Malibu Burnout Property - Buy, Sell or Build?

Malibu Burnout Property - Buy, Sell, or Build?

Our office has been receiving a lot of calls with questions on how to move forward after the Palisades Fire. First of all, we want to say that we are devastated about what has happened to Malibu, its residents, and our friends and loved ones that have been affected. We are writing this in the hopes it helps some people. Nothing here is meant to be insensitive - just informative. 

Most calls have been asking our thoughts about rebuilding versus selling now. That choice is a personal one but we can guide you through the economics of doing one or the other. There are several things to consider when deciding what to do:

• We can only look at past values and pricing trends to help determine value. The Palisades fire brought unimaginable devastation. There is no way to predict how different neighborhoods, school situations, and other city amenities will look in the next few years and how long it will take before Malibu resembles what it was.

• There is no way to know how long the permitting process will be. There is additional information below from local sources on the changes being implemented.

• Market conditions are affected by supply and demand. What will the supply of fire rebuild lots be in the immediate future? In years, will there be a large amount of new construction homes on the market at the same time depressing values? Or will new construction homes raise the comparative values and elevate prices?

When deciding whether to rebuild or not please consider:

• Architectural costs

• Soft costs (engineering, consulting, financing, permits, insurance)

• Construction costs

Add up building costs, determine the approximate value of the final product, and somewhere in the difference between the two is the land value. If you sell your land instead of rebuilding, a realtor can help guide you on what to price the land at.

Other calls to our office have been asking about purchasing a fire rebuild lot. Pacific Palisades has seen a large number of fire burnout lots come to market and they are selling quickly. Malibu has several fire burnout land offerings but we anticipate more once PCH opens. The benefits of purchasing a rebuild lot are:

• Faster permitting time frame

• Existing infrastructure

• The final product will be tailored to your taste

• Buyers like new construction (if you are building on spec)

We have selected the articles, events and invitations below as we think they can be useful.

Stay well!

Newsom speeding things up!

Malibu has a new rebuild center! 

Dealing with Natural Disaster Trauma HERE.

Malibu Association of Realtors Rebuild Event HERE.

The Disaster Relief Clinic at Pepperdine Caruso School of Law can meet with people looking to speak to an attorney HERE.

Link for following flyer HERE.