The Los Angeles real estate market is very active, but with a relatively low inventory, it makes for an extremely competitive setting with many listings receiving multiple offers and many potential buyers, losing out in the bidding war that ensues.

It is essential to be aware of trends in the market, to know how best to approach each negotiation and position yourself for success.  There are many different strategies one can employ during the negotiation of a deal and choosing the right strategy depends on various factors.

When multiple offers are likely to be presented on a property, here is one strategy which may be to your benefit:

• The buyer’s agent presents an offer to the selling side which is the “stretch offer” – a figure above the asking price, which demonstrates a clear intent on the buyer’s part.
• This offer is presented with the option for counters, but NOT multiple counter offers, which secures the buyer’s position.
• If a counter is made the buyer has the option to counter back or move on, all the while maintaining control over the negotiation.
• This strategy is a show of good faith between buyer and seller and one that can be effective in moving a deal forward quickly with both sides feeling positive about the outcome.

This is a prime example of the sorts of negotiation practices we are seeing more and more of in the current market.  Strategies which are designed to win. 

What do you think of this strategy?  What do you think id the most important thing to remember in a negotiation?  Please share your thoughts and leave your comments below.

Partners Trust Real Estate Brokerage | Visit Our Real Estate Blog Here - Partners Trust Real Estate Brokerage and Acquisitions' blog page offers current company and real estate market info. Read our blog here!

Mother’s Day is a time to reflect upon the importance of family and for us here at Partners Trust, we are a family and that is something we are truly grateful for.

Our growth over the last few years has been profound.  We have expanded across the Westside, with our newest office opening just last month in Santa Monica on Montana Avenue.  We have brought on some fresh new faces and seasoned talent in the industry and as our family grows, so too does our energy and enthusiasm for all that we do.

As partners we support and inspire each other to uphold the PT pillars of playfulness, courage and expertise.  We work together and learn from each other each and every day.

From a small group of dreamers, we’ve blossomed into a successful young company with incredible prospects and playing in the same league with the most established companies in the industry.

In this TedTalk, the young and ever so insightful Adora Svitak reminds us that you’re never too little, to dream big.

What does family mean to you?  Do you let others inspire you?  Please share your insight and leave your comments below.

Photo courtesy of Play | See | Feel | Live’s Flickr

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There are a plethora of things that can add days to an escrow, such as appraisal issues, underwriting delays, lender conditions, repairs…to name a few. A very important component to all this is the customer. The customer plays an essential role in assuring that the loan process goes smoothly.

The following tips for the customer are useful in keeping things in an escrow moving smoothly:

• Promptly turn in documents requested by the loan agent. Be thorough, gather all pages of tax returns and bank statements, including W-2’s and/or 1099’s. Better to be safe than sorry here.
• Stop Shopping. Put purchases on hold. Keep your credit card balances low or paid down during the escrow process. Lenders will often re-pull credit at the end of the transaction to see if anything has changed. They look for new charges and new credit cards. Even a simple inquiry on the credit can raise questions.
• Protect your cash reserves. Keep checking/savings/investment balances at the same level as they were when the pre-approval application was taken.
• Avoid a job change. Sounds simple enough, but it is not uncommon for an applicant to take a new job during an escrow. Again, it is best to keep the terms of the application as it was at the time of the pre-approval. A new job can cause a host of problems, even if it is with more income.
• Make payments on time. Continue to make all of your payments on time. Rent, credit cards, car loans…. these things can be re-verified by the lender at the close of escrow.
• Avoid changing loan programs in mid-process. Changing loan programs can cause a delay because sometimes a simple change in loan program can trigger a whole new underwriting analysis, or possibly a new lender altogether.

In order to have your escrow go as smoothly as possible, it is important to remember these crucial tips.

Have you had any notable experiences during an escrow?  What’s the most important tip for you to remember?  Please share your ideas and leave your comments below.

Partners Trust Real Estate Brokerage | Visit Our Real Estate Blog Here - Partners Trust Real Estate Brokerage and Acquisitions' blog page offers current company and real estate market info. Read our blog here!

In our strive toward excellence and keeping our associates well informed and inspired, we compile and disseminate our performance numbers on a regular basis.  Our most recent report speaks to our great success in the first quarter of 2012 and bodes very well for the year ahead.

Since our inception our company has experienced exponential growth and here, in our third year, having just opened our newest office in Santa Monica, we are having our best year ever.  The numbers, as reported by the MLS and compiled by our team, show our company’s sales volume up 144% since this time last year, making us the fastest growing independent real estate company on the Westside.

We have made huge strides over the past few years and these numbers are a testament to the great skill and dedication we have amassed here at Partners Trust.  We look forward to a prosperous, passionate and playful 2012.

If you would like to see the rankings, please contact Nick Segal.

Partners Trust Real Estate Brokerage | Visit Our Real Estate Blog Here - Partners Trust Real Estate Brokerage and Acquisitions' blog page offers current company and real estate market info. Read our blog here!

Here at PT we aim to ensure that all of our associates are fully equipped with a comprehensive working knowledge of the industry and all the tools necessary to build successful deals and relationships.  In keeping with this commitment to excellence, we have begun a weekly Negotiation Series, helmed by President and Founder Nick Segal.

Each week, those associates who wish to participate, come together in the Beverly Hills office for an hour-long session to learn about the skillful art of negotiation.

Did you know that Realtors are sometimes compared to used car salesmen?  This comparison is not something Realtors like much, so for week two of the Negotiation Series we had some fun with the associates by making them play car salesmen in a negotiation workshop.   The team split into groups of two with one member playing the part of a car salesman (lessor) and the other, playing the party interested in leasing a car (lessee).

With their parts assigned and their instructions in hand, the negotiations were underway!

It was such a blast to watch the associates taking part in these mock negotiations.  Though they are competing for a much coveted prize, they all surely gained some useful information about their personal negotiating strategies and those of their teammates.  

Do you think mock negotiations like this would be helpful to you?  What do you think the most important element of a negotiation is?  Please share your ideas and leave your comments below.

Partners Trust Real Estate Brokerage | Visit Our Real Estate Blog Here - Partners Trust Real Estate Brokerage and Acquisitions' blog page offers current company and real estate market info. Read our blog here!

With the onset of a fresh new season, it the perfect time to examine your lifestyle choices and start making healthy habits in an effort to feel better and set the tone for a healthy, happy year ahead.

Here at Partners Trust, we encourage our team to be constantly tending to their health.  A healthy person, we know, is a happy and productive one.  As such, we have recently implemented a weekly yoga classes.  Every week, we bring in a trained yoga teacher to lead our team in an hour long session.  It’s free for those who participate and we are happy to report a nice turnout.

This Spring, take a break from your routine and make some time for yourself – examine your habits and make an effort toward renewed health and happiness.

Enjoy this Ted Talk in which Gary Wolf discusses the importance of self-awareness for good health.

Partners Trust Real Estate Brokerage | Visit Our Real Estate Blog Here - Partners Trust Real Estate Brokerage and Acquisitions' blog page offers current company and real estate market info. Read our blog here!

Self Employed? 2011 Tax Return? Home Loan? What do these 3 things have in common and why is it so important?

It’s that time of the year when you are filing your 2011 tax return and wanting to buy a new home. What most people don’t know is that if not handled properly, you may need to wait a few months after filing the return before you can buy. Let me explain.

If you are self employed and your 2011 tax return shows more income than 2010, you may need to use the 2011 return to qualify for a home loan. Most people don’t realize that every lender uses a form called the 4506-T to validate your filing of the return. What is this exactly? The lender sends this form to the IRS to get a transcript of your tax return to confirm it is the same return you gave them. The history of the 4506-T goes back awhile because years ago, believe it or not, a lot of clients gave lenders tax returns that were fraudulent just to qualify for a home loan. Back then they didn’t use the 4506-T so they never verified the information. Then when the market turned and loans started to default, they would investigate it and find out the returns in their package were indeed fraudulent. Ouch!

Now it is near impossible to defraud a lender because of the use of this form. Why is this so important this time of year? The main reason is when you file your tax return with the IRS, even if it is electronically filed, it is taking them up to 8 weeks to validate it. Basically they receive it but by the time they enter the information into their database it could be 8 weeks. So if you go into escrow on a house that is a 30 day escrow and you just filed the return, and you need the 2011 income to qualify, you can be certain you won’t close on time.

This error happens every year even by the most seasoned loan officers. So how do you prevent this or what should you do? You first need to communicate with your loan officer and find out if the 2011 is needed to qualify. If it is then there may be options. First one if you HAVEN’T filed the return yet ask the loan officer if you can walk into the IRS in person and have the return stamped receipt by the IRS as proof of filing. This works with a handful of lenders. The second one is WAIT. Give it at least 60 days after you file your return before you put an offer on a house to be safe.

With any of these situations the key is to communicate upfront with your loan officer and see if there is a solution before you go into escrow. I am always available to answer any finance related questions at my office (310) 656-8201.

Photo courtesy of 401K’s Flickr

Partners Trust Real Estate Brokerage | Visit Our Real Estate Blog Here - Partners Trust Real Estate Brokerage and Acquisitions' blog page offers current company and real estate market info. Read our blog here!

As the April 1st deadline to select a winning bidder for the Dodgers was approaching, the Guggenheim Baseball Management LLC group – Mark R. Walter, Magic Johnson, Peter Guber, Stan Kasten, Bobby Patton, Todd Boehly – came in and snagged the winning bid, announced last night.

What was the winning bid? How about $2 Billion! This is astounding considering the record for a MLB team was set in 2009 at $845 million when the Cubs were purchased. In North American sports, the record was $1.15 billion with the 2009 purchase of the NFL’s Miami Dolphins. The overall record for a pro sports team purchase was $1.4 billion for Manchester United. The $2 billion purchase is making history across the board with an extra $150-$300 million in a joint venture with the LLC and Frank McCourt for surrounding land and lots, making the grand total $2.3 billion.

The deal is still pending approval from the court scheduled for April 13th. The deadline is April 31st to have the sale finalized.

Notable things to mention:

1. Magic Johnson brings his winning attitude as a player, business man and HIV/AIDS survivor to the Dodger organization. In LA he is a huge influence and could help with the name, brand and overall fan base of the Dodgers as well as being able to talk to players about the game. Magic may not have played pro baseball but in the fraternity of a pro athlete he’s a great resource for Dodger players to turn to for advice on the mental aspects of the sport and pressure type situations.
2. Stan Kasten is key. If you don’t know him, you should and you will. He is responsible for the success of franchises like: Atlanta Braves, Washington Nationals, NBA Atlanta Hawks and even NHL Atlanta Thrashers. He has been President of all of those organizations and has turned around the franchises making them winners. He is expected to be named the Dodgers President. His philosophy is often focused on Player Development, Legacy and Franchise – all very good for the Dodger fan base and organization.
3. TV deal to be made. Interestingly enough, money is a motivator and the $2 billion price tag is not that big considering the TV deal to be made. McCourt was denied the $3 billion deal with Fox by MLB Commissioner Bud Selig, forcing the Dodgers to file for bankruptcy in June of 2011. After the sale approval, expect a TV deal to be made very shortly as the season is right around the corner. Time Warner gave the Lakers a $4 billion deal. The Dodgers have the double the games televised, so it will be interesting to see the price tag put on the deal.

All in all this is great news for Dodger fans. This is a solid step towards progress with many great things to come.  With new owners comes internal changes, roster changes maybe even coaching changes, all for the better of course. The one thing to take away from this is that we can finally get back to what we do best, baseball.

As a die-hard fan I look forward to getting back to supporting my team this year and going to many games. Last year I refused to put any money into McCourt’s pockets and had to skip many games in protest. When an owner does not put the team first, the fan base will react. Even with McCourt walking away with $500 million it doesn’t really matter. What matters is that we finally have our team back and Dodger fans and players can get back to focusing on the game of baseball rather than having to constantly worry about the business side of things. America’s favorite pastime has returned to Los Angeles, let’s hope it’s here to stay for the long haul.

Get out to a game, show your support and don’t forget to think blue!  Go Dodgers!

What do you think of the pending sale of the Dodgers to Magic Johnson’s group?  Are you excited to get to a game this season?  Share your thoughts and leave your comments below.

Photo courtesy of ICCSports’ Flickr

Partners Trust Real Estate Brokerage | Visit Our Real Estate Blog Here - Partners Trust Real Estate Brokerage and Acquisitions' blog page offers current company and real estate market info. Read our blog here!

We are all searching for the fountain of youth, looking for ways to live longer, more efficient lives. Green living might just be the answer.

Luckily maintaining an eco-friendly lifestyle is not as complicated and inaccessible as it once seemed.  In real estate, sustainable housing and green technologies are being more widely used.  More people are supporting green practices like organic farming and patronizing local businesses.  We understand why it’s important to bring reusable bags to the grocery store and what it means to reduce our carbon footprint.

However, there’s still a long road ahead.  By educating ourselves about the importance of green living, we can start to make a difference.  As 11 year old Birke Baehr reminds us, in his TED talk on the major problems within our current food system, it’s never too early to start making healthy decisions and doing your part to help the environment.

What do you think about organic farming?  Do you make an effort to eat healthy and make eco-friendly decisions?  How can you do your part to help the environment?  Please share your ideas and leave your comments below.

Partners Trust Real Estate Brokerage | Visit Our Real Estate Blog Here - Partners Trust Real Estate Brokerage and Acquisitions' blog page offers current company and real estate market info. Read our blog here!

As our Los Angeles real estate market continues to recover, I am noticing three distinct categories of building methodology that are fueling the supply side of our growing demand.

1. Renovation: There is a boom in the rehabilitation of homes in our more historic districts of Los Angeles as demand, renovation and affordability drive renewed vigor into neighborhoods recently suffering from an economic battering ram. Areas like Leimert Park and Highland Park are an affordable and chic option for those willing to purchase homes in areas that were far less of a consideration just 18 months ago. This sort of rejuvenating growth creates jobs and community while supporting culture and that bodes very well for a healthier, more robust Los Angeles.
2. New Construction: With demand for housing rising dramatically in Los Angeles’ west side, developers are bidding up the values of dirt for new homes with more bells and whistles to attract buyers willing to invest hordes of cash and purchase historically cheap money from a growing abundance of lenders in the market. Construction sites are once again congesting our streets with trucks and materials fueling the appetites of wealthy Angelenos looking to upgrade their zip codes. In our opinion, this is a small price to pay for the influx of dollars being pumped into our local economy, serving the community at large.
3. Innovative Construction: This trend is most exciting because it brings forth new and creative solutions to both our housing market and also to the entrepreneurial spirit that makes Los Angeles such a great place to live. At Partners Trust, we have the pleasure of supporting one of the most ingenious building methods ever to come along from a company called Proto Homes. (Full disclosure: our company has an exclusive partnership with Proto Homes.) With Patent Pending technologies, green initiatives and a 4-5 month construction timeline, Developer Frank Vafaee has presented Los Angeles (and in the not too distant future, the world) a building alternative that will serve a great demand for a growing ecologically sensitive population.

Within the acquisitions model of our company, we are proud to be engaged in all three methodology categories. Currently, we are about to break ground on a Proto Home in the Miracle Mile area and we look forward to presenting you with our contribution to this growing trend in the coming months. Clearly, we are experiencing a rebirth within our city after a brutal 4-year decline.

We are very encouraged about these signs of life and would like to get your perspective on this subject.  Where do you see growth and what are you doing to take advantage of this increasingly positive economic climate?  Please share your ideas and leave your comments below.

Photo courtesy of JPhillipg’s Flickr

Partners Trust Real Estate Brokerage | Visit Our Real Estate Blog Here - Partners Trust Real Estate Brokerage and Acquisitions' blog page offers current company and real estate market info. Read our blog here!