TheBremnerGroup’s Neighborhood Notes
Real Estate on the Westside of Los AngelesBeautiful Little Holmby Spanish and Price Reduction
The Bremner Group is pleased to announce our new listing at 740 Warner Avenue in Little Holmby. Located mid-block with great street presence, this home has all of the features and elegance you would expect in a 1930’s era Spanish. The home is on a completely flat lot (no steps, which is rare in this price range in Little Holmby) approximately 9,801 square feet per assessor. The location is close to Warner School, Holmby Park, and Westwood Village. Inside, this 2663 square foot (per assessor) home consists of 4 bedrooms, 3.5 baths, and a family room on a center hall plan. The step down living room has lots of large windows, hardwood floors, and a woodburning/ gas fireplace. The formal dining room leads of to a breakfast area, and a remodeled kitchen. One bedroom and bath can function as a maids, due to its location off the kitchen. The other bedrooms and baths are off the main hallway. The family room opens to the backyard, and has a second fireplace. Outside, the backyard has been turned into a formal brick patio, a portion of which is covered. There is a third fireplace/ barbecue serving the patio. Offered at $1,899,000, this home is a trust sale that does not need court confirmation. Open Sunday, June 21st from 2 to 5 PM, and Tuesday, June 23rd from 11 AM to 2 PM.
In addition, our listing of the celebrity owned property at 10440 Wyton Avenue has received its first price reduction of our listing, from $3,895,000, to a new offer price of $3,670,000, a reduction of $225,000. The seller is quite motivated and wants to sell now. This is a grand and gracious 4555 square foot home in the Paul Williams style, two stories with an elevator that serves the garage level, main floor and master bedroom. There is a pool and guest house. The home has only had two owners, and shows their love and care. The kitchen was updated in the 90’s, and most of the bathrooms were updated recently. Please call us to arrange a private showing. The Bremner Group, 310-571-1364.
Senate Proposes Homebuyer Tax Credit to Rise to $15,000
Recently I have been blogging about the newly formed Business Roundtable, a group of more than 100 chief executive officers of Fortune 500 companies working with the Administration to create solutions for the economic downturn we are currently facing. What I want to drive home is that the actions of the Roundtable in Washington are beginning to have an impact on policies from which we will derive benefit here on the Westside. Due in large part to the Roundtable’s efforts, lawmakers are currently pushing to revive legislation in the Senate that would raise the $8,000 tax credit for first-time homebuyers to $15,000 and expand the program to all borrowers.
Leading the way is Senator Johnny Isakson, a Georgia Republican, who introduced a bill today that would increase the tax credit to $15,000 and remove income and other restrictions on who can qualify for the benefit.
The legislation, co-sponsored by Senate Banking Committee ChairmanChristopher Dodd, a Connecticut Democrat, would extend the homebuyer credit to multifamily properties used as the borrower’s primary residence. It would also eliminate income caps of $75,000 and $150,000 on individuals and couples seeking to claim the credit.
The bill is co-sponsored by Republican Senators Lamar Alexander of Tennessee,Saxby Chambliss of Georgia, David Vitter of Louisiana, James Risch of Idaho,Lisa Murkowski of Alaska, John Ensign of Nevada and Jim Bunning of Kentucky, according to a statement from Isakson.
“The housing market continues to be a drag on the economy, John Castellani, president of the Washington-based Business Roundtable, said in a recent press release. “We believe that if we don’t stabilize this vital sector, we can’t turn the tide on the recession.”
The Business Roundtable represents more than 100 chief executive officers including General Electric Co.’s Jeffrey Immelt and Exxon Mobil Corp.’s Rex Tillerson. The Roundtable, along with the National Association of Realtors, are pushing to expand the tax credit and to lower mortgage rates to revive the housing market.
For All Borrowers
“One of the biggest problems facing the American people today is an illiquid housing market, a decline in their equity, a decline in their net worth and a depression in the housing market that we are obligated to correct if we possibly can,” Isakson said in a statement. Isakson said his legislation would spur demand in the housing market by giving homeowners the incentive to trade up to a more expensive home.
The bill would extend the tax credit, which now applies to homes purchased from Jan. 1 to Dec. 1, 2009, to one year after the new measure is signed into law, according to Watson. Isakson’s bill would make the credit available to all borrowers, not only borrowers who haven’t owned a home in the previous three years as is the case under current law. It would also let borrowers divide the credit over two years. The legislation wouldn’t be applied retroactively to purchases completed before the date of enactment, Watson said.
Mortgage Rates
The Business Roundtable and Realtors group also recommended the Federal Reserve continue to purchase mortgage securities guaranteed by Fannie Mae, Freddie Mac and government mortgage bond insurer Ginnie Mae to drive down mortgage rates to less than 5 percent.
The Fed is about a third of the way through its $1.25 trillion commitment, holding $427.6 billion of mortgage debt backed by the government-sponsored enterprises as of June 3, according to the New York Federal Reserve.
The average rate on a 30-year fixed-rate U.S. mortgage jumped last week to the highest level since November, rising to 5.57 percent from 5.25 percent the prior week, according to data released today by the Mortgage Bankers Association.
The Treasury Department declined to comment on the Senate’s proposal.
Business Roundtable Releases Recommendations to Reinvigorate U.S. Housing Market
Last month, I wrote about my meeting with Richard Smith, Chairman of Realogy, who had just been appointed to the newly formed Housing Working Group of Business Roundtable, an association of chief executive officers of leading U.S. companies with more than $5 trillion in annual revenues and nearly 10 million employees. Member companies comprise nearly a third of the total value of the U.S. stock markets and pay nearly half of all corporate income taxes paid to the federal government. Annually, they return $133 billion in dividends to shareholders and the economy. These powerhouses of the economy had been in town for their first meeting at the Milken Conference. Yesterday the Roundtable sent out the following press release, to update the public on the recommendations they are making to the Obama Administration.
CEOs propose to expand homebuyer tax credit incentives, keep mortgage rates at historically low levels
Washington – The Housing Working Group of Business Roundtable, an association of chief executive officers of leading U.S. corporations, today announced bipartisan proposals to help return stability and growth to the U.S. housing market. “We recognize the earlier efforts made by the Administration and Congress, but strongly recommend taking additional steps to jumpstart the lagging housing market in order to stimulate a broader economic recovery,” said Richard A. Smith, President and CEO of Realogy Corporation and Chair of Business Roundtable’s Housing Working Group. “If the housing market is not corrected or stabilized, the tide of the recession is not likely to reverse in the near term, and the slide in the economy overall will continue. We believe targeted, demand-side solutions – such as the ones Business Roundtable is recommending today – will provide a critical next step for a housing recovery that will help create jobs and boost the economy as a whole.” The recommendations include expanding homebuyer tax credit incentives from $8,000 to $15,000 while expanding eligibility from strictly first-time homebuyers to all homebuyers, regardless of income, on homes purchased as a primary residence. Among other recommendations, the CEOs also strongly encourage the Administration to continue ongoing efforts by the Federal Reserve to keep 30-year fixed mortgage interest rates at historically low levels and do so for the next 12 months, and to undertake a comprehensive review of existing foreclosure mitigation and loan-modification programs. Business Roundtable’s Housing Working Group was formed on April 1 to provide actionable recommendations to Congress and the Administration on how to stabilize and grow the U.S. housing market. Recent reports indicate that without significant and immediate reform the U.S. housing market will continue its decline, further dragging down the economy. “The Obama Administration’s extraordinary efforts to lower interest rates, along with its passage of the stimulus package, were both essential first steps toward stabilizing financial markets and promoting U.S. economic confidence,” said John Castellani, President of Business Roundtable. “Congress and the Administration must now build on these gains by stimulating demand for housing, which will create new jobs and trigger expansive economic recovery for America’s citizens, communities and companies.” NEWS RELEASE The group strongly believes adoption of its proposals will have a cascade effect, creating jobs and hastening U.S. economic recovery. The group’s recommendations are to:
1. Keep mortgage interest rates at historically low levels for at least one year;
2. Expand the current First-Time Homebuyer Tax Credit incentive from the lesser of 10 percent of the purchase price of the home or $8,000 to a higher limit of either 10 percent or $15,000 for all homebuyers, remove the income restrictions and include all primary residence purchases for one full year;
3. Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light of rising loan-modification re-default rates;
4. Make permanent the current temporary conforming loan limits; and
5. Continue to review and strengthen government efforts already underway to review and refine mortgage lending practices.
For more information about the Housing Working Group, please click here.
UPDATE: Appraisals compromised due to lack of comps
In March, I started writing about the fact that home appraisals, and therefore home purchase transactions, were being compromised by the lack of recent sales comparables in the higher end price range on the Westside. The situation has become even more complicated, due to the fact that major lenders are now sending out appraisals to a network of appraisers, some of whom have little or no experience working in a market like this one.
Finding the right house to buy is never easy; selling a home today is also challenge. It’s best to prepare yourself for obstacles that could cross your path so that you’re prepared should they arise.
In some markets, one in three transactions doesn’t close. This is a high ratio compared to the fallout ratio in previous years when the housing market was stronger and financing options were plentiful. In past years, most transactions fell apart over inspection issues. The biggest hitch today is financing, which is not to say that property defects don’t come into play.
For some time, lenders have tightened up on their qualifying criteria, making it more difficult for buyers to obtain the financing they need to close a sale. Recently, appraisals have become problematic, particularly in low-inventory, higher-priced neighborhoods such as Brentwood, Westwood, Little Holmby, Bel Air and Beverly Hills.
There are three components to lender approval. The borrower must be financially qualified. This requires a good credit score, sufficient cash for a down payment and closing costs, as well as verifiable income. The lender also needs to approve a title report on the property to confirm that the seller has marketable title to the property. And, the lender needs an appraisal of the property to confirm that the buyer is not overpaying.
Previously, lenders’ underwriters required three comparable sales in the area that occurred within the last six months to validate the purchase price. Due to the declining housing market, lenders now want to see comparable sales information on listings that sold and closed within the past 60 to 90 days. The listing inventory in Little Holmby in particular was very low from October 2008 through March 2009, making it difficult for appraisers to come up with enough comparable sales information to satisfy the lenders.
To complicate matters, some appraisers and lenders automatically lower the appraised value by a certain amount if the property is in an area that is deemed as a declining market. (Any time a property has been on the market for more than 180 days, the lender automatically deems it is a “declining value” property. Since market times in our higher end neighborhoods have been steadily on the rise, many comparables are already labeled declining value by the appraisers, affecting the properties they are being used for comparables.) This can result in an appraised value that is lower than the price the buyer and seller agreed to in the purchase contract.
What can you do if an appraisal comes in under the negotiated price? We will talk to the lender to find out which properties were used as comparable sales. We may be able to augment their report by providing the appraiser with comparable sale information that can support the contract price, particularly on private sales and especially if the appraiser is from out of area.
The most accurate appraisals are done by appraisers who know the local market well. Unfortunately, changes in the lender’s practices are resulting in more appraisals done by appraisers from outside the local area. Many lenders no longer have their own, in-house appraisers; many are relying on large nationwide appraisal services to provide appraisal services. In addition, be prepared that the appraisal times are longer than even 60-90 days ago, and make sure your Realtor® adjusts the contingency periods appropriately.
If the appraiser can’t be convinced that the appraised value is low, and the buyers and sellers want to make the transaction work, it requires a compromise. Patience and creative problem solving, in conjunction with the buyer, seller, and mortgage broker, will often yield good results. Sometimes the purchase price can be adjusted, a new appraisal can be ordered, or secondary financing from the seller may be an option.
If you would like information on your particular situation, either as a buyer or seller, please contact us at The Bremner Group.
Treasury Dept. is Giving “Cash-for-Keys”
Under the Foreclosure Alternative Program (FAP) announced last week by the Obama Administration, some
borrowers may be eligible for the U.S. Treasury Dept.’s deed-in-lieu program, also referred to as “cash for
keys.”
A deed-in-lieu of foreclosure is an option offered to homeowners who are not eligible for a mortgage modification or a short
sale. In most cases, banks acquire properties back from delinquent borrowers who can no longer afford to
make payments. The bank also agrees to write off the debt. In exchange, the homeowner receives a small
incentive, typically about $1,000, if they vacate the property by a set date and the home is not vandalized.
Those who would benefit most are borrowers who likely would not be able to repay their mortgages under
any reasonable modification program. These would include delinquent borrowers who are underwater,
borrowers who have lost their jobs with little hope of finding another, and may include those who have gone
through a divorce or another life-changing event.
There also are obstacles to overcome when dealing with deeds-in-lieu. The least complicated scenario is a
borrower with no other debt on the home. However, if there is a second mortgage, the lender most likely will
not agree to a deed-in-lieu unless it receives the full cooperation of the holder of the second mortgage.
As part of the FAP, the Treasury Dept. also will make incentive payments to second mortgage holders, up to
$1,000, if the second mortgage holder relinquishes all claims to the property.
NEW FEDERAL LAW AFFECTING DISTRESSED PROPERTIES
From the California Association of Realtors®, here is the update on the measures included in the “Helping Families Save Their Homes Act”.
This week, President Barack Obama signed into law the Helping Families Save Their Homes Act of 2009 to help homeowners and lenders avoid foreclosure. Previously included in this bill was a measure to allow bankruptcy judges to modify mortgage loans for principal residences, but the U.S. Senate did not pass this “cram-down” legislation. The Helping Families Save Their Homes Act of 2009 contains various new laws to address the national foreclosure crisis. Major provisions that may affect California residents include the following:
HOPE FOR HOMEOWNERS (H4H) REVAMPED: The new law loosens the H4H program requirements to help homeowners refinance out of their troubled mortgages and into more affordable, fixed-rate FHA-insured loans. Originally launched in October 2008, the H4H program intended to help 400,000 distressed homeowners, but in the program’s first seven months, it only helped one family stay in its home. The maximum loan-to-value ratio for an FHA refinance is 96.5% of the appraised value. If refinance proceeds are insufficient to pay off existing liens, the existing lienholders must voluntarily agree to a short payoff, but a new inducement is an opportunity for them to share in the homeowner’s equity. Other changes to the H4H program include monetary incentives for both the participating servicers of the existing loans and originators of the FHA refinance. Millionaire borrowers (with net worth over $1 million) are now excluded from the program. HUD will establish the requirements and standards to implement the H4H program as revised.
LONGER STAY FOR TENANTS OF FORECLOSED HOMES: Effective immediately, an REO lender or buyer who acquires title through a foreclosure sale must give at least a 90-day notice to terminate a bona fide tenant as defined. A 90-day notice to terminate is sufficient for a month-to-month tenant or if a new owner will occupy the property as a primary residence at the end of the 90 days. Otherwise, a tenant with a one year or other fixed-term lease with a remaining lease term exceeding 90 days can stay in the premises until the remaining lease term ends. This new 90-day notice requirement applies to foreclosures of a federally-related mortgage loan or residential real property, except for properties under rent control, rent-subsidized programs (such as Section 8), or other state laws that provide additional protections for tenants. This law expires on December 31, 2012.
NOTIFICATION OF TRANSFER OF MORTGAGE LOANS: The Truth in Lending Act now requires a lender to whom a mortgage loan is sold or otherwise transferred to notify the borrower in writing of such transfer within 30 days. The notice must include the new lender’s identity, address, telephone number, authorized representative’s contact information, and other relevant information. This measure should help alleviate the problem borrowers often face in determining who owns their mortgage loans. Other provisions of the Helping Families Save Their Homes Act include a 4-year extension of the $250,000 FDIC deposit insurance to December 31, 2013, protection for loan servicers who establish qualified loss mitigation plans from liability for an alleged breach of duty to maximize mortgage values for their investors, $130 million for foreclosure prevention counseling and education, and $2.2 billion to strengthen homeless programs. President Obama has also signed into law the Fraud Enforcement and Recovery Act (FERA) which authorizes the Department of Justice to prosecute mortgage fraud crimes against private mortgage brokers and companies that previously were not regulated by the federal government. FERA also earmarks almost $500 million for federal enforcement agencies to investigate and prosecute mortgage fraud and other fraud crimes.
Copyright © 2009 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
FICO Explained & Top 7 Credit Fixes
FICO® Scores are calculated from a lot of different credit data in your credit report. This data can be grouped into five categories as outlined below. The percentages reflect how important each of the categories is in determining your FICO® score. These percentages are based on the importance of the five categories for the general population. For particular groups – for example, people who have not been using credit long – the importance of these categories may be somewhat different.
Although there are several scoring methods, most lenders use the FICO® method from Fair Isaac Corporation. Each of the three major credit bureaus (Experian, Equifax and TransUnion) worked with Fair Isaac in the early 1980s to come up with the scoring method. (The Vantage Score is a new credit scoring model created in a cooperative effort that is competing with the traditional FICO score. Some lenders have started accepting Vantage Scores when it comes to smaller loans in a testing phase. The fact remains that Vantage Score is a new scoring model and it could take years for lenders to calculate the appropriate risk models for the use of the score.It may or may not ever be introduced on a full scale version.)
A credit score is determined much like a grade in school. Consider how a teacher calculates grades by taking scores from tests, homework, attendance and anything else they want to use, weighing each one according to importance to come up with a final, single-number score. It’s the same for a credit score. But instead of using the scores from pop quizzes and papers, it uses the information in your credit report.
Your credit score is calculated by weighing information in your credit report. The number ranges from 300 to 850. Although the exact formula for calculating the score is proprietary information and owned by Fair Isaac, here’s an approximate breakdown of how it is determined:
35 percent of the score is based on your payment history. This makes sense since one of the primary reasons a lender wants to see the score is to find out if (and how promptly) you pay your bills. The score is affected by how many bills have been paid late, how many were sent out for collection and any bankruptcies. When these things happened also comes into play. The more recent, the worse it will be for your overall score.
30 percent of the score is based on outstanding debt. How much do you owe on car or home loans? How many credit cards do you have that are at their credit limits? The more cards you have at their limits, the lower your score will be. The rule of thumb is to keep your card balances at 25 percent or less of their limits.
15 percent of the score is based on the length of time you’ve had credit. The longer you’ve had established credit, the better it is for your overall credit score. Why? Because more information about your past payment history gives a more accurate prediction of your future actions.
10 percent of the score is based on new credit. Opening new credit accounts will negatively affect your score for a short time. This category also penalizes hard inquiries on your credit in the past year. Hard inquiries are those you’ve given lenders permission for, as opposed to soft inquiries, which include looking at your own score and have no effect on the score. However, the score interprets several hard inquiries within a short amount of time as one to account for the way people shop around for the best deals on a loan.
10 percent of the score is based on the types of credit you currently have. It will help your score to show that you have had experience with several different kinds of credit accounts, such as revolving credit accounts and installment loans. This information is compared to the credit performance of other consumers with similar histories and profiles.
A FICO® score takes into consideration all these categories of information, not just one or two. No one piece of information or factor alone will determine your score.
The importance of any factor depends on the overall information in your credit report. For some people, a given factor may be more important than for someone else with a different credit history. In addition, as the information in your credit report changes, so does the importance of any factor in determining your FICO® score. Thus, it’s impossible to say exactly how important any single factor is in determining your score – even the levels of importance shown here are for the general population, and will be different for different credit profiles. What’s important is the mix of information, which varies from person to person, and for any one person over time.
Your FICO® score only looks at information in your credit report. However, lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting.
Your score considers both positive and negative information in your credit report. Late payments will lower your score, but establishing or re-establishing a good track record of making payments on time will raise your FICO® credit score.
The three major credit bureaus each have their own version of the credit score, all of which are based on the original Fair Isaac scoring method. Equifax has the BEACON system, TransUnion has the classic FICO® Risk Score system, and Experian has the Experian/Fair Isaac RISK system. Some lenders also have their own scoring methods, which may include information such as your income or how long you’ve been at the same job.
What happens if you decide to take a loan modification or refinance your home to take advantage of lower rates? Many clients are concerned about the long term affects on their FICO® score.
In general, your FICO® score is a key determinant in any transaction that involves credit, so staying credit savvy is critical. Refinancing and loan modifications can affect your FICO® score in a few areas. How much depends on whether it’s reported to the credit bureaus as the same loan with changes or as an entirely new loan.
If it’s reported as the same loan with changes, three pieces of information associated with the loan modification may affect your score: the credit inquiry, changes to the loan balance, and changes to the terms of that loan. Overall, the impact of these changes on your FICO® score should be minimal.
If it’s reported as a “new” loan, your score could still be affected by the inquiry, balance, and terms of the loan, – along with the additional impact of a new “open date.” A new or recent open date typically indicates that it is a new credit obligation and, as a result, can impact the score more than if the terms of the existing loan are simply changed.
How can you take action to improve your credit score right now? Follow these steps, and you’ll be well on your way to a higher credit number:
1. Pay every bill on time. Nothing dings your credit score like a series of late payments, and no other single thing is as easy a way to improve your score. Sort bills as they come in by due date, then pay them early. You’ll not only help your credit, you’ll avoid costly late fees.
2. Get current and stay current. If you’ve missed any payments, make them up, then refer back to #1. The longer your track record of on time bill pay, the higher your credit score.
3. See a credit counselor early. Waiting as you get behind only delays the inevitable. While it won’t improve your score immediately, good credit counseling can get you back on track sooner. Remember, too, that collection accounts, even after they are paid off, stay on your report for seven years.
4. Keep credit card balances low. High unpaid debt affects your score. And resist the temptation to move debt around, or get one of those 0% initial “teaser” rates to absorb outstanding balances. New accounts will lower your average account age, which will have a larger effect on your score if you don’t have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user. A better strategy may be to pay down revolving credit. In fact, owing the same amount but with fewer open accounts actually helps your score.
5. Don’t close unnecessary accounts as a short term strategy to improve your credit score. In general, having credit cards and installment loans (and paying timely payments) will raise your credit score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly. A closed account will still show up on your credit report, and may be considered by the score.
6. Note that it’s OK to request and check your own credit report. This won’t affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.
7. Think of your credit score as “gardening”; stay on top of any problems and correct them as they occur. It’s much easier to stay abreast of credit glitches when you don’t need your FICO® score, then to try and fix problems in a hurry after you (or your lender) find a bad FICO® score.
From the US Senate: Good News for Homeowners
I received an email from Barbara Boxer today to update me on the progress of amendment SA 1035, which just passed the US Senate. It’s good news that I thought you should all know. I include below the text in its entirety:
“Dear Debbie:
The Senate recently passed an amendment (SA 1035) I authored requiring that homeowners be alerted within 30 days if their lender sells or transfers their home mortgage loan. The amendment is good news for America’s homeowners.
My amendment provides transparency and gives homeowners another tool to fight illegitimate foreclosures and negotiate loan modifications to help keep families in their homes. Under the measure, if a loan is sold or transferred, the new note holder would have 30 days to notify the homeowner with the following information:
- the identity, address, and telephone number of the new creditor;
- the date of the transfer;
- how to reach an agent or party with the authority to act on behalf of the new creditor;
- the place where the transfer is recorded; and
- any other relevant information regarding the new creditor.
This is just common sense: If you have a mortgage on your home, you should know who actually holds that mortgage. But too often, homeowners are not able to modify their mortgages to avoid foreclosure simply because they cannot find out who holds their mortgage.
My measure has been endorsed by the National Consumer Law Center, the National Association of Consumer Advocates, Consumer Action, the Consumer Federation of America, Consumers Union, the National Association of Neighborhoods, the National Council of La Raza and the National Fair Housing Alliance.
Sincerely,
Barbara Boxer
Moving to L.A.? Let’s Talk Neighborhoods
Founded in 1781 by a small group of Mexican settlers, Los Angeles is the second-largest city in the U.S with over 14 million residents. The Westside of Los Angeles, which comprises the area West of Downtown Los Angeles, is the area I have lived in and served for over 33 years. I was born and raised here, and know it like the back of my hand. The beaches of Santa Monica Bay, the mansions of Beverly Hills and the glamour of Hollywood that define LA’s image are all clustered in a relatively small section of Los Angeles. Our nearly year-round sunshine, a casual lifestyle and a shot at Hollywood fame continue to draw newcomers to the area. (Not to mention the population surge each January after the Rose Bowl Game, played in 68° sunny weather, is broadcast to the freezing Midwest on New Year’s Day!)
How do you know what is the area for you? What qualities define each neighborhood? These are the questions home buyers always ask, because it’s a daunting task getting to know a city like LA. Let’s start by describing the types of neighborhoods you’ll find here, and give some examples of each. That way, when you begin your search, you can identify the type of neighborhood that suits your personality, and we can point you to the particular neighborhoods that are a match. In a city the size of Los Angeles, whether you like big yards or hip nightclubs, there’s a community type that fits your lifestyle.
Farthest east, you’ll find the area known as Downtown LA. It’s small by most large cities’ standards. The downtown area is home to The Dorothy Chandler Pavillion, Symphony Hall, Staples Sports Center, The Convention Center and various theatres. Aging single family homes and apartments, modern luxury lofts and condos converted from old warehouses and above businesses will be the living choices available to you. There has been a real resurgence of young urban professionals moving to downtown LA, along with and ethnically diverse mix of young single professionals, low to middle income families and seniors who have been a part of the neighborhood. What you’ll like about the area is the proximity to culture and nightlife, and the eclectic mix of people, housing styles, and affordability. What you might not enjoy is the density and the lack of street parking.
Moving west, you will find many different ethnic neighborhoods. Like many big cities, Los Angeles has its share of ethnic pockets where those from far off lands congregate to live. Los Angeles has the highest concentration of Mexicans outside Mexico, Koreans outside Korea, and even Samoans outside Samoa. Tiny Russian, Ethiopian, Armenian, and even British enclaves also coexist throughout L.A. We have a rainbow of diversiy, reflected in charming neighborhoods throughout its Westside. Koreatown, Little Tokyo, and Little Ethiopia are just 3 of the ethnic areas you will find gracing the LA streets. What you’ll love about living there? The affordable housing, interesting cuisine and products will tempt you, and your neighbors will typically be immigrants, young couples, and budget-conscious singles.
Los Angeles has several old and historic areas, including Pasadena east of Downtown. On the Westside, near Koreatown, you’ll find the Historic West Adams District. This area lies in close proximity to University of Southern California (USC). West Adams is known for its large, well-preserved, older single family homes with architectural styles ranging from Victorian/Queen Anne to Colonial Revival. The best thing about living in West Adams? The scale of the homes is grand, and you get a lot of home for the money. The neighborhood is stable, and even the lanscaping is mature. Driving down the street, you’ll take pride in the character and curb appeal of the neighborhood. The homes often stay in the family for generations. Your neighbors will most likely be style-conscious middle-aged couples, adults who grew up in the neighborhood, and home-improvement buffs who appreciate the character of the area.
Sprinkled throughout the ethnic, historic, and downtown areas are the neighborhoods that are up-and-coming. These neighborhoods are made up of fixer uppers, older single family homes ranging in style from traditional to ranch to modern, and garden-style apartment buildings. In addition, you’ll find small owner user duplexes and triplexes built from 1920 to 1940, often in the Spanish Style. The bonus you get in these neighborhoods comes from the fact that these homes are likely to increase in value, and there is a working-class sensibility that allows for a comfortable neighborhood feel. What you may not enjoy is the disparity that exists between those homes already improved, and those more run down. In addition, you will contend with the noise and traffic of construction as neighbors fix up their properties. In Los Angeles’ up-and-coming neighborhoods, your neighbors will typically be a mixture of young singles and couples, recently divorced and single parents, aging retirees who have lived in the neighborhood for years, and immigrants; in other words, a perfect cross section of our community.
Throughout the Westside you will find areas, located near the business hub of each local community, known as the new urban locales. You’ll find housing in a variety of styles, including single family homes in retro styles, upscale apartments and condos, and lofts above businesses. These areas are generally high energy and in the heart of the action, but still offer a small town neighborhood feel in the heart of city living. The only drawback is that the hip, urban lifestye can lead to inflated prices that drive some buyers out of the market. The Fairfax District in central Los Angeles and the Montana District in Santa Monica are great examples of the new urban neighborhood.
Perhaps you like lots of curb appeal, playmates for your children, and active neighborhood associations. Then you’ll be looking for a bedroom community, such as Pacific Palisades or The Canyons in Brentwood. The homes are charming and well manicured, and your neighbors will generally be other middle-aged soccer moms and dads whose lives revolve around their children. Private schools are plentiful in theses neighborhoods.
Sunset Plaza
Looking for a neighborhood with a little more edge? You might want to consider a pedestrian community, so named because you don’t need a car to get what you need. These small pockets in major metros are designed to have tiny shops, bakeries, stores and boutiques in easy walking distance. A lovely example is Sunset Plaza in Hollywood, and the Melrose area of central LA. If you like activity and don’t mind noise or a lack of parking, this type of neighborhood may be for you.
If your dreams lie in the hills or mountains, by water, or behind gates, you are dreaming of the status neighborhood. The Westside has plenty of these, each with a flavor all its own. For the purist, there is always Beverly Hills, the ultimate status address. Hugh Hefner makes his home in Holmby Hills, where properties lie behind gates on large plots of land. Prefer water? Head on out to Malibu, with its beautiful private beaches and laid back attitude. The hip and trendy prefer Hollywood Hills, while sophisticates prefer Bel Air. Brentwood Park is an enclave within a bedroom community, well loved by families. The old line status area near downtown is known as Hancock Park, where the lots and houses are large, and in the grand style. Your neighbors in status neighborhoods will run the gamut from affluent high-powered executives and stars, to upper-middle income achievers, celebrities, and even millionaires.
If outdoor activities fit your lifestyle, and your dream is of places to get a tan, then you might want an active beach community. Santa Monica, Venice, and Marina Del Rey cater to an oudoor, beachy lifestyle. The housing is comprised of large single-family homes in newer architectural styles and luxury, upscale condos. Biking, roller skating and walking are preferred means of transportation, and Marina Del Rey has boat slips for those who love to get out on the water. Ahoy!
All of these neighborhood styles have pros and cons, but if you can identify which sounds most like you, you’ll go a long way towards finding the right place in the City of Angels.
To talk specifics about any Westside neighborhood, call The Bremner Group at 310-571-1364. I’m a local, and a native- and there aren’t a lot of us in LA!
Foreclosure Update
2326 Glendon Avenue, LA 90064
UPDATE: 2326 Glendon Ave., LA CA 90064. The REO foreclosure property in Lower Westwood, north of Pico Blvd, has an accepted offer and is looking for backup. After its most recent price reduction on 4/9/09 to $1,619,800, the bank accepted an offer on 4/20/09. The home is a newer construction Mediterranean style home built, in 2005. The home is a 5 bedroom, 5 bath with 3,894 sq ft on a 6,750 sq ft lot. Features include a large great room,custom kitchen, open floor plan. This house is ideal for someone wanting a good value in a good Westside location, with easy access to shopping, dining, and entertainment. The bank notes that the property is being sold “As-Is”, without warranty. (Non FHA offers with 10% or less down and borrowers with FICO scores under 720 will not be considered by the bank.) The home was previously sold new in 2006 for $1,985,000. While we don’t yet know the final sales price, the current list price offered by the bank is 19% below what the house sold for in 2006. For more information, contact The Bremner Group at 310-571-1364.
