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!

Hidden Costs of Luxury Real Estate

Orange County Luxury Real Estate

Luxury real estate in Newport Beach, Laguna Beach, Corona Del Mar, and greater Orange County is impressive, extravagant, and, of course, expensive. That should come as no surprise; it’s right there in the name! Luxury is defined as “conducive to sumptuous living, usually a delicacy, elegance, or refinement of living rather than a necessity.” But even if you’ve got the cash to buy a sprawling, lavish estate, there is more than the listing price to keep in mind. In this article, we’ll cover some of the hidden costs of owning a luxury home.

While you may have the resources to buy a luxury home, it’s important to be aware of externalities. Much like starting a family, it’s only prudent to be prepared before shouldering a new bundle of responsibilities. As your trusted real estate advisers, a crucial part of our job is to ensure that you’re as informed as possible. So let’s explore some examples of the expenses that come with buying a luxury home.

More Than You Can Chew: A Case Study in Luxury Homes

Sixteen years ago, rap artist and former beverage mogul Curtis James Jackson III, aka 50 Cent (Fiddy), purchased a grand Connecticut estate. Nestled 80 miles north of the wealthy town of Greenwich near NYC, the residence at 50 Poplar Hill Drive boasts 52 rooms across 50,000 square feet. Some of the property’s opulent features include a nightclub, two private pools, both indoor and outdoor basketball courts, and a recording studio (naturally). The home is larger than others in the area, which didn’t help when it was later listed for sale.

Fiddy bought the estate in 2003 from another famous face, one Mike Tyson of boxing fame. The sale price then was $4.1 million. After a few years of owning the property, Fiddy listed the home for sale at $18.5 in 2007. At such a dramatically increased price, the listing did not sell and was taken off the market. By 2015, Fiddy again listed the home for sale. This time, the price was $4.995 million, but again the home did not garner the asking price. Finally, he sold the property in 2019 for $2.9 million to Florida businessman, Casey Askar. That’s an 84% price drop from his 2007 asking price of $18.5 million.

Such a drastic decrease begs the question: Why did Fiddy sell? The answer is in the hidden costs. Reportedly upwards of $70,000 each month, the upkeep and maintenance costs of the lavish estate were simply too much for Fiddy to handle. From the 50,000 sq ft of 52 rooms, to the lawns and the pools, the estate at 50 Poplar Hill Drive required constant effort from groundskeepers and staff. Not to mention utility bills to keep the residence warm throughout the winter, or cool in the summer. In just five years, that monthly cost would add up to the total that Fiddy paid for the original sale, and he could no longer justify the expense.

A Luxury Home Takes a Village

If you’ve watched the popular period drama Downton Abbey, then you are one step ahead of ol’ 50 Cent in knowing that running a palatial estate is a team affair. There’s the estate manager, the household manager, the butler, the chef, the cooks, the gardener, the gameskeeper, the stewardess, the chauffeur, the parlormaid, the chambermaid, housemaid, laundrymaid—the list goes on. But while the costs are steep, they do come with perks: keep your house in order and you may even be graced by a visit from the Queen!

In all seriousness, your home need not be a sprawling estate to be considered “luxury.” In the simplest sense, a luxury home is one that is valued well above the average in a given market. In many US cities and metro areas, a price of $1 million is often considered the starting point for luxury homes. In markets like San Francisco and New York, where prices are substantially higher than the national average, luxury is said to start around $4 million.

On the bright side, you do get more for the higher price tag. Luxury homes, whether a charming San Francisco Victorian or a giant midwest mansion, tend to come with more square footage and fancier features than the average home. But of course, there’s a hidden cost there, too. For a large luxury property, simple tasks like cleaning your gutters or mowing the lawn become a considerable expense. Want to upgrade to smart devices and appliances? It’ll cost a pretty penny to do so across your whole home. While you may have the money to cover these additional expenses, it’s important to be aware of them when planning your home purchase.

Luxury Mortgage and Tax and Insurance, Oh My!

Let’s take a look at another famously fancy luxury home with hidden costs. When Yuri Millner, a Russian-born tech investor, bought his Silicon Valley home in 2011, the sale price of $100 million broke records in California and Santa Clara County. The Bay Area estate sits on 11 acres with structures of roughly 25,000 square feet, and includes a ballroom, a theater, a spa and a gym.

Interestingly, the taxable assessed value of the home has marked around $50 million by the Santa Clara County Assessor, just half as much as Milner paid. Yet that still means Yuri is on the hook to pay over $600,000 each year in property taxes. If Yuri has a mortgage, his payments will be whoppers as well. If he financed the home using a standard 30-year fixed conventional loan with 20% down and $80,000,000 in principal, his monthly payments would total nearly $400,000.

Of course, a Russian oligarch or any other billionaire likely is not concerned with middling expenses in the mere hundreds of thousands. But the fact remains that, as a home price grows, so too do its associated costs. Getting insurance for a $100 million home is nigh impossible, but insurance on a $5 or 10 million home is just plain expensive. From the tax man to your loan officer, you’ll be paying the pipers by the truckload.

Your Orange County Luxury Experts

Home ownership always comes with additional costs. But despite the increased expenses, buying a luxury property in Newport Beach, Laguna Beach, or Corona Del Mar can be incredibly rewarding. The stunning views, the lavish spaces, the fixtures and finishes each provide a magnificent setting for your modern lifestyle. We love matching our clients with the perfect home to fit their tastes and their budget. If you’re looking to buy or sell a luxury property, get in touch to start the no-pressure conversation and explore your options.

The Dangers of Overpricing Your Orange County Home

Whether you’re in Newport Beach, Laguna Beach, Corona del Mar, or elsewhere, the dangers of overpricing your home are the same: It just won’t sell. Simple enough, no? Well, if you’re still curious, then read on to explore the reasons that pricing your home too high for the coastal Orange County market is perhaps the worst thing you can do when trying to sell.

Say you love the old tile smattered over your split-level floor plan. You feel the pool you installed for six figures was an excellent investment. Your afternoon naps simply wouldn’t be the same without those blaring trains. You love everything about your home, so it must be worth a little extra, right? Not necessarily.

An all-too common mistake by those selling a home in coastal Orange County (and literally everywhere else) is that they overvalue their property. Maybe they want to recoup their investment on costly improvements. Maybe their personal taste doesn’t match with market trends. Maybe they did some misguided research, or maybe they’re just going with their gut. Whatever the reason for an unrealistic sense of their home’s value, they can all be deadly to a listing’s chances.

Inevitably, a portion of sellers will heed poor advice from agents who will say anything to sign a listing. Others may scorn the advice of a good agent. But what really happens when a home is overpriced?

More is Less

Ironically, if your listing is overpriced, it’s more likely to sell for less than if you had priced correctly at the outset. Buyers are often reluctant to offer a “lowball” price to an overpriced listing, for fear of wasting their own time or possibly offending the sellers. Sure, some bold buyers might decide (or be convinced by their agent) to bid low, but many more of them won’t even bother.

When a listing is priced too high, buyers will move on to spend their time and energy on the reasonably priced listings in the area. They don’t want to waste their effort. That leads to decreased competition for the overpriced listing, and in the end a lower sales price. Good agents can spot an overpriced listing from a mile away. When they spot one, they will know that their clients needn’t worry about getting stuck in a bidding war. A seller who has overpriced should expect to see lower bids and fewer of them.

Losing Steam

Your first days and weeks on the market are the most crucial. When your listing goes live on the MLS, it triggers a cascade of events meant to help drum up interest in your property. Notifications are sent to buyers and agents through automated MLS alerts and search websites like Zillow, when a home that meets their criteria hits the market. If your listing is overpriced, those alerts won’t get a second look. In fact, if your pricing is way off, those alerts won’t even go to the “right” subset of buyers at all. Either way, you’ve wasted an opportunity.

As soon as your listing goes live, open houses and broker tours will populate on search sites, and your agent’s marketing plan should be in full swing. Snail mail, email, social media, agent networking—everything is full-speed ahead to supercharge your entry into the market. But, if you’ve priced too high, then you’ve stymied that effort from the get-go. Overpricing is an exercise in self-sabotage.

Going Stale

Once the initial marketing period is over, an overpriced listing will continue to linger on the market. And linger. And linger. And linger… you get the point. “Going stale,” in industry lingo, means being confronted with two options. First, you can simply wait. Perhaps you have the time to wait for conditions to improve. You’re not in a rush, and at the very least inflation will catch up to your unrealistic expectations eventually, right? Some sellers choose to pull their home off the market, but many don’t have that kind of time to spare, or they don’t want to live in listing limbo.

Your second option is a price drop. Sometimes, a price drop is a perfectly reasonable course of action; if it’s spurred because of a shift in market conditions, then you’re at least somewhat insulated by the fact that everyone else is floating in the same ebbing tide. However, if you must drop your price due to your own initial mistake, then you’ll turn into easy prey. Much like the lion that hunts the sickly gazelle, buyers will identify your listing as fundamentally weak. Offers will come in low, and buyers who see multiple price drops will just wait around for the next one.

Hitting the Sweet Spot

The dangers of overpricing highlight the importance of finding an agent who you trust. You deserve a real and honest discussion. At the Stavros Group, we apply our experience in Newport Beach, Laguna Beach, Corona del Mar and beyond to fit your needs, and we offer guidance based on the realities of the market—good or bad, up or down. We are your trusted advisor in selling or buying a home in coastal Orange County. If you’re considering making a change, reach out to start the no pressure conversation and we’ll discuss all your options.

OK Millennials! The New Generation of Homebuyers

As the largest adult population group in the US, millennials wield $1.4 trillion in purchasing power, and more of them are aging and earning their way into the real estate market.

If you explored Twitter recently, you’d get the feeling that intergenerational squabbling has reached new heights. In a flurry of contentious posts, the trending “OK boomer” meme has highlighted the divide between millennials and baby boomers. Even cultural icons like William Shatner have joined the fray.

However, despite the often-strained, less-than-cordial relations relations between the two age groups, it is increasingly apparent that both sides agree on at least one thing: Just like their elders, millennials see home ownership as an essential part of the American experience.

Millennials Want to Buy Homes

Like any market, real estate is driven by supply and demand, and demand is strong among millennials. One 2018 study found that a whopping 9 out of 10 millennials are interested in purchasing a home. The same study showed that those millennials intend to act on that interest, albeit with some variance in their expected timelines.

Of millennials who plan to buy a home, just 4% expect to buy in the next year, while a whopping 85% want to buy at some point in the next 2 or more years. If economic conditions allow, we can expect to see many more homeowning millennials in the years to come.

The important question is whether millennials will be able to afford to buy the homes they so desperately desire. Despite 2019 seeing slower growth in real estate markets nationwide, making a competitive offer to buy a home is still out of reach for many younger buyers.

Recession: A Coming of Age Story

The Pew Research Center defines millennials as the population born between 1981 and 1996 (ages 23 to 38 in 2019). When the global financial crisis hit in 2007, younger millennials were in middle school, high school and college, and the older half were young professionals just beginning to build their careers. The difficult economic conditions in which millennials came of age have had lasting effects on their long-term earning potential and their overall economic outlook.

Millennials had a front row seat to the havoc wreaked by subprime loans, unscrupulous lenders, overextended borrowers and unchecked debt markets. Many parents of millennials struggled financially in the years that followed, and some lost their homes. With firsthand experience of the dangers of debt, it seems that millennials have vowed not to suffer a similar fate.

For example, credit card debt among millennials is significantly lower than that of previous generations. Millennials average $3,403 of credit card debt, baby boomers average $5,603, and gen-Xers average $6,752. Millennials also hold less mortgages and car loans. What millennials do have, though, are student loans—and boy do they ever: millennials hold an average of 182% more student debt than their college graduate counterparts in 1995.

In short, millennials are cautious. But while they remain wary of overextending themselves, that won’t stop them from buying their slice of the American dream. In fact, millennials already make up the largest proportion of the home-buying market.

How I Met Your Realtor®

Spending habits aren’t the only way in which millennials differ from their predecessors. In the same way that dating apps have digitized the world of romance, the internet and real estate apps are poised to revamp the traditional home buying experience.

The days of the Yellow Pages and lookie-loo buyers are fading into obscurity, replaced by a savvy and well-researched consumer base. According to the National Association of Realtors®, at least 81% of millennials who already own a home found their property through a mobile app. Millennial buyers tend to know what they want, and that includes fast and attentive service.

Millennials also want different types of homes than previous generations. They are trending away from 20th century McMansions, instead preferring smaller, more manageable properties. They are seeking features and amenities that suit their lifestyles, from pet-friendly yards to space for organic gardens. Millennials may prefer cozy locations within walking distance of local shops and nightlife, in lieu of a sprawling estate on the edge of town. From the way that millennials meet their agent, to the way they choose their home, technology and the internet age are pressuring the industry to adapt.

A Guiding Hand

At the end of the day, partnering with a veteran agent for expert guidance and tailored service is still key to buyer success. The home buying and selling process is sure to change further as young blood enters the market and new technologies arise. Those real estate agents who do not provide sufficient value to their clients will fall by the wayside. On the other hand, agents who leverage their market insight, their local connections, and their dedicated role as trusted advisers, will find continued success.

Whether you’re a first-time buyer looking to start building equity instead of throwing away rent each month, or if you’re a seasoned homeowner looking to make a move, we have the experience to help you succeed and the track record to back it up.

At the Stavros Group, we always aim to provide value to our clients buying and selling real estate in Newport Beach, Laguna Beach, Corona del Mar and beyond. To get our clients to best terms, the best offers, and the best opportunities. We dedicate our waking hours to help guide you through one of the biggest decisions of your life, because it’s what we love to do. Don’t hesitate to reach out and let us know how we can help!

No Green Thumb? No Problem: 7 Easy Houseplants to Liven Your Living Space

If you’re buying Newport Beach real estate, staging your Laguna Beach home to sell, or if gloomy fall weather starts getting you down, then you could stand to benefit from some bright and lively houseplants!

Houseplant History

For thousands of years, people have been bringing a little piece of the outdoors into their homes. According to the legend, King Nebuchadnezzar II of Babylon commissioned the fabled Hanging Gardens for his wife, Queen Amytis, way back in 600 BC. The Greek scribe Berossus noted that the queen was not native to Babylon, so the Hanging Gardens were filled with familiar foliage to help her feel at home in a foreign land.

Historical findings have also documented houseplants in ancient Egypt, Greece, Rome, and among eastern civilizations. Roses and violets in marble or terracotta pots could be seen bestrewn about the homes of wealthy Roman citizens, eager to display the tallest and brightest flowers. Miniature potted plants such as the Japanese Bonsai and Chinese Penjing first appeared around 200-500 CE.

Throughout the Middle Ages after the fall of Rome, houseplants largely fell out of practice, surviving mainly in monasteries by monks who grew practical plants like herbs and vegetables. When the Renaissance came around, interest in houseplants was revitalized, and wealthy individuals paid handsomely for exotic specimens procured by explorers such as Christopher Columbus. Suffice it to say that humanity has long known the value of the humble houseplant!

Green Living

Aside from simply looking nice, houseplants have some great additional benefits. First and foremost, plants purify the air around us. The hungry buggers gobble up our exhaled carbon dioxide, and they release fresh and clean oxygen for us to breathe in—all at the low cost of a little water and sunshine. Plants also clean volatile organic compounds (VOCs) from the air in our homes, although at such a small scale that it doesn’t make much difference.

Additionally, houseplants have shown various health benefits in clinical trials. In one example from the Department of Horticulture, researchers found that hospital patients recovering from surgery in the presence of houseplants had lower blood pressure and less anxiety, pain and fatigue. Patients reported that the plants “brightened up the room environment, reduced stress, and also conveyed positive impressions of hospital employees caring for patients.”

These effects can be realized in the home or workplace by adding plants of your own! If you have a home office or even occasionally work from home, consider adding a plant or two in view. A study by researchers at Washington State University found that workers with a potted plant in their line of sight saw increases in productivity of up to twelve percent.

Houseplants Made Simple

You may be interested in houseplants to liven up your home’s decor or to reap the health and other benefits covered above. If you’re new to taking care of plants, however, you’re likely wary of making a purchase just to see it die in the weeks or months that follow. But fear not, as there are plenty of options for those less floriculturally-inclined.

Here are just a few plants that DON’T require a green thumb to keep alive and well:

Aloe Vera

This hardy succulent only needs to be watered every couple of weeks. Allow soil to dry completely between waterings. As an added benefit, you can cut a piece and apply the latex it secretes to ease sunburns and minor cuts.

Snake Plant

Another plant which doesn’t need frequent watering, this succulent’s thick and waxy leaves store plenty of moisture. No need to stress while you’re away on a two-week vacation!

Spider Plant

This popular houseplant is perfect for newbies. A mainstay of homes around the country, and for good reason, the spider plant can withstand plenty of neglect. Just keep them watered and in indirect sunlight.

Pothos

Although tropical in origin, this viney plant’s heart-shaped leaves thrive even in cooler and drier climates. They don’t mind lower light or humidity levels, making them an easy and beautiful option for any home around the country.

Cactus

A symbol of the dry desert, cacti are the quintessential low-maintenance plant. Allow soil to dry between waterings; roughly a week if your pot has drainage holes, longer if not. As you might have guessed, these do require lots of sunlight, so place them in a brightly-lit space.

Cast Iron Plant

This lush evergreen is as resilient as its namesake. It is known to survive drastic shifts in temperature, and it doesn’t need a whole lot of sunlight or water to thrive.

Tillandsia (Air Plants)

As their name suggests, these beauties don’t even require soil to grow! As “epiphytes,” plants which extract nutrients directly from the air around them, you can hang tillandsia from the wall or ceiling as an attractive decorative piece. Just place them in bright sunlight and mist them occasionally to prevent drying, with frequency depending on the season.

Boost Your Quality of Life

As local real estate experts, we aim to show your listing in the best possible light. Just like a fresh coat of paint, a few well-placed plants can revitalize a room, so we love to use them when staging a home! The truth is that you don’t need a green thumb to enjoy the mood and health benefits of indoor plants. Give some of these houseplants a shot, and let us know how you fare! We’re always happy to hear from you.

Spooktober Special: On Haunted Homes

Hear ye, hear ye, guys and ghouls: Spooktober is upon us, and with it come the costumes, the parties, the candy, and of course the haunted houses. Right up there with graveyards, real estate has long been the setting for scary stories of things that go “bump” in the night.

Haunted House Hunters

To the true believers, living in a haunted house sounds like a recipe for many sleepless nights. Research from YouGov shows that about 45% of Americans do indeed believe in hauntings and ghosts. Those folks will likely shy away from visiting, much less purchasing, a haunted home.

To the skeptical, real estate with a haunted past might sound like a good way to snag a deal on a property. But, in most cases, a home will sell for roughly the price that it’s worth based solely on its location and material value—haunted or not.

However, there are some examples of homes garnering significantly less buyer interest due to their spooky reputation. For instance, this Victorian mansion in Massachusetts, once a Freemason hall and then a brothel, was listed shockingly cheap at just over $300,000.

If the House Has Ghosts, Must You Disclose?

Something you may not know: depending on where you live, some states require real estate agents to disclose in a listing whether there was a death in the home, or even whether the house is considered haunted by some. For a fee, you can find out about deaths in a home from services like DiedInHouse.

In California, an agent must disclose whether there has been a death in the home in the past 3 years, including natural deaths. In Hawaii, however, any occurrence that had no material effect on the physical structure of the house does not need to be disclosed.

Other states, like Georgia, don’t require anything to be disclosed up front, but they do require any questions to be answered truthfully. A majority of states do not require deaths or reports of the paranormal to be disclosed, in order to protect sellers from undue stigmatization.

A Selection of Spookings

In the spirit of the season, we thought we’d share a few of the spookiest homes in America. How would you like to live in one of these?

The Los Feliz Murder House

Source: Realtor.com

Early in the morning of December 6th, 1959, Dr. Harold Perelson murdered his sleeping wife with a hammer and attempted to do the same to his daughter, Judye. The teen girl managed to escape and rouse her neighbors who called the police. Dr. Perelson proceeded to ingest dozens of pills and died before an ambulance arrived.

Rumor has it that this Spanish-style mansion in the upscale LA neighborhood of Los Feliz was briefly rented out to a family in the early 1960s, after which it remained empty for decades. Christmas decorations were visible inside the home, likely left by those renters as the Perelson family was Jewish. Neighbors reported paranormal activity, and the house became an attraction for thrill-seeking tourists. Decades later in 2016, the home was sold.

The Winchester Mystery House

Source: Pixabay

Once the residence of Sarah Winchester, widow of firearm magnate William Wirt Winchester, this Queen Anne Victorian mansion in San Jose, CA, is well known for its puzzling design and its frequent paranormal sightings.

The home has been featured in media such as Ghost Hunters, and it was the set location for the Winchester film starring Helen Mirren as Sarah Winchester.

The Amityville House

Source: Wikimedia Commons

In 1974, six members of the DeFeo family family were found murdered at this house in Amityville, New York, 30 minutes outside of New York City. Roughly one year later, the Lutz family bought the home at a huge discount. They lasted 28 days in the home before leaving due to sightings of paranormal activity.

The Lutz family’s short time in the home was memorialized in 1977 in a novel by Jason Anson, The Amityville Horror, which has since been made into multiple feature films.

The Whaley House

Source: Wikimedia Commons

This haunted house in San Diego’s Old Town district is said to have been the site of hangings before it was built in 1857. The owner’s daughter, Violet, killed herself at the house in 1885. Stories say that a number of spirits roam the house to this day.

Now a California Historical Landmark and a museum, you can take a tour of the Whaley House for yourself during a trip to Old Town… if you dare!

Tis the Season for Spooking

These are just a few of our nation’s many reportedly haunted homes. As a Halloween attraction, the haunted house industry brings in over $300 million each year. Do you plan on visiting a haunted house with your friends or family this year?

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!

The Importance of Interest or: How I Learned to Love the Fed

The year is 1984, and despite Orwellian predictions to the contrary, nothing seems to be going poorly at all as you amble down your tree-lined street. A neighbor cheerfully hollers across the road, but with Purple Rain cranking through your Walkman, you can’t quite make out what he said. Nudging the headset off one ear, you hear him repeat, “Howdy neighbor!” Well, howdy, yourself!

You’ve rented here for quite a while. It’s a sleepy little suburb with friendly folks and good schools. For years, you’ve saved diligently with the goal of making an offer on one of the charming homes for sale that you see every day on your walks. Browsing the Yellow Pages and consulting with friends, you finally found a real estate agent who you can trust. Now all that’s left is to get approved for a mortgage! Considering your outstanding credit, the lender is willing to make a deal—thirty years fixed at a low rate of just fourteen percent!

Today’s Rates are Hard to Beat

It may seem crazy to young homeowners and aspiring buyers, but throughout the 1980s the national average mortgage interest rate was well into the double digits. Recession and inflation starting in the late 70s prompted drastic measures from the Federal Reserve who cranked up interest rates to even as high as twenty percent. Since then, and especially after the financial crisis of 2008, the average rate has seen a precipitous decline. After years of wavering around four percent, the notion of a thirteen or fourteen percent mortgage is unthinkable to most new and would-be homeowners.

Let’s compare an average 30-year fixed-rate mortgage in August 1984 with August 2019:

Loan of $200,000, 30-yr fixed
- August 1984 avg rate: 14.47%
  - Total cost over lifetime of mortgage: $879,962
- August 2019 avg rate: 3.62%
  - Total cost over lifetime of mortgage: $328,154

In 1984, your mortgage would cost over four times the amount borrowed over the course of the loan. Whether you’re bearish or bullish on the economy as a whole, with a little perspective it’s abundantly clear that home buyers have it very, very good these days. As an extreme example, the stark contrast illuminates how important interest rates are in a home purchase.

Using more recent and normal examples, the current average still beats recent rates including just last year. In August 2018, an average fixed-rate loan of $500,000 would cost you $917,389 over 30 years. One year later in August 2019, you would save nearly $100,000, at $820,386 over 30 years. That’s a huge difference and huge savings after a rate drop of less than one percent (4.55 to 3.62%).

Use Low Interest Rates to Your Advantage

So what does this all mean? First off, it’s clear that buying a home when rates are low is the most effective strategy to ensure that you’re getting a good deal. Both buyers and sellers benefit when rates are low, as buyers can afford to borrow more money for less overall cost. When buyers can afford bigger and better homes, competition is increased across the market, listings garner wider interest, and ultimately sellers receive higher offers and closing prices. All at essentially no extra cost to the buyer, because their money simply went further at a lower interest rate.

This also means that homeowners who purchased recently could be eligible to save big by refinancing an existing mortgage above current rates. According to analytics firm Black Knight, four out of five mortgages originating in 2018 are at least 0.75% higher than today’s rates. Additionally, they found that most mortgages from before 2004 could have rates lowered by about 1.75%, leading to massive savings.

We’re Happy to Help

Inevitably, the Federal Reserve will raise interest rates and the market will retract to some degree. Of course, nothing about the economy happens in a vacuum, and there are always countless extenuating factors. So we’ll skip making bold predictions. Instead, we will simply recommend this sage old advice: “Get while the gettin’s good.” Rates are nearly as low as they can be, and real estate is entering its most active time of year. If you’ve been thinking of buying or selling, now is an excellent time to do so! Give us a call to find out how we can help.

A Glossary of Orange County Real Estate Terms You Should Know

Buying or selling your Orange County home can be an extremely exciting time in your life, however, it can also be incredibly confusing and stressful if not equipped with the right tools to navigate this momentous life decision. Dealing with terms like Adjustable Rate Mortgage vs. Fixed-Rate Mortgage, recurring vs. nonrecurring closing costs, and Earnest Money Deposit can be daunting to even the most experienced homebuyer. That’s why it pays to have a good foundation of knowledge going into any real estate transaction. The real estate terminology guide we provided below will get you started, but the best way to ensure you have a thorough understanding of every step of your Laguna Beach, Corona del Mar or Newport Beach home buying or selling process is to have a knowledgable, reputable realtor on your side. Whether a first time home buyer in California or a seasoned pro, with my keen insight into the market and expertise in the community, I can help navigate your Orange County real estate transaction with ease and confidence.

Glossary of Orange County Real Estate Terms

Active: This means that a property is currently on the market and available for sale. It may have received offers, but none has yet been accepted, meaning you are still able to make an offer if you so wish.

Active with contract (AWC): This means that even though there’s an accepted offer on the home, the seller is looking for backup offers in case the primary buyer falls through. While any seller can entertain backup offers as a precautionary measure as long as this is made clear in the contract, this term most often crops up with short sales, since they can often fall through, and it can be helpful if a second buyer is waiting in the wings.

Adjustable-Rate Mortgage (ARM): A mortgage loan with an interest rate that fluctuates in accordance with a designated market indicator over the life of the loan (usually 1-2/year). To avoid constant and drastic fluctuations, ARMs typically limit how often and by how much the interest rate can vary.

Annual Percentage Rate (APR): A yearly interest rate that includes upfront fees and costs paid to acquire the loan, calculated by taking the average compound interest rate over the term of the loan. Mortgage lenders are required to disclose the APR so that borrowers can more accurately compare the actual cost of different loans with different fees.

Appraisal: A determination of the value of the house you plan to buy. A professional appraiser makes an estimate by examining the property, looking at the initial purchase price, and comparing it with recent sales of similar properties. Your bank or other lender will require the appraisal in order to ascertain the worth of the house for lending purposes. The lender may refuse to fund the loan if the appraisal comes in lower than the loan amount. In this case, unfortunately, you must either come up with additional down payment money or a better appraisal.

Asking Price: The initial selling price of a property, determined by the seller.

Assumable Loan: A home mortgage which can be transferred from the previous owner to the new owner, thus allowing the buyer to take over the seller’s mortgage. Most lenders require the borrower to qualify for the mortgage in order to assume the mortgage.

CMA: Comparative market analysis or competitive market analysis. A CMA is a report that shows prices of homes comparable to a subject home and that were recently sold. The sold prices, known as comps, can help homeowners determine how much their home is worth in the current market.

Contingency: A provision in a real estate contract in making an offer is “contingent”, or dependent, on one or more conditions that must be fulfilled before the buyer is willing to proceed with the purchase; such as the prospective buyer making an offer contingent on his or her sale of a present home.

Conventional Mortgage: A type of mortgage not insured by either the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA), and thus usually requiring a 10–20% down payment.

Counteroffer: The rejection of an offer to enter into a contract, where the rejecting party includes a different offer that changes the terms of the original offer in some way. The legal significance of a counteroffer is that it completely voids the original offer.

Down payment: The lump sum in cash that you can afford to pay at the time of purchase. Traditionally, down payments are 20% of the purchase price.

Earnest money deposit (EMD): A partial payment demonstrating “good faith” in a contractual relationship, made at the time of the purchase offer. The remainder of the payment is due on the closing date. The seller keeps the earnest money if the buyer fails to make timely payment in full (or if there is a similar breach of the agreement).

Escrow: The holding of funds or documents by a neutral third party prior to closing your home sale.

Fixed-rate mortgage: A mortgage loan that has an interest rate that remains constant throughout the life of the loan, usually 15 or 30 years. This mortgage’s interest rate will never change, even if the term of the loan is 30 years. This can be good or bad, but it will always be predictable. Interest on fixed-rate mortgages is almost always higher initially than on adjustable-rate mortgages. But you’ll also be protected against rate hikes, a pitfall of adjustable-rate mortgages.

FHA Loan: A program in which the federal government (Federal Housing Administration) insures the lender if you fail to pay and they have to foreclose and wind up losing money. The government doesn’t make the loan, they just offer the guarantee to the banks. Such financing allows for a lower down payment than required by most lenders. Houses must be in decent shape to qualify for FHA Loans. The other kinds of loans are Conventional and VA.

Home inspection: A thorough professional examination, typically at the buyer’s expense, that evaluates the structural and mechanical condition of a property, including plumbing, foundation, roof, electrical, HVAC systems, etc. This highly recommended step is a common contingency clause in real estate sales contracts. If the inspector identifies issues that may be expensive to remedy, these can be revisited with the seller before proceeding with the sale.

Homeowners’ association: An organization made up of neighbors concerned with managing the common areas of a subdivision or condominium complex. These associations collect monthly dues and take on issues such as garden, pool, and fence maintenance, noise abatement, snow removal, parking area upkeep, repairs, and dues. The homeowners’ association is also responsible for enforcing any covenants, conditions, and restrictions (CC&Rs) that apply to the property.

Homeowners Insurance: Insurance that protects the homeowner from “casualty” (losses or damage to the home or personal property) and from “liability” (damages to other people or property). Required by the lender and usually included in the monthly mortgage payment.

House closing: The final transfer of the ownership of a house from the seller to the buyer, which occurs after both have met all the terms of their contract and the deed has been recorded.

Loan Origination Fee: A fee charged by the lender for evaluating, preparing, and submitting a proposed mortgage loan.

Mortgage Insurance Premium (MIP): A charge paid by the borrower (usually as part of the closing costs) to obtain financing, especially when making a down payment of less than 20 percent of the purchase price, for example on an FHA-insured loan.

Multiple listing service: A computer-based service, commonly referred to as MLS, that provides real estate professionals with detailed listings of most homes currently on the market. Membership isn’t open to the public, however much of this information is sold to and can be found by the public on many real estate listing websites.

Nonrecurring closing costs: Those costs of closing a home purchase that need to be paid only once — such as the appraisal fee, title insurance, and transfer taxes. (Compare with recurring closing costs, defined below.)

Pending Sale: This is the escrow period, where the seller has an accepted offer and an executed contract, all the contingencies have been met, and the buyer and seller are working towards a closing.

PITI: Abbreviation for the major expenses that make up a mortgage payment: principal (the amount borrowed), interest, (property) taxes, and (homeowners’) insurance.

Point: Prepaid interest on a loan, equal to one percent of the principal amount being borrowed. The lender may charge the borrower several “points” in order to provide the loan. The advantage of paying points up front is that a lower interest rate can be secured for the lifetime of the loan. This may be a good deal if a buyer plans to stay in the home for many years, as the long-term interest savings outweigh the initial cost in points.

Pre-approval (loan): A lender’s written guarantee to grant a loan up to a specified amount (subject to receiving full documentation). Pre-approval for a loan can strengthen a buyer’s negotiating position with a seller.

Pre-qualification: Less official than a mortgage pre-approval, banks offer free pre-qualifications to estimate the amount a buyer may be able to borrow. It is often used early in a buyer’s search to help determine a reasonable price range.

Principal: The outstanding balance on a loan. Also refers to the portion of a loan payment that pays down your debt.

PMI/Private Mortgage Insurance: If your down payment is less than 20%, you’ll have to buy Private Mortgage Insurance which protects the bank if you fail to make your payments, they have to foreclose, and they lose money.

Property Taxes: Taxes, based on the assessed value of the home, paid by the homeowner for community services such as schools, public works, and other costs of local government. Paid as a part of the monthly mortgage payment.

Recurring closing costs: Those costs of closing a home purchase that represent the first of a series of payments that will recur over time — such as homeowners’ insurance and property taxes.

Title Insurance: This type of insurance is acquired to protect against any unknown liens or debts that may be placed against the property. Before issuing title insurance, public records are searched to ensure that the current owner has legal rights to the title as well as the legal ability to sell the home and that no liens are held against the property.

Under contract (UC): The seller has an agreed-upon contract with the potential buyer (which is typically contingent on additional factors like financing and inspection results).

VA Loan: A loan guaranteed by the Department of Veterans Affairs against loss to the lender, and made through a private lender. Similar to FHA Loans, the federal government insures the lender if you fail to pay and they have to foreclose and end up losing money. The government doesn’t make the loan, they just offer the guarantee to the banks.

Do I Need a Realtor When Buying a New Construction Home in Orange County?

Buying a home is a big decision with a lot of money on the line so it’s important to make sure that you are always protecting your own interests throughout the process. While most house hunters make use of a realtor when browsing Laguna Beach or Newport Beach homes for sale by owner, in order to receive assistance in finding just the right fit, buyers contemplating new construction homes in Orange County sometimes think that this means they don’t need a realtor. This is not the case.

A realtor’s work in your house hunting process is about a lot more than simply finding the home you are looking to buy. Your realtor is an expert in the field, capable of helping during every step of the process, many of those steps still present even when you’re buying one of the new construction homes in Orange County. Hiring the right realtor can help you avoid a big mistake and save you money on the right decision. Below we’re breaking down some of the important reasons that you may want to take into account before jumping into buying new construction!

All Representation is Not Equal

The main reason buyers opt to forgo a realtor when buying new construction is to save money, however, this is a mistake. Many builders’ model homes have real estate representatives working for them and although it may sound tempting to just work with this person throughout your home buying process, there are some things you should know. When you opt to work with a builder’s representative, you are working with someone who is representing the builder rather than you. This means that they have the best interest of the builder in mind, not the buyer. Deciding to hire your own real estate agent is electing to have someone that looks out for your best interest, working to get you the best value while making the process a stress-free one for you. That’s exactly what you get when you work with me.

They’ve Seen it All Before

There are lots of little details to consider and small problems to keep an eye out for, even when buying new construction homes in Orange County. A professional realtor, like myself, can bring their years or even decades of experience to the table to help make sure that nothing slips by and comes back to bite you.

They Can Help Catch Warning Signs

A realtor’s most valuable asset when you want to buy new construction homes in Orange County is their experience. Because I have no doubt seen hundreds of homes and encountered innumerable problems in those homes, I know when something which seems small can be a sign of a big problem. There’s nothing more disheartening than thinking you’ve found the right home only to have it fall apart during contract because inspection reveals problems you missed the first time. You get your hopes up for nothing and waste time chasing down a doomed-to-fail option.

Negotiations Can Make or Break You

When shopping for new construction homes in Orange County you’ll ultimately end up at the same point as if you were buying from a previous owner when you reach negotiations. It is vitally important to have a professional working on your behalf when submitting bids and counteroffers in order to make the best possible decisions.

They Can Help Find Financing

The benefits of choosing a realtor don’t end just because you enter contract when buying new construction homes in Orange County. I have connections in the home financing field who we can put you in contact with. This allows you to get a trusted financing partner and helps to simplify the process of searching.

Expert Eyes For Inspections

Just as I have specific financiers that I would recommend working with, I can also offer you assistance during the inspection as well by serving as another set of eyes to look out for troubles which were missed during your pre-purchase tours. By calling on my prior experience of problems, which have been found in homes my clients were in contract for, I have a long internal list of red flags that I can help check for to avoid unfortunate surprises after you move in.

New construction homes in Orange County are an excellent real estate opportunity for home buyers, allowing you to truly make a home your own by being its first resident. If you find yourself in the position of contemplating buying a new construction home in Newport Beach or Laguna Beach, then I hope you’ll think of me to assist you in this venture. With my years of experience and savvy negotiation skills, I promise to leave no stone left unturned, working tirelessly for your best interest until you’re comfortably settled in your brand new home!