By MICHAEL EDLEN | Special to the Palisadian-Post

By now, most people have heard or read about the recent lawsuit settlement agreement made by the National Association of Realtors. This agreement will not take effect until July, and there is already much misinformation about the outcomes, even from federal government officials.

Some of the statements have implied that real estate transactions could become almost free, making homeownership more affordable, and consumers would be much better protected. This settlement would assure none of this.

1. The settlement forces real estate brokers to reduce their compensation. Not True. The settlement does not impose any limits on what Realtors can charge or on the services they provide. Realtor fees have always been negotiable, in line with the competitive nature of the industry. There is a wide variety of fees, levels of marketing, service and professional competence.
2. The settlement will, for the first time, prohibit sellers from paying a commission to a buyer’s agent. Not True. Sellers have never had an obligation to pay buyer agent compensation, even though it has long been a general practice in this country to incentivize buyer’s agents to ensure optimal exposure to a seller’s listing. The agreement does restrict properties with an offer of buyer agent compensation from being displayed on a Realtor-owned MLS. Still, the practice cannot be restricted in any other form of marketing. Sellers may still choose to pay buyer agent compensation to help differentiate their properties.
3. The settlement relieves sellers of any financial burden of buyer agent fees. Not True. Sellers may decide not to offer buyer agent compensation, but they still have various costs in the transaction. Buyers may choose to write an offer that includes a contingency requiring the seller to cover some of their costs or request other concessions.
4. The settlement will reduce the total costs of transaction services, leading to lower prices that, in turn, make home ownership more affordable. Not True. The market supply and demand always determine real estate values. Real estate transaction costs include many other charges besides the fees paid to agents involved. Even if the commission is reduced by 1% because of increased pressure on the brokerage community, it would have a relatively small impact on the cost of the home. Also, most likely, few sellers would then believe their home was worth less and gladly give that difference to the buyer. Homeownership is less affordable at the present time due to economic market forces, such as interest rates and very low inventory available in nearly all areas of the country, not because of typical brokerage commission structures.
5. The settlement benefits buyers, who will now be able to negotiate their fee for representation. Partially True.
   Buyer representation has traditionally been compensated by sellers, which benefits buyers who are obtaining a loan because it allows them to finance that amount over time instead of coming up with additional cash to close the escrow. On the other hand—and especially for all-cash buyers—this settlement might somewhat lower the buyer’s costs. One difficulty with the settlement in this regard, though, is if a buyer obtains a VA loan, they are prohibited from any buyer-paid commissions.
6. The settlement results in significant restitution to consumers who were “harmed” by their real estate transactions in recent years. Not True. While the settlement fund is huge, the attorneys are requesting the court to give them over $80 million in fees. From what we are informed, with more than 20 million people in the “settlement class,” the projected payout per seller works out to between $10 to 13 each.
7. Because broker’s fees will now be negotiable, costs for real estate transactions will always be lower now and into the future. Not True. As pointed out in the previous clarifications, sellers may elect to offer buyer’s agents even higher compensation of one sort or another, depending on the real estate market. In a “buyer’s market” environment, which we have not experienced since 2010, there may be a variety of incentives sellers will choose to offer.

There will certainly be procedural changes in the industry due to the settlement and other lawsuits, but the fundamentals of residential real estate will essentially be much the same. It’s crucial to recognize and appreciate the complexities of real estate transactions, and the essential roles of Realtors in providing services to both sellers and buyers. The brokerage community has always been able to adapt to changes in the world, and no doubt, by this summer, it will have done so again.

Also, in defense of the real estate industry and profession, this is an unusual field in which the agents often must work long and at odd hours in the best interests of their clients—be they buyers or sellers—and without any compensation until they help people achieve their goals.

While it is true that the most successful agents do earn a great deal of income through their work, the average agent in this country has a taxable income of less than $50,000. They take on a great responsibility and assume the risks of managing their business, hoping to end the year with some compensation for their investment of time and money.

Michael Edlen has been a Realtor for more than 35 years, has experienced three major real estate cycles, and provides consultation services to people with questions regarding their real estate properties and investments. He may be contacted for a confidential discussion at 310-600-7422 or michael@edlenteam.com. 

By MICHAEL EDLEN | Special to the Palisadian-Post

As of March 31, 67 single-family Palisades residences were listed in the Multiple Listing Service. The current level of inventory is flat over last year’s March 31 available inventory.

A total of 86 homes were sold in the Palisades between October 1, 2023, and March 31, which is a 28% decrease from the same period the previous year. Median sale prices ($4,297,000) were down 19% from the same period the previous year. The median list price is currently $7,995,000, and there are currently 22 escrows open in the Palisades.

The lowest-priced residence available is a three-bedroom, two-bath home on Sunset Boulevard, which is being offered at $1,995,000. The highest-priced available property is a seven-bedroom, 11-bathroom on Casale in the Riviera, which is listed at $49.95 million.

The most affordable areas so far in 2024 are the Highlands and south of the Village. The Riviera currently has the largest number (15) of homes for sale in the Palisades.

The lowest sale price for the first quarter of 2024 was a four-bedroom, three-bathroom on Las Lomas ($1.98 million). The highest sale ($20 million) so far this year was a six-bedroom, eight-bathroom on Alma Real in the Huntington.

There are 10 condominiums/townhouses on the market, which is 58% fewer than what was available at the end of the first quarter in 2023. They range from a one-bedroom, one-bath on Sunset being offered at $625,000 to a new two-bedroom, two-bath on Sunset for $2 million.

Thirteen condominiums were sold in the Palisades since the start of the year (an 86% jump), ranging from a one-bedroom, one-bath on Sunset, which sold for $500,000, to a two-bedroom, two-bath on Sunset, which sold for $1,565,000. Despite the increase in sales volume, the median sales price for condos at the end of the first quarter was just $1,175,000, which is down 35% from 2023 first quarter median sales prices.

There are currently five pieces of raw land available, ranging from $1,175,000 for a 7,286-square-foot lot on Castellammare to $14,995,000 for six acres off of Casale Road. There are no lots in escrow and only one land sale so far this year.

There are currently 89 available leases in the Palisades (a 24% increase over the start of 2023), starting at $2,600 per month for a one-bedroom, one-bath unit on Sunset and asking as high as $140,000 per month for a six-bedroom, 14-bath house on Pampas Ricas.

There were 70 Palisades leases done in the first quarter of 2024 (a 3% increase from last year’s first quarter), ranging from a two-bedroom, two-bathroom unit on Sunset, which leased for $2,700 per month, to a seven-bedroom, eight-bath home on Spoleto, which leased for $55,000 per month. The current median lease price is approximately $9,775 per month (a 1% decrease over last year at this time).

Michael Edlen, an agent with Coldwell Banker, has been keeping statistics of Pacific Palisades housing prices for the last 38 years.

By BRUCE SCHWARTZ | Contributing Writer

Will April showers bring May flowers? How about let’s wait and see. As this column is being written on Monday, April 1, the upcoming weekend, another storm with unsettled weather was heading this way.

I am happy to report a Palisadian-Post reader has told me that her citrus trees look better since she applied the fertilizer program I recommended. I would like more readers to try this fertilizer program on their citrus trees. I would walk anyone through the process if they want.

In April, if you plant tomatoes in the Southern California coastal region and in the San Fernando Valley at the same time, the tomatoes planted in the valley will have fruit ready to pick two to four weeks earlier.

Why? The cool marine layer. The marine layer along the coast can last up until mid-July, whereas the valley will have many more sunnier and hotter days than the coast. That is why Southern California commercial tomato growers along the coast (such as in San Diego County) do not start planting until June and July.

The hottest months along the coast are August, September, October and November. The Santa Ana winds can make it hotter at the coast than inland. This is ideal for tomato production. When the Central Valley is finishing their tomato crop, the coastal region is just starting to harvest.

What I am suggesting is that the planting schedule here on the coast can go into July and August, and—depending on the weather—you can still be harvesting tomatoes at Christmas.

I am not suggesting that you wait for June to plant tomatoes. I am saying you have a greater window of planting dates in this area. You can plant early season, mid-season and late season. Technically, you can start harvesting tomatoes from July to December.

Tomato varieties are determinate and not determinate. Determinate tomato varieties ripen early and then the plant quits producing. Indeterminate tomato varieties produce tomatoes for a longer period of time, up until the frost. We rarely get a frost in the Palisades. That is why you will see tomato plants growing into the next crop year.

I like the cherry tomato variety called “Sweet 100.” If you like sweet, true tomato flavor—and a lot of them—this is a good non-determinate variety.

“Early Girl” is another popular variety, appropriately named because it is an early variety. There is also the famous “Beefsteak tomato.” It is known for slicing.

There are so many varieties that it is tough to recommend a variety. That is why I like the Sweet 100 because the sweet tomato flavor is hard to beat.

The heirloom varieties also have distinct flavors. “Brandywine” is a good heirloom, but the yield can be light.

Heirlooms are an “open pollinated” variety. That means the seed from the fruit will grow that same plant as the parent.

Hybrid tomatoes mean that the pollen of two varieties are crossed to make a new variety. The seed from a hybrid will not be the same as the parent. Only open pollinated seed will produce the same plant as the parent.

John Atwill of Grow More and I want to host a seminar on fertilizer and plants to anyone interested in listening, so stay tuned for more information.

Atwill is like a college professor with great knowledge of chemistry and plant nutrition. Of course, I am not so bad at it myself.

Bruce Schwartz is a 24-year resident of the Palisades Highlands. He was an agricultural consultant for 20 years, specializing in soil nutrition for crops grown in the Central Valley. He was named Pacific Palisades’ Citizen of the Year in 2017 and a Golden Sparkplug award winner in 2013, and is a member of several community organizations. To reach Schwartz, call 310-779-1773 or email bruceschwartz@rodeore.com.

Part II of Unpacking the National Association of Realtors Antitrust Lawsuit

By HESSEL EVELAAR | Special to the Palisadian-Post

Well … here we are. The National Association of Realtors settled its months-long lawsuit, making waves and sparking headlines all over the United States. The settlement came much faster than expected and resulted in NAR paying a whopping $418 million over the next four years.

Before we dive in, let’s recap the exact reason NAR—and most every major brokerage in the country—was being sued. The accusation was that agent’s commissions and, by extension, home prices were artificially inflated by commingling brokers forcing the 6% commission structure on home sellers.

The settlement officially unlinked the commission compensation paid to buyer’s agents by the seller from being advertised on the Multiple Listing Services (MLSs, for short), which are the core systems used for selling one’s home. MLSs funnel data out to Zillow, Realtor.com, Homes.com and any third-party website people use to search for a home to buy.

This brings us to the first big change: Buyer’s agents can no longer see how much—if any—compensation will be paid by the seller. This allows for more negotiation and flexibility from the seller in regards commission payout.

Let’s be clear: Negotiable commissions have always been the case. As I mentioned in my last article on February 8, it’s not that some shady practice has been discovered, the commission structure was a common practice, whether or not people believed it overpriced or not, and now it’s simply been brought to public attention that they’re as negotiable as they’ve always been.

How this will play out will depend on sellers and their real estate agents. Will you pay the buyer’s agent a commission out of your sales price? How much? Will you pay anything at all? The buyer’s agent—and by extension the buyer—won’t know this until they call and ask.

The second big change is in how buyer’s agents will work with their clients going forward. Going forward, working with a buyer’s agent will require a Buyer-Broker Agreement. A document, similar to a listing agreement for a seller, that stipulates the relationship between the buyer’s agent and their clients.

This will now also have to clearly stipulate what said agent’s fee will be for their services. See the caveat? Sellers have the ability to not pay any compensation at all, which means the agent’s compensation will have to be paid by the buyer.

A better title for this article would have been “are real estate agents overpaid?” As this is exactly what sparked this nationwide class action lawsuit and all subsequent fallout.

Sadly, I must admit, there are a lot of real estate agents out there who actually are overpaid. Agents who work four hours per week looking at pretty houses, go through a quick escrow with a wealthy family member and walk away with tens of thousands in their pockets.

In my years in the business I have met many of these agents, but have come to find they’re the exception to the rule. I’ve also seen this situation in any other work environment around. The son of the owner who inherits the company, the high-level exec who knew the right people, actors born into the industry, anyone?

I mentioned in my last article that we need to see a change. The change I think we’ll see is a healthy step back and to reassess real estate as a business. I think we’ll see a drastic reduction in active, practicing, real estate agents. The estimates are that one-third of agents will leave the business following the lawsuit.

I think buyers will need to critically examine what a Realtor can offer them in their home search, now that they are likely to be responsible for their fee. Not unlike a lawyer or a doctor.

I mentioned trust needs to return as a core principle in buying a home. Trust will be the cornerstone moving forward, but pure expertise and experience will be the foundation upon which this all stands.

Just like I want a lawyer that has tried a hundred cases or a surgeon with an exceptional track record, I’ll want a real estate agent in my corner whose experience, connections and expertise I can trust in.

My goal is to write a third part in this series, examining how to trust your agent, what questions to ask in the initial consultation and how to determine a real estate agent will prove their worth to you, as this is now more important than ever.

If you’re curious about what the future holds and how to navigate through this oh-so-changing market, it would be my pleasure to connect.

Hessel Evelaar is a sales partner at Amalfi Estates. Working together with his partner Chad Singer, they’ve sold close to $50 million in real estate year to date. Originally from the Netherlands and raised in Singapore, Evelaar brings a multicultural approach to the Westside real estate market. Contact Evelaar at 323-594-6239 or hessel@amalfiestates.com.

By LILY TINOCO | Assistant Editor

Environmental activist, author and producer Laurie David has listed her four-bedroom, five-bath home in Pacific Palisades for sale for $8,975,000, according to a report by Realtor.com.

The half-acre lot was purchased in 2011 for $2 million, before Los Angeles-based firm Johnston Marklee designed and custom built the home—“Porch House,” dubbed an “architectural masterpiece”—in 2013.

Located on one of the Palisades’ “most desirable streets” in The Riviera, the gated and private estate provides 180-degree mountain views from every room.

“The pairing of concrete with floor-to-ceiling glass pocket sliding doors strikes the perfect balance between mass and volume,” according to a description of the property.

The entry level of the home boasts high, two-story ceilings in the living room, kitchen, dining area and den.

“The mezzanine is a collaboration of curves and straight lines punctuated by a balcony office, cozy library and en-suite guest bedroom,” according to the listing.

The lower level is accessible by stairwells on each end of the house. Standout features of the primary suite include a dual walk-in closet, an indoor-outdoor bathroom and patio with ocean views.

There are two additional en-suite guestrooms, and a laundry room with additional storage space.

Outside, the property boasts “lush and serene” grounds, complete with a planted meadow of drought-tolerant landscaping, and lemon and lime trees.

“Porch House is truly a celebration of structural harmony and vertical indoor-outdoor living,” the listing concluded.

Laurie produced the Academy Award-winning film “An Inconvenient Truth.” She currently serves as a trustee on the Natural Resources Defense Council and is a member of the advisory board of the Children’s Nature Institute.

Laurie was previously married to actor Larry David, comedy writer and actor, creator, and star of HBO’s “Curb Your Enthusiasm.” The couple divorced in 2007 after 14 years.