Owning a Classic Craftsman Home in Northeast Los Angeles

NELA home architectural styles vary widely: Modern, Art Deco, Victorian, Tudors, and others. But perhaps the Craftsman residences get the most attention.

Craftsman homes are among the most sought after real estate in Northeast Los Angeles neighborhoods. One of the many reasons why homes for sale in Pasadena, Eagle Rock, Hermon and elsewhere have become hot commodities is a renewed interest in so-called “character homes”. But Craftsman homes come in significant variations, sizes, and conditions - opening up opportunities for homebuyers in a range of prices.

The high value - i.e., prices ranging from $400,000 on past $2 million - being placed on Craftsman homes in NELA is an interesting turn of historical events. These solid structures were originally designed for the advent of middle class home ownership in the late 19th and early 20th century. Gone were the features of Victorian homes that included butler’s quarters and kitchens only used by household staff. Instead, the family prepared their own meals while some features of kitchens blended with dining rooms - which are why there are those built-in, glass-front cabinets for dishware that was previously stowed out of sight from formal dining rooms.

The characteristics of Craftsman homes range from low-pitched roofs to deep eaves, exposed rafters (usually with distinctive decorative knee braces), dormers, one- to one-and-a-half stories, large fireplaces (often flanked by built-in cabinetry), and double-hung windows. Outside, Craftsman bungalows had large porches that welcomed newcomers to the California lifestyle, which offered a longer outdoor season for people arriving from the Northeast and Midwest.

Note that Bungalow and Craftsman style homes are often - but not always- the same thing; Bungalows always have that front porch (“veranda” if you prefer), while Craftsman sometimes do not. (If looking at homes for sale in Glassell Park, Garvanza or Mt. Washington, you might nerd out with your realtor by looking for the distinction.)

A further distinction might be made between Craftsman homes designed by certain architects (Greene & Greene built the trend-setting larger versions, which drew from Spanish mission and Japanese aesthetics), while Craftsman-style homes had a lower cost and were more modest in proportions and features. Craftsman-style homes may have shipped by train in a kit (e.g., “Sears homes”) or been a much-replicated design used by 1920s developers who knew a popular style when they saw one.

What made Craftsmans so popular when first built is what makes them equally popular today. These solid buildings have a relaxed style, one that accommodates an easy flow between rooms and activities. Mothers and fathers making meals in the kitchen can take a break to help children with their homework while keeping an eye on something cooking on the stove. Throw a party on the veranda but some guests might easily drift inside to admire the Arts & Crafts detailing of the cabinetry, fireplace surround, or wainscoting. They are healthy, unpretentious and sturdy: anything standing today has withstood a century of seismic activity, testimony to the sturdy craftsmanship of these Craftsman homes.

Interested in seeing a few Craftsman homes in NELA? Call Realtor Tracy King at 626-827-9795 to see what’s currently available.

Understanding HPOZ - Historic Preservation Overlay Zones - in Northeast Los Angeles

The popularity and value of existing homes in Northeast Los Angeles is due to vintage neighborhoods and homes. It’s no accident: HPOZs promote that.

Homeowners who own - or have owned - classic or historic homes in Highland Park, Garvanza, Lincoln Heights and several other older neighborhoods have learned that renovating one of these homes isn’t a free for all. These neighborhoods are among the ever-growing list of neighborhoods that fall under the citywide HPOZ ordinance.

Investors in a home renovation in Highland Park, a 104-year old bungalow, found out a few things about Historic Preservation Overlay Zones (HPOZs) in 2012. After purchasing it to flip - cleaning it up and improving it overall - they were told the vinyl front door and window replacements were out of character from the home’s history.

This came from the board of the Highland Park-Garvanza Preservation Overlay Zone, which governs about 4,000 homes in the Northeast Los Angeles (NELA) neighborhoods. As is the case with the approximately 34 HPOZs throughout Los Angeles, the purpose is to protect neighborhoods with distinct architectural resources. Those resources can include everything from Victorian “painted ladies” to swank Mid-Century Moderns to humble two-bedroom cottages.

The Highland Park-Garvanza HPOZ president explained to the The Eastersider LA news website that they are sympathetic to individual homeowners who unknowingly make changes without getting approvals. But in the case cited above, the renovators were professionals. “They should know better,” he said.

HPOZs exist in Lincoln Park, Hancock Park, Balboa Highlands, Vinegar Hill, and Pico-Union, among other places. NELA neighborhoods with homes for sale in Glassell Park, Eagle Rock, Mt. Washington, and Hermon are not yet subject to an HPOZ jurisdiction. But that can soon change.

The Highland Park-Garvanza HPOZ was the first to protect commercial buildings along with residential structures, which are rich in Queen Anne, Shingle, Craftsman, Mission Revival, and Tudor Revival homes. Homeowners in Highland Park are justifiably proud of the strong influence of the Arts and Crafts movement evident in its many Craftsman-style residences, a major draw in Highland Park real estate.

The Los Angeles Office of Historic Resources says HPOZ zones provide five advantages:

Increase in property values: Based on national research, homes in historic communities appreciate in value faster than those outside of such districts.

Control over inappropriate alterations: New construction, additions, and alterations need to be reviewed to protect individual buildings as well as neighborhood character.

Creation of community identity: Board members and other local residents are actively involved in defining the characteristics of history and architecture, which can lead to other organizing activities as well.

Tax reduction eligibility: Structures built during a neighborhood’s “predominant period of development” that have retained most of their historical features are eligible to receive substantial property tax savings under the Mills Act program.

Preservation advice/guidance: Knowledgeable board members often are able to provide technical expertise to homeowners, based on past experience with similar properties, and to suggest contractors and craftspeople with appropriate skills for repairs and updates.

The city advises that HPOZ designations do create some disadvantages for property owners, such as delays on major renovations that are subject to a 75-day review period (less so for minor modifications, which can move more quickly) - and some designs are rejected. The Office of Historic Resources advises that neighborhoods should seek an HPOZ for the purpose of preserving character and history, not simply as a tool to stop out-of-scale (“McMansion”) development. Few neighborhoods are perfectly intact from their origins, so replacement of unfortunate structures might be a positive move.

Unsure if historic preservation is what you want in a home? Speak with a reputable real estate agent with years of experience assisting people buying and selling new and restored homes in the Northeast Los Angeles region.

The Importance of Your Home’s Online Presence

Online listings are essential to modern real estate marketing, but many sellers make mistakes. In Northeast LA, these tips are essential for home sellers.

The Internet has transformed the real estate industry and the tools are getting better by the year. Once upon a time home hunters peered over listings in newspapers, posted in the windows of real estate offices, or paged through listing books in realtor offices. Where did people find the time?

Today a homebuyer and a home seller will meet in a way akin to Internet dating. It’s infinitely faster than the analog methods and also a time-saver in that it eliminates unlikely showings. That is, if the online presence of the listing is done smartly and honestly.

Smart and honest are two sides of the same coin. It’s important to be realistic about what a home looks like, but not necessary to highlight some of its lesser features (again, the online dating metaphor works: no one posts pictures that zero in on a skin blemish, or what their hair looks like after waking up, or before the 15 pound weight loss). At the same time, over-selling a house before the first visit can backfire: for example, the use of a wide-angle camera lens to make a small room look bigger is a recipe for disappointment.

Another advantage of online advertising of a home for sale is it has fewer limits, particularly where it comes to photography. You can show every room in the house, plus the exterior (front, back and sides), as well as the neighborhood. This works for attracting people from out of town – émigrés to Southern California are reading about NELA, Northeast LA, so they naturally would like to see how it compares to other areas.

Mt. Washington real estate in particular, as well as Highland Park homes, have been two high-demand areas - red hot markets - that have benefitted tremendously from online listings. A listing for Highland Park, for example, might include pictures of specialty retail and restaurants on York and Eagle Rock Boulevards to get a sense of what they might do on weekends. Sellers in Mt. Washington might want to show off its green, quiet overlook roads and the laid-back character of its windy mountain streets and panoramic views.

But a seller can confer with their realtor to make sure the online ad is a good digital version of what is called “curb appeal” (the first impression a buyer has upon pulling up in front of the property). Here are some things to boost interest through the online ad:

Photo magic - Unless you are versed in the basics of photography and have a design sense, you should leave this job to the professionals. The property should be cleaned of clutter, with angles and lighting that complement its best features. It’s quite remarkable how many FSBO (for sale by owner) listings do this amateurishly.

Online ads are more than photos - The copy helps sell the property too, once it’s gone through the search filters and has managed to grab the buyer’s attention. Headlines are of utmost importance. The job a headline is to deliver a benefit (e.g., views), something not available everywhere (e.g., in four directions) with a touch of intrigue (e.g., a mix of city and country): “Views in every direction, looking at downtown and a nature preserve.” The reader is given a mental image that should get them to read further into the listing.

The rest of the copy should sell a lifestyle as much as X number of bedrooms. Describe the physical property, but weave in the story about what it’s like to entertain there in the summer or at the holidays, the kind of neighborhood it’s in, and if it’s a quiet place to sleep – or a wonderfully urban neighborhood full of vitality and things to do: “This is the kind of bungalow that defines Glassell Park (or Garvanza, Hermon or Highland Park...).”

The 15 words that sell - Thanks to data analytics, Zillow has identified 15 words that increase the sale price. They specifically looked at lower-tier priced homes and found these words were most associated with higher closing prices (listed from most to least): luxurious, captivating, impeccable, stainless, basketball (meaning recreation nearby), landscaped, granite, pergola, remodel, beautiful, gentle, spotless, tile, upgraded and updated.

To be clear, only words that actually apply to the property should be used. The online ad is step one of the process, and therefore needs to be truthful while compelling.

Choosing a Real Estate Agent to Sell Your Home in NELA

NORTHEAST LOS ANGELES IS A DESTINATION FOR THOUSANDS OF HOMEBUYERS. IF YOU PLAN TO SELL, BE SURE TO PICK AN AGENT WITH THE RIGHT EXPERIENCE AND CREDENTIALS.

In a strong real estate market, as currently exists in Northeast Los Angeles (NELA), it’s easy to imagine one simply needs to throw up a sign and the offers will come in. But it rarely (if ever) works that way. Real estate in Eagle Rock and homes in Highland Park are in demand, but that sure doesn’t mean a seller doesn’t have to perform due diligence to find the right agent. A selling agent will make sure the home is made to be maximally attractive and sell at the best price, working on behalf of the current owners and their best interests.

So what makes the best choice in Realtors? Your ideal selling agent offers the following:

Experience in the area and the types of homes – A good real estate agent in Northeast Los Angeles absolutely will have experience in single family residences because the inventory of homes for sale in Pasadena, Glassell Park, Hermon, Eagle Rock and Highland Park is rich with bungalows, mid-century moderns (MCMs) and Victorian homes. But the condo market in each of these towns is strong as well. Some agents consult with colleagues who specialize in one or the other.

Will share references of past clients – The relative success of a Realtor is defined by what they have sold in the past. Of course, both sellers and buyers need to complete their transactions with some degree of satisfaction. So ask to speak with at least five past clients to learn how well things went: ask about the hunting phase, negotiating, the guidance they offered to find a lender, in the closing process and after the closing.

Will market it using appropriate tactics – The Internet has upended the world of selling homes in that so many first “showings” are done online. So your agent should be adept with photography, videography and placement of that imagery on Facebook, Twitter, Pinterest and YouTube, as well as real estate online portals Zillow, Trulia and Realtor.com. But note that not all tools work for all types of properties in all locales. Ask your agent questions as to what is selected and why. Once the property is posted online, you will be able to see the traffic it gets and perhaps get feedback as well.

Is communicative – How do you prefer to communicate (particularly when at work)? If you want to text, or email, or speak by voice, your Realtor should be able to do the same. You are the customer, after all. If you are at work in Pasadena but your home in Mt. Washington or Garvanza might have a last-minute buyer, minute-by-minute communication can be critical.

Provides gently blunt advice –This is sometimes referred to as the “your children are ugly” conversation. Almost every home seller will need to make physical changes to the property and sometimes accept price compromises in order to get a sales contract. Do not take constructive criticism personally – listen to what your agent knows from his or her work in the field to get rid of a sofa, change a rug, clean out closets or lower your price expectations. They share your ultimate interests – to sell the property – so the advice is always genuine. Your “child” just needed a new haircut and braces, in most cases.

Realtors are like any professional in that no two are alike. Buying and selling real estate demands patience and dedication and, above all, buyers and sellers performing their due diligence to learn more about the background, resources and track record of whichever agent they hire.

What Does it Mean to Buy a Home “As-Is?”

It can be a great opportunity or a disaster to purchase real estate that needs some work. As-is lacks a legal definition - so approach it with caution.

In Northeast Los Angeles - NELA to the locals - the wide range of charming vintage, midcentury modern and newer construction homes attracts a variety of buyers. Some like it new, some like it old, and some like it new-old, as in nicely modernized but with the features of an older house.

Homes for sale in Glassell Park and Eagle Rock offer that full range. So do homes in Mt. Washington, Highland Park and Hermon. You can find some gorgeous Victorians with a price difference of $200,000 or more, depending on the condition of kitchens, bathrooms, roofs, basements, exterior cladding, windows, landscaping and floors. At the lower end are those sold “as-is” and the upper end “as you hoped it would be.”

The difference of course is the expense involved in fixing what time, wear, and tear have created. The as-is buyer may get a very good deal, or lose a significant amount of money if he or she does not understand what they are getting into.

Why? The cost of repairs may exceed the reasonable value of the home in its location. Alternatively, an as-is home might be priced very attractively because the sellers are motivated, very often owned by heirs whose parent’s home needs repairs and renovations they cannot or do not want to do themselves.

Important to note is that “as-is” is not a legal term. Property problems that the seller knows about still must be conveyed to would-be buyers, as required by California real estate disclosure laws. It’s more a term used in real estate parlance to let the buyer know it’s not move-in ready for the purchaser who wants just that.

If you’re thinking about buying an as-is home, you fall into one of three categories. Perhaps this is your first home, and at a low price you intend to fix it gradually as you have the money to do so. For you, the long-term nature of your ownership - perhaps you are especially interested in being in a particular school district, and this is the most affordable home you could find there - can make an as-is home purchase a great deal.

Other as-is homebuyers are professional flippers who calculate their repairs and renovations will raise the home’s value substantially, enough to turn a profit. And then there are the demolish-to-build developers, who see greater value in the land and location than the house itself.

An as-is buyer who on his or her own hopes to score on a good opportunity - say a fixer-upper in Garvanza - ideally will look for the following characteristics:

Some problems are too big: Roofs, foundations, mold, mechanical systems (furnaces and air conditioners, electrical and plumbing) and new windows will cost a lot to fix. Even worse are exterior features such as crumbling retainer walls. Be sure your inspector looks closely at these components to determine if a costly repair or replacement is necessary - and run away if there are very expensive problems.

Kitchens and baths: You can easily part with $50,000 (or more!) to get a modern kitchen. Or, you might be able to refinish or paint cabinets, replace appliances and countertops and refinish the floors for a much lower price. Baths cost the least to modernize if you can stay within the existing plumbing footprint.

Smaller, cosmetic changes: Bad paint colors and dated wallpaper, old carpets, light fixtures, and window coverings are the easiest and least expensive things to fix.

Not sure if an as-is home is right for you? Contact an experienced and established real estate agent who specializes in the Northeast Los Angeles region. Only an experienced realtor knows what sells, at what price, and what’s next - which is what buyers need when making such an important decision.

Home Buying Advice for Young Los Angeles Couples

Most homebuyers enjoy looking at real estate, particularly in character-rich Northeast LA. But first you should get your financial ducks in a row.

It is no secret that Northeast LA is a hot real estate market. For many years, real estate in Highland Park, Eagle Rock and Pasadena have consistently been in high demand. Homes in Glassell Park, Hermon and Garvanza continue to fetch top dollar. Everyone is trying to take his or her slice of the American dream of homeownership.

But some interesting data on home prices, rental prices and home ownership rates with younger people in the Los Angele area should be given serious consideration by young individuals and couples who are sitting on the house-buying fence in 2017 and 2018.

The short story is prices for owning and renting are going up, ownership rates in LA lag behind the rest of the country, and low interest rates mean mortgage payments are actually less right now compared to other periods in the recent past.

Since 2007 home ownership dropped from 52.3 percent to 47.8 percent (in 2016), according to data collected by Apartment List. Those least likely to be homeowners today are African-Americans, Hispanics and people under the age of 45. (For what it’s worth, ownership rates overall dropped by 8.1 percent in San Diego.)

Another set of statistics (compiled by Lending Tree) found that 36 percent of Millennials were homebuyers. Ownership largely correlates with income and savings, so for those who think they might be able to do that, here are four critical steps to take to make it happen:

Time it to when you are most employed/credit worthy- You want to show a lender your best credit worthiness, which is a function of total income (both earners), debt-to-income ratio and your overall credit score. If either member of the couple plans to take time off or scale back their work schedule, such as to have children or go back to school, it’s wise to get a mortgage before making that move.

Know your financial parameters - Simply, you need to know what you can afford. List your monthly expenses, your monthly income, and pay special attention to what your monthly housing expenses are (calculating for utilities and insurance). Then meet with either a mortgage broker or a realtor to use that information to calculate what size of a mortgage you can afford. There are various terms in every mortgage (i.e., number of years, interest rates, size of down payment and closing costs) that will affect the size of your monthly payments.

Find your down payment - This will be 10% to 20% of the purchase price, or more if you have it. On a $600,000 home, that means you’ll need up to $50,000. We will leave it up to you to determine where it comes from (often it is from parents or grandparents who understand the good sense of owning over renting).

Plan for 4-6 years out - Because there are transactional costs associated with home buying, there is a breakeven point for all purchases (assuming an appreciating market) where you will be able to see a profit should you decide to sell. The real estate valuation firm Zillow calculated in 2015 the “breakeven horizon” in the Los Angeles region to average at 5.1 years. But this comes with variation. The Zillow analysis found numbers for several Northeast Los Angeles neighborhoods that hover around this average:

Eagle Rock 6.3 years

Highland Park 4.8 years

Hermon 4.5 years

Glassell Park 5.5 years

Mount Washington 6.1 years

Note that other areas have longer breakeven points, including Atwater Village (7.4 years), Silver Lake (8.3 years), Los Feliz (8.9 years) and South East Pasadena (9.1 years). No numbers were available for Garvanza, another popular NELA area.

Without question it’s a process that requires planning, saving and organizing. But for most people a home is also the biggest investment of their lives. There should be a little work involved.

What Does it Mean to Sell Your NELA Home “As-Is?”

Sometimes it makes sense to modernize and redecorate, other times a seller is smartest to leave the work to others. Knowing which to do when is the trick.

Even for the most ardent viewers of the television fix-and-sell home shows – from “Flip this House” to “Take This House and Sell It” to “The Real Estate Pros” to “Designed to Sell” – it’s not always clear if a home should be renovated and repaired before selling, or be sold “as-is.”

This is a common question in Northeast Los Angeles, where the inventory of mature homes for sale in Highland Park, Glassell Park and other similar areas offer a range of physical conditions. Bungalows common among Mount Washington homes that haven’t been touched in 60 years might have their charms, but sell for less than similar homes in Eagle Rock that were updated and modernized within the past ten years.

There is no hard and fast legal definition of what as-is means, although both buyers and sellers have a vague idea. For sellers, it means they will put little or no effort into repairs and decorating. Very often the home is inherited, where the heirs may not have the time or inclination to maximize the value of the property. Where the fixes need only be cosmetic (paint and light landscaping, for example, or perhaps kitchen modernization without moving walls), it can be a good value for the buyer.

But to sell as-is does not release the owner from disclosure about critical structural features such as a failing foundation, mold, and leaky roofs. If a house is outside of code requirements, if there are sewer or plumbing issues, problems with the electrical system (other than being out of date), or known covenants and restrictions, formal disclosure is required by the California Civil Code (Section 1102).

What much of it boils down to is economics. Take that sexy mid-century modern home for sale in Glassell Park or Hermon that might have undergone unfortunate style changes 20 or 30 years ago. The decidedly late-20th century renovations in the kitchen and bath might cost $50,000 to restore to something closer to a 1955 aesthetic. But will that investment net that much more in the sale price? Probably not. Instead, working with a knowledgeable NELA-area Realtor will find that asking price that will allow for renovations that the buyer can do after the close.

The as-is seller will likely find one of three buyers: the professional renovator-flipper, who knows how to renovate in a cost-effective way that will yield a profit. Another buyer might be the enterprising individual, who feels handy enough to either hire the help to fix it – or even do it himself or herself. A third buyer is the teardown developer – who really is just interested in the land and location.

The buyer who won’t look at an as-is home for sale? People in that large portion of the market that wants a move-in ready house.

So even if you watch a lot of home fix-and-sell television reality shows, your own reality should involve a professional Realtor with NELA knowledge. Call Tracy King, Realtor (Compass) at 626-827-9795, who has a quarter century of accumulated knowledge of this popular area and why any property in any condition should fetch the maximum price the market will bear.