Demystifying the fear surrounding the housing “crisis”

BY BRIAN PADGETT

Unless you’ve been living in solitude under a rock, miles from a wi-fi connection, you’re familiar with the current real estate “crisis.” Although the media has lambasted the housing market to the point where it has become a pariah within our domestic midst, three prominent Southern California realtors offer hope for homebuyers and sellers alike in these tumultuous times.

Glendale-area realtor Chris Cragnotti places some of the blame of the housing crisis on its portrayal in the media. “The fact of the matter is the market will not turn around until the media changes its tune,” he says, also pointing out “the media needs bad news to sell its papers. … It’s how they stay in business.” Cragnotti rebuts the media portrayal of the current housing market, saying that “it is unrealistic to compare today’s trends to those of the overly inflated [market] a few years immediately preceding it due to the lackadaisical lending standards that drove prices to artificial highs, so as markets go, this one is relatively normal.”

“In my opinion, the media has played a large part in the downturn,” maintains Hollywood Hills realtor Ron Thomas, referencing the domino effect that such actions cause. “Many buyers froze due to the sensationalism by the media so with few buyers, properties sit on the market, then the inventory builds, and then the sellers have to drop their prices to get the buyers interested.” Such activity stifles the pace with which property transactions previously occurred.

As an agent who counsels individuals daily on this very subject, Cragnotti insists that the slower pace resulting from this pattern is an asset for the potential buyer, and should be taken advantage of. “Buying a home is not like buying a car,” he says, “a [property] purchase deserves careful consideration, and that takes time.”

Thomas puts an end to the myth that buyers should wait until the market turns around before buying, popularly believed to be around 2009. “I am not sure if we aren’t seeing the light at the end of the tunnel now,” he says, stressing the tax advantages for homeowners. “Many people in our area have above-average incomes, and need the write-off. Also, why pay rent, (i.e. someone else’s mortgage) if you don’t have to?”

“By the time the market is said to have recovered it will already be too late. Prices will be on the rise and there will be more competition out there,” predicts Cragnotti.

Thomas argues that the 2009 theory is part of the media portrayal of the current housing market. “The media played and printed that until enough people bought it as the truth.”

Cragnotti presents two downsides to buying in this market, the first of which is the amount of money required for a down payment on a property. “Southern California’s prices are not exactly cheap … and coming up with 20% upfront for a home purchase is tough for a lot of buyers.” He also refers to the quality of the properties available to potential buyers. “The majority of those putting their houses on the market at the moment are pretty desperate to sell,” citing divorce, death, and pending foreclosure as common motivators. “These unfortunate situations generally lead to homes that are not all that well cared for.” However, it is imperative for a potential buyer to realize one cardinal rule: There is no such thing as the perfect house. “Find a realtor to help you,” Cragnotti advises, a professional with whom buyers form an open, honest rapport, and let them work on their behalf. “A good agent will be patient and explain everything to you.”

On the flip side, potential sellers are also remaining active in the current housing situation. “Why doesn’t the media ever talk about the high prices people are still paying in the affluent areas,” Thomas asks. “I look at the closed sales in the L.A. (Glendale to the ocean) area almost every day and I am shocked at how many properties are selling and for some, very high prices.”

Cragnotti suggests sellers to put their best foot forward to cater to buyers in the current market. “Buyers have a lot of choices and most decide within the first 30 seconds whether a [particular] house is what they want.” He also offers a few tips for sellers to woo potential buyers. “Most kitchens don’t need to be totally redone to make the house sell, but at least clean it up by freshening the paint, changing hardware, and, if you can afford to, swap out old appliances.” Also, it is important to note, “If a remodel is more than 10 years old, it’s too old to be considered redone.”

“Make sure the house smells good, play soft music when showing your house so it’s tranquil and inviting when someone walks in,” Thomas recommends. He also alerts dog owners to remove their four-legged loved ones from the premises during open houses. “I know our animals are our children, but not everyone finds a dog jumping on them or slobbering on their clothes fun.”

Prominent Palm Springs realtor Ed Taggart offers hope to sellers: “Well-priced handsome homes are still selling!”

For the LGBT buyer, an accepting environment is essential when purchasing property. Taggart names the desert communities of Warm Sands, Tahquitz River Estates, and Deepwell Adjacent as prime locations for the LGBT buyer to seek property in the Palm Springs area, and Cragnotti identifies Glendale as another such enclave.

“Our home prices are significantly less than in LGBT-centric West Hollywood and Silver Lake,” he asserts, “and it’s much more spacious and quiet” while just minutes from urban and bohemian centers. He mentions the recently opened Americana at Brand, (the retail, entertainment, and residential complex) as being popular with LGBT individuals. Also home to the Gay Men’s Chorus at the Alex Theater, “Glendale is a wonderful alternative to the hustle-bustle lifestyle of West Hollywood.”

To contact Chris Cragnotti, call 818/244-5499 or see www.chriscragnotti.com. For Ron Thomas, call 310/461-1888 or see www.ronthomas.com. For Ed Taggart, call 760/902-SOLD or see www.etsellshomes.biz.