Stavrosgroup

Sensory Gardens: An Immersive and Inspiring Luxury Home Amenity

What is a Sensory Garden?

Do you ever feel like you need to get away from it all? To take a break from the constant noise and stimulation of modern life? If so, a sensory garden may be just what you need. A sensory garden is an outdoor area designed to appeal to our primary senses of touch, sounds, sight, and smell. These gardens encourage immersive exploration, interaction, and engagement. In this blog post, we will explore the different elements to include in your own sensory garden.

Building Your Sensory Garden

Scent

One of the most important elements in a sensory garden is scent. There is something truly luxurious about soothing and simple aromas. They are the kind of scents that beckon you closer, inviting you to take a deep breath and savor their subtleties. These are not the overpowering fragrances that announce their presence from across the room; instead, they gently lure you in, whispering their secrets just for you. Whether it’s the lightest hint of jasmine or the barest trace of vanilla, delicate aromas have a way of making you feel special and cherished. And that is what makes them so alluring. Consider adding plants like lavender, rosemary, or jasmine to your garden. You can also add scented candles or essential oils to create a pleasing aroma.

Touch

In addition to incorporating fragrant flowers and colorful foliage, it is also important to include plants with different textures. The different textures will add another layer of interest for both sight and touch. Fuzzy leaves, prickly stems, and soft petals are all excellent choices. You can also use rocks, gravel, or mulch to create additional texture contrast. By carefully selecting plants with a variety of textures, you can create a truly unique and inviting garden that will be enjoyed for years to come.

Sound

The sound of rustling leaves, running water, buzzing insects, and the whispering of grasses in the wind can all be very soothing and calming. If you want to add a touch of elegance to your garden, consider adding a water feature or a wind chime. Water features can range from simple bird baths to elaborate fountains, and they can really help to create a relaxing ambiance. Wind chimes can also add a lovely musical element to your garden, and they come in a wide variety of styles to suit any taste. When looking to add a little bit of extra relaxation to your garden, keep the power of sound in mind.

Sight

The beauty of a garden is often in the eye of the beholder. But there are certain elements that can be used to create a garden that is pleasing to the senses. Adding pops of color is one way to add visual interest, and using plants with interesting shapes can add another dimension. Incorporating objects of different sizes and textures can also create a sense of visual indulgence and sophistication. By considering all of these elements, you can create a garden that is truly a feast for the eyes.

Improve Your Home and Work-From-Home Life

A sensory garden is a boon to any work-from-home creative. By appealing to our senses, these gardens encourage us to slow down and appreciate the world around us. The addition of a few scented blooms can boost productivity and foster innovation, while the sound of a babbling fountain can help to calm and focus the mind. So take some time to create your own sensory garden today. With a little planning, you can easily turn your outdoor space into an oasis of serenity and creativity. Add a few potted plants to start, then experiment with different fragrances, textures, and colors until you find the perfect combination for you. Soon you’ll be enjoying the benefits of your very own sensory garden.

Andy Stavros

DRE #: 01408840

Phone: 949.290.0139

Email: andy.stavros@elliman.com

Address The Stavros Group

12 Corporate Plaza #250, Newport Beach, CA 92660

Most Amazing Homes | 56 N La Senda

Andy is joined by Jennifer Farrell, host of Most Amazing Homes, to show off the breathtaking, bluff-top property at 56 N La Senda.

JENNIFER FARRELL: We’re in Laguna Beach, California in a newly constructed modern masterpiece, where you’re not just looking at the ocean you’re in it. Let’s take a look!

JENNIFER FARRELL: So we’re here in Laguna Beach and we are at an ‘in the ocean’ home – tell me about this home.

ANDY STAVROS: So the house sits in the Three Arch Bay private gated community of just under 500 homes of brand new construction. The architect was Mark Singer – very well known here in Laguna Beach. [This home] was his last design unfortunately before he passed, but again just a warm contemporary feel that you’ll see once we get inside.

JENNIFER FARREL: This is a multi-level home overlooking/overhanging the ocean… How many bedrooms and bathrooms, and how big is this house?

ANDY STAVROS: The house is just over 5,000 square feet with five bedrooms and seven bathrooms, three levels, an elevator that takes you to all levels including the master… It really is one of those turnkey, lock and go homes.

JENNIFER FARRELL: Well I can feel the ocean breeze behind me, I’m dying to see the ocean view. Lead away!

ANDY STAVROS: All right, let’s go.

JENNIFER FARREL: Wow, we’re not looking at the ocean we’re standing over the ocean. This is unbelievable, it’s a view that I think few people have ever seen.

ANDY STAVROS: Yeah, it feels like you’re on a boat when you walk in… This is the time in a tour where I just stop talking, because everybody’s gravitated towards the view on the deck. I just allow people to take that all in, because it is breathtaking once you walk into this room.

JENNIFER FARREL: You know you’re right, it is like being on a yacht. Even the railings for the balconies are a horizontal metal, so it actually feels like we’re on an ocean liner. I love all of the contemporary beautiful lines here – it’s a very clean color palette, very open space, without crazy high ceilings. Because the ceilings are not overwhelmingly high, you still get a feeling of coziness and intimacy in this house.

ANDY STAVROS: Right you do get the coziness. Because of height restrictions and view obstruction, you occasionally have to compromise high ceilings, but you still get a sense of openness to the house with the colors, the design and the finishes throughout.

JENNIFER FARREL: I happen to love this portico that’s in the middle of the room. It’s such an interesting way to create an indoor veranda space, so you feel like you’re outside in an outdoor covered patio area, and yet you’re right in the middle of the house.

ANDY STAVROS: Right absolutely, and you’ll see a blend of the industrial look with the beams exposed but painted. I’m sure you can tell this house sits on bedrock, so much steel, it’s not going anywhere, and here’s just evidence to prove that it’s a solid house with a solid foundation that was just recently built.

JENNIFER FARREL: Well this home may not be going anywhere, but we are going somewhere – I’m dying to go in that kitchen.

ANDY STAVROS: All right, let’s go.

JENNIFER FARREL: Although I would love to say I’d be doing a lot of dishes here, I may just stand here staring out at the view.

ANDY STAVROS: There is a little bit of a distraction. You might burn your food as you’re cooking here, because you just want to gaze outside.

JENNIFER FARREL: That is true, although there’s a lot to see in this kitchen itself. These counter tops are actually porcelain slabs, which means they’re as durable as a tile, but have the gorgeous look of marble. I also think that the surrounding caesar stone behind us makes a great counterbalance. The materials here are really nicely laid out.

ANDY STAVROS: Right, you’ll see the beautiful contrast with the wood grade finishes, the vertically opening white cabinetry, all the high-end appliances – gagging out melee, sub-zero refrigerators, etc. It’s a very functional chef’s kitchen.

JENNIFER FARREL: We have glass surrounding us. We have beautiful artistic touches, like that porcelain faux marble slab again and unique lighting which I’ve never seen.

ANDY STAVROS: Yeah, throughout the house the light fixtures are all unique, but complement each other. You can also see some of the same materials from the kitchen used here on the fireplace.

JENNIFER FARREL: Well this one’s definitely unique, because you have this frameless glass wet room that becomes part of the bedroom. It’s a very resort feel here.

ANDY STAVROS: Right, it gives you an open feel and who wouldn’t want to wake up every morning staring up the coast – from Thousand Steps Beach all the way down to Palos Verdes, Catalina Island, etc.

JENNIFER FARREL: The view here could not be more spectacular. I’d love to see the outdoor space.

ANDY STAVROS: You get 270 degree views in this home, with every room positioned differently.

JENNIFER FARREL: I can’t believe we have a yard here!

ANDY STAVROS: Grass on the bluff front is rare to find! Today you can hear the waves crashing against the rocks. Out here there are multiple entertainment spaces, if you didn’t have enough upstairs; a spa, barbecue area, wet bar, more cooking space, etc. it’s a great level to be on.

ANDY STAVROS: In total the home is 5,041 square feet – five bedrooms, seven bathrooms, elevator, three-car garage, laundry on the ground level… It’s a really fantastic home for somebody that’s looking for a house that’s ready to go with no blood, sweat, or tears. Zero maintenance with a 15 year design and build process, priced just under 20 million.

JENNIFER FARREL: In this area that’s actually a deal.

ANDY STAVROS: We also dropped the price five million dollars, so it’s on discount.

JENNIFER FARREL: This is an amazing home and an unbelievable once in a lifetime property. Thank you so much, Andy.

If are considering buying or selling a home in the Orange County area, connect with us. See how our local, experienced and well-connected team can exceed your expectations. Let’s talk strategy!

How to Get Your House Ready for Renters

So you’ve decided to rent out your home, but have you given much thought to all the details? Perhaps you’ve rented it before and you’re looking at securing good, long-term tenants this time. Or maybe you’re here because it’s your first time, and you have questions.

It’s important that you properly prepare your house for rental, so that the transition is smooth and the tenancy is too. The last thing you want is to find subpar renters that don’t take care of your home, or a lack of willing tenants at the price you want due to broken appliances or an unwelcoming environment.

Check out this guide with easy steps on how to get your house ready to rent.

Declutter and Remove Valuables

If you’re renting out a house that you or someone else has been living in, you need to start by decluttering and removing personal items and valuables. Your potential renters want a space that is clean and functional, that doesn’t feel like they’re staying in someone else’s house.

Remove any knick knacks that don’t add aesthetic value, all clothing items, or any other personal accoutrements. Avoid shoving these items in a locked cupboard — your tenants will want storage, too! Move all the stuff you’re clearing out to your new home or a storage unit, or put them up for sale or donation to get them off your hands.

Decide What Appliances and Furniture Are Staying

You need to make it clear to your renters what is included in the rental agreement and what isn’t. Some homeowners rent out their homes fully-equipped with furnishings in the living areas and bedrooms, and crockery and cutlery in the cupboards. Others rent their homes completely unfurnished.

Right away, make a list of what is staying and what is going, so you can tell prospective tenants. Of course, tastes may vary, so be prepared for renters who might ask you to remove certain furniture items, re-paint walls, or make other unique requests. You may decide to oblige their requests, or not — either way, it helps to have a plan.

When you show your property to prospective tenants, let them know the specifics like whether you are taking the washing machine, or if the unit doesn’t come with a fridge. This can sometimes be a ‘make or break’ factor for people, and it will save everyone time and effort by being clear up-front.

Make Repairs and Replacements

To properly prepare your property for the rental market, you need to ensure that everything is in good, working condition. Check for small things such as faulty outlets or blown light bulbs, as well as larger repairs such as the AC unit or leaks in your ceiling.

Before you place it on the rental market, perform an extensive check of your house (looking everything over thoroughly!) and make a written list of all the necessary repairs and replacements. You should start this list early on, so that you can add to it as you notice things, and so you have time to perform the needed updates.

It’s advised to schedule vendors and contractors for repairs as soon as possible. The last thing you want is to be paying higher fees for last-minute, “emergency” repairs just days before your new tenant moves in.

Normal wear and tear is expected when you rent out a house, but completing the essential maintenance tasks will be important in securing the right renters. Keeping everything in working condition and looking nice will let you charge higher rental fees and attract and keep your tenants for longer.

Reference this quick checklist when inspecting for repairs.

You should check:

– HVAC systems

– leaky drains, pipes, or water damage

– clogs, blockages and all the plumbing

– appliances like the water heater and kitchen equipment

– windows and window screens

– hardware such as doorknobs, towel racks, etc

– Lightbulbs, switches and outlets

This is also a great opportunity to make any renovations or remodels in your home to increase the rental value!

Have Carpets Professionally Cleaned

Carpets are soft and comfy, but they also trap dust and other unwanted grime. Before you market your rental property, make sure its carpets are all freshly cleaned. If you had the carpets cleaned fairly recently, then a simple vacuum or shampoo should do the job.

However, a professional deep carpet clean is recommended when you’re renting a house that has been occupied for a while. If you or your previous tenants owned a pet, then a deep cleaning is essential to remove trapped odors, fur, dander, and pests.

Get Keys Made or Rekey the Apartment

If this is your first time renting out the house and you are the only person that has lived in it, then there is no reason to change the locks or rekey the apartment.

In this case, simply go to the locksmith and get a few sets of keys made. Your renter will expect at least two sets of keys. However, if you’re renting out a big home, or to a family or group of people, you’ll need more so that everyone has access.

You will also need to keep a couple sets of keys yourself, for emergencies, repairs, and routine inspections.

If you had previous tenants, it’s advised to rekey locks once a tenant moves out. The only way you can assure your new tenants that their assets are safe and secure is by rekeying the apartment, as you cannot be sure that your old tenants did not make copies of the keys.

Clean the Property Interior and Exterior

Curb appeal and outdoor living space both make a big difference in attracting tenants. It’s important that the building exterior and the surrounding area outside are clean and neat. This includes your garden and the street in front of your house. You don’t want potential renters to get a bad first impression from broken furniture outside, unkempt landscaping, or trash strewn on the road.

Once you’re sure that the exterior is looking sparkly and clean, it’s time to deal with the interior. Check all the walls for scuff marks and give them a proper scrub. Assess whether they need to be repainted. A fresh coat of paint goes a long way in making the home feel clean and new, so we highly advise keeping the right paint on-hand for touching up your walls.

Also ensure the windows are clean, appliances are clean, as well as all the little nooks and crannies in cupboards, under shelves, in corners and crevasses, and so on.

Cleaning is critical when you’re renting out a house. Once you’ve cleaned it once, double-check and clean it again! Good tenants want to move into clean homes, and above all you’re looking for good tenants. If you have the time to do it yourself, that’s fine, but we often recommend hiring a professional cleaning service to spare yourself the considerable effort, and to make sure the job is done perfectly.

Is Your Property Ready for Renters?

Are you prepared and ready to rent your home after reading these steps? It’s a fairly straightforward process, as long as you ensure that everything is up to standard, clean, and working properly.

Perhaps you’re interested in jumping into the rental game and considering buying a house to rent out. We are here to assist you with finding the perfect rental property with great investment value! Get in touch with us today to start the no-pressure conversation.

What’s in Store for 2021 ✨ Local Updates & Luxury Listings ✨ Stavros Group January Newsletter

What's in Store for 2021? ✨ Local Updates & Luxury Listings ✨ Stavros Group January Newsletter

JANUARY 2021

Hi Friends,

We’ve made our resolutions, wished upon a star, hoped for the best, and dived headlong into a new year.

After the historic interruption in real estate sales last March, then the historic market comeback, we expect a bustling selling season starting… well, right now. All hands are on deck!

As for 2020 real estate trends, many are bound to continue into 2021: The quest for the perfect home office, the desire for space (both inside and out), the better-than-digital Zoom room decor. It’s likely that these evolving buyer appetites will also remain empowered by the crazy low mortgage rates that helped drive last year’s sales.

No one has a crystal ball — us included — but the stars point to a strong year ahead for Orange County real estate, full of opportunity for both buyers and sellers.

Are you excited about the new year?

If you or someone you know are planning your next steps to buy, sell or invest in a property, let’s start talking strategy now! We’re happy to help you and anyone you send our way.

Warmly,
Andy Stavros

FROM THE BLOG

Stay on top of your home’s maintenance with this full year schedule

View Blog
Stavros Group

IN THE NEWS

How rollout of COVID-19 vaccines could affect the US housing market

View Article
Realtor.com

8 ways the Biden tax plan could affect your real estate business

View Article
Forbes.com

FEATURED LISTINGS

1612 Highland Dr
Newport Beach

5 BD | 4.5 BA | 4,120 SQ FT
Offered at $4,275,000

COMPLETION IN FEBRUARY 2021
PROPERTY TOURS TO BEGIN JANUARY 24, 2021

4601 Tremont Ln
Corona Del Mar

5 BD | 7 BA | 8,401 SQ FT
Offered at $13,995,000

3312 Marcus Ave
Newport Beach

3 BD | 4 BA | 2,756 SQ FT
Offered at $3,695,000

RECENT SUCCESS

30 Tide Watch
Newport Coast

5 BD | 6 BA | 6,204 SQ FT
Offered at $9,995,000
Represented Buyer

1639 Eleanor Ln
Laguna Beach

Over 12,000 sq ft lot
Sold for $3,150,000

YOURS COULD BE NEXT!

Copyright © 2020 Stavros Group, All rights reserved.
12 Corporate Plaza #250, Newport Beach, CA 92660
Douglas Elliman Real Estate

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Orange County Real Estate Newsletter: September 2020

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SEPTEMBER 2020

Hi friends,

Maybe more than anything else, your home determines your quality of life.

It’s what makes our job as real estate agents so rewarding: every closed sale marks the start of a bright, new chapter for our clients.

It’s also why, during these months of home-bound living, Google searches for “home improvement” have shot through the roof, and why Home Depot’s stock has risen 30% year-to-date.

With mortgage rates at historic lows, Orange County homebuyers are jumping at the chance to upgrade their living arrangements and improve their quality of life.

Coupled with a low supply of listing inventory, this increase in buyer demand has coaxed Orange County closing prices to new heights. We expect this trend to continue into a busy fall season.

Maybe you’re just looking for an incremental upgrade to your lifestyle. Given the smoky skies, we recommend investing in an air purifier and changing your HVAC filters.

If you feel it’s time for a bigger change, we’re happy to help! It’s a unique time with lots of opportunity for both home sellers and buyers. Let us know your real estate goals, and let’s talk strategy.

Talk soon,
Marilie Bunce
Stavros Group

FROM THE BLOG

Mortgage rates are at a record low — what this means for you

View Blog
Stavros Group

IN THE NEWS

11 tips to win a bidding war on a house

View Article
Redfin

The future of residential real real: a house in the suburbs

View Article
Forbes

RECENT SUCCESS

989 Cliff Dr
Laguna Beach

5 BD | 5 BA | 4,041 SQ FT
Offered at $13,995,000

4601 Tremont Ln
Corona Del Mar

5 BD | 7 BA | 8,401 SQ FT
Offered at $13,995,000

2430 Monaco Dr
Laguna Beach

4 BD | 5 BA | 4,158 SQ FT
Offered at $8,350,000

5 Entonar Rd
Rancho Mission Viejo

4 BD | 3.5 BA | 3,255 SQ FT
Sold for $1,325,000

FEATURED LISTINGS

2675 Riviera Dr
Laguna Beach

6 BD | 9 BA | 13,000 SQ FT
Offered at $60,000,000

616 Bolsana Dr
Laguna Beach

4 BD | 3 BA | 4,263 SQ FT
Offered at $2,895,000

1639 Eleanor Ln
Laguna Beach

Over 12,000 sq ft lot
Reduced to $3,495,000

32 N La Senda Dr
Laguna Beach

4 BD | 5.5 BA | 5,144 SQ FT
Offered at $17,995,000

2442 S Coast Hwy
Laguna Beach

16 BD | 14 BA | 8,991 SQ FT
Offered at $8,985,000

YOURS COULD BE NEXT!

Orange County Real Estate Newsletter: August 2020

Hi friends,

Amid a sweltering heat wave, the Orange County housing market is red-hot too. Much like your valiant AC unit, home sellers and their agents are working overtime to meet a blaze of unforseen demand.

Last month, Orange County listings spent an average of 16 days on market. That’s a 36% decrease from July 2019. Sales prices are higher than ever as supply struggles to keep pace, and OC homeowners find themselves in an enviable position.

Today’s fast-paced market can be attributed to a few things. Record-low mortgage rates have empowered buyers, and social distancing has shifted their priorities. Pent-up demand is being released. Plus, real estate remains a relatively safe bet in a time of economic uncertainty.

Buyers want more space to cook, to school, to play and to relax. They want views of nature without leaving the house. Our newest listing certainly fits the bill.

Meet 2675 Riviera Drive.

A 13,000 SF estate in the ultra-exclusive Abalone Point (seen above) in Laguna Beach’s guard-gated Irvine Cove enclave, featuring unmatched views spanning nearly 300°.
See below for more info.

Whether you are in the market to sell or to buy, for an ultra-luxury oceanfront estate or a cozy suburban retreat, there is opportunity for everyone. But you have to be fast to make it happen.

If you’re interested in making a change to your living arrangements, or if you have a question about the market, please don’t hesitate to reach out. We’re happy to help.

Talk soon,
Andy Stavros

FROM THE BLOG

Why real estate negotiations really matter

View Blog
Stavros Group

IN THE NEWS

Luxury home prices bounce back, rising 1.2% in early summer

View Article
Redfin

Mortgages can protect you against future hyperinflation

View Article
Forbes

FEATURED LISTINGS

2675 Riviera Dr
Laguna Beach

6 BD | 9 BA | 13,000 SQ FT
Offered at $60,000,000

4601 Tremont Ln
Corona Del Mar

5 BD | 7 BA | 8,401 SQ FT
Offered at $13,995,000

Video Tour

989 Cliff Dr
Laguna Beach

5 BD | 5 BA | 4,041 SQ FT
Offered at $13,995,000

Video Tour

616 Bolsana Dr
Laguna Beach

4 BD | 3 BA | 4,263 SQ FT
Offered at $2,895,000

1639 Eleanor Ln
Laguna Beach

Over 12,000 sq ft lot
Reduced to $3,495,000

32 N La Senda Dr
Laguna Beach

4 BD | 5.5 BA | 5,144 SQ FT
Offered at $17,995,000

2442 S Coast Hwy
Laguna Beach

16 BD | 14 BA | 8,991 SQ FT
Offered at $8,985,000

3312 Marcus Ave
Newport Beach

3 BD | 3.5 BA | 3,000 SQ FT
Offered at $3,495,000

RECENT SUCCESS

2430 Monaco Dr
Laguna Beach

4 BD | 5 BA | 4,158 SQ FT
Offered at $8,350,000

5 Entonar Rd
Rancho Mission Viejo

4 BD | 3.5 BA | 3,255 SQ FT
Sold for $1,325,000

YOURS COULD BE NEXT!

Mastering Real Estate Negotiations

If you want to work with the top Orange County real estate agent, get the best price and favorable terms, and feel great about the outcome when it’s done, you need an expert negotiator.

Real Estate Negotiations Matter

At its core, a real estate transaction is a push and pull between buyer and seller. Buyers want the best deal. Sellers do too. Both sides of a transaction are looking for every edge to maximize their investment.

For home buyers who finance their home purchase with a mortgage, the closing price is further multiplied over the lifetime of their loan. On the other side, sellers want to feel like they are getting the most money possible when they part with their property. They may have an emotional attachment to their home, on top of their financial incentive. Decisions can be emotional and not always based on fact, logic and reason. It can seem like a miracle that any deal comes together!

For the best results, you need an expert negotiator.

Of course, a home is about more than money. A home buyer might love a home so much that they will pay just about anything for it. A home seller might want or need to sell badly enough that price is a secondary concern. But no matter what, you probably do not want to leave money on the table. You probably want to feel that you did the best you could.

You need an expert negotiator.

Negotiations provide the greatest opportunity for improving the results of your real estate sale. There are many steps involved in listing a home, and each one is valuable. Our team at The Stavros Group is proud to bring decades of experience to our clients, helping them win at every stage. But while things like strategic repairs, improvements, staging, and marketing are important, negotiations create value seemingly out of thin air through skill and tact alone.

Whether your listing receives one or five or fifty offers, you want to make sure you obtain the full market value for the home. It can seem like the results do not vary agent to agent. If you look at marketing plans, you might get the sense that we all do the same thing. Make no mistake, there is a difference.

Would it surprise you to know that a listing agent who is a skilled negotiator can increase the sales price anywhere from 1–10% or more from the highest offer that was originally submitted?

Real Estate Negotiations By the Numbers

Let’s say you put your home on the market. When a good offer comes in, does it make sense to accept the offer or go back for more?

We start with the listing price. Next is the initial highest offer, which the buyer originally submitted. That initial offer is influenced by many factors, including list price strategy, staging, marketing, overall market conditions, and initial negotiations between the listing agent and the buyer or their agent. After the initial offer, we negotiate further to arrive at the final price.

Through precise, strategic negotiations, we are able to boost the selling price by thousands of dollars, even with only one or two offers on the table. Our listings frequently close at a substantially higher price than the initial highest offer.

You really do need an expert negotiator.

Best Orange County Listing Agents | Real Estate Agent Negotiator

While most media depicts the real estate process as one big house hunt (and who doesn’t like to watch couples argue over cabinetry?), it often omits the critical steps that happen after buyers submit an offer.

Part of an agent’s job is matchmaking, finding buyers a home or finding a home a buyer. The other part of the job is what happens next. What separates the best Orange County real estate agents from the rest is the ability to create additional value for the client.

With a skilled negotiator on your side, you’ll come to a smooth resolution with more money in your pocket. Without a skilled negotiator, you’ll leave money on the table (if a deal is made at all).

You need an expert negotiator.

If you are thinking of buying or selling a home in Orange County, please don’t hesitate to reach out. Contact top Orange County real estate listing agents The Stavros Group.

Orange County Real Estate Newsletter: July 2020

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JULY 2020

Hi friends,

Real estate has long been considered a relatively safe investment. Amidst our country’s worst economic crisis in decades, that’s more true than ever.

When California instituted stay-at-home orders in March, uncertainty ruled the day. A deluge of sellers pulled their active listings off the market. But unlike the Balboa Peninsula after Friday’s tidal surge, local homeowners have managed to stay afloat.

In fact, real estate has emerged as one of the few resilient sectors of our distressed economy. Despite a steep decline in new listings and pending sales this March, the median sale price actually rose.

Since then, more buyers and sellers have come out of the woodwork to strike a deal. Pending home sales in SoCal steadily rose every week in May and June. Nationally, pending home sales rose over 44% in May alone.

We are still not out of the woods. Sales volume is up, but it has a ways to go before reaching pre-pandemic levels.

With that in mind, and with the benefit of a few months of hindsight, here’s what we expect to come:

Record-low mortgage rates will continue to drive demand.
Wary sellers and the existing housing shortage will continue to limit supply.
Therefore, home sale prices will likely continue to rise.

In short, it’s not a bad time to be in the market to buy or sell a home! We are proud to provide the same five-star service as ever to our clients while managing health and safety concerns. If you feel it’s time for a change, or if you just have questions about the market, please don’t hesitate to reach out.

Talk soon,
Andy Stavros

FROM THE BLOG

10 mistakes homeowners should avoid when selling their house

View Blog
Stavros Group

LOCAL UPDATES

6 reasons why this is actually the best time in years to sell a house

View Article
Realtor.com

How soon will fixed mortgage rates fall below 2%?

View Article
OC Register

FEATURED LISTINGS

4601 Tremont Ln
Corona Del Mar

5 BD | 7 BA | 8,401 SQ FT
Offered at $14,995,000

Video Tour

989 Cliff Dr
Laguna Beach

5 BD | 5 BA | 4,041 SQ FT
Offered at $14,250,000

Video Tour

616 Bolsana Dr
Laguna Beach

4 BD | 3 BA | 4,263 SQ FT
Offered at $2,995,000

1639 Eleanor Ln
Laguna Beach

Over 12,000 sq ft lot
Offered at $3,695,000

32 N La Senda Dr
Laguna Beach

4 BD | 5.5 BA | 5,144 SQ FT
Offered at $17,995,000

2442 S Coast Hwy
Laguna Beach

16 BD | 14 BA | 8,991 SQ FT
Offered at $8,985,000

3312 Marcus Ave
Newport Beach

3 BD | 3.5 BA | 3,000 SQ FT
Offered at $3,495,000

700 Malabar Dr
Corona Del Mar

Approved Plans | Ready to Build
Offered at $3,495,000

5 Entonar Rd
Rancho Mission Viejo

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Orange County New Home Sales and Construction Bounce Back

It’s easy to assume that every part of the economy has been badly harmed by the coronavirus pandemic, but that is not the case for Orange County real estate — particularly in real estate sales, services, and new home construction. While the Orange County housing market did briefly stumble in the early days of California’s stay-at-home orders, real estate construction and sales were quick to find their footing again. Today, Orange County homes are flying off the proverbial shelves at record pace.

Uncertainty, Clarity and Adaptation

As a luxury real estate agent in coastal Orange County, I had a front row seat to the widespread uncertainty that precipitated the brief housing slump. On March 19th, California’s Governor, Gavin Newsom, issued stay-at-home orders statewide. The grim portents of COVID-19 hung thick in the air here in Newport Beach, Laguna Beach and Corona Del Mar, souring the cool ocean breeze. It took nearly two weeks to regain some clarity, when real estate and related industries were officially classified as an essential service. In the meantime, a wave of wary home sellers pulled their listings off the market. The usual ways of doing business were upended. We began to learn to adapt.

Just like with existing homes, there was early disarray in new home sales and construction. With future business up in the air, new home starts and permits fell sharply nationwide in April. However, once the dust settled, builders got right back to work. By May, the new homes market had recovered significantly. It may sound crazy, but the proof is in the numbers.

A Quick Recovery for New Home Sales and Starts

According to data from the Census Bureau and NAR, new home sales have been surprisingly resilient since the start of the pandemic. After just two months of slowing, sales of new homes began to pick up in May across all US regions except the Midwest. In our Western Region, new home sales rebounded a whopping 29% from April to May, and were even up 31% from May 2019.

New home starts — builders building homes to sell — have rallied as well. After a sharp decline across the Western Region, new home starts rocketed back from 180,000 in April to around 300,000 in both May and June. Nationally, the Department of Commerce reported a 17% increase in new housing starts from May to June. Builders are building, and buyers are buying.

UPDATE: By August, new housing starts jumped to 361,000 in the Western Region, up from 180,000 in April. Nationally, from April to August, new housing starts exploded up by nearly 52%!

New Home Building in Orange County

Here in Orange County, builders have big plans. A quick search reveals hundreds of homes proposed for construction. Some would replace existing housing, like these 36 million-dollar townhomes in Newport Beach. Others would develop unused land, such as these 92 homes by Trumark in Mission Viejo. Two large projects in San Juan Capistrano would add 301 new homes to areas rezoned for such projects in recent years.

This slew of proposed construction is great news for buyers who want a brand new home, and for local municipalities which are mandated to greatly increase available housing over the next 10 years. New home builders are clearly feeling hopeful too. So, what can we thank for the rise in activity amidst the pandemic? There are a number of factors involved.

Reasons for Recovery

First, it’s no coincidence that many are reconsidering their living arrangements now. After staying home with their families for an extended period of time, people are realizing they need more from their property. They want to expand upon their existing home or move up to something with more space and amenities.

One of my best clients said this to me recently, after he just spent $1,000,000 improving his main residence in Colorado: “The super-rich are also stuck at home and wanting more out of them. They want to feel safe, and commutes are less of a concern these days. Additionally, the Feds printing money has people looking for hard assets.”

On the macro level, the housing market’s resilience comes down to two big factors: real estate as an essential service, and historically low mortgage rates.

Real Estate Services are Essential

Given California’s existing housing shortage, it is hardly a surprise that the state has allowed residential construction during this crisis. The same goes for new and existing home sales: Buying or selling a home is deeply personal with a huge economic impact, not to mention that a majority of the process can be handled online. Even the in-person and labor-intensive construction industry has seen almost no disruption.

Employment numbers show that Orange County real estate jobs are at 97% of their pre-coronavirus peak. This includes real estate agents, lending and escrow officers, construction workers, building suppliers and so on. Construction is down by only 300 jobs, a nearly imperceptible loss of just 0.3% (except for those 300 unfortunate souls, of course). Unlike hard-hit sectors like hospitality and restaurants, real estate and related businesses are relatively healthy. That’s all due to their classification as an essential service.

Rock-Bottom Mortgage Rates

The other major factor that has kept real estate afloat is the historic decline in mortgage rates. It’s hard to imagine now, but there was a time when buyers signed on for a 30-year fixed rate loan with an APR upwards of 14%. Flash forward from the ‘80s, and today’s home buyers are graced with an unprecedented national average 30-year fixed rate of just 3%. Mortgage rates have a huge impact on the total cost of a loan over its lifetime, so buyers are jumping to take advantage of these record lows.

Investors benefit from lower rates as well. The national average on 15-year fixed and 5/1 adjustable rate mortgages are both near rock bottom, at 2.54% and 3.09% respectively as of this writing. Lower rates allow investors to increase their leverage on a deal, buying more property for less money and reaping the difference in later profits. Whether you’re looking to settle down or make an investment, the current loan market presents a uniquely attractive opportunity for a real estate purchase.

UPDATE: As of the second week of October, the average national rate on a 30-year conventional low is a jaw-dropping 2.81% — another record low — while the 15-year fixed rate is matching its record low of 2.35% set in September, and the 5/1 ARM is hovering around its record low at 2.9%. Rates have literally never been this low… Can they go lower?

What’s in Store for New Homes in Orange County

These days, predictions are a dime a dozen. Existing home sales are incredibly strong today, but the continued health of the housing market depends on the resilience of the overall economy. No one I know owns a crystal ball to divine our fate. Furthermore, new home sales do not hinge on all the same economic factors as existing home sales.

New home sales are more about supply than demand. Before a builder starts a project, it must make economic sense to do so with respect to the cost of materials, labor and construction loans. If the market is saturated with existing homes for sale, then builders might hold off until that supply is diminished. These factors are not present in existing home sales, where prices fluctuate purely on listing supply and buyer demand.

Ultimately, it’s a good sign that new homes are being proposed and built in Orange County. Buyers want the homes, builders want the work, and California needs the housing. Real estate is essential, and mortgage rates are low. If you’re interested in buying a new home, what are you waiting for?

The Art and Science of a Listing Price

Selling real estate is a unique career. Agents come in all shapes and sizes, with diverse backgrounds ranging from business management to entertainment to homemaking to everything else under the sun. Given these vast differences in abilities and past experience, your process working with a real estate agent can vary dramatically from one to the next. And yet among every single agent, there’s one skill that matters more than all the others. One skill which can make or break your sale. One skill which is truly the heart and soul of an agent’s work.

“So, what is it?” you say. “Spit it out! What’s the most important skill that every agent needs?”

Well, since you asked so nicely: It’s setting the listing price.

Buy Low, Sell High

We all know that negotiations are the name of the game when buying or selling a home. You want an agent who will apply force to every lever of a deal, fighting at every opportunity to save you money or boost your closing price. What you may not know is that a properly priced listing can earn you more money right from the outset. Conversely, an agent who can spot an improperly priced home might just snag you a deal.

In nautical terms, setting your listing price means choosing where to drop anchor. Once you’ve settled on a location, you throw out your bait to see what house-hunting fish swim in for a nibble. Yet no matter how tasty the bait or how shiny your lure, if you price too high, you simply won’t get any bites.

This metaphor is particularly apt when you consider broader business strategies. An “anchor price” is a widely used tactic that companies use to establish a psychological baseline for their products. If the shoe store says some boots are worth $200, then you’re getting a great deal when they’re on sale for just $100, right? (Even if they cost the store just $5.) While it’s exceedingly rare to see a home listing’s price drop anywhere near 50%, real estate is still affected by this psychology—with very real effects.

Bigger Might Not Be Better

Those effects are most clear in an overpriced listing. If you list too high, you’ll be subject to lowball bids, upturned noses, and open houses as empty as a ghost town. New listings tend to see the most activity and buyer interest within their first few weeks on the market. When your listing is overpriced, you’ve essentially wasted the most crucial days of your home’s marketing period.

After a few lonely weeks with too few or too poor of offers, you’ll likely consider a price reduction. Mind you that price reductions are a completely valid tactic in many cases, as markets can shift during the listing period for a myriad of reasons which may be impossible to foresee. However, it’s not a fun thing to do, if the lack of interest stems from simply pricing too high for the current market at the time of listing.

Ultimately, an overpriced listing is one of the great tragedies of real estate. The reverse, however, is not so dire. Let’s look at underpriced listings next.

How Low Can You Go?

An under-priced listing is not nearly the same catastrophe as an overpriced listing. In fact, setting your home’s listing price below its current market value can be a compelling strategy. Like a Black Friday sale, a low listing price can draw folks out of the woodwork to take a look at your home. Remember that the first few weeks of a new listing are the most important—a low listing price can pack those weeks with open house visitors, agent showing requests, and “saves” on sites like Zillow and Trulia.

That’s not to say that pricing low doesn’t come with risks. If your home still garners less than the critical mass of interest needed to boost offers and counters above market value, you’ll wind up in another sad state of affairs. In a worst case scenario, the market may shift under your listing and (like current interest rates) you’ll have little room to maneuver the lows any lower amidst an economic downturn.

The safest bet for most sellers and agents, especially those with less experience under their belts, remains to price a listing right around market value.

Finding the Sweet Spot

So how does an agent find exactly the right price to drum up the most interest and highest offers on a listing? The best tools at an agent’s disposal are the recent sales around your home.

When you first meet with an agent, they’ll likely provide you with a CMA, or Comparative Market Analysis, detailing the price and statistics of recent listings in your area. Much like an official appraisal, CMAs compare the sold homes in your area, their features, amenities, and the dates they sold, against your own. They’ll also compare the homes that are active and pending right now, more indicators of your current local market conditions.

By comparing and contrasting your home with other listings in your neighborhood, your agent can triangulate a ballpark figure for your home’s value. That’s the science of setting a listing price. Popular home search tools like Zillow have grown that science into complex algorithms which claim to output estimates within a few percentage points of error.

Then there’s the art of pricing a home. Like painting a masterpiece, it takes years of experience and a profound professional insight to obtain an organic sense for pricing. Through dozens of transactions and persistent study of the local market, consumer tastes, national trends and lender criteria, a seasoned agent has the acumen to see beyond the comparables. Even in a subdivision with identical floor plans, every home is unique. To assess every variable and produce a strategic, targeted price is a talent which not every agent possesses.

Your Local Experts

At Stavros Group, we’ve been working in your neighborhood for years. We know what works, what sells and how much it sells for. If you’re thinking of buying or selling a home in Newport Beach, Laguna Beach, and greater Orange County, let us know. We’d be happy to discuss your options during a free, no-pressure consultation. Real estate is our passion. We’re excited to share that passion with you, to match you with the great results that you deserve!