Buyers Archives - Torrance CA real estate

How Buyers and Sellers Handle Home Inspection Challenges

November 9, 2019 by Keith Kyle

One of the more treacherous parts of an escrow is the home inspection and request for repairs. Often times the buyer thinks that the home inspection is a “checklist” of what needs to be fixed while the seller either thinks their home is perfect or “it was just fine for us so why does the buyer need things that work fine upgraded or repaired”. Finding middle ground isn’t always easy.

As the graphic below shows, 80% of home inspection reports show at least something needing to be fixed. We always recommend to both our buyers and sellers to be reasonable. On the buyer side stick to actual problems or repairs. If it’s an issue that the buyer will have to immediately pay for to have repaired…it’s a reasonable request. The biggest challenge items are either those called out as not up to current code, or items towards the end of their service life. Buyers need to understand that the statement “not up to current building code” does not mean it’s necessarily problematic. Codes change all of the time and unless it’s a clear safety issue, it’s usually best to stick with actual repairs. Items at the end of their service life really depend on the item, the cost and how extensive the rest of the repair list. We’ve found that asking for everything usually ends with the seller dismissing any repairs….even the reasonable ones.

Keith Kyle is a top producing realtor and Torrance real estate specialist with Vista Sotheby’s International Realty in the South Bay. Contact Keith for more information on how the home inspection and escrow process works in Torrance real estate.

Info On Down Payments for Torrance Home Buyers

February 6, 2019 by Keith Kyle

One of the big misconceptions with home buyers, especially first time home buyers, is that you need at least 20% down. That’s often not the case with lenders offering FHA loans with as little as 3.5% down and traditional lenders funding loans with as little at 5%. The lower amount is much easier if it’s a single family home but there are options:

Torrance Real Estate Recap – 2018 Year in Review

January 15, 2019 by Keith Kyle

By Keith Kyle

2018 was a banner year for real estate in Torrance CA. Demand was extremely high and prices continued to rise throughout the year with a slight drop towards the winter months which is not unusual. The number of homes for sale really ramped up after spring from a low of 76 homes on the market in January to a high of 167 homes for sale in July. There were 1,195 residential “on market” home sales in Torrance for the year. These statistics do not include the homes in the Hollywood Riviera with Redondo mailing address but actually in Torrance.

Homes Selling At or Above Asking Price

One extremely impressive indicator of just how strong the market remained through the year was the % difference between list price and sold price (how close the sellers were to full asking price). In seven of the months the average home sold at, or above the average list price and in the remaining 5 months they were within a percent or 2 of full list price. That’s a sign of an extremely seller friendly market.

See the current homes for sale in Torrance

Days on Market Very Low

Another solid indicator was the average days on market with only topped 30 days once….in January of 2018. Median prices for the year generally overed between $700,000 and $800,000.

Date	January	February	March	April	May	June	July	August	September	October	November	December
For Sale	76	78	88	111	144	149	167	165	149	164	165	119
New Listing	94	104	121	147	147	163	162	146	110	136	103	59
Sold	59	52	97	95	110	115	131	135	112	112	97	74
Pended	72	86	104	107	113	135	124	136	95	101	85	85
Avg. Active Price	$757.000	$749.000	$815.000	$820.000	$814.000	$780.000	$819.000	$809.000	$ 803.000	$771.000	$727.000	$724.000
Avg. Sold Price	$714.000	$739.000	$709.000	$739.000	$806.000	$747.000	$715.000	$721.000	$765.000	$744.000	$735.000	$766.000
Avg. Sq. Ft. Price (Sold)	488	484	484	483	503	504	482	495	497	469	495	494
Sold/List Diff. %	100	101	102	102	102	101	101	100	100	99	99	100
Sold/Orig LP Diff. %	99	100	101	101	102	101	100	99	100	98	98	98
Avg Days on Market	34	26	22	22	19	20	23	21	25	30	27	29
Median Sold Price	700,000	705,000	690,000	740,000	800,000	732,000	695,000	735,000	743,000	716,000	710,000	758,000

Beautiful Historic Craftsman in Old Torrance – Just Listed

July 28, 2018 by Keith Kyle

1323 Cota, Torrance CA 90501

**Update as this beautiful home has sold**

- $899,000
- 3 bedroom, 1 1/2 bath
- Huge 10,500+ foot lot
- 1,944 Sq Feet

This California Craftsman Executive Home is a magnificent, rare find. Built in 1914 on huge R2 lot near Nativity Church & Triangle Park, one of the most desirable parts of Historic Old Torrance. This 2 story home has fabulous bones & incredibly retains all its Historic charm. The large front porch that tracks the entire width of the house is perfect for sitting on pleasant evenings. Original front door enters into a large living room with large fireplace. The office features the original built-in desk, a coat closet and is accessed through the original pocket doors. The formal dining room has a grand built-in hutch/buffet & wainscoting. A sunny breakfast room is connected to both the dining room & kitchen. The circular downstairs floor plan is great for entertaining with a separate area for the original staircase that wraps through the center of the house. Upstairs are two large bedrooms & another smaller 3rd bedroom. There are 2 separate two car garages in the rear off the alley. Two additional storage rooms are connected to the first garage. Huge 75′ x 140′ lot (10,500 sqft) has endless possibilities including another one story house (Check with City of Torrance Building Dept). Title & Records Search indicate that this house was once owned by Jarred Sidney Torrance. Truly one of Old Torrance’s best properties & a Once-in-a-Lifetime Opportunity to own a piece of local History. To appreciate this house and its craftsmanship you must see it yourself. Contact listing agent Keith Kyle with Vista Sotheby’s International for more information or for a private showing. 310.251.2344

California 2018 Tax Reforms – Specific Changes That Affect Real Estate

July 24, 2018 by Keith Kyle

Here’s a helpful chart to see how the changes in the tax policy impacts Torrance and all California property owners.

	PREVIOUS LAW	2018 LAW

MORTGAGE INTEREST DEDUCTION	Capped at $1M	Capped at $750,000

STATE AND LOCAL TAX DEDUCTION	Unlimited	Deduction capped at $10,000 (income, sales and property combined)

CAPITAL GAINS EXEMPTION ON SALE OF PRIMARY RESIDENCE	Exclusion of up to $250,000 ($500,000 if married) of gain realized on sale or exchange of principal residence if lived in for 2 of the last 5 years	No change

1031 LIKE-KIND EXCHANGES	Applied to all classes of property (e.g. personal and real)	Limits non-recognition of gain to real property

PERSONAL DEDUCTION	Allowed	Eliminated

STANDARD DEDUCTION	$6,350 individual and $12,7000 if married	$12,000 individual and $24,000 if married

MID FOR SECOND HOMES		Capped at $750,000

HOME EQUITY LOAN DEDUCTION	Capped at $100,000	Not deductible unless the proceeds are used to substantially improve the property

MOVING EXPENSE EXCLUSION AND DEDUCTION	Incurred in connection with change in work place	Eliminated except for members of armed forces on active duty that move pursuant to military orders

CHILD TAX CREDIT	$1,000 for each child	$2,000 for each child

DEDUCTION FOR QUALIFIED BUSINESS INCOME OF PASS-THROUGH ENTITIES INCLUDING INDEPENDENT CONTRACTORS	None	20% deduction of taxable income phased out above $157,000 ($315,000 if married) for brokerage services

DEPRECIATION RECOVER PERIOD FOR REAL PROPERTY (RESIDENTIAL RENTAL)	Recover period is 27.5 years	No change

DEPRECIATION RECOVER PERIOD FOR REAL PROPERTY (NONRESIDENTIAL)	Recover period is 39 years	No change

DEPRECIATION RECOVER PERIOD FOR REAL PROPERTY (LEASEHOLD IMPROVEMENTS)	Recover period is 15 years	No change