Lead Paint Disclosure and Residential Earthquake Hazards Report. The Seller will have to provide all those reports/disclosures (except the Property Inspection) during escrow anyway, so why not up front? This is a lot of work and very time consuming as it can take a couple of weeks to get all the information but the payoff is huge — the Seller does not have to renegotiate the sales price in escrow because of any adverse revelations from Buyer reports. And if the Seller is lucky enough to get multiple offers, he can be more confident in choosing an informed Buyer who will complete the transaction.

The Buyer now knows what to expect from the property before he even makes an offer to purchase. He, too, knows the property’s strengths and weaknesses. The Buyer should also get his own property inspection and share (with his own inspector) the inspection report that the Seller has already provided. The Buyer is then in a better position to make an informed decision to remove contingencies and close escrow on his new home! It makes the escrow process smoother enables both the Buyer and Seller to close the deal in an atmosphere of good relations.

This has been a very hopeful week for the country with the Inauguration and the new administration in the White House. We did have some negative news regarding Bank of America’s fourth quarter results but mortgage rates have been holding steady. 4.75% interest for a 30-year fixed conforming loan is a great rate.

6.250% for a 30-year fixed jumbo loan is almost a full point lower than my last report on December 18th. This should have a beneficial effect on Palos Verdes real estateas most properties fall into this category. According to the Mortgage Bankers Association, the Refinance Index is at its highest level since June 2003 as homeowner’s are taking advantage of these lower rates.

Yesterday, there were 28 homes on the Palos Verdes real estate Broker’s Tour. I saw 15 properties which was quite a feat as they were spread out in four different cities. We currently have 254 active single family homes for sale in Palos Verdes ranging in price from $729,000 in Rancho Palos Verdes to $18,900,000 in Rolling Hills (the low in Eastview is $585,000). There are 53 townhomes/condos for sale priced between $269,900 and $2,000,000. My favorites were:

Al Scafati and Pam Barclay’s 313 Via Del Puente, Palos Verdes Estates (above left), is a 3 bedroom, 2 bath, 2,637 square foot home for $2,250,000. This stunning contemporary split-level Malaga Cove home was extensively remodeled and has a two story wall of glass that frames the breathtaking ocean/coastline views. Ronald Vaught’s 2608 Via Campesina, Palos Verdes Estates (above right) is a 3 bedroom, 2 bath, 1,878 square foot home for $1,560,000. This recently remodeled Malaga Cove home has wonderful natural landscaping and is centrally located and within walking distance to Malaga Cove Plaza and Palos Verdes Golf Course.

Marilyn Cristiano Budde’s 4910 Elmdale Avenue, Rolling Hills Estates (above left), is a 3 bedroom, 2 bath, 1,595 square foot home for $829,000. This pristine Silver Spur starter home has a peek-a-boo city lights view, family room and even air conditioning. Rachel and Kathy Tyndall’s 28869 Geronimo Drive, Rancho Palos Verdes (above right), is a 4 bedroom, 3 bath, 2,128 square foot home for $1,195,000. This immaculate Los Verdes home has panoramic ocean views, remodeled kitchen and baths and an office with two work stations.

Photos courtesy of MRMLS

February is traditionally the month that Kindergarten “Round-Up” is held for owners of Palos Verdes real estate who have children entering Kindergarten in the Fall. I should restate that because tenants in Palos Verdes may also enroll their children in Palos Verdes schools. This year Kindergarten Orientation will be held on Monday, February 2, at Vista Grande Elementary School and Tuesday, February 3, at Dapplegray Elementary School. Both meetings will begin at 7:00 p.m.

This is an important event if you have Kindgergarten age children because some Palos Verdes elementary schools are impacted. If you want to be assured that your child will go to their neighborhood school, then Kindergarten is the best time to do so. If you move into Palos Verdes after this point, the Palos Verdes Unified Schoold District officials try to place your child in their neighborhood elementary school but as some schools are impacted, new students are redirected to elementary schools where there is room for additional students.

New Kindergarten students for the 2009/2010 school year must be 5 years of age on or before December 2, 2009. Proof of residency is also required. Registration packets will be available at each elementary school on February 18th and should be returned to that school by March 6th. Each of the ten elementary schools will also be holding individual parent meetings and the schedule can be accessed by clicking here.

Photo courtesy of PVUSD

I was recently asked about reduction in property taxes for areas of declining values. Although statistics show that Palos Verdes real estate has only declined 6.2% in 2008, it might be worthwhile to request a reassessment from the Los Angeles County Tax Assessor if you have purchased your home in the last few years. By the way, you really can do this yourself and do not need to hire one of the “services” that have popped up that want to charge you for this service.

Go to the Tax Assessor Assessor’s website (can be accessed by clicking here). Locate the Quick Links on the right-hand side and choose “Download Forms – Assessment Forms”. Then choose the first form “Application for Decline in Value Reassessment Proposition 8 RP-87.” You need to have 2 Comparable Sales that support your position. You must show that current values are below your assessed value. I recommend that you contact a Realtor or you can search the Tax Assessor’s site yourself by choosing the “Property Sales & Maps” option under Quick Links, filling in your address then searching for recent sales. The challenge is that the Tax Assessor wants “two comparable sales that sold as close to January 1, 2009 as possible, but no later than March 31, 2009.” A Realtor may be able to find better comps for you.

The numbers are in and owners of Palos Verdes Real Estate single family residences experienced a 6.2% decline in 2008 average sales price compared to 2007. That is actually not bad compared to the rest of Los Angeles County which was down about 28%. Home values on the Palos Verdes Peninsula have held fairly steady: 2008 was the first year of declines in recent memory. Palos Verdes homeowners enjoyed an average of 12% annual appreciation for the prior 5 years – 2007 was 2.1%, 2006 was 2.5%, 2005 was 19.2%, 2004 was 20.2% and 2003 was 16.7%. Number of sales were down from 2007 sales of 533 to 380 for 2008. The highest priced property sold for $7,750,000 in Rancho Palos Verdes and the lowest priced property sold for $600,000 in the unincorporated area of Palos Verdes Peninsula ($450,000 in Eastview).

For the month of December, there were 23 closed escrows (23 also in November) and 14 pending sales (18 in November). Active homes for sale have ben reduced to 222 (239 in November). Average price for homes that closed in December decreased to $1,248,000 from $1,434,000 in November. Average days on market in December increased to 87 from 61 in November. Months of inventory (how many months it would take to sell existing inventory at the current rate of sale) decreased to 9.7 (from 10.4 in November). Entire charts can be accessed by clicking here or on the “Statistics” tab above.

Currently, there are 230 single family homes for sale on the Palos Verdes Peninsula. Additionally, 19 homes have pending sales, 12 homes are in escrow accepting backup offers and 6 homes have sold/closed escrow in the first 12 days of January.

Conventional wisdom tells us that we do not know if we have hit bottom until we are on the way up. Trying to “time” the bottom is a matter of luck. For buyers of Palos Verdes real estate I encourage them to consider the following:

1) Interest Rates are at historic lows. 4.75% for conforming 30-year fixed and 6.625% for jumbo 30-year fixed rate loans.

2) Many buyers are sitting on the sidelines waiting and watching. Buyers entering the market now have less competition and are able to negotiate better with sellers.

3) If you are going to live in your home for at least 5 years you will probably experience appreciation on your home. According to the California Association of Realtors, over the past 40 years homeowners who held their properties for 5 years had an annual average return of 11.7%. The exception was for homeowners who purchased properties in 1989 through 1992.

4) Mortgage interest is deductible on federal and state tax returns (no more than $1,000,000 mortgage on home acquisition) if you itemize your deductions. Property taxes are also deductible unless you are in Alternative Minimum Tax situation. Always check with your accountant for specifics.

5) You have the opportunity to live in one of the most beautiful places in Southern California with temperate weather and distinguished public schools.

6) What are you waiting for?

There were only 7 homes on this first Palos Verdes real estate Broker’s Tour for 2009. We currently have 224 active single family homes for sale in Palos Verdes ranging in price from $699,000 in Rancho Palos Verdes to $18,900,000 in Rolling Hills (the low in Eastview is $599,000). There are 53 townhomes/condos for sale priced between $269,900 and $2,000,000. My favorites were:

Larissa Rubijevsky’s 19 Santa Barbara, Rancho Palos Verdes (above left), is a 5 bedroom, 5 bath, 3,709 square foot home for $2,199,000. This elegant Island View home has a remodeled chefs kitchen, large master suite with sitting area, backyard barbecue area and pool/spa. Judy Henry’s 4121 Via Solano, Palos Verdes Estates (above right), is a 3 bedroom, 2 bath, 2,013 square foot home for $1,299,000. This Valmonte home is located on the parkstrip, has a private master suite with city lights view and a backyard with mature fruit trees.

Melissa McLean’s 4300 Miraleste Drive, Rancho Palos Verdes (above left), is a 4 bedroom, 4 bath, 2,600 square foot home for $1,075,000. This well priced Spanish style Miraleste view home has a spacious family room, a recently remodeled turn-key lower level and a huge park-like backyard. Nikki Jindal’s 3231 S. Palos Verdes Drive, Rancho Palos Verdes (above right), is a 5 bedroom, 6 bath, 7,841 square feet home for $4,450,000. This newly constructed retreat sits above Trump Golf Course with breathtaking Ocean and Catalina views and luxurious amenities.

Photos courtesy of MRMLS

I am often asked by owners of Palos Verdes real estate which remodeling projects will give them the greatest return on their investment. The answer is siding replacement, window replacement and major kitchen remodel according to the December 2008 Realtor Magazine. This article covers areas around the country and states, “Pacific Coast cities recorded the best payback on remodeling by a wide margin…..replacement projects that boost curb appeal – siding, windows and decks – give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare…”

Homeowners remodel for different reasons, like the need for more space, to improve the functionality of specific rooms and to update them. Kitchen and bathrooms are usually the most expensive remodel as plumbing and/or appliances need replacing. There is no specific report for Palos Verdes but there is a Cost vs Value Report for Los Angeles County which is broken down into Midrange priced projects and Upscale priced projects (Report can be accessed by clicking on the link above). When you click on the project name (i.e. Major Kitchen Remodel) you can then read the features of that price range to compare to your own. Midrange kitchen remodel returns 87.3% of cost, bathroom remodel returns 86.9% of cost and window replacement returns approximately 94% of cost.

Remodeling just for resale rarely nets you a dollar for dollar return. Most remodels are done for the enjoyment of the homeowner (who still wants to maximize their return when they do sell). My experience is that most buyers are looking for newer kitchens, bathrooms, master suites and nice yards. Curb appeal is important because it is the buyer’s first impression of the home.