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Real Estate
e-Newsletter
by Cynthia S. Radom
Award-winning Certified Seniors Specialist REALTOR® - Specializing in Listings and Trust Sales
Since 1994
Coldwell Banker Realty - Beverly Hills CA
| | NEWS & ISSUES for BABY BOOMERS to GOLDEN-AGERS | | |
Is your property located in a high or very high fire hazard severity zone? Before listing a home for sale, a Seller must learn the answer. Find the answer online at:
- zimas.lacity.org
- fire.ca.gov/dspace
- SnapNHD.com (start order)
- or email Realtor Radom with the property address.
CalFire recently revised the fire zone maps for the first time in almost 20 years. No longer can you assume that north of Sunset is the dividing line as BH, Brentwood and Pacific Palisades high-fire zones go south of Sunset. Furthermore, the new Zone Zero law requires a five-foot buffer of no vegetation around homes in LA city, which may not take effect until 2029 based on delayed regulatory decisions.
Brush clearance is understood. Fire Hardening and Defensible space (FHD) means taking precautions to make your home less likely to burn down in a wildfire by clearing vegetation to create a defensible buffer zone around the home, covering vents with mesh to keep out embers and moving combustible materials away from the house. Obtaining a brush clearance and FHD compliance certificate will help the Buyer to obtain property insurance and to remove this contingency.
If the property is not in compliance the questions when selling are: who complies, pays and when?
The first step is to determine if the property is designated a high risk.
The next step is to determine if the law is applicable to the property or the Seller with these criteria:
- Contains one to four units
- Seller is required to complete a TDS, Transfer Disclosure Stmnt.
- High or very high fire zone
- Improvements were constructed before January 1, 2010
If any of these four conditions are NOT met, the Seller may be excluded from answering some questions on the FHD disclosure and addendum, e.g. a Successor Trustee representing a Trust sale is exempt from completing a TDS.
A resource list (with website links) of contacts, FAQs, how to hire an inspector and other extensive information on the fire disclosure subject can be obtained here. The City will place a lien on the property if the work is ignored and hire a contractor at rates above normal.
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Owning real estate has long been one of the most reliable paths to building wealth. Just look at your home’s equity; compare what you paid to today’s market value. Many investors who bought properties decades ago, whether retail space, apartments, industrial buildings or vacation rentals have not only enjoyed steady rental income but also built a solid financial foundation. The most fortunate investors reinvested their earnings into more properties, further multiplying their wealth.
One of the greatest assets for any landlord is a responsible long-term tenant, someone who pays rent on time, treats the property with care and prefers to stay for years. To keep tenants like these, many owners chose not to raise rents for extended periods. While this strategy avoids turnover costs like repainting, replacing carpets or making other updates, it can lead to deferred maintenance and below-market rental income, which can ultimately reduce the property’s value. This scenario is common among longtime landlords.
In recent years, events like the COVID-era eviction moratoriums and HUD’s rent caps during and after emergencies like the January 2025 fires have added financial pressure. Many landlords struggled to cover expenses with stagnant rental income or evictions. At the same time, managing a property becomes more burdensome with an owner's age. Adult children may prefer to inherit cash rather than take on landlord responsibilities. And, a property management service, while helpful, can be costly, especially when rental increases are limited.
At some point, selling an income property becomes not only a reasonable choice, but also the smart one. When you reflect on the success of your original investment, letting go becomes easier. Talk with your family and consider their input—to keep or sell.
If you’re thinking about selling, give REALTOR Radom a call at 310-779-1715 for expert guidance and a plan tailored to your goals. Defer capital gains tax with a 1031 exchange.
| 2026 Pantone color of the year is "Cloud Dancer" — white. | | |
Even though today's mortgage rates are below the historical medium of 7.70%, there is a way for a property Buyer to lower the interest rate on a mortgage and reduce their monthly payments. Whether the Buyer is running short on funds or doesn't want to drain cash reserves, the strategy is called a rate buydown. Investopedia describes a buydown as a mortgage financing technique where the Buyer attempts to secure a lower interest rate for at least the first few years of the mortgage or possibly throughout the entire loan period.
Seller Assistance: Instead of lowering the asking price to close a sale, a Seller could give funds to the lender at closing for reducing the Buyer's loan rate. In return, the Buyer would increase the purchase price by the subsidized amount. Before loan approval, the lender has to agree to a buydown using a percentage of non-recurring closing costs, and the Buyer has to be approved for a larger loan.
Structuring a buydown is available in various ways:
3-2-1 Buydown: The Buyer pays lower payments on the loan for the first three years. A 3% point discount on the interest rate for the first year, a 2% discount for the second year and a 1% discount for the third year. The full interest rate would apply beginning with the fourth year of the loan. The same structure applies for a 2-1 buydown: 2%, then a 1% discount. Buyers seeking a temporary rate decrease must be sure their future income will increase or rates will be lowered to refinance.
Buyer Buys Down: A borrower with extra cash can also pay the lender to reduce their interest rate by purchasing points upfront, thereby lowering monthly payments. Discounted points can lower the interest rate on a mortgage for the life of the loan rather than just for the first two or three years.
If a Seller receives one offer that includes a loan, consider a buydown if the Buyer requests.
| **Considering a move to the Newport Beach area? Let me help you. Click here and tell me what you have in mind.** | |
Homeowners Association Law Redefined | | | |
A last-minute change in AB130, which took effect on July 1, 2025, redefined HOA law in California by amending the Davis-Stirling Act that governs homeowners associations. The biggest change? HOA fines are now capped at $100 per violation unless there is a health or safety impact on the common area or another association member's property. The bill also bans interest and late fees for violations and prohibits HOAs from disciplining homeowners unless they address violations before the hearing. It allows owners to request an internal dispute resolution if they disagree with the Board's findings at hearings. It's a massive win for disgruntled homeowners, who have long claimed that CA HOAs are too aggressive, stringent and overbearing. It's a startling blow for HOAs, which were left blindsided by the changes. Throughout the U.S., California boasts the most HOAs (50,000+) and the most homes within HOAs (4.68 million). More than one-third of California homeowners live in HOA communities, and nearly two-thirds of all new housing is part of an HOA, according to an LA Times article. | | | | |
What's wrong with this listing history?
- Over three consecutive years on the market
- More than 14 price reductions
- One price increase
- Several listing agents, one more consistent
- Numerous listing Brokerages
- Property description doesn't change with new information
- The asking price has been reduced by 50% so far.
This is an example of what not to do if you're a serious Seller. Testing the market with a brief exposure to Buyers is reasonable. However, there are reasons this property hasn't sold. The best strategy is to learn what the Buyers are saying, fix the issue(s) and price accordingly. The more days on the market, the lower the offer price. Guarantee: Buyers will review the listing history before making an offer.
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Tidbits of News!
- Compass Buys Coldwell Banker Realty and five sister Brokerages:
The announcement made last October will take a year to gain full approval, and Brokerage names will remain the same. In the interim, it's business as usual.
- Landlords: Before renting your property, determine a tenant's acceptable minimum credit score and ask your agent to include the number in the listing. Also, require a credit report with the tenant's application.
- What's the mortgage rate? A better question is, how can I lower the loan rate? Lenders offer many programs. Another .25% rate cut recently, Sellers should get onboard...while inventory is low!
| | When selling a jointly owned primary residence, married couples may exclude $500,000 in capital gains from the sale. When one spouse passes, the surviving owner has two years to sell the home to claim the full amount. Otherwise, if sold after two years the exclusion is treated as a single ownership, and the deduction is limited to $250,000 from capital gains. | |
Wisteria
The newest and most grand of all Senior residences is the upcoming Wisteria at Warner Center. Model units for viewing in April with move-ins this summer. Located in Woodland Hills—and, yes—the summer weather is toastier, but don't let that stop you from considering the numerous amenities. Promoted as a Life Plan Community, Wisteria offers estate protection, substantial savings and potential tax benefits "A Plan for Everything". Attend a presentation on January 12th at the Luxe Hotel on Sunset Blvd. 90049. Call Michael (818-914-7803) for a must-have reservation.
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ADU Verdict
Several years after AB881 was approved, relaxing laws to build an ADU on residential property, the LA Times reports the following:
ADUs are usually priced at or above market rates and so they have limited viability as a solution to the housing crisis. The cheap, abundant housing that Californians crave might not be found in the backyard.
| When a property Buyer agrees to comply with FHD mandates, they have one year after the close to comply. | | |
Senior housing has been one of the biggest disappointments for commercial real estate investors. Now, thanks to millions of aging Baby Boomers, that may be about to change.
The oldest Boomers turn 80 in 2026. By 2030, the U.S. population aged 80 and older is expected to increase by more than four million people to 18.8 million. History suggests that, at that milestone age, an increasing number of people conclude they can no longer live safely or comfortably at home and will seek a Senior residence.
Senior residences finally returned to pre-pandemic levels in 2024, and rental growth has resumed.
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$110M Party House
Former Google CEO Eric Schmidt and his wife, Wendy, acquired the former Aaron Spelling estate in Holmby Hills last August for $110 million. The new owners, whose real estate portfolio now includes well over $300M worth of luxury real estate in LA alone, plan to host meetings and events for local nonprofit and cultural institutions.
The 56,000 sft. mansion on five acres of prime LA soil includes a bowling alley, a movie theater, a nightclub, massage and tanning rooms, a beauty salon, a wine cellar, an aquarium plus 14 bedrooms and 27 bathrooms. Also, a tennis court, two motor courts and...covered parking.
| WIRE FRAUD is rampant in real estate money transfers. Call, check, confirm then reconfirm. It's always better to be safe than sorry. | | |
Respecting your privacy and confidentiality, names and e-mails will only be used for providing pertinent material from Cynthia S. Radom and will not be shared with any other organization.
©2026 Coldwell Banker Real Estate LLC. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Account. Equal Housing Opportunity. Owned By a Subsidiary of NRT LLC. This is not intended as a solicitation if your property is already listed.
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