Just Sold: 1806 Carnegie Ln Unit 3 Redondo Beach

My Buyer clients just closed on this rear unit 3 on a lot at 1806 Carnegie Ln in North Redondo Beach. It’s a great case study of how the market has shifted and some best practices you can utilize.

We made an offer slightly over the asking price - nothing crazy, a scant $15K added to a list price of $1,150,000. We offered a quick 21 day close which Chase was able to do because my buyer clients were fully underwritten. But we didn’t waive any contingencies.

And, surprise, surprise, the offer was accepted as written. Wow.

Then came the inspections and a number of surprises. But not deal killers. The Buyers were able to get Seller concessions of $20K which is something that just would not have happened 2+ months ago.

So let’s not talk about the market is shifting - it has shifted. We are in a decidedly different business cycle than at the beginning of the year. The reason? High mortgage interest rates which are not about to get any lower anytime soon.

This has not only put a lot of Buyers on the sidelines, the ones remaining are a lot more discerning, or maybe I should say picky, about the properties they will make offers on. Both the property and the price has to be right. Otherwise, expect to reduce the price. AT one point last week, 25% of the Redondo Beach listings had price reductions.

Here’s how the listing agent described the property in the MLS:

“Great opportunity to own this move in condition rear end unit townhome that is part of a three unit complex in nice Redondo Beach location a few blocks from Manhattan Beach. New paint, carpet and fixtures plus a new vinyl fence on the west side of the complex. Popular reverse floor plan with entry way, two bedrooms and a bathroom and two car attached garage downstairs. There is also a wonderful enclosed yard that can be accessed from a garage access door or from the outside. Upstairs there is a large living room with fireplace and vaulted ceilings a nice kitchen that opens to living room, a half bathroom, laundry room, and master bedroom with lots of light, plenty of closet space and bathroom with dual sinks. The living room opens to the large deck. The living room has an open feeling and deck and living rooms have views of nearby Andrews park. Pad also includes a central vacuum system with the attachments. Close to beach, LAX, job centers, Andrews park with new dog area, shops and services.”

WHAT’S A 3 ON A LOT?

Three on a lots are townhouse style condos. Huh?

To start with, a townhouse is a style of property and in Redondo Beach all the Townhomes are zoned as condos (in other areas they may be PUDs). By 3 on a lot, we’re referring to how many homes are on each lot.

Each property or unit has its own APN but there are also exterior areas owned in common because the legal description is condominium which is a form or ownership.

You can usually identify these properties by the long driveways you see extending almost the entire length of the lot. The exception is for 3 on a lots on north-south streets which may have their own driveways.

Further complicating the jargon, these Townhomes can either be “attached” to each other or “detached” meaning stand alone with no common walls. In North Redondo Beach almost all of the 3 on a lots are attached and share a common wall. In South Redondo Beach you find fewer 3 on a lots and detached units are more common.

Many 3 on a lots will tout that there is no “HOA”. That can be misleading. Here’s what you need to know.

Any property zoned as a condominium has recorded CC&Rs which also create a home owner’s association. Many 3 unit projects have what can best be described as “inactive” HOAs meaning there are no monthly dues, no meetings, budgets or reserves. If the units are attached they most likely have a common master insurance policy that they split payment of. There may also be some other common expenses such as a gardener, sump pump, water or electric. Or maybe not.

Speaking of common areas, what about those front and back yards and decks?

Those are usually identified on the condominium plan as “exclusive use” meaning for the use of the homeowner the area is adjacent to. But you have to check the paperwork to make sure.

Three on a lots most typically have “reverse floor plans” similar to Tall and Skinnies. The standard floor plan is 3 bedrooms, 2 or 2.5 bathrooms and are from 1500-1800 Sq Ft. Some have four bedrooms and the new units might be on 3 levels, have lofts and or roof decks. Resales have been selling for $1.15M to around $1.35M. Newer construction can be well over $1.5M.

WHERE IS IT?

 

Most 3 on a lots are found south of Artesia Blvd on Vanderbilt, Carnegie, Rockefeller and Grant. You will also find 3 on a lots on North-South streets and east of the green belt in MLS Area 151.