A Guide to Buying and Selling Homes in Redondo Beach



Welcome to 90278realestate.com, the neighborhood website for Redondo Beach Real Estate.

Chances are that if you are visiting this website you may already own a home in Redondo Beach or if not have decided to buy, lease or invest in Redondo Beach Real Estate.

If so, you can skip the next section and scroll down to the sections for Buyers or Sellers depending on your interest.




REDONDO BEACH OVERVIEW

Redondo Beach CA is one of the three South Bay Beach Cities comprised of Redondo and  Hermosa Beach and Manhattan Beach.

Recently Redondo Beach was voted one of the ten best places to live in California and it is easy to understand why. With great beachfront, top ranked schools, proximity to freeways and jobs, shopping, entertainment, easy access to LAX, fine restaurants and more, Redondo Beach represents the quintessential California lifestyle.

South Redondo Beach has ocean view homes and direct direct beach access while North Redondo Beach does not. North Redondo Beach is landlocked as it is bound on its western borders by Hermosa Beach and Manhattan Beach. The dividing line between North and South Redondo Beach is 190th St with North Redondo being, well north of 190th and South on the other side.

You will find everything from entry level condominiums, starter houses, attached and detached townhomes up to multi-million dollar ocean front mansions and condos. Sometimes the property types get confusing.
  • Condos are flat - think apartment style
  • Townhomes are multi level and can either be attached or detached
  • Houses are exactly what you would expect. Traditional (and some not so traditional) Single Family Residences, SFRs, on their own lots.
North and South Redondo Beach are further divided into the following neighborhoods by the MLS, meaning this is how Realtors think of them. Descriptions are from the MLS. (You can follow the links to see homes for sale.)


NORTH REDONDO BEACH
AREA 151 Villas North
AREA 152 Villas South
AREA 153 El Nido
AREA 154 Golden Hills

SOUTH REDONDO BEACH
AREA 128 Hollywood Riviera
AREA 155 N of Torrance Blvd
AREA 156 S of Torrance Blvd
AREA 157 West of PCH

On this site you can view:
  • All the most current listings of homes for sale in Redondo Beach
  • Customizable Market Reports
  • Accurate Home Valuations
  • Real Estate Updates




SELLING A HOME IN REDONDO BEACH


Everyone likes to start with "the comps" as in "how much is my home worth?" and that seems logical enough.

Most people turn to authority websites offering automated valuation models (AVMs) such as the one above to get started. But since these tools are working on algorithms of recently sold homes to come up with the value or price they are just as likely to be correct as not.

For example the AVM does not know if your house has a new roof, new wood floors or an updated kitchen and your neighbors does not. Or if your house is on a quiet street and the one being used for comparison is on a busy street. The AVM is only comparing age, Sq Ft, lot size etc not the finer points that make pricing homes an art more than a science.

When deciding to list your home for sale, often your Realtor may present a CMA also known as a Comparative Market Analysis. The problem with many CMAs is that if the wrong comps are used the wrong conclusion can be drawn. But, in general, it does make sense to take a look at properties for sale, properties currently under contract and recently sold listings. You can view a sample one here and then customize your own for your home.

The next most common question sellers ask is "how long will it take to sell?" and that's fair enough.

Days on Market (DOM) is really a function of a few factors.

First are you in a Buyer's or Seller's market right now. (We've been in a Seller's market throughout 2016.) The determination is based on whether there are more or less than 90 days of inventory available. The absorption rate can be calculated based on either closed sales during the previous month or properties under contract.

The second factor is your pricing strategy and yes, it is a strategy. For the last few years the gold standard has been to price homes just a little bit below the market in order to get multiple offers over the asking price. And quite often the properties sold for way over the asking price. That is often referred to as "event" pricing. There is a lot of empirical data proving that this strategy is more effective than pricing homes higher and leaving room to negotiate (aspirational pricing). Often these homes sit on the market longer and have to be reduced to sell. So while it is counterintuitive to think that initially listed a home for a lower price will get a higher final sales price, truthfully it does.

Many sellers ask if "commissions are negotiable" and yes, they are. Real Estate commissions are not set by law and different agents and Brokerages have different commission models.

The commission will be split between the listing agent (the agent representing the seller) and the selling agent (the agent representing the buyer). While usually the split is 50/50 it does not have to be so. In no instance should the buyer's agent be offered less than 2.5% of the selling price. If there is a discount it most often happens on the listing side.

After the price, time, and commission is addressed, many Sellers want to understand what they can do to improve their home's value. Ironically, some of the best moves can be the least expensive.

The first is to "de-clutter" meaning get rid of the stuff we all have scattered around our homes. To start with the professional high resolution photos your agent has taken to show the listing off will simply look better. And it will show better both at Broker's Open Houses and public viewings.

After that you might want to consider painting any rooms that are currently a "highly personalized" color. There's a few reasons. First, many buyers today, particularly first time buyers, are looking for "turn key" homes meaning they can move in without doing anything. Second, it will show better if it is a neutral.

As for updating kitchens, bathrooms etc, it is not advisable to spend a lot of money because even if you have impeccable taste or a great designer, it may not be your buyer's taste. The only exception might be very worn and dirty carpet.

As a general rule of thumb, you should not spend more than 1% of the home's expected sales price on any updates and if you can keep it to a half a percent even better. For any expenditure over 1%, such as a new roof, you have to evaluate what your return on that investment will be. Hopefully at it is recouped.

Here's a few "pro-tips" that can increase the selling price.

Get a home inspection before the house is on the market and do the minor repairs. This is a common practice in other parts of the country.

Have your home partially or completely staged. Most top Realtors work with stagers and some include this as a service for their clients.

BUYING A HOME IN REDONDO BEACH

You've done your research, crunched the numbers and have come to the correct decision to buy in Redondo Beach. Right decision.

Here's some tips.

The most important first step you can take is to get a mortgage pre-approval from a direct lender (unless you are a cash buyer). As you go shopping for a mortgage there's a few things you need to keep in mind.

  • No lender can guarantee a rate for you until you have a signed purchase contract. Let's repeat that in another way. The low price teaser rates you see on the internet are just that - teasers.
  • Unless you have some credit issues or qualifying challenges you do not need a "mortgage broker". Mortgage Brokers take your file to another lender to approve.
  • If you are going to deal with one of the big banks, the one with walk in branches, don't apply with someone on the floor. Find a loan officer who only does mortgages through a referral.
  • Not all programs apply to all property types or price points.

Find an experienced agent to represent you. While some buyers want to make the offer through the listing agent, truthfully that's not the best way to protect your interests and get a good deal. You wouldn't have the same lawyer represent you and the opposing party in a lawsuit. Buyers and Sellers have different interests.

If you are looking for a "deal" don't just focus on the newest listings. Look for properties that may have fallen out of escrow or been on the market for a long time. That's most likely where you will find the opportunity.

As for why the property is being sold, it is a common question but often not the most fruitful line of inquiry. Sellers do have to disclose whether anyone died in the property in the last 3 years but beyond that there is not much of a requirement. You will very rarely hear that the seller is desperate and needs cash - even if they do!