With the summer in full swing, the market gets a little sleepy as people go on vacation before school starts and the warm weather begins to fade. This week I am going to focus on Palos Verdes because it still the best bang for your buck (in my opinion) based on price per square foot, lot size, parking, and amazing public schools relative to the beach cities. The market is large, not as efficient as the Redondo, Hermosa, and Manhattan Beach, and has old homes needing work which presents a whole world of opportunity.
26411 Dunwood Road in Rolling Hills Estates
It is rare to find a single-family home under $1 million on The Hill. It is even rarer to find one in Rolling Hills Estates. Cue 26411 Dunwood Road, a 3-bedroom, almost 1,400 sq. ft. home listed for $985,000 and had no takers due to an inefficient lay out, a slight need for some TLC, and the close proximity to busy Silver Spur Road. It was recently cut to $925,000 which is a screaming “offer on me now!” Comparables in this area range from $1 million to $1.2 million (see 26429 Silver Spur Road and 5004 Willow Wood Road). Snag this property, put in some elbow grease, and you could be sitting on some decent equity.
5508 Manitowac Drive in Rancho Palos Verdes
This property has been on and off the market since 2015 ranging from an ask price of $1 million to $1.1 million listed with multiple agents (current ask price is $1,024,680 to be exact). It has been in and out of escrow twice, and for some reason cannot seem to close out a deal. During this time (especially this spring) the local surrounding sub-market of Silver Spur across from Peninsula High School has had a nice surge in values. This home is on the small side for the area at 1,358 sq. ft., and the surge in price has come from homes a bit larger between 1,650 – 1,850 in sq. ft. Those homes are selling $1.1 million to $1.35 million (see 2662 Shorewood Road, 26504 Mazur Drive, and 26538 Basswood Ave). If one were to snag this at $1 million or below, the play here is to do a rehab and small addition to get the property to that next level in size and an extra bedroom. If you can pull off a nice update/addition for $150,000 or less, then you will have earned around $100,000 in equity.
4409 Via Azalea in Palos Verdes Estates
This new to market home is priced to have multiple offers and go much higher. At a meager $1,185,000, this is only the third home in Valmonte to ask under $1.2 million in 2017 (excluding PV Drive). Other low priced listings on 4005 Via Cardelina and 4028 Via Pima sold between $1.2 and $1.3 million in Valmonte, while the latest hot property on 4117 Via Picaposte went to escrow after only seven days asking $1.27 million and closing today at $1.285 million. Via Azalea is bigger than all of these homes and has major view potential. Look for this property to go at least $25,000 higher. The upside as a fixer is tremendous for someone not afraid of a project. Valmonte turnkey home sales of this size range between $1.5 and $1.6 million making this a prime property for someone wanting to get their hands dirty.
The seasonal summer slowdown offers deals everywhere, especially in Palos Verdes. There have been price cuts throughout Palos Verdes, so now is the time to make your move! I just opened escrow with a client on a long time listed home in Rancho Palos Verdes about $150,000 below comparable sales…the deals are out there. If you would like to explore Palos Verdes home deals with summer price cuts, give me a call and I would be happy to help!
Richard Haynes
DRE: 01779425
For more South Bay real estate insights, subscribe and follow Richard’s social channels below:
The Richard Haynes Real Estate ShowA leader in South Bay real estate for the better part of a decade, Richard thrives as an advisor to his clients with over $248 million in sales as a broker or investment principal at his boutique agency, Haynes. Richard is known for his keen local market insights which have been featured in the L.A. Times, The Street, and Forbes, along with his weekly South Bay real estate blog. [read more]