Earlier today, a client emailed my husband Mike about a great deal on a red Mercedes 500 SL convertible available on eBay. It was a 2004 model with only 7000 miles and offered a three-year warranty to boot. Located in Florida, this two-seater beckoned with a red price tag of around $28,000.

Ever the bargain hunter, Mike grabbed the San Diego Union Tribune’s Sunday classified section for cars, expecting to search through at least three pages for comparable sales.

It turned out be to a very short search because there was less than a quarter-page for all used cars in San Diego.

I am not particularly interested in red convertibles, but the slim number of classified ads in San Diego’s daily newspaper DID catch my attention.

We have all heard that the Chicago Tribune, the Baltimore Sun, the Los Angeles Times, the New York Times and other august print publications are on the ropes. The cause could only be financial, and financial resources are provided primarily by (1) Advertisers and (2) Subscribers (the number of which determine what advertisers pay for advertising).

I’ve been following these stories because I have a natural interest (because of background and training) in journalistic business–and also have a keen and active interest in how information (and advertising) is transmitted via the internet.

And it seems the latter may have overtaken the former. E-Bay and Craigslist are trampling traditional media.

Yesterday morning, I had a call from a Nevada broker asking if we had an agent fluent in Chinese who could help some Chinese investors seeking property in La Jolla.  Hmmm….we have agents who speak Spanish, Polish, Russian and Farsi, but none who were fluent in Chinese.

The solution was simple.

I clicked to Craigslist, immediately placed and paid for an ad for a Chinese-fluent real estate agent–and serendipity took over. Within hours, we had a perfect response.

This morning Shumei Tao, a very bright and talented real estate agent, joined our company, San Diego Previews Real Estate.  She is fluent in not only Mandarin, but Taiwanese, Cantonese–and the Internet. She too thought it serendipitous to find an internet ad that addressed her specific qualifications.

And it was only this evening as I looked at the sparse classified ads in the newspaper that I realized yesterday morning’s  instinctive reaction to a need: Head over to Craigslist and have the ad online within minutes. And then today, a Florida client sends not a classified ad, but an eBay listing for an automobile.

And then I stop to wonder: When was the last time I scanned the newspaper classified ads for…anything?

The post A Crash in Classified Ads? appeared first on Luxury Home Digest.

Good Bargaining Tips for the Luxury Home Buyer

If this is the worst real estate market (for sellers) in recent history, then surely it creates some of the best luxury bargains of a lifetime as well.

We are seeing smart money aggressively buying in our San Diego real estate market, and hear reports of the same elsewhere. The properties are being bought as fix-and-flippers or are being held as longer term rentals.

We receive inquiries about these homes almost daily; but more recently, we are being consulted about bargaining tips for buying luxury homes at bargain prices. These buyers may not have to sell their existing home to buy another, or are open to exchange possibilities.

Below are 7 bargaining secrets we use to help our luxury home buyers (and others) get some of the best luxury bargains on the market.

1. Study Market Time: Luxury homes in general may take longer to sell because of pricing, custom features and a more limited pool of buyers. But that doesn’t mean sellers are any less motivated to move on with their lives. At one time, we thought little of $million-plus homes sitting on the market for 90 days or more. These days, we seek buying opportunities if a home has been on the market over 60 days and are seeing some heavy price discounting if days on market goes over 90 days.
2. Check Tax Records and other Sources: Is there more debt on the home than what it is worth? Has a Notice of Default been filed that would indicate a looming foreclosure? If so and if this is a home of interest for our buyer, we submit an offer contingent on the successful negotiation of a short sale (where the lender sells the property for less than what is owed). In this case, either we or professional negotiators deal with the lender(s) to reach the best possible price for our buyer.
3. Did Owners Pay Cash or Have They Owned Their Home for Longer than 10 Years? These sellers may be in a position to sell at a discount or may be motivated to do so due to life transitions or other investment opportunities. They may also be open to owner-financing for all or part of the home mortgage.
4. Are You Open to Remodeling? Homes sold in as-is condition are more likely than others to sell at a substantial discount. Owners, especially when the home has been on the market for some time, are often overwhelmed with the thought of remodeling and updating–and fearful that their decor choices will not suit potential buyers. Especially in the uber luxury home market, older or outdated homes are sometimes sold at land value.
5. Foreclosoure Sales: The f-word (foreclosure) is occurring even in the luxury home market. Highly leveraged homes purchased in the last few years are more frequently ending up on the courthouse steps. Foreclosure purchases, which require cash and carry no disclosures or guarantees, offer both great potential for profit–and dire dangers for the uninformed. Bidding should be non-emotional and it is best to have a professional bidding for you–but only after thorough-as-possible research has been done regarding the home’s condition, its history and resale potential. Cracked slabs, structural defects and boundary line encroachments are unwelcome surprises.
6. Home Exchanges: This is a rather novel strategy for those trying to sell their luxury home in a bloody market. Life transitions encourage luxury homeowners to make moves. Empty-nesters may wish to relocate from their large estate to something equally posh but far less demanding in upkeep. Others may have expanding families that crave acreage, pools, tennis courts or equestrian facilities. In the Southern California market, Owner-Broker Bob Dyson and Villa Sotheby’s International Realty have set up a property exchange platform that allows homeowners to directly exchange properties and ownership. It is a tactic that helps to support neighborhood values and removes many of the pressures involved in having a home on the market for an extended period of time.
7. If the property you want is listed, have your agent check the other real estate agent’s listing history. If that agent tends to have listings on the market for a long time, you may wish to lower your offer. On the other hand, if the agent prices properties aggressively and has short “days on market,” you may consider coming in near to or at list price. You will likely find the listing is already priced at or below market to attract multiple offers. This bargaining tip is crucial!

A combination of patience, perseverance and the ability to move quickly will serve all astute buyers of real estate these days, but the greatest potential of all may lie in the luxury real estate market where replacement value could far exceed the purchase price. Follow these bargaining tips and let us know how you succeed!

The post 7 Bargaining Tips for Luxury Home Buyers appeared first on Luxury Home Digest.

I really want to talk about the effect gas prices will have on real estate, but first wish to tell a little story:

My grandgather, Adolph Michelson emigrated at the age of 7 with his family from Norway to Deadwood, South Dakota. It required a long, hard journey by steamship. train and wagon to arrive at their eventual home in the steep hills above Deadwood. It was there that they lived with other immigrants and Indians, sharing magnificent views and boot camp workouts as they trudged up and down that steep, steep hill to get to town for work, school, food and other supplies.

Views be damned. This was where the poor people lived.

As soon as the Michelson family could afford to do so, they moved their big family into a home in town, where shopping, school and employment were within easy walking distance. Their decision to move was not based on home features, the quality of the stove, or the number of closets–or even neighborhood amenities. It was based on that single and most basic real estate dynamic:

LOCATION

It is only since the advent of sprawling suburbias and each family having multiple automobiles that we strayed from distinct town and country living. The wealthy may have had homes in both locations, but the average family lived near employment . There were no school buses (or video games because kids had to hike through miles of rain and snow to get to school each day) and gasoline stations were pretty rare at the turn of the that other century. Which all leads me to wonder….

What might be the top priority for the home of the future when gas prices reach $6, $8, $10 or even $12 per gallon?

How about the radical choice of living walking-close to employment, shopping and schools? Or living near a bus stop or transit center where one can commute for work, school and fun?

I am eying real estate differently these days–and am coming around to my ancestor’s way of thinking. Location trumps views, walkable sidewalks trump big back yards and a bicycle pump beats a gas pump–at least for kids who drive or are driven to school (ever seen the long lines of mini vans idling outside our schools at arrival and departure times–or high school parking lots?). Might a more urban lifestyle offer some solutions that would allow for a saner lifestyle?

I am also wondering if Carol Lloyd’s prediction of suburbs turning into Slumburbia might also come true–sooner rather than later due to rising fuel costs? In her SF Gate article, she notes, “In Europe, where the cities never died, the suburbs have long been the homes of last resort for the poor and the marginalized.” This is already occurring in and around sprawling urban centers like Houston, where home prices in and close to downtown Houston are selling at a premium, while homes in once-affluent suburbs are selling at prices far below replacement costs. It is a scenario being repeated all over the country, with slightly different configurations along the coasts.

In San Diego County, where I live and work, we are anecdotally seeing a surge of buyers seeking to live within walking distance of restaurants, theaters, dry cleaners and food or farmer’s markets. They no longer want to battle freeway gridlock, and would happily trade their road warrior status for the peace of riding a train to work. They are also seeking more open communities, where neighbors stroll by and greet one another, where not so much of life is lived in and for cars–or behind mortgaged garage doors.

I am so, so tempted to join them and not worry about gas prices again….

The post A Radical Proposition for Real Estate and Gas Prices appeared first on Luxury Home Digest.

What kinds of rooms might go into a luxury home? The possibilities are as varied as lifestyles.

I recall a luxurious mansion in Houston’s lovely River Oaks that had, in addition to every other conceivable room, a luggage room. It was a sensible space that accommodated the traveling owner’s large collection of leather suitcases, trunks and garment bags. When a trip was planned, the butler would retrieve the appropriate luggage and assist with the packing.

When expense and space are not restrictive issues, the floor plan of a luxury home can truly reflect the lifestyle of its owner.

Some of the more common possibilities might include:

• A large morning room off the kitchen for casual family dining. This is simply an expansion of the traditional breakfast room.
• Large formal dining rooms still prevail and are a must for indoor formal entertaining.
• A butler’s pantry between the kitchen and formal dining area that may be equipped with china cabinets, lined flatware drawers, crystal storage and wine refrigeration.
• An oversized and well-organized pantry in the kitchen that has room for a freezer.
• A master closet that invites relaxation.
• A temperature-controlled wine room that might even accommodate a tasting table or two.
• A game room that might hold a pool table, arcade games and even a karaoke stage.
• A high-ceilinged music room for the grand piano and other musical enjoyment.
• Forget strip closets. Luxury homes demand oversized and highly organized walk-in dressing rooms.
• Personal gyms are a common requirement in luxury homes. They are typically located off the master bedroom or near outdoor amenities.
• The plush home theater with cushy seats, popcorn machine and huge screen have become very popular.
• A home library offers a quiet room for books, reading and reflection.
• A conservatory provides a glass-walled transition between the luxury residence and its natural surroundings–and is a lovely spot for casual entertaining.
• A sunroom may be located anywhere in the home, but provides a casual place to enjoy sunshine and views.
• Home offices are often a requirement for busy owners and their staff.
• Outdoor living rooms and areas are treasured in warmer climates. See photo above.
• A large laundry and project room may have multiple washers and dryers, a steam closet, and cabinets for project storage. It should also have space for a large, multi-purpose table.
• A snoring room off the master bedroom. Enough said….

Common to luxury homes in San Diego are loggias and fully-equipped outdoor kitchens, which allow for year round outdoor dining and entertaining. It is also not uncommon to find poolside cabanas, dressing rooms and steam rooms. In mountain communities, luxury chalets will likely have mud rooms and ski lockers.

As suggested earlier, it is the lifestyle and taste of the affluent that will ultimately determine the configuration of their luxury homes.

The post Rooms and More Rooms in Luxury Homes appeared first on Luxury Home Digest.

by Roberta Murphy

Say what?

In 2004, San Diego real estate was ranked as the least affordable in the United States. Thousands of San Diegans, priced out of the coastal market, moved to Temecula, Murietta and other outlying and inland areas where homes were more affordable.

These days, according to the National Association of Homebuilders, San Diego has slipped to 16th place in California, with an improved 10.1 percent affordability for median income earners. That is just a whisper above San Bernardino-Riverside and Ontario Counties 10.2 percent.

This is phenomenal news, because San Bernardino County has traditionally been home to some of the most affordable real estate in California and few might have imagined that coastal San Diego would approach the Inland Empires affordability levels.

In searching for a market bottom, San Diego has now tied with Detroit in ranking third in the nation for dropping home prices, sharing a staggering 9.6 percent drop in pricing during the past year. This is according to a recent Standard & Poor/Case-Schiller study just reported in the San Diego Union Tribune.

All of this might lead one to think that the San Diego economy is in the same tank as Detroit, or that it has lost its perfect balmy climate and turned into a windy high desert.

But that just aint so.

And I dont know of any period in recent history when San Diego real estate has been compared to Detroits.

By my calculations, something is maladjusted when San Diego real estate has nearly the same affordability level as that in San Bernardino or Riverside Counties and has the same drop in home prices as depressed Detroit. This occurs despite San Diegos strong economy, low unemployment, and being a premier destination for tourists and affluent international retirees.

Bubble bloggers and others may take aim at me for this prediction, but I believe the bottom of the San Diego real estate market is near.

After all, when San Diego gets thrown into the same tub with Detroit and San Bernardino, we just might have a perfect example of the baby being thrown out with the bathwater.

The post San Diego and Detroit Make Strange Bedfellows appeared first on Luxury Home Digest.

Sometimes you walk into a home, sense both timeless soul and serenity–and can’t help but smile.

We recently listed such an estate in the beautiful hills of Vista, California. Its current and original owners are a spirited and beautiful international opera singer and her dashing husband, a retired professor of art. With loving attention to detail, it seems nothing was missed in the completion of this luxurious 2003 custom home.

When I first walked into the home, I was struck by the use of old and rich colors, antique woods, the graceful wood and iron staircase, and light classical music that filled the rooms.

At first glance, I knew this home would be exceptional.

The gated hilltop setting offers both ocean and mountain views–as well as quiet privacy. The home’s flexible 4000+ sf floorplan has volume ceilings that carry classical music well, a grand foyer, large living and music rooms, multiple dining areas, and a kitchen Alice Waters might envy.

Upstairs, we discover a substantial master suite with an adjoining study, large dressing room and bath, spa tub, and large, organized closets. A romantic trellised balcony overlooks both the mountains and ocean horizon, while the two-way fireplace warms both the bedroom and bath areas. Three other large bedrooms and an open bridge complete the upstairs.

The bones of a home may be magnificent, but inspiring beauty comes from surfaces, windows, doors, lighting, amenities, color and textures. I share clients’ enthusiasm when all of these elements come together.

This timeless home lacks nothing and blends all elements well. It has rich Tuscan colors, art niches and unfluted columns. It beautifully blends the use of stone, iron and woods, and offers contemporary conveniences such as central vacuum and a discreet kitchen vent that captures broom sweepings.

Outdoors is a large covered patio, lawn, gardens and small acreage for hobbies, horses or arborists.

I have often thought that equestrian homeowners in Poway, Rancho Santa Fe and Fallbrook who were displaced by the recent San Diego fires might find this timeless property of interest.

Located on highly-desired Elevado Street in Vista, this estate is reasonably offered at $1.5 million by owners who are anxious to retire in Crete.

We intend to help them accomplish this dream–and look forward to having terrific clients in such a wonderful corner of the world.

The post The Timeless Luxury Home in Vista, CA appeared first on Luxury Home Digest.

by Roberta Murphy

Gossip: It is a loaded word that alternately intrigues and informs, delights and dismays.

Last weeks blog on real estate gossip, for example, raised the hackles of a few agents and the interest (and some concurrence) of others. As for me, Ive enjoyed the diversion and have paid much closer attention to the frequency with which it occurs in my own professional life as a San Diego real estate broker.

The results are interesting. In the last few days, I have heard whispers of:

1) A pocket listing for a prime rental. It won’t hit the San Diego MLS for several months.

2) Several murmers about what sellers of certain properties will really accept (but wont allow in the MLS).

3) What a particular lender will likely accept on a particular prime short sale in Carlsbad, Ca (yikes!).

4) Who recently purchased a San Diego coastal golf frontage home, and will likely take less than what they paid for that home in order to get the San Diego beach home they really want (source? a neighbor).

5)What the owners of a premier luxury oceanfront home in North San Diego County will actually accept for their property.

As a former news reporter, I have few problems about asking folks both probing and casual questions. Over the years, I also have learned the importance of:

1) Ferociously guarding our sources of information when necessary.
2) Protecting the privacy of our real estate clients.
3) Never making personal attacks.
4) Never writing, and seldom speaking, in anger.
5) Adhering to my own strict code of ethics, as well as that of the National Association of Realtors.

And finally, a note to those who think I advocate the withholding of information from the MLS to the detriment of my clients: That is never the case. No agent has the authority to post a pocket listing to the MLS. A signed agreement is needed to do so. Nor would I ever advise an agent (and certainly not myself) to withhold critical information from the MLS or from a buyer/seller. As agents, we always have the obligation to disclose pertinent information to and on behalf of our clients. But I cant tell you the number of times I have had clients ask me not to publicize their divorce, pending move, financial difficulties, or illnesses in the MLS. And prior to quietly sharing any of this information with other agents, I always get permission from our client to do so. To do otherwise would be an absolute breach of trust.

Even so, there is always the natural flow of chatter, discussion (and gossip!!!) that occur among real estate professionals day in and day out. It is no different from attorneys, physicians or stock brokers who work together in their respective professions. There is an ongoing and daily exchange of both important and trivial information being passed from one to another to another. And if I were a buyer or seller of real estate, I would certainly want to deal with an agent who was well-connected with his or her professional peers.

Finally, I have yet to meet a client whose ears didnt perk up at the mention of real estate gossip.

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