Ed Kaminsky's Real Estate Blog

ITZSOLD Case Study #238

Today's market brings many challenges. The solutions are varied. Ed Kaminsky will be reporting on some of the challenges and solutions that resulted in success. With over 23 years of experience, Ed has 1,400 closed transactions and a repertoire of stories and successes that run deep, and will now be shared for those who would like to use this information to their advantage.

The Challenge: Defying absorption rate in a declining market. What is "absorption rate"? It is the rate at which homes sell in a given market over a given period of time.  In 2008, the number of townhomes that sold in the Hermosa Valley Section of Hermosa Beach was 11. (Absorption rate < 1 home per month.) Fast forward to 2009: Our builder-client wanted us to sell 8 new townhomes in a declining market.  We were fast approaching the usually slow holiday market, consumer confidence was down, financing remained difficult, and there was plenty of inventory on the market outside of this new project-Oh, and he wanted to surpass the current average price per square foot sales prices in the current market, too. How do you sell 8 units inside of 60 days when everyone tells you it will take 8 months or more, or that it isn't even possible?

The Solution:  Fortunately, we were working with a product that had high quality construction and finishes ,  was "Green Rated",  and had unmatched ocean views and a builder willing to make a bold move down on the price. That was the easy part. The plan . . . create a full-time, double-staffed open house team, train them to know and understand all of the features and benefits of the project, including the location and aspects of "Green Construction",  then challenge them with the responsibility to sell out the project before year end.  Also, we were to implement an aggressive advertising campaign on the local level, while reaching beyond into surrounding counties, and get creative with cooperative advertising supporting local green businesses. Then, the plan involved networking with the area's best agents and brokers, offering aggressive commissions to cooperating brokers of 2.5-3%, and providing professional interaction between the buyers and the developers. Prominent signage on the project, including the newly invented ITZSOLD-O-METER, training and retraining of the sales staff to provide fast and efficient service from sales to escrow, and an advanced internet/social media marketing campaign, allowed us to produce the following success story for our client. . .

The Result:  The first offer was accepted October 22, 2009, the 7^th offer  was accepted December 26^th, an the 8^th and final offer is being discussed at the time of this writing (but hurry, if you are interested --ITZnotSOLD).  7 of 8 homes sold in approximately 60 days producing a 350% increase in the past absorption rate! 6 of the 7 homes have closed escrow, all construction loans have been paid off, sales prices exceeded 10% above the average sales prices on price per square foot in the area. This success story reflects the quality of this project, combined with a very strategic and truly unique ITZSOLD marketing campaign.

(Learn more about the 8^th and final unit at HermosaPointHomes.com or visit the open house every Saturday and Sunday from 1-4 pm. You may also call 800-352-6250 x 311# for 24 hr RECORDED information about this project.)

These studies will be posted on www.itzsold.com in the near future and will continue to post in the Beach Reporter from time to time. Until that time, stay tuned, stay sharp, and always keep growing.  

 --Ed Kaminsky

We're happy to let you in on a little secret . . . if you are a homeowner that has been denied a loan modification, is behind on payments and/or is afraid there is little to no value left in your home AND you have a home loan with Wachovia, World Savings or Golden West Loans, then you need to know about this special program!

Wachovia has introduced a limited time FAST TRACK program for homeowners in need of help. The application process is simple and quick and if you qualify, you may be able to sell your home with ZERO costs!

Yes, ZERO costs!

That may include:

• NO Commissions                                                                      
• NO Repair costs
• NO Closing costs
• Past due payments
• Past due HOA fees
• Past due property taxes

More homes are transitioning into delinquent status at a greater rate than ever before. Loan modifications are not being granted and thousands of foreclosures are on hold. The Real Estate market inventory stands to become saturated with distressed homes in 2010, which will have an adverse effect on property values.

There is absolutely NO obligation and no one will ever ask you for a dime when you apply for this special program! Visit www.FREEShortSaleSystem.com to find out more NOW!

Do NOT become a statistical victim of the housing crisis! Save your credit and PAY NOTHING!

I 100% believe that Wachovia has put together the best Short Sale relief program for their customers. With the market poised to shift against the load of forclosures set ready to bear down upon it in 2010, I can't stress enough that if you are in a position where you can qualify for this program, get your application in. Together with Wachovia's Fast Track program, our 90 Day Sure Sale system will bring loan relief in a matter of weeks; even those who do not qualify for the Fast Track program DO qualify for our 90 Day Sure Sale system.

Breaking Real Estate News. .  . NO MORE New Homes??

HERMOSA BEACH, CA (Sept. 14, 2009) - Recent market analysis points to the face that this may be your last chance in a long while to buy a brand new townhome in Hermosa Beach.  Construction starts are down and the tell-tale bulldozers sitting in front of old beach "tear downs" are nowhere to be seen. Why? Developers can no longer buy land locally, build a new property and make a profit. Until that changes, new home inventory is going to disappear. Builders with nothing to build have become remodelers, custom home builders for homeowners, or have been forced into an extra long vacation or early retirement.

Those buyers who waited for the market to decline, sacrificed and saved their money, maintained their credit rating, and kept their job and/or their business will find it difficult to satisfy their urge for that "New Home Smell".  Hermosa Pointe Homes offers those buyers possibly the last chance to own a brand new home at today's discounted prices. The developer's early projections on prices for these townhomes were close to $1,500,000. Starting at just $1,099,000, Hermosa Pointe offers today's buyers an incredible opportunity that will truly disappear before you know it. It is possible that if you call our offices in 3 or 6 months and say: "Ed, I would like to look at new homes this weekend, could you show me some?",  the answer may be: " I am sorry, there are currently no brand new homes on the market. I can gladly show you homes that are 5 or 10 years old. Would that be OK?".

Urban Pointe Development, the builder of these beautiful, 3 bedroom, 3.5 bathroom townhomes stated,  "Although we are financially strong, unlike some of the other local developers, we are going to remain cautious on land acquisitions for the time being." One thing for sure is that buyers can buy with confidence knowing that the developer of their home is standing strong and will be around tomorrow for any warranty work required. Not something you can count on with some projects that have been either taken over by bankers, or have put some developers out of business.

What makes these homes special besides being one of the only brand new homes left? The low density site plan is one reason. Most lots in Hermosa Beach allow developers to cover 65% of the land with "building coverage". This site only allows 35% lot coverage, creating a tremendous sense of space and distance from neighbors. View ...  probably one of the best views off of the Hermosa Beach strand. You can see from Malibu to Catalina with little to no chance of view blockage from future construction. Location ...  located in prime North Hermosa, near the border of Manhattan Beach and West of P.C.H. Quality ...  unsurpassed quality of construction in every detail of these outstanding homes, no expense was spared and traditional "upgrades" come standard. Green ...  the first certified, Green Rated multi-home project built in the south bay offers today's buyers two of the greatest components of Green Construction: Saving Money and Saving the Earth.

2 homes are freestanding with no common walls. 2 homes feature yard areas. Each 2,000+ sq.ft. home features a panoramic ocean view roofdeck and interior ocean views, as well as on site guest parking. High end stainless appliances, including the refrigerator, come standard with each home.

If you haven't seen these homes, come visit them this weekend, they will be open from 1 to 4 pm on Friday and 11 a.m. to 5  p.m. on Saturday and Sunday.

Call 800-352-6250 x 211 for 24 hr. Recorded information

www.HermosaPointeHomes.com

When I listed Hermosa Pointe Homes, the beach cities' 1st certified Green townhomes, I admit I was aware of the buzz about Green building and my interest was peaked, but I never expected to take away from this project a new committment to being green personally.

I have literally learned so much about green living and green building these past weeks. I often ask myself why we never adopted these practices decades ago. It would have been so easy. Regardless, I am really taken with what the builder has accomplished at Hermosa Pointe. They have really incorporated traditional design elements with hundreds of green building items. These are the 1st I have seen that have such a warm, welcoming feel to them. Admittedly, when I thought "green" before, a picture would form in my mind of a concrete, glass and steel structure with giant rain barrels in the yard. What Urban Pointe has brought to the table is a product that has the look and feel of a more mainstream, custom home, yet everything you touch or see has some kind of green element to it. It's amazing.

We get so many comments from visitors to our open houses when they walk in about how shocked they are that Hermosa Pointe doesn't "look" green. When we take them through the homes and start deconstructing every green element, room to room, they are truly amazed. We hear that they love the light and air in the homes, the natural flooring, and the fact that the homes don't "smell" new.

Click link below for a peek at  Hermosa Pointe

http://www.zingding.com/listing/view/37967534/

Top it all off with the jaw-dropping ocean views from every home, the low density site plan, the bonues parking on site and the great North Hermosa, West of PCH location, and these homes are sure winners starting at $1,099,000.

Ok, so after being inside these homes, feeling them, talking about them, selling them--I found myself feeling a little guilty for not examining my personal "green" practices more closely and seeing what I coudl do to improve them.

My office is green. I rent in a building that has been recognized as a "Green" corporate building. I have adopted their practices and suggestions for operating inside my own office space. I decided to really get aggressive with it all.

We have installed motion sensors on all of our office lights; we recycle not only at our desks, but also in our kitchen. We use plates, napkins & paper towels made of recycled materials. We all started bringing in our own coffee mugs and silverware to wash and reuse, rather than use disposable ones. Our printer/copier  & computers are set to "sleep" when not in use. We don't use the A/C on weekends (which can really get warm sometimes!) We recycle our toner cartridges & shipping materials.  We have implemented a new e-fax system so that we can "wean" off of our traditional, paper fax machine. We use recycled paper for our printer & re-use our file folders regularly. And recently, we converted to the new, Department of Real Estate endorsed, "RELAY" system, which is set up to eventually take our entire transaction process paperless.

To continue our efforts and to take it one step further, we are converting our entire flyer system over to a new "waste not" flyer format. We found that every year, our office was using over 260,000 pieces of paper to print flyers for outside flyer boxes. Most curious passersby will take a flyer, get the basic information they want from it, then toss it in the back seat of their car, which eventually makes its way to the trash.

Our "Waste not" flyers not only help us reduce consumption of paper, energy, toxic inks & fuel used in the printing, production & stocking of flyers; they also make our sales team that much more effective in securing interested parties and converting them to buyers for your property! Plus, our flyers never run out!

Our new format, a "permanent" flyer affixed to the sign post, will feature multiple photos, and appropriate bullet points of information about the home. People will be instructed to call our 800# which offers 24 hr, pre-recorded information about the property, and allows them to leave a request for a flyer to be emailed to them if desired. What is great about call capture is that my entire team is simultaneously & instantly notified that an inquiry just came in, and the sales staff to call back within moments of a buyer being in front of a property to have a LIVE conversation with them and go for the appointment/conversion; much more effective than tossing a flyer in the back seat! The "waste not" flyer also gives directions on where to go online to view a virtual tour and additional photos of our properties.

We are the first in the area to take this monumentental step away from the tradtional & very wasteful method of marketing with flyers. We are very excited to br bringing this change to our local marketplace.

I learn something new everyday in this business. Marketing a "green" project has personally touched me and I hope to move forward as an example to my Real Estate community with ideas and innovations to continue to reduce waste in our industry.

"ED SAID"

e-Raffle and Pick of the Week

Congratulations to KAREN DUNBAR who won our 1st e-Raffle!!

She received a FREE home cleaning service from Maid Brigade, the South Bay's ONLY Green Clean Certified home cleaning service!

As part of our ongoing commitment to providing excellent rescources, information & services to our friends and clients, Ed will continue to introduce you to a great new service provider in the area, and share his special "Ed Said" discount, exclusive to those who know Ed and mention his name at time of service!

It Pays to Know Ed!

The "Ed Said" service spotlight is:

Participate in our special "e-Raffle" for your chance to WIN a FREE

"Ice Cream Dream" Manicure/Pedicure service from Color Me Green 

(a $53.00 value!) 

TO ENTER: e-mail your name, address and phone number by August 21st, 2009 to Deanna@ItzSold.com*. You will be entered into a drawing to receive a FREE "Ice Cream Dream" manicure/pedicure service (worth $53.00) from                

Color Me Green Eco-Friendly & Organic Nail Boutique in Manhattan Beach!

Forward this email to friends & family so they can have a chance to win

or just to learn about a great new GREEN service in the area!

ED SAID: "My staff discovered Color Me Green when organizing our Green EXPO at Hermosa Pointe Homes in July. After a first visit, they were raving about the comfort of the salon and the outstanding hand and foot massages! Color Me Green takes pride in using only organic oils, fruit extracts, herbs and botanicals for stress relief. They also offer Vegan, DBP, Toluene and Formaldehyde free polishes as well as a soy based and Vegan Acetone Free nail polish remover. Enjoy a warm and cozy home environment while a special air filtration removes many harmful fumes. They even treat you with home baked cookies! A special " BE BOLD" package is offered for men, so everyone can indulge!"

Visit Color Me Green Eco-Friendly & Organic Nail Boutique today!

Tell them " ED SAID" to get 10% off your first service!

310-545-7474

www.ColorMeGreenNails.com

Located at: 2001 N. Sepulveda Blvd., Unit C, Manhattan Beach, CA 90266

Brought to you Exclusively by The Ed Kaminsky Real Estate Team of Shorewood Realtors

310-798-1277        www.ItzSold.com

* restricted to South Bay Residents only, sorry.

I truly believe the homes at Hermosa Pointe stand above the rest because of their excellent North Hermosa location paired with ocean views that cannot be duplicated unless you are willing to pay $6-10 million to be right on The Strand. It's an exciting project to be involved in as we see the evolution of future green building unfold right before us and suddenly become very available and accessible to new homebuyers in the area.

Join us for the Grand Opening Event & Green Home EXPO at Hermosa Pointe, Saturday, July 18th, 11-5. Visit vendors and businesses such as Whole Foods, GrassFree, Midwest Solar, Reeds Natural Sodas, Color Me Green, Maid Brigade, Westco Smart Homes & more at our Green EXPO. Find out how to get a FREE GEM car!

http://www.zingding.com/5222055552

Here's a little more info on this exciting Build it Green project:

Hermosa Pointe Homes, the first luxury townhome project in the Beach Cities to go Green, will be having it's official Grand Opening event on Saturday, July 18^th, from 11 am to 5 pm. The homes are located at 731 21^st Street in Hermosa Beach.  The public is encouraged to come tour these unique homes and also stop by the Green Home Expo which will be taking place on site at the event, featuring local businesses that have committed to Eco-Friendly services and products for the home.

Urban Pointe Development is a local development firm specializing in building multi-family townhomes and condominiums with the same quality, style and comfort that you would find in a custom single family home. While most of their developments have centered in the beach communities of Los Angeles County, Urban Pointe has also developed properties in Riverside and San Bernardino Counties of Southern California and within the states of Arizona, Illinois and South Carolina.

Urban Pointe understands that every residential or commercial property they build is part of a greater community. That's why they support neighborhood schools and embrace local charities that contribute considerably to the growth and vitality of the communities we share. The spirit of selfless generosity, combined with Urban Pointes' culture of community commitment, has allowed the company to be part of something truly great, which is why they are pleased to present to the community, the area's first certified green multi-family project of its kind to be brought to the beach cities.

Hermosa Pointe Homes is the newest project by Urban Pointe Development. What makes this project unique is that the builders have followed rigorous standards set forth by the Build It Green program to bring the quality and luxury Urban Pointe is recognized for, together with healthy living standards, to offer a product that exceeds expectation.

The Build It Green program is a non-profit membership organization whose mission is to promote healthy, energy-and-resource-efficient building practices in California. Urban Pointe Development is a member of Build It Green and is working within the program to achieve its "Green Point Rated" number. To achieve a Green Point Rating, an independent third party evaluates the homes based on five specific categories: Resource Conservation, Indoor Air Quality, Water Conservation, Community, and Energy Efficiency. Points are awarded for the number of items achieved in each category and a Green Point Rating number, similar to a report card grade, is assigned to the project. Brad Scott, President of Urban Pointe Development, reports "What we realized when we decided to follow the Build It Green program was that we already implemented most of these standards in our company in past projects."

There are eight luxury townhomes at Hermosa Pointe offering superior ocean views from the upper living areas and the large rooftop decks. Two of the homes are completely detached, stand-alone structures that feel very much like a traditional single family home at the beach.  In addition, two of the homes offer exclusive use "yard" areas. All of the homes are end units built on an elevated lot that will preserve the upper living area ocean views. In accordance with the Build It Green program, low density of the lot provides for open space not readily found throughout the South Bay beach areas. The homes were built on only 35% of the lot as opposed to 65% as traditionally found throughout Hermosa Beach.

Hermosa Pointe is located in the sought after North Hermosa Beach area, West of Pacific Coast Highway. The project receives a WalkScore (www.WalkScore.com) of 88 points, meaning its location is a prime pedestrian and bicycle friendly site. Hermosa Pointe is located within ½ mile of award winning elementary, Jr. High and High Schools, as well as the library, police and fire stations, public parks, grocery stores and pharmacies, community centers, theater and entertainment venues, convenience stores, banks, and restaurants. Additionally it is located near the beach and pier, public transportation, the community skate park, community jogging path, the marina, cafes, coffee houses, dry cleaners, pet care, yoga centers, gyms & private trainers.

Henry Ruggeri, Vice President of Project Management, personally, is very proud of the project saying, "We have always believed in the future of green building and are pleased to be working with the City of Hermosa Beach, which is at the forefront of the green movement in the South Bay." Ruggeri also says, "We thought it necessary to build a home for the individual or family seeking the benefits of an environmentally friendly residence, but who also wanted a more traditional feel to their home.  Our aim is to show people that ‘green' doesn't have to be a contemporary or urban styled design. These homes were built with a concern for the global environment while providing a comfortable private environment to enjoy the outstanding ocean views."

Urban Pointe Development has incorporated into Hermosa Pointe, the elements of design and luxury typical of their award winning projects. Besides the health and efficiency benefits incorporated through the green design, the homes boast high quality and designer finishes as standard items, unlike others where these features are only offered as "upgrades". Bonus items featured in the model comes standard in the remaining homes; from the low flow Kohler bath fixtures to the Energy Star rated, Kitchen Aid Architect Series II stainless appliances, the superior grade recycled carpets, and the Milgard Energy Star SunCoat MAX Low-E windows and doors. Each home is complete with fully customized closets in every room and unique hickory/pecan hardwood floors that have been wire brushed, finished with a Low VOC stain and tongue oil rubbed for a durable and sustainable product. A professional design consultant helped select stone and tile choices as well as finishes, and a designer color palate to elevate these homes to luxury home status. Each roofdeck offers jaw dropping panoramic views from Catalina Island to Malibu. The roofdecks are finished with gas, water, electric, cable and Cat5, and have 200 sq.ft. of space ready to receive solar panels.

DON'T BLOW YOUR CHANCE AT A GREAT TAX CREDIT!

CNNMoney.com reports that the opportunity to obtain the $10,000 tax credit being offered to Californians for purchasing a new home is quickly closing. The state set $100 million aside to stimulate new home sales and aid failing home builders. The credit was designed to help home buyers purchasing a newly built home. The program started in March 2009 and only about 20% of the initial credit money is left.

What does this mean to buyers in the market right now? Don't wait! To apply, an application for new home credit must be completed by the buyer and seller within one week after the close of escrow and faxed by the escrow person to the FTB at (916) 845-9754. The FTB will continue to report the certificates issued on a weekly basis until the full $100 million has been used up. FTB expects to complete processing all certificates in August. Each applicant will receive a notification indicating the amount of credit allocated or denied.

Hermosa Pointe Homes, the brand new GREEN townhome project in Hermosa Beach is a local South Bay project that qualifies for the tax credit. Don't miss your opportunity to apply for the credit!

Congratulations to all the hard working South Bay teachers, students & parents! The 2008 school API results have been reported and once again, South Bay schools rocked the score!

The Daily Breeze reported on Friday, May 22, 2009 that nearly 40 South Bay schools performed in the top 10th of campuses across California! The top score in all the South Bay, 968, went to Cornerstone at Pedregal Elementary in Rancho Palos Verdes.

As South Bay residents, we must continue to support fundraising efforts and programs in place to protect area students from ill effects of drastic and unprecedented cuts to education funding by the State of California. I applaud all parents who are out there everyday drumming up financial support for our local schools. One of my best vendors for real estate marketing, Peter Yollin(TheListingWidget) and his wife, Mary, teamed up with other local parents and organized a massive rummage sale, which ultimately raised an astounding $35,000 to the Manhattan Beach Education Foundation. Through the many efforts of local parents & teachers, the community of Manhattan Beach has raised enough money to offset the district's $7.8 million budget by a whopping 60%!

Mary Yollin, front, and Eve Towns and Peter Yollin, right, organized a rummage sale at the American Martyr's Church in Manhattan Beach to help raise money in hopes of keeping teachers from being laid off in the Manhattan Beach School District (photo by Steve McCrank/Staff Photographer/The Daily Breeze)

CLICK TO VIEW LARGER IMAGE

CA Assembly Bill 811 gets owners low interest loans on renewable energy projects & improvements. . .

CA Assembly Bill 811 allows property owners in designated parts of cities or counties to finance renewable energy generation and energy-efficiency improvements through low-interest loans. South Bay Cities Green Task Force meets May 28 @ 1:30 & tour of sustainable luxury townhomes avail.

http://www.HermosaPointeHomes.com

Tax Credit Provides Outstanding Opportunity for Home Buyers

A tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

http://www.federalhousingtaxcredit.com/2009/index.html

Energy Rebates for Homeowners! 

Southern California Gas (‘SoCal Gas) offers rebates for qualifying energy efficient upgrades or improvements made to commercial business properties, single family residential homes and multi-family housing. Tankless water heaters may qualify for a $200.00 rebate from The Gas Company.

Edison offers rebates on energy efficient lighting, appliances, heating and cooling, pool equipment and solar installations for single family dwellings and multi-family housing.

http://www.socalgas.com/index/         www.sce.com