Never before has your home been more important or meaningful than the months you spent sheltering during the COVID-19 crisis. Even if you have lived in the same place for decades, you may have gained a totally new perspective on where and how you live.

Hundreds of older Seniors who read my Newsletter live without full-time help and some live totally on their own. They depended on a neighbor, housekeeper, far away relative or friend for their needs. Lack of personal safety and the long period of isolation may have brought thoughts of moving closer to a relative, into a condo or an apartment where others are close by, if needed.

Little warning of the stay at home order had many people scrambling to create a makeshift home office, and to work remotely for the first time. Did you find appropriate space, privacy and solitude in your home for this purpose?

For better or for worse... but, how about 24/7 togetherness for months during the quarantine? Did you find a spot at home for alone time ? Does converting your garage into a gym, a work space or a woman/man cave take priority now? Or, how about creating an ADU for your aging parent?

If your financial position has worsened because of the stock market decline or being laid off from work, using the equity in your home may be a new need. Or, having enjoyed isolation at your vacation home, that may become your primary residence.

Real estate is an investment that you enjoy daily , and a very liquid asset, as well. You should still love your home, how you live in it and how it works for you. If not, it may be time for a change.

Finally Sold: A Brentwood Seller finally found market value for their home after three-and-a-half years on market and ten price reductions.

In today's environment, how do you know if living in a Seniors' community is safe? I asked the management at Sunrise Senior Living in Beverly Hills what they are doing to ensure residents are shielded from the spread of COVID-19, see below:

This is a great question and it will vary depending on the specific needs and concerns of each prospective family. Some of the overall things we are doing to keep our residents safe are the infection control precautions we have in place to mitigate the chance of spread, such as: screening all of our team members prior to the start of their shift, tracking which team members are serving each resident and limiting any change as often as possible, monitoring our residents for any signs of illness and maintaining communication with their doctor, PPE (personal protective equipment) is worn in the community, all non-essential visitors have not been allowed in our community for some time now, our residents were moved to in-suite dining and we paused our large activities and moved to smaller, more meaningful activities. Our approach was very proactive and at this time we have not had any positive cases at our Beverly Hills community. Here is a link with some information that highlights more of our efforts.  

Home Sales

As a result of the health-related economic slowdown, a 30%-40% decrease in the number of homes sold in SoCal (2020 vs. 2019) is projected. But, what a difference a new month makes. Just in the Coldwell Banker BH office, we pended almost 100 deals in the month of June, compared to 29 closed deals in the whole month of May (normally 250-300 deals close monthly). Sales are hopping!

Tax Savings Guide

The LA County Assessor has provided a quick Guide to Trusts and Tax Savings and how to avoid common and costly mistakes. Click here to review this two-page guide, then discuss questions with your estate planning professional.

Like all investments, the real estate market rises and falls. When the market changes direction it is determined by the ups and downs of these four factors:

However, there is only one determining factor in every real estate transaction that never changes, no matter what direction the market is heading.

Constant is:

What the Buyer is willing to pay, and what the Seller is willing to accept.

Nothing else matters.

So far, the SoCal real estate market has been in an upward momentum since 2012. Prices have well surpassed the pre-2008 financial crash, and what lies ahead as a result of COVID-19 remains to be seen. This current recession is different in many ways compared to 2008. Today's downturn is a health-related issue, and is not caused by financial or other factors that determine a changing market.

Buyers are clamoring to purchase a home while interest rates are still amazingly low. What remains to be seen, are homeowners ready to sell? The real unknown is future inventory, which may determine if the real estate market is going to change, and in which direction. Stay tuned...

CA Budget Woes

The pandemic has plunged CA into the  worst budget deficit in State history . An analysis released in May shows CA facing a $54.3 Billion budget deficit through summer 2021 , raising the possibility of deep spending cuts or substantial new tax revenues to make up the loss.

NOTE : Pre-COVID-19 CA had a $23 Billion budget surplus .

June 11th marked an historic low for interest rates .

Suze Orman, the renowned personal finance guru, discusses downsizing:

While Orman understands that it can be wrenching for longtime homeowners to consider a move after many years, she suggests to at least " open your mind to contemplate a few realities . Those happy memories are about the people you welcomed into your home and the experiences that took place within it. You can move and still share those memories with your loved ones". 

Here are other points Suze makes for downsizing:

-    Move sooner than later, when you are more physically and emotionally able.

- Move to a less expensive home to open a cascade of retirement savings.

-    The equity from your home sale can add to your nest egg for an earlier retirement.

- Reduce monthly housing costs now (rent or mortgage), property taxes and maintenance.

-     Downsizing may enable you to work less or do work that pays less, but is more enjoyable.

Orman says that waiting a few years to downsize may be a poor decision. Strike while the housing market is hot, for it may not be that when you decide to sell.

Suze says: A Trust is THE most important document you can have.

Tidbits of News!

- " Negative": Results from my COVID-19 test. Realtor Radom is cleared to be of service to you.

- Estate sales: As of June, the number of $10M+ sales passed the same period in 2019.

- Landlords : If your tenant(s) did not pay rent during COVID-19, they may have one year after the crisis is declared over to make good and pay back rent, as of now.

- WOW! F or the first time ever , Calabasas surpassed Beverly Hills for the title of the wealthiest city in the U.S. Bloomberg 's report states: the SoCal hillside community of roughly 24,300 people has an average annual income of $194,000 - more than double the national average, and surpassing Beverly Hills by $4,000.

Louis Vuitton Moët Hennessy, the world leader in luxury, has chosen Beverly Hills as the site of its first hotel in the U.S., expected to open in 2025. C heval Blanc Beverly Hills will occupy four contiguous parcels bordering Rodeo Drive, Little Santa Monica Boulevard and Beverly Drive (the former Brooks Brothers building). Sorry, no condos are in the plans. 

Critical Deadline

LA County Assessor, Jeffrey Prang, offers information on a Will and a Trust, and what happens after the passing of the property owners. A Will is a document that directs who will receive your property at your death and it appoints a legal representative to carry out your wishes. Even if you have property in a Will, it needs to go through Probate, a costly and lengthy delay in distributing proceeds to a beneficiary. By contrast, a Trust can begin distributing property before or after death, and a Trust may avoid Probate. Either document does not prevent the property from being reassessed as of the date of death; a common misconception.

When the owners of a Trust pass, the Successor Trustee needs to notify the Assessor within 150 days of the passing by filing a Change in Ownership Statement-Death of Real Property Owner. If the beneficiaries of the Trust are the decedents’ children, they are eligible to file for the parent-child exclusion from reassessment. Failure to notify the Assessor in a timely manner and without filing before the property is sold is a common problem. Filing deadlines are critical and can be costly.

Landlord Issues

COVID-19 created new issues for owners who rent their property. Mainly, if a tenant does not pay rent during the pandemic, they

cannot be evicted. If you need the income from rent, rethink being a landlord - seriously!

Selling real estate during the pandemic has its challenges. Open houses were, and still are, banned. On-site showings were allowed if the home was vacant, but now all can be shown per Cal OSHA protocols. So, what happened to all those listings when COVID-19 hit?

Some owners decided to withdraw their listing or to place their property on a temporary Hold status. Some listings (mostly unoccupied) found a Buyer who actually opened and closed escrow during the shut-in. But, the bulk of completed transactions were rentals. New listings came on-market for sale and for lease, and for the first-time REALTORS ® experimented with virtual open houses .

A virtual anything means not real, but almost, or nearly as described, and possibly the next best thing. There have been virtual property tours on a listing website, which is a video throughout the property. Choppy, lack of flow and some create a little dizziness while watching. Some are in 3-D.

A virtual open house starts with a video, often with the listing agent conducting a walking tour while describing the property and pretending the videographer is the Buyer. Prospects or other agents can view the video on the listing agent’s Facebook page or the listing website. Next, the listing agent announces a block of time he/she will be on-site at the property to answer call-in questions as the interested party watches the video tour from their home.

While virtual open houses may be the next best thing when public open houses are forbidden, it’s just not the same as an on-site viewing. Buying real estate is an emotional purchase and a Buyer’s senses must be piqued to bond with the property. On-site viewings are a must ; to see, feel, hear and smell the property and its surroundings before making an offer.



Property showings are available by appointment only for on-site viewings.