That's What I'm Talking About

Beds: 6 Baths: 5 Sq. Ft.: 5,924 Lot Size: 1.7 Acres
New to the market, this home is pretty much the iconic Malibu home that everyone is thinking of when they start looking in Malibu. Gracious and stylish in every detail, huge lot, great pool, overlooking Zuma Beach. What they aren't thinking about is the going rate for this, which is $6,995,000. But what the hell, live a little, you can't take it with you!
This home has everything I would want in a Malibu home.

Warm living room with ocean views.

Very simple totally Zen patio

Palatial Master with ocean views on a sea of dreams

De rigueur home theater- but quite tastefully done

Landscaping done to fit the surroundings. This is just exquisite:


plenty of lawn for strolling and playing with the kids/dog


And of course, tranquil sunsets to view as you sip wine on your balcony:

To me, this home is the whole package. Malibu writ large. Without the largesse.
Call me to view this and properties that match YOUR dreams!

Bank-owned Spanish Hacienda on 7 acres-for a million two!

4BR 3 BA, 3800 sq ft.$1,250,000+/-

IN the Santa Monica Mountains on the Westlake side of Decker Canyon, this strikes me as an outstanding deal provided you like a project. While it's essentially turn key, you might want to redo many of the treatments and decor. Sited on seven acres, most of it usable (your results may vary)as long as you know someone with a D5 Cat to carve things out for you. This place was built in 1981 so it's survived three of the most ferocious fires seen in these parts. I love the hills up here but that's a definite part of your life in this canyon.

Not without its quirks, this hacienda features an indoor sport court w/ wood floors. I can't tell if it's legal size for racquetball.




Most of the rooms are of that "grande" scale late 20th Century design. Of course I always tell those who will listen that there's always a reason a home ends up bank owned. Not much demand for an indoor sport court. I think you could make a great gallery space out of it with room for even the most monumental of pieces, like a Dale Chihuly tower. Here he is with a piece that would fit nicely within the confines of a sport court:


The kitchen is nice and sizable,but the cabinets are passe'

I'm told the Master is two story:

Pretty decent walk-in closet

AND it comes with a big guest house

Pretty neat, all told. Are you up to the challenge?
To view this and other magnificent properties, contact me any time.

Why Tons of Buyers Are Screwing Up

Every so often I read someone else's take on the market and think " wow, I could have written this word for word". What follows is an example of this. Sometimes , today's buyers have a forest /trees problem. They want to hammer the seller "because it's a buyers market" and they lose the property to an all-cash buyer with a long view on the market. There area lot of these out there right now, all cash buyers willing to pay full list price or above. Because they know five years from now they will have an excellent return on their investment.

Why Tons of Buyers Are Screwing Up
Price and Terms.

Price. Terms.

I will bet you a 6-pack of Old Milwaukee that if you ask first-time buyers what the term "terms" is that a bunch of them would screw it up, maybe because their buyer agent is a glorified door unlocker who is a payment behind on his car. But that's another post.

Right now, thousands of buyers across our great land are poisoning their prospective home purchase over an appliance, a repair to an electrical panel, or less than 1% of the price of the home. Because, after all, it is a buyer's market. What is a buyer's market? Well, to a carrier pigeon buyer agent who won't properly advise their client out of fear of losing them, it is whatever the buyer wants. And typically, the uninitiated buyer will subjugate the seller to their will to get a great deal. And why shouldn't they? Sellers were making buyers waive inspections, come up with extra cash with under appraised homes and equally insane things 5 short years ago. Point conceded. And if buying a home is a tit-for-tat event for you, read no further. But if you want to buy intelligently, read on.

We got off track in the earlier part of this decade by calling homes great investments. Everyone bought that. Later in the decade, homes became bad investments, and almost nobody bought. So I don't begrudge anyone for taking a wait and see attitude. Yet homes are like insurance. They can behave like investments, but they serve a greater utility- while you hope to never actually use life insurance, you do use your home as a place to live. It isn't a cold asset. You derive utility from it. Live within your means and you are OK, as many prior generations will attest.

Any honest perusal of my blog will attest to the fact that I have never had a mantra of "Now is the time to buy!" I am rethinking that.

About a year ago, some guy was featured on Active Rain advising people not to buy a short sale because they were going to miss some narrow window of opportunity for historically low rates. Those rates were higher than they are today. With current rates so low they are starting to resemble Mariano Rivera's earned run average, too many people are missing the train because they want a window seat. They have to dominate the seller or no deal. And that's a shame. Right now, the monthly payment on a 15 year mortgage is just a tad higher than the payment on a 30-year mortgage 3 short years ago. If you throw an extra payment or two in annually, you could pay your house off in 10 years.

I have witnessed buyers lose fantastic deals on homes that have everything they wanted over a $5000 difference on a $600,000 home. The seller had the temerity to attempt to negotiate. Bad seller. No sweat off my back; I have a home and if my company were going to go under it would have a long time ago. There is no one buyer I need. But these people need a home. They can't justify the move until they have subjugated the seller to their absolute will, and if the seller won't submit, they are banished. The buyer keeps hunting. Here's why that's crazy: the town crier won't announce when the market bottoms out. Nor will he let us know when rates will rise again.

A 3/8 percent rise in rate over the period of the loan will dwarf that $5000 buyers still want from the seller after rounds of offers and counter offers. The riding mower or the chandelier won't pay that extra money, but many of today's buyers aren't thinking of that- they feel a societal-driven compulsion to chew sellers down ever more. I don't blame them for being this way. I blame their agents for not educating them about local conditions. I blame the NAR for running bland commercials that sound like 1970's era Amway commercials that build trademark recognition and little else. It is only a good deal if the seller actually agrees. If you are making offers on your 3rd or 4th house, wake up- if your agent won't say it, I will. Sellers have never been this motivated. They just dislike being your gimp. Smart business people don't have their trading partner humiliated. Magnanimity is not weakness.

I would advise buyers to get on the train. With the terms available now, you are
in the best position any of us have ever seen. Be happy you have a job and a down payment, don't kvetch about not riding in the conductor's car, and rejoice that you are one of the fortunate few when you arrive.

J. Philip Faranda is based in Briarcliff Manor, NY. His market covers Westchester, Rockland, Putnam, & Dutchess counties. Almost 100 clients and customers had closed transaction in 2008-2009 from his efforts. Ever the high-producing listing agent, he counts among his specialities hard to sell properties & short sales. You can reach him at (914) 723-8900.

8 Tips for Real Estate Investing

Hey everyone. Shout out to all you investors out there! ZIP Realty's monthly newsletter offers some great tips for investors. When investing in real estate, it pays to follow certain guidelines before making, and possibly regretting, such a costly decision. The following eight tips will help you make a successful real estate investment.

1. Do your research. Before you buy a house for income generation, be sure to research historical price data for that particular neighborhood. Try to feel out whether housing prices in that area of town are rising, falling, or holding steady. Look up the selling prices of other homes in the house's neighborhood. This will let you know if now is the opportune time to buy your desired property.

2. Consider buying cheaper property. If you buy an expensive home you will need to charge a higher rent; conversely, a cheaper home will mean more reasonable rent. Renters who pay a high monthly rent may just as easily move out and pay that money towards their own mortgage. Higher rent properties are a luxury, while cost-effective rents are a need. In other words, needs always outrank wants.

3. Add up all costs. Don't buy a property just because it is a "steal." Consider all the costs of buying the property, including any needed repairs, utility bills, property insurance and taxes, and risk of vacancy. If possible, make a cash flow statement, or ask for a cash flow statement from the prior owners of the property (if it was used as a rental property). Collect as many documents as you can which detail the property's utility and other costs.

4. Know your market. Analyze your property, the type of neighborhood in which it is located, and what businesses or organizations are nearby. Would this property be suited for young professionals with no families? Would this property be better suited for renovation and resell to a family? Knowing what you are buying will help you better turn a profit on your property.

5. Consider capital growth. Assess the neighborhood located around the property that you are buying. Are big corporations being built in the vicinity? Or are houses and buildings being shut down and demolished? Do you see evidence of quaint shops and shopping malls going up nearby? All these events will play a factor in your property's future price at sale. They will also determine the demand for rental accommodation.

6. Inspect the property. Hire an accredited inspection firm to come in person and inspect the property you are considering. Do not overlook or skimp on this important step. It is imperative that the condition of the house be assessed, including its roof, fixtures, foundation, walls, and plumbing, heating, and electrical systems. Professional house inspectors will also look out for problems indigenous to that housing area, like termite, flood, or earthquake damage.

7. Do not purchase beyond your means. While you may qualify to purchase a lot more property than you originally deemed possible, don't. The last thing you need is to be house poor. The property you purchase will need an occasional repair or update and you cannot rely on rental income alone to keep abreast of such future developments. Keep at least 5% of your property's purchase price in a separate account and be prepared to withdraw it should the need arise.

8. Think for the long-term. Buying property should always be considered a long-term investment. The exception might be if you are looking to purchase real estate in order to "flip" it for a quick profit. Otherwise, real estate is a long-term and slow to liquidate asset. If you think that you will need cash soon, it is best not to buy property.