Author: John Skinner

Los Angeles is a city built on views. The abundant hillsides and valleys make for plenty of opportunities to view the surrounding landscape all the way to the Pacific Ocean. There are, however, views that stand out from the rest–views that are peerless in their expansiveness and beauty. These are the views that are talked about, whispered about, and shown off by proud property owners who proclaim that they have “the best view” around.

What really makes a view extraordinary? Intrigued by claims of hearing about the “Best view in Los Angeles” for years without a true measuring rod for comparison, Partners Trust decided to create a grading criteria to better define the ultimate bragging rights within the City of Angels.

Based on six core criteria with a grading scale from 1-10, the average of those six scores reveals where the property fits on the overall scale. With a grade of one being a modestly desirable view and ten representing the small handful of top-tier properties in Los Angeles that offer a truly extraordinary vantage point, we can now start to better articulate who may actually claim that their view represents the “Best of Los Angeles”.

The Partners Trust View Standard Criteria: 

Explosiveness—Explosiveness is defined as the ‘wow’ factor, the type of jaw-dropping view that offers both height and breadth with an expansive vista showcasing the city. A panoramic expanse along the lines of a 270-degree view would warrant a 9 or 10 on our scale. However, unsightly obstructions like power lines or poles would cause a reduction in points. Massive ocean views can also be considered as explosive provided that they are dramatic and wide-ranging however in our opinion, they won’t receive as high a rating as the staggering city lights view because these views go “dark” at night. The best views dazzle by day and by night.

Texture—Texture can be described as a type of softness, a gradation of local hillsides, light and shadow, and differing vantage points that add character to a view. The view from a tall building or hillside property can be explosive but still lack the type of texture t

hat makes a view pleasing at all times of day or night. A view that is both explosive and textured creates tremendous view enhancement and must be awarded points on our scale.

Exclusivity—Does the property offer relief from the street? Is it accessed via a private drive or through a set of gates? Does it occupy a promontory or other spot that is not accessible to others? The longer the drive and the more unique and rare the view, the more points it receives in this category. The more exclusive the view, the higher the ranking and if no one else can claim the same vantage point then you can add 10 points to your score.

Proximity—An ideal view property also offers reasonable proximity to civilization. If there are many switchbacks up a twisting, narrow road, miles to travel, and a level of inaccessibility, points are to be deducted against the view’s ultimate dynamic composition. No one wants to drive a long distance for the proverbial quart of milk. If you can get easy access to your convenience store without burning through much gas, rank your property accordingly.

Iconography—Los Angeles is a town defined by both its natural beauty and its landmarks. The ideal view should include as many of these landmarks as possible: the Hollywood sign, the Griffith Observatory, Dodger Stadium, the downtown Los Angeles skyline, and the Capitol Records tower. The view should also extend all the way to the Pacific Ocean. If you can pick up 10 iconic “Hollywood” landmarks in your view, go ahead and give yourself a 10 in this category.

Privacy—Does the property offer the utmost in privacy? Are there houses nearby at the same height? Is it easy for someone to look in the windows or observe you on the deck, balcony or lawn? Is anyone looking down onto the property? The ideal view property is one that offers complete protection from prying eyes. If your view affords a “paparazzi-proof” vantage point, go ahead and tack on another “10” on our scale.

To illustrate the use of this scale, Nick Segal applies it to The Gary Johns House on Los Tilos Road (pictured) in the Hollywood Hills. This property defines what makes a stellar view on the Partners Trust scale. It has jaw-dropping views that sweep from the city to the ocean (10 points) and yet it also offers exposure to softer, more intimate hillside vistas (9 points). It is situated on a promontory accessed via a long private drive (10 points). It is located in an area that offers relatively easy access to the city (8 points). The city’s landmarks can be easily pointed out in the view (10 points) and the property is beautifully situated so that residents can enjoy the views with limited access to voyeurism (7 points). Tallying our score, The Gary Johns House delivers a score total of 54 for an average “9” on the Partners Trust View Standard.

-Source- Partners Trust Voice Blog

Partners Trust Real Estate Brokerage & Acquisitions in Beverly Hills purchased Arete Estates, a Malibu firm specializing in high-end real estate. The purchase price was not disclosed.  

Partners Trust was founded in 2009 by a five-person partnership. The company has some 200 associates and annual sales of greater than $1.7 billion.  Arete Estates’ nine employees will join the bigger firm and Arete will take the Partners Trust name.

(Source: Los Angeles Business Journal)

A record amount of foreign money is flowing into the U.S. housing market. And the Southland is a prime destination. Overseas buyers and new immigrants accounted for $92 billion worth of home purchases in the U.S. in the 12 months ended in March.  That’s up 35% from the year before, and the most ever. 

Nearly one-fourth of those purchases came from Chinese buyers with a 55% increase in total purchase compared to last year. And the place they’re looking most is Southern California. Among U.S. cities, Los Angeles was the top destination for real estate searches from China, San Francisco was second; followed by Irvine.

Some families are buying houses for their children attending California universities, or even high schools in some top districts. Others see the U.S. as a smarter investment than the overheated Chinese housing market. 

“These are famous cities they know,” said Liu, an immigrant from China who is a realtor and estimates that half her business now comes from Chinese buyers. “They know San Francisco. They know Los Angeles. They know Irvine.”  Good schools certainly help. Liu said many of her clients are families with children, planning to immigrate to the U.S. and looking for a top-ranked school district. And the high-cost Chinese housing market means that even neighborhoods in the U.S. where the median price is pushing $900,000 can look like a steal.

 Sources- LA Times/Calculated Risk Blog

Since they are so important to a successful mortgage application, here’s a quick overview on what goes into DTIs and why they are such a big red flag. Debt-to-income ratios for home loans are the most direct indication to a bank about whether you are going to be able to afford to repay the money you want to borrow.

Debt ratios for home loans have two components.

The first measures your gross income from all sources before taxes against your proposed monthly housing expenses, including the principal, interest, taxes and insurance that you’d be paying if the lender granted the mortgage you sought.

The second DTI component — the so-called back-end ratio — measures your income against all your recurring monthly debts. These include housing expenses, credit cards, student loans, personal loan payments and others. Under federal “qualified mortgage” standards that took effect in January, your back-end ratio maximum generally is 43%, though again there is wiggle room case by case.

Most lenders making loans eligible for sale to Fannie or Freddie prefer not to see you anywhere close to 43%. In May, according to Ellie Mae, the average approved home purchase applicant had a back-end ratio of 34%. Even at FHA, which tends to be more lenient on credit matters than Fannie or Freddie, the average back-end ratio for buyers was 41%. The average for denied applications was 47%.

A good place to learn more about DTIs and to compute your own is Fannie Mae’s consumer-friendly “know your options” site (www.knowyouroptions.com), which includes calculators and other helpful tools.

Also, most lenders want to see FICO scores well above 700 — Fannie and Freddie averages were in the 755 range in May; FHA average approved scores were a more generous 684.

The strong seller’s market of 2013 is bleeding into the 1st quarter of this year and showing no signs of slowing down, especially with homes priced under $3 million dollars.

With tight inventory, interest rates staying fairly low and an influx of young wealth moving to the Westside (Silicon Beach), the process of buying a home in the area requires quite a bit of patience and understanding it will take a premium number above the comparables to attain a desirable property.  It is important that  buyers work with local agents that have a good reputation to give them a better shot at acquiring a property.

I have been fortunate enough to close quite a few deals on the behalf of buyers involved in multiple offers the past six months. The feedback from the listing agent’s was the professionalism of our offer package and knowing our team was a good group to work with helped position our client’s favorably with the seller.  Price is ultimately the major factor but when the seller has the ability to choose between three or four great offers, the small details make the difference between getting the property of your dreams or not even getting countered.

Here is a look at some individual sales on the Westside illustrating the current market dynamics-

12613 Woodbine- Mar Vista– This major remodel+addition of about 500 sq. ft. immediately went into escrow about $75K over asking at $1.575k. The initial offer was so strong the builder did not want to mess around and accepted without countering other parties.  The house is 3 bed/3 bath, 1,750 sq. ft. on a 5,676 sq. ft. lot. The house was completely redone in a superior manner compared to recent flips/remodels recently on the market.  The builder did a good job with the attention to detail and will be rewarded handsomely for it. The house will end up selling at $900.00 a sq. ft which is a record for the area.  The builder bought the home in March of last year for $835,500.  Even with as much as $250K into it, the return on investment is substantial.

3216 Federal- Mar Vista- This classic 3+3 at 2,083 sq. ft on close to an 8K lot hit the market in early

February and was under-priced by the listing agent at $1.075M.  They received 25 offers and it reportedly is in escrow for $325K over asking at around $1.4M.  The house does require some remodeling of the kitchen area and updating of the bathrooms but it does allow for a young family to move in and fix it up over time.

 2045 11th Street- Santa Monica- We represented the seller in this transaction and received six offers and 

ultimately sold to an all-cash buyer for $1.352M, $53K above the asking price.  All of the potential buyers were well qualified and made it very difficult on the seller on which offer to choose after one round of counters.  The 2 bed/2 bath, 1,536 sq. ft. home on a 5,800 sq. ft. lot has strong emotional appeal with a recently redone kitchen opening to a great room that is flooded with a ton of natural light.  The outdoor deck with spa and the overall private feel of the property contributed to such a high interest level.  We had over 200 parties attend the Sunday open and Tuesday broker caravan.

1936 Thayer- Westwood- This 2+2, 1,618 sq. ft. home on a 7,184 sq. ft. lot was listed for $1.295M earlier this week and is reportedly in escrow for above $1.370M.  They received 15 offers.  This house will need to be remodeled but had a good lay-out and a library that could be converted to a third bedroom.  The location is in a great pocket of homes just south of Santa Monica and west of Beverly Glen.

After a slow month of closings in September with 18, the pace picked up a bit in October with 22 Single Family Residences being sold.  A big difference in the past two months is how many homes sold at or above the list price. In September, only six of the sales were at list or higher while 18 were this month. 

Ocean Park charmer goes 275k over asking– 1420 Sunset Avenue, located just north of Penmar golf course, is a 4 bed/3 bath house on about a 7K lot. The square footage was not published in the MLS due to some rooms not being permitted but we heard it was 1800+.  The property was listed at $1.099M and sold for $1.375M. Despite needing some upgrades (especially kitchen and bathrooms) this home got a lot of attention from young families due to its size and large backyard.  They received over 10 offers.   

Thanks to John Ciolino at First Capital Mortgage (contact: 310-656-8201), here is some key information everybody should know concerning their credit.  The better FICO score you have typically means you will be offered a lower interest rate from the bank when applying for a home loan.

1- Is it best to pay off your credit cards in full each month?

No, to maximize FICO score, it is best to leave a small balance.

2- If you have a collection account, is it best to pay it off in full?

No, a paid collection is the same as a collection.  A “paid collection” today hurts FICO scores more than an older “collection”.  Only pay collection if the creditor agrees to “remove” collection. 

3- If I buy new furniture, would my credit be better if I charged it on my Visa or financed through the store with “no interest” until 2017?

“Deferred” debt has a higher default rate and has bigger impact on credit score.

4- Does is it make sense to close old credit card accounts that you are no longer using?

Not necessarily, one of the FICO factors is length of credit.

5- Which is more damaging to credit?

a. 30 day mortgage late on July ’12 on a $1 million dolllar loan  or b. 30 day late on Visa June ’13; $64.00 balance?

The more recent debt has a bigger impact on FICO than the amount of debt!

The strong momentum of the market for both single family residencies and condos is demonstrated in our latest third quarter report.  Some areas see a dramatic increase in price as well as strong reduction in average days on market compared to 2012.  

However, as you have read in my recent blog postings the market is starting to “normalize” above the $1.5 million dollar mark in the past month.  We still see plenty of multiple offer activity on choice properties due to the lack of inventory especially in choice zip codes. 

If you would like more detailed information on a specific zip code or area on the Westside, please shoot me an e-mail at john.skinner@thepartnerstrust.com and we will gladly get the information to you. 


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The nation’s homeownership rate was 65.1% on a seasonally adjusted level in the third quarter, the Census Bureau reported. Homeownership hasn’t been this low since the last three months of 1995. 

The fact that homeownership has fallen during the housing rebound shows investors have been a major force in sending home prices skyrocketing. Individuals and Wall Street players have descended on the housing market, looking for bargains and cash flow. They have scooped up many lower-priced homes to flip or rent out. Last month 33 percent of all existing home sales in the US went to “all-cash” sales, a massive part of the market. Since the typical American doesn’t have much money saved to purchase homes, these are not your typical first-time home buyers. 

But now, investors have shown signs of pulling back because higher prices have made their investments less attractive. That has raised questions about whether first-time buyers will step in to fill the void, which experts say is key to a continued recovery. 

The homeownership rate peaked, on a seasonally adjusted level, amid the housing boom, at 69.4% in the second quarter of 2004. 

(Sources: LA Times and Doctor Housing Bubble)

A better economic picture sent mortgage interest rates higher this week, with Freddie Mac reporting that a 30-year fixed-rate home loan averaged 4.16%, up from 4.1% last week.