Tag Archives: teles properties pasadena

Sound Familiar?

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Sound Familiar? by Carrie Benuska, San Marino Real Estate

The San Marino Real Estate Report, as seen weekly in the San Marino Tribune

Chart for Arcadia ArticleJust a few weeks ago, I presented sales data for the City of San Marino that showed a sharp spike in average price per square foot for homes sold during 2013.  San Marino is known for having a solid and reliable real estate market.  It is the last to get hit in a downturn and the first to make a rebound.  During the financial crisis of the late 2000’s, San Marino performed beautifully.  The market was not immune to losses, but the magnitude of the downturn was small compared to many luxury areas in Southern California.

My contention is that the large influx of foreign, all-cash buyers is leading to the sharply accelerating San Marino prices.  When an individual is paying cash for a property, the transaction is not subject to the strict appraisal process used by most banks.  Eager to invest money in San Marino real estate, an all-cash buyer might be willing to engage in a bidding war and pay over market to acquire a property.  Once the all-cash deal closes, there is now a comparable sale to be used for an ensuing buyer needing a loan.  Without the price ceiling that the customary appraisal process brings, prices are allowed to quickly accelerate.

In the course of this San Marino market update, I mentioned the fact that Arcadia is seeing similar conditions.  Arcadia is known for its outstanding school district and consistently high property values, so foreign all-cash buyers are investing heavily in this neighboring community.  With a much more lenient building code, Arcadia homeowners are finding it profitable to tear down the original house and build a much larger custom home on the property.  Anyone driving the streets of Arcadia can see many of these homes in the midst of construction.

My intuition told me that if I did a similar study of average price per square foot of sold homes in Arcadia as I did in San Marino, I would find very similar results.  Because Arcadia is a much larger city than San Marino and has some neighborhoods that are more prestigious than others, I chose to study three Arcadia areas – Highland Oaks, Upper Rancho, and Lower Rancho.  The boundaries I used for these areas were my own design and did not correspond to an official city map.  The results were stunning.

The attached chart shows that each of the three Arcadia neighborhoods and the city of San Marino experienced very similar percentage increases in price per square foot from the year ended 12/31/12 compared to the year ended 5/21/13.  The chart beautifully illustrates this fact by showing four line segments at the far right of the graph with a similar slant.

Digging into the data, the three Arcadia neighborhoods actually experienced larger percentage increases in average price per square foot during that period than San Marino.  Highland Oaks showed a 19.4% increase, Upper Rancho a 20% increase, and Lower Rancho a 22% increase.  On their own, these figures are impressive, but compared to percentage increases/losses for previous years, they are astounding.  The city has not seen gains of this magnitude going back before the previous market high.

It is unclear to me what will happen with prices in the next few months in these highly sought after areas.  The only summary that I can make is that it is a great time to sell a home in Arcadia or San Marino!

For information about real estate in Pasadena, San Marino’s next door neighbor, go to Everything’s Coming Up Roses

Carrie Benuska, Teles Properties, 210 S. Orange Grove Blvd., Pasadena

A “Win-Win” Proposition

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A “Win-Win” Proposition, by Carrie Benuska, San Marino Real Estate

The San Marino Real Estate Report, as seen weekly in the San Marino Tribune

A "Win-Win" Proposition, by Carrie Benuska, San Marino Real Estate

A “Win-Win” Proposition, by Carrie Benuska, San Marino Real Estate

With today’s wild and crazy real estate market, sellers can often call the shots on the negotiable elements of the purchase agreement.  If the home is desirable to many, buyers are having to get creative to get their offer to the top of the pile.  Beyond the purchase price, people are resorting to tactics like dropping all contingencies, closing in very short time frames, and giving the seller a period of free lease-back.  Buyers are pulling out all the stops to make their offer pleasing to the seller.

One option included in the purchase agreement is for the seller to provide the buyer with a home warranty.  As the name implies, this is an insurance policy for the major systems and appliances in the house.  Not every buyer will ask for one, and when the competition is extremely stiff, a buyer might decide to leave that option out.  Even if a buyer does ask for one, a seller who is trying to maximize proceeds, might decide to counter the home warranty out of the agreement.

Things covered under most home warranty policies include:

Plumbing, stoppages, electrical, range/oven/cooktop, dishwasher, garbage disposal, central vacuum, ceiling fans, doorbells, telephone wiring, water heater, whirlpool tub, heating/heat pump, microwave trash compactor, hot water dispenser, exhaust fan, garage door opener.

Additional coverage could be added for central air conditioning, water softener, pool/spa, refrigerator, washer/dryer, well pump, and septic plumbing.

The policy kicks in after the close of escrow and will cover items laid out in the contract.  If the air conditioning goes out during the first hot spell, the new owner can contact the warranty company, and they will send out a tradesperson to diagnose the problem.  For a nominal service fee, this professional will get the air conditioning in working condition, even if it means they have to replace a component that is covered under the policy.

It is important for buyers to understand that home warranty company will repair or replace only covered items that fail due to normal wear and tear.  A garbage disposal that is broken because your sweet boy decided to grind up his Star Wars action figure would not be covered under the policy.  Also, they will not fix something that was broken before your bought the house.  If the owners disclosed that the heating system on your new home has been non-operational since 1980, the warranty will not cover the replacement cost.

A standard warranty with air conditioning should run under $400, and I believe it is worth every penny.  The buyers will be thrilled to be protected from unexpected issues during their first year.  After making the major investment required to purchase a home, it is nice to know that there is protection in place in case a problem arises.

The benefit to the seller is a bit harder to perceive, but it is equally important for them.  Most sellers are very diligent to keep the systems of there home in good working condition.  Most have deep pride of ownership and feel responsible to pass on their home in excellent shape.  Even with consistent care, though, things can go wrong.  If the water heater dies just one week after escrow closes, it is nice to know that the buyers will call the home warranty company rather than calling you.  The additional layer of protection that a home warranty provides limits any disagreements that could arise after escrow closes.

Most sellers are reaping huge rewards for selling their home in this current market.  I have been surprised at the high prices my sellers have been receiving in the last few months.  Even though the seller is in the power seat, I believe spending a few hundred dollars on a home warranty will be a “win-win” proposition.

For information about real estate in Pasadena, San Marino’s next door neighbor, go to Everything’s Coming Up Roses

Carrie Benuska, Teles Properties, 210 S. Orange Grove Blvd., Pasadena

Where Do We Go From Here?

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Where Do We Go From Here? by Carrie Benuska, San Marino Real Estate

The San Marino Real Estate Report, as seen weekly in the San Marino Tribune

The last six months have been a crazy period for residential real estate in the city of San Marino.  Although other Greater Pasadena communities have been experiencing  brisk markets, San Marino has been in a class of its own.  After going through a period of ups and downs after the nation’s real estate crisis, the average price per square foot for homes sold in San Marino has literally skyrocketed.

A major factor driving the hot market is high demand from overseas buyers.  Armed with cash, these buyers are anxious to purchase a home in a well-respected community also known for having an excellent school system.  In addition to San Marino, Arcadia is also experiencing heavy demand from this demographic.

The number of homes available for sale has been at historic lows, and what has come on the market has sold lightening fast.  There have been multiple offers on most every sale, and people have resorted to brokering deals outside of the open market.  Anyone who bought a home in San Marino during the early months of 2013 probably resorted to extreme measures to get it.  It is the true definition of a seller’s market.

The question that many people are asking is, “Where do we go from here?”  People have always expected healthy growth in the San Marino housing market, but don’t things have to equalize at some point?  This question has been heavy on my mind as I watch each new listing come on the market and then track the final sales figures.

In most instances, I compare median home price over a period of time to show market changes.  This is a particularly effective way to gain market intelligence.  As I have been looking at listings coming through on the Multiple Listing Service, my eye has been drawn to the price per square foot figure.  It is also a great gauge of how the market is performing.

Chart for where do we go from here

The attached chart clearly shows the sharp acceleration of prices in the city of San Marino in recent months.  I began tracking average price per square foot for homes sold in 2006.  To summarize the graph:

  • The first market high was in 2007, with a healthy 8.3% gain in average price per square foot from 2006
  • From 2007 through 2011, average price per square foot went on a bit of a roller coaster ride
  • The turn-around came in 2012, when the market rebounded by 5%
  • From the period January through April of 2013, average price per square foot of sold homes jumped an astounding 14.5% from the year ended 2012
  • The average price per square foot of homes on the market as of end of day May 6 was $779.  This average is 12.2% higher than the home sold from January through April

As of May 6, there were 17 available homes for sale.  This is an increase from the latter months of 2012 and the early months of 2013.  Supply appears to be on the rise.  In addition, sellers are responding to the quickly accelerating market by pricing their properties at premium prices (see average price per square foot of current active listings), hoping to capitalize on favorable market conditions.  At some point, buyers will be unwilling to pay the high prices and might turn to other markets as an alternative to San Marino or wait for sellers to reduce their asking price.  With some people opting out of the market, demand would decrease.

From my Econ 101 class in college, I know that increased supply and decreased demand should lead to decreased prices.  This would be welcome news for buyers interested in breaking into the San Marino market, but not that good of news for sellers interested in cashing in.

I am not an economist or a fortune teller, so I have no idea what the future has in store for the robust San Marino real estate market.  You can be certain, though, that I will be eagerly following prices to see where we go from here!

For information about real estate in Pasadena, San Marino’s next door neighbor, go to Everything’s Coming Up Roses

Carrie Benuska, Teles Properties, 210 S. Orange Grove Blvd., Pasadena

Coming Soon – 528 Segovia Avenue, San Gabriel

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Coming Soon – 528 Segovia Avenue, San Gabriel, by Carrie Benuska, San Marino Real Estate

The San Marino Real Estate Report, as seen weekly in the San Marino Tribune

Coming Soon - 528 Segovia Avenue, by Carrie Benuska, San Marino Real Estate

Coming Soon – 528 Segovia Avenue, by Carrie Benuska, San Marino Real Estate

It was exciting to see North San Gabriel show gains in both median home price and average price per square foot during the first quarter of 2013.  In the early weeks of the second quarter, sales in this desirable area have continued to strengthen.  Quite a few recent listings have received multiple offers and had accepted offers well over the asking price.  The market is really heating up.

North San Gabriel rests right below San Marino and is home to the gorgeous San Gabriel Country Club.  There are many attractive streets lined with appealing houses in the 91775, but some would contend that the area above Roses Road, between San Gabriel Boulevard and Mission Street, is the very best.  This small rectangular area has Church of our Saviour and the San Gabriel Cemetery at its center and shares a northern border with San Marino.

Next week, I will be introducing to the market an absolutely adorable one-story Traditional, located in this prime North San Gabriel Neighborhood.  Sited on one of the best streets, 528 Segovia Avenue is a true stand-out on the block.  It is blessed with great architecture, a killer paint job, tons of light, and a beautifully landscaped front yard.  The home has a friendly feel that invites you to come in for a closer look.

The current owners bought the home from an elderly man, and it was  badly in need of some TLC.  Luckily, they were able to see beyond the dingy paint and dated systems, realizing that the home was well-made and blessed with innate charm and appeal.  They went to work and transformed the interior and exterior of the home into a true delight.  They were wise about the improvements they made, building upon the assets the home already possessed.

Featuring three bedrooms, one bath, and 1,372 square feet of living space, the house has a great floor plan and many special details.  The systems have all been upgraded, and the kitchen and bath have also received improvements.  The interior is attractively painted and has freshly refinished hardwood floors.  It is truly move-in ready.

The light-filled living room is extremely spacious and has a bay window and fireplace.  The attractive formal dining leads into the bright and cheery kitchen, with a custom-made window seat, white cabinetry, and a vintage stove.  Beyond the kitchen is a separate laundry room with a door to the back garden.  The three bedrooms are conveniently located and share an attractive remodeled bath.

A highlight of the property is the lush and peaceful back garden, with a large grass area, a prolific lemon tree, and a picturesque rose garden.  The roomy 7,701 square foot lot has all been landscaped, has an updated sprinkler system, and provides a large space for backyard living.

Those interested in this North San Gabriel beauty will need to wait a few days.  We are fast at work putting on the finishing touches, so that it looks its very best and will bring it on the market on Monday.  This is one you will not want to miss.

For information about real estate in Pasadena, San Marino’s next door neighbor, go to Everything’s Coming Up Roses

Carrie Benuska, Teles Properties, 210 S. Orange Grove Blvd., Pasadena

The Wonders of “Thai House”

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The Wonders of “Thai House,” by Carrie Benuska, San Marino Real Estate

The San Marino Real Estate Report, as seen weekly in the San Marino Tribune

The Wonders of Thai House, by Carrie Benuska, San Marino Real Estate

The Wonders of Thai House, by Carrie Benuska, San Marino Real Estate

As an architecture fanatic, I have developed a growing love for the work of Bob Ray Offenhauser, a local architect who has been designing amazing structures for more than 40 years.  My first exposure to his work was in 2010, when I viewed a condominium that he designed in South Pasadena.  Located in a very small complex, I was entranced the moment I stepped into the door.  It was a stylish unit built in 1962, with soaring ceilings, floor-to-ceiling windows and doors, and extensive use of Terrazo tile.  It was exquisite.

Not long after, I showed a client a unit in a Bob Ray Offenhauser designed condominium complex on South Orange Grove, called “The Trianon.”  Built in 1965, this building has a pleasing French flair, including beautiful formal gardens along the entry pathway.  Similar to the South Pasadena condo, the Trianon unit had very high ceilings and doors which reached all the way from floor to ceiling.  The unit was sophisticated and glamorous, and my respect for Offenhauser grew as I admired his sense of scale and tendency toward the dramatic.

To my delight, I was given the opportunity last Thursday to view an exquisite Bob Ray Offenhauser creation at 1055 S. San Rafael Avenue in Pasadena.  Listed with Lois Derry of Coldwell Banker San Marino and Tink Cheney of Coldwell Banker Pasadena, the home is officially called “Thai House” and is literally a work of art.  It features 2 bedrooms, 3.5 baths, 6,907 square feet of living space, and an 18,500 square foot lot.  As the name implies, the architecture has a pronounced Far Eastern aesthetic, but wandering through the interior of the home, I saw many of Offenhauser’s signature elements.

The home, which is perched on a knoll, is fascinating from first glance. The exterior features ample stone detailing, intricate window grills, and a delightful fish-scale tile roof, all which create a sense of historic opulence.  A set of dark wood doors provide admittance to the inner sanctum of “Thai House.”  The doors lead to a ravishingly beautiful entry patio, with a unique combination swimming pool and fountain.  The home is built around this picturesque area and is viewed through enormous windows in several of the interior rooms.

The interior of the home is quite modern and sleek, but there is a clever addition of antique Thai elements, which create a beautiful juxtaposition.  As with his other designs, this home has extremely high ceilings, floor-to ceiling doorways, and tall vertical windows.  Although the home has not been recently renovated, it has an enduring style that is timeless.  It is dominated by large common areas and would be a perfect home for entertaining.

The living room, with towering 34 foot ceilings and modern black columns, is a dramatic and modern space that sets the tone for the entire house.  Adjacent to this magnificent room is a large formal dining room, which incorporates the historic with beautiful carved wood shutters.  Beyond that is a large old-world gourmet kitchen, with an attached family room with fireplace.  This space also incorporates a butler’s pantry, a huge walk-in pantry, and a half bath.  To the other side of the living room is a very formal and intricate wood-paneled library.

The highlight of the bedroom space is an enormous master suite, with a private office, several closets, two beautiful baths, and a spiral staircase leading down to a private gym.  The master retreat is a separate wing of the house and provides immense privacy.  The second bedroom suite is located on the opposite side of the house on the lower level.  There is also a separate guest house.

This home is definitely slanted toward an adult lifestyle and features a unique layout.  Since I am moving into my empty nest years, this home would be a dream-come-true.  It is so exciting to know that Bob Ray Offenhauser is still active in the industry and continues to design.  I look forward to discovering more of his work!

For information about real estate in Pasadena, San Marino’s next door neighbor, go to Everything’s Coming Up Roses

Carrie Benuska, Teles Properties, 210 S. Orange Grove Blvd., Pasadena