Tag: La Jolla Real Estate
Here is a great story of why it is so important to hire a knowledgeable home inspector and knowledgeable San Diego Real Estate Agent when purchasing or selling a home that has been remodeled in La Jolla near the cliffs/canyon or anywhere in San Diego for that matter.
NFL star Troy Polamalu and his wife are suing the son of local billionaire Ernest Rady, saying he sold them a $4.75 million La Jolla home whose backyard then collapsed into a canyon.
Polamalu and his wife, Theodora, say in their lawsuit that they purchased a home on Colgate Circle, near La Jolla Scenic Drive, in 2009 and spent more than $2.3 million improving it. Then last December, the suit says, about 2,000 square feet of their backyard collapsed, following an earlier landslide in January 2010.
The Polamalus blame Rady. Their attorney, Stuart M. Eppsteiner, said in a statement that Rady essentially “bought an old house in La Jolla, tore it down to the foundation, built a new house, and imported 4,000 cubic yards of soil to create a large backyard extending out into a canyon. Unfortunately for the Polamalus, Rady never disclosed the grading, let alone the fact that it was performed without permits, inspections or approvals from the City of San Diego. The concealed and unpermitted work has literally slid into the canyon behind the home.”
Polamalu is a defensive back with the Pittsburgh Steelers, known for his giant head of hair and the skills on the field that helped lead his team to the Super Bowl in January. Last season, the Associated Press named him NFL Defensive Player of the year. He played collegiate football at the University of Southern California.
The Polamalus are suing Rady along with a construction company, a corporation linked to Rady, a real estate company and a real estate agent, seeking damages of $7.5 million.
These types of incidents happen more then you know. Many of times as the buyer it could be avoided by asking for proof of the permits and the city approval documents for the work perviously completed. If the seller could not produce this paperwork then you and your San Diego real estate agent must deiced if you would like to pursue this house further. The next step is you can go down to the city building commission office and ask if there have been permits pulled on a house at “123 main st”. The next step would be if you were able to determine that there were some permits approved on the house but you still don’t feel comfortable. Then the next thing to do is hire your own inspector that specializes in grading approvals for land improvements along cliffs or canyons.
From the sellers side if you are a seller that did un-permited work on your home it is always best to be forth right and disclose that it is not permited and that further investionation buyer is recommended. Once you have disclosed this material fact and the buyers have signed off that they are aware of the none-permited work and have agreed to purchase the property in its present condition you can rest easy. You may still get sued if something happens to the property however you can pull out your form that states the buyer was aware of the work that was completed and that it was not approved by the city. This will help your case when you stand in front of a judge.
In the end Disclose, Disclose and Disclose!
If you have questions about how to sell your home then call me and let me interview for the right to sell your San Diego Home! 619.665.5360 or email email@example.com
I wanted to share this great story about an flipping houses in a up and coming neighborhood this Story was presented by Voice of San Diego.
A popsicle vendor pushed his cart past a gutted two-story house on Island Avenue in Sherman Heights. For just a moment as he passed, the familiar tinkle of his bells drowned out another sound, one that’s become increasingly common in this Latino neighborhood east of downtown: a nail gun’s pop pop pop.
On the back porch of the house, Lannon Turowski was reinforcing decayed wooden beams with crisp two-by-fours. He’s been working on the house “weekend warrior-style” since February, trying to restore it and get it ready to sell by May.
He moved to California two years ago from Cedarburg, Wis. He’s also considering buying out his friend’s half of the house (they went in on it together last year) and moving in there himself.
“You can go up on the balcony and see the Coronado Bridge on one side and Petco Park on the other side. You can’t get that anywhere else,” he said. “My real estate agent said, ‘I’m telling you, Sherman Heights is the last affordable housing left in San Diego.’”
It is also one of the few neighborhoods in San Diego whose white population has increased in the last 10 years. Since 2000, in the western portion of Sherman Heights closer to downtown, Latinos have decreased from 83 percent to 70 percent of the neighborhood’s population, according to Census data. The percentage of the white population has doubled, from 10 percent to 20 percent. (As illustrated in the graphic below, the darker the purple, the more the white population grew.)
In California, San Diego County and the city, communities have overwhelmingly experienced growth in their Latino populations. Ironically but perhaps not surprisingly, in Sherman Heights and many Latino neighborhoods surrounding downtown, the opposite is true. The downtown development boom of the last decade and its inland crawl through East Village, punctuated by the construction of Petco Park, is beginning to alter the historic and symbolic centers of San Diego’s Mexican community.
The signs of that shift are visible on nearly every residential block in Sherman Heights, where one after another, aging and faded Craftsman or Victorian homes are being gutted and restored. They’re being converted from multi-family properties — once rented by Latinos — back into single-family homes. At least five full-scale restorations were underway within three blocks of Turowski’s house this week.
Turowski is converting his house from the rented duplex it once was back into a single-family home. (continue reading…)
Here is a great article from the LA Times:
Home prices ended the year on a high note in 2010, according to the latest government figures.
For only the second time since the sector’s 2005 collapse, the average price of both new and previously owned houses sold registered a year-over-year gain. It wasn’t much, at least not by pre-crash standards — just 3.5% — but it was more than respectable given the nation’s economic doldrums.
Of course, your local market may not have turned the corner just yet. But in another positive sign, the Federal Housing Finance Agency’s survey of the country’s 32 largest metropolitan statistical areas found that prices were up in 19 markets and practically unchanged in another.
The FHFA’s survey is based on data from a sample of lenders, which report the terms and conditions on all single-family mortgages closed during the last five days of the month.
It does not include government-backed financing or refinanced mortgages, both of which tend to be somewhat lower than conventional mortgages. So the findings are skewed higher than they otherwise would be. Nevertheless, a housing market looking for any shred of good news will take heart in the latest numbers.
At the same time, the FHFA figures include distressed sales, which add a downward pull to the results. Stan Humphries, vice president of data and analytics at Zillow, the online real estate marketplace, said foreclosures can sell for 20% to 40% less than other properties, depending on the number of such properties on the market at any given time. (continue reading…)
La Jolla is the pearl of San Diego, it is highly regarded and very sought after. The homes in La Jolla range from small 2 bedrooms to large ocean front homes high on top of the Cliffs of La Jolla Shores.
I took a look back at the data from 2009 and 2010 to see which way the market is going in the area of the million dollar homes. I just pulled Single Family Homes in 92037 to get a more focused an accurate data.
In 2009 there were 258 homes sold. In 2010 there were 252 homes sold.
Medium price for 2009 was $1,415,000 and the Medium price for 2010 was $1,350,000
That is a over all decrease of -4.6% in home sales and sale price. This is interesting because like a stated earlier in this, La Jolla is very sought after however the competition is less as the home values are higher. So there is more competition at $400,000 then at $800,000 and over.
Call me or email me for more information and the detail reports on La Jolla homes for sale.
Jason@metrosdrealty.com or 619.665.5360
I had a gentleman walk-in to the office the other night and he started asking many questions about the San Diego Real Estate market and where it is and where it was and where it is headed. As I was in discussions with him about those topics and my position we started talking about the fed buying bonds back and the Bush Tax Cuts how this would benefit the San Diego real estate market (you can find my positions on those topics in early articles) it lead us to a topic that is on everyones mind which is will the fed do away with the tax deduction on mortgage interest…? So let me dive into this topic and give you my insight on this.
The feds have a plan that called for elimination several tax deductions, cutting social security (or raising the age), raising gas tax (15%), cutting Medicare by $400 billion and discretionary spending by over $1.6 trillion by 2020. Among the tax deductions to go is the mortgage interest deduction, which allows homeowners to deduct their interest payments on their mortgage from their taxable income. The proposal is to turn it into a tax credit with a cap on eligible mortgages at $500,000 and eliminating tax benefits for home equity loans and second homes
NAR, the National Association of Realtors, has responded to this proposal saying that the interest deduction is fundamental to the stability of the already ailing housing market. However, proponents of this say that lower income homeowners and the government will be able to save tons of money over time.
Currently, if individual taxpayers itemize their deductions they can deduct their interest payment on mortgages of up to $1MM for their first and second home as well as for their home equity loans up to $100,000. Most people who itemize their taxes tend to be wealthier people while most in the lower middle and lower will go with the standard deduction. With the Bush tax cuts for the wealthy on the chopping board, understandably the wealthy can be seen as targeted, but like it or not, the middle class can use all the help it can get right now. By converting the mortgage interest deduction to a tax nonrefundable 12% tax credit, everyone would be able to take advantage of this savings (you don’t have to itemize as you would to receive your deduction). Also, cutting the mortgage interest to $500,000 instead of $1MM could leave some richer people with a larger tax bill.
Still, like it or not, the mortgage interest deduction has not been paramount in people making the decision to buy a home, so demand would not be directly affected. US wide last quarter shows a 2% drop in home prices. In San Diego, home prices grew from last month however volume was way down which indicates a future market downturn. If the deduction were to turn into a credit it would surely affect higher priced houses more than lower priced house. In San Diego, 75% of the volume we are experiencing are for homes under $500,000, so the more expensive homes would be devalued even more so than they already are from lack of demand but this may be good news for the majority of home values.
Over all I don’t expect to this to see the light of day and it will be dead on arrival, our country is built on home ownership and it is the back bone to what Americans know. Real Estate effects us all positively and negatively as we have see over the last 10 years. Times were great and times were down, now is the time to move forward.
If you have any questions please give me call or shot me an email with your questions at 619.665.5360 or firstname.lastname@example.org
Here is my latest video on San Diego real estate market conditions and where I see the over housing numbers going. I also discuss the why the Fed is buying back bonds and what this is going to do to interests rates and the real estate market in San Diego.
Reach out to me if you would like to find out what you can qualify for or if you would like to schedule a time to meet and discuss your housing needs.
How does the Fed buying bonds back stimulate the Real Estate market or for that matter the economy.. I was watching a great video that talks about this exact topic. This is good information to know, because it could have a huge effect on our San Diego Real Estate that is for sale
Any successful business man/women will tell you the best way to be successful at any endeavor is “TIMING”. The idea or product could be great but if you don’t have timing it could be all for not. That is the same thing with San Diego Real Estate! Nothing has change in the quality of the product that makes it lose value or increase in value. The idea is finding the right timing to hit it big with your house or condo purchase, then its timing it right when selling your home.
The window of opportunity is here and will close once the countries economy is going strong.
If you have questions on this or about todays San Diego housing market please let me know.
Here is a great article about todays Housing Market that was in Sign on San Diego.
Spencer Rascoff, recently elevated to CEO of Zillow, talks about his company and the housing market with Rismedia’s Maria Patterson in an online story released Wednesday. In the final exchange, he mentions San Diego’s recent price trends as signs that the real estate picture is improving.
However, there is contrary evidence of prices stagnating or falling, as shown in the August price index from Standard & Poor’s released Tuesday, and from MDA DataQuick for September median prices.
Here’s the question and answer in which San DIego is mentioned:
Lets talk about what Bank Owned or REOs are and what Short Sales are and where the San Diego Real Estate market is moving towards.
With the change in Real Estate market in recent years new challenges have arisen, San Diego Real Estate now boasts a load of REO’s and short sales. These terms are quite prominent in the San Diego Real Estate market, but what they mean is quite simple. REO’s are bank-owned properties that are sold “as-is” and short sales are homes that are being sold by homeowners who can no longer afford their mortgage and are trying to negotiate to sell their home for lesser than they purchased, at a loss. The negotiation process in both of these transactions is quite daunting, and requires a skilled negotiator to push such transaction through, which take longer than a traditional transaction.
Both sale types, REO’s and Short Sales, are making up over 60% of todays transactions, the remaining types are “traditional” equity sale or developer sales. As each day goes by the numbers are showing that the amount of developer transactions are decreasing, do to the limited number of new developments in San Diego. This will hold true for the next 5 years as majority of developers will hold off on building new homes. The number of “traditional sales” or equity sales will increase as our San Diego real estate market makes its positive turn towards the glory days. However for now the San Diego Real Estate market will be dominated by Short Sales and REO’s.
As a buyer or a seller it is key to hire a knowledgeable and determined real estate agent to be successful with these transactions, so please do yourself a favor and give me a call and we can walk through this entire process 1 step at a time.