Archive for the ‘Market Area’ Category

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Whoa! The $3M Buyers Are Back in Edgewood Park

By Ed Gory | August 11th, 2009 0 Comments

When you thought (ok, so when “I” thought) that it would be a long time before homes in Edgewood Park would approach the $3M price tag, one gets sold this past week, for $2.8M, sold off the market. 890 Edgewood Road. Former home of Redwood City’s oldest resident (Jean Cloud, who recently passed away at 102 years old).It’s one of the gems of Edgewood Road, classic colonial architecture, previously owned/built by Roy Cloud (yes, that of the namesake, highest API score school in the Redwood City School District). In my youth, I often thought this house was the “Mount Vernon” of Redwood City.

Like many other homes on the northernmost side of Edgewood Rd., this lovely estate commands a large, 41,000 sq. ft. lot, with the home being 3200 sq. ft.   And who knows, if the ‘talk on the street’ bears truth, but there may even be a couple more Edgewood Park homes in the $3M range changing hands soon.

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The Value of Fixer Uppers

By Steve Ricketts | August 5th, 2009 0 Comments

All home buyers are looking for value, and to most this means getting the largest home for the lowest price. For many buyers this translates into purchasing the renowned ‘fixer-upper’.

So what exactly qualifies a home as a ‘fixer-upper?’

There’s a wide range of subjective credentials, as some homes may only need new paint and carpet, while others may need more extensive repairs to their foundation, roof, plumbing, or electrical systems, etc.

While on your search for the right home, remember to be realistic on accomplishing the repairs – who will do it? Will it be you, or will you be hiring a contractor? Estimate how much the repairs will cost with, and without, professional help. Does it make your purchase worth it? If you have to hire an expensive outside contractor you may not see the potential value of buying the home in the first place.

If you choose to buy a home requiring repair it is especially important to work with a licensed REALTOR, due to so many potentially expensive issues you may be confronted with. Your agent will walk you through the details of the property and termite inspections, and help guide your decision-making process based on your own ability to repair the home.

Your REALTOR should also be able to recommend the best vendors in your area, based on their past experience and company recommendations, in case you need further help on your project, or even just some quality advice. Choosing the wrong people to help repair your home can be very costly in both time and money.

Once escrow has closed, and keys are in your hand the fun begins! With the economy as it stands today many home owners with fixer-uppers are turning to “sweat equity”, or do-it-yourself repairs, to enhance their home value.

You will find savvy home owners doing most of the work themselves with friends and family lending a hand. A method of making the project more pleasurable and less of a chore for your invited helpers is to make a party out of it! Offer pizza, drinks, music, etc. to motivate your crew. Offer out-of-town friends and relatives the chance to be your first few guests in your new home. Or, make this a great excuse to call old friends you haven’t seen in awhile. Make your home improvement projects a community effort.

You will be amazed when you are finished. Not only have you repaired and remodeled your new home, you will probably find that you have also built stronger relationships with family and friends.

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SHORT SALE vs. REO: Buyer “Thunderdome” Part 1

By William Chea | August 4th, 2009 0 Comments

For today’s buyer, the Short Sale and REO – real estate owned property – transactions are the market heavyweights.

Let’s go a few rounds weighing the pros and cons to see how they compare!

Round 1 – Pricing (REO comes out swings and lands a quick over-hand right – perhaps)

The biggest and most powerful draw the REO property has on buyers is typically lower pricing when compared to other homes on the market.  In San Jose lower prices have enticed so many buyers that, for the first time since 2005, there are more pending sales than active listings.  However, there is no Tyson-like knockout because with lower prices comes competitive bidding which drives the price up to where the deal is, in many cases, not so hot.   Case in point, we recently listed an REO on E. Duane Avenue in Sunnyvale and within 48 hours had 18 offers!

Round One goes to: The REO

Round 2 – Timeframe (Smelling blood, the REO goes for the knockout with a devastating left uppercut to the body!)

A huge complaint about the Short Sale is the uncertainty of outcome and the time frame – they take too long!  There are Pending Short Sales right now that have been waiting for lender approval for over 9 months!  The majority of REO offers can be ratified within 7 days and closed in 30 days.  This gives the REO a huge advantage. Short Sale’s knees are a little wobbly at this point but somehow manage to stay upright. Why? Thankfully many major lenders have finally recognized the value of the short sale and are beginning to streamline the approval process.  In the case of Wachovia Bank in Santa Clara County they are pioneering a program where the short sale approvals happen at the local level.  They have staff that actually discuss and assess the situation with the homeowner. Their approval turnaround time – from offer submission to final approval - can be as timely as 5 to 10 days. In general, private parties are typically more nimble in their ability to respond and make decisions related to the transaction – far less “bureaucracy” in this process. Short Sale survives REO’s early barrage and is saved by the bell!

Round Two goes to: The REO

Round 3 – Disclosures (The Short sale has its Balboa moment…queue the horns)

As an REO listing agent myself, it amazes me that buyers and/or their agents sometimes don’t get it – There are LIMITED SELLER disclosures in a REO transaction. The seller is an institution – they have never lived at the property.  They have never seen the property, much less know its history. Apart from the Natural Hazard Disclosures and a few mandatory disclosures, you have no idea what has happened to or around the home. This is where the Short Sale has a HUGE advantage. The seller most likely occupied the property and has a legal obligation to disclose everything they know to a potential buyer. Out of nowhere, Short Sale regains his legs and starts landing body punches to REO!

Round goes to: The Short Sale

This match is just heating up! Come back for Part 2 and see who will win.

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South County a Hidden Gem for Families

By Ralph Chellino | July 27th, 2009 0 Comments

As a resident of South County (Morgan Hill, San Martin, and Gilroy, California) since 1974, I have witnessed first hand the growth and development that we have become proud to be a part of. In 1974, the populations of Morgan Hill and Gilroy combined did not exceed 15,000 residents. Today controlled growth initiatives have seen both communities gently and tastefully expand to approximately 34,000 in Morgan Hill and 42,000 in Gilroy. Pastoral surroundings compliment our great schools, numerous parks, and exceptional recreation facilities making Morgan Hill and Gilroy family “havens”. Statistics embellish the family “canvas”:

As of July 21, 2009 MLS reports 304 active listings in South County (Area 1) of which 137 are listed under the very affordable price point of $700,000. Buyers must be alerted to the most current trends because the market has heated up suggesting the plausibility that we have reached the bottom of this very deep recessionary period.

Some Intero statistics of interest include:

  • Listings this month compared to this month last year are up 33%
  • Sales are up 21%
  • July 2009 enjoys a 50% increase in closed escrows over this time last year. Active listings have declined and pending sales have increased over the last 60 days illustrating more market activity.
  • Lending guidelines are beginning for the first time in eighteen months to relax a little allowing more borrowers to qualify for loans under 6% APR. FHA conforming loans allow buyers to purchase their homes with as little as 3.5% down.

What does all of this mean? In my thirty-year real estate career I cannot remember a better buying opportunity in South County than right now.

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If There Ever Was a Time to Buy, This Is It!

By Russ Boyd | July 25th, 2009 0 Comments

Five Reasons Why Now is the Perfect Time to Buy-

  1. Low Mortgage rates – Bankrate.com recently reported, that mortgage rates are at their lowest point ever in their survey taking history. They have been conducting rate surveys since September 1985. The national average for a 30-year fixed rate mortgage is very near 5%. This is great news for buyers.  If you read or listen to the news, you will see that refinancing has increased dramatically.  Why do you think this is? Any further rate drops are likely to be minimal.  One thing that you can count on, when rates begin to rise, they go up much faster then they go down.  The current interest rates alone, is a really good reason to consider purchasing a home.
  2. Housing Prices –  Everyone knows that housing prices are down in most regions.  Do you think prices are going to continue to decline?  Perhaps, but most of the decrease is now reflected in today’s prices.  The number of sales and median prices have been rising steadily in the Bay Area since the first of the year. Multiple offers have become very common in the lower price range.  See for yourself at BayAreaMarketMetrics.com.  Now you have two good reasons to buy.
  3. Seller Motivation –  Due to the current market conditions, it is pretty easy to identify motivated sellers.  In many instances, you can easily find a motivated seller by looking at the property description. Look for keywords such as: “motivated seller,” “make an offer,” or “must sell.”  Be sure your agent is on the lookout for consistent price reductions. If you like the property and the seller is motivated, then you should seriously consider making an offer.  If you don’t, chances are someone else will and you will have missed your opportunity.  Don’t let that happen to you.
  4. Tax Advantages –  Current tax law allows homeowners to deduct interest paid on mortgages and the amount of paid property taxes. If you are paying rent, you do not qualify for these deductions. The Federal and California State governments are also offering incentives.  The most widely publicized are the Federal $8,000 first time home buyer tax credit and the California $10,000 tax credit for a new home purchase. This makes a great opportunity even more incredible.  For find out if you qualify for one or both of these home buyer tax credits, check with your Realtor®.
  5. Timing – You must have heard the expression “buy low and sell high,” right? It might even be your mantra. As with any investment, it is ideal to purchase when prices are low rather than at their peak. However, if you are waiting to purchase a home because you believe prices will continue to drop, you will likely miss out of an ideal opportunity. The time to “buy low” is right now. Once everyone comes to the realization that prices may already be at their lowest point, then you can rest assured that buyers will jump in and start buying. In the lower price range multiple offers are becoming more common.  Remember, the best deals will be the first target.

Now you know, this is a great time to buy a house.  There is plenty of inventory, interest rates are low, house prices are down, sellers are motivated, you can take a tax deduction and you may qualify for up to  $18,000 in tax credits. The timing is perfect. You have nothing to lose and so much to gain.

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Great time to buy investment real estate? Depends.

By Mario Pinedo | July 22nd, 2009 0 Comments

In the single family home market, prices are down significantly. Interest rates are also at close to all-time lows.  So, yes, all indicators are pointing to a great buyers market.

The apartment market is different altogether. First time buyer financing is harder to get and also due to many foreclosures making homeowners into tenants, there are far more renters in the marketplace than normally would be. Therefore, rental rates are up and vacancies are down. Most apartment owners are happy and not very motivated to sell.  Read: no good deals here.

The one opportunity I see is in the duplex – fourplex market. Here there has been financial trouble because of the loose financing that occurred. Compare this to the financing of apartment buildings above 4 units, which has always been very conservative. There are short sales and bank owned foreclosures to be had in the duplex – fourplex market.

With rents healthy… yes, this is indeed a good time to buy a home.

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Intero becomes top real estate company in Silicon Valley

By Teressa Francis | June 24th, 2009 0 Comments

Intero Real Estate Services is now Silicon Valley’s top real estate company. RE Infolink, the Multiple Listing Service in the Silicon Valley area, shows that Intero has a 17 percent share of Santa Clara County single-family home and condominium sales. That’s five percentage points ahead of Coldwell Banker Northern California, which has 12 percent of the market.


Until January, Coldwell Banker Northern California had been the market leader in the area.


“This is more than just one brand versus another. It reflects a fundamental shift in the way real estate services are delivered,” Intero CEO Gino Blefari says. “It shows that our investments in technology, our commitment to innovation and vision for a new kind of real estate company have resonated with agents and consumers looking for a different – and better – experience.”


Blefari also notes that Intero continues to innovate and embrace change, even as other companies have cut services or reduced marketing budgets.


Just a few years ago, Intero moved ahead of Alain Pinel for second place in Santa Clara County.


Click here to read the full press release.

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Protect Your Investment & Pick Your Home Inspector Carefully

By Theresa Wellman | June 4th, 2009 1 Comment

house1Today with many of the homes available for sale being REOs and short sales, there is even more to watch out for. Typical REOs and short sale homes had owners who did not take care of their homes or worse yet, left damage. So choosing a thorough property inspector is an essential piece of a home purchase process.

Why Can’t You Do It Yourself?

I know, now that you are getting your own home, you want to care for it and desire to know its ins and outs. The inspection period when buying a home is not the time for this. Even the most experienced homeowner lacks the knowledge and expertise of a professional home inspector (Do you inspect 2-3 homes per day as your job?). An inspector is familiar with the elements of home construction, proper installation, maintenance, building codes and home safety. He or she knows how the home’s systems and components are intended to function together, as well as why they fail. Above all, most buyers find it difficult to remain completely objective and unemotional about the house they really want, and this may have an effect on their judgment. For accurate information, it is best to obtain an impartial, third-party opinion by a professional in the field of home inspection.

How Do You Choose a Home Inspector?

1. Work with your real estate agent’s recommendation.

a. Agents who have experience in the business can tell a thorough inspector from one who just breezes through a quick checklist. Agents do not get anything from recommending one inspector other than piece of mind that a professional is looking at the home. If a property inspector misses something, there could potentially be a lawsuit and no experienced agent wants to risk that.

2. Check your local ASHI (American Society of Home Inspectors) chapter for recommendations in your area. It is very important that your inspector be aware of the area and what is normal for local homes or what items to look out for. Be wise making one of the largest investments in your life and hire a qualified home inspector!

Any other recommendations on how to find a good inspector?

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Has the Silicon Valley Real Estate Market Hit Bottom?

By Dawn Thomas | May 22nd, 2009 0 Comments

The Silicon Valley Real Estate Market continues to pick up momentum.  The question is, have we hit bottom and are we heading out of this or is this just a short upswing before the bottom really falls out?  I wish I had the answers to that question.  My suggestion right now would be that if you are considering a real estate purchase, jump in now.  You simply cannot go wrong.  If you are selling or need to sell—list now and price your home to move fast.  If this is a short upswing then you don’t want to miss your chance to sell now during an upswing.

 

How long of a window might we have?  Who knows???  I would guess that we might see a better market for at least the next 60-90 days.  The longer term problem could be increased interest rates or the increase in inventory of short-sale and foreclosed homes.  Any of these could have a negative impact on our local market.  My suggestion is don’t watch national trends, but focus mostly on what you see taking place in our community and listen to your Real Estate professional for the best perspective on what’s really going on.  Your Realtor® has his/her ear to the ground every day and knows the pulse of the local market.

Have you noticed that mass media has stopped talking about Real Estate since the drama is no longer left in the story and there’s no more “tragedy?” Take notice of this, my readers!

Let’s Talk Trends
For Silicon Valley Real Estate as a whole, check out these trends. Bottom line—if the trends continue, we will see a shortage of inventory in the not-so-distant future. The last time this happened was in 2005.

In Los Altos, Los Altos Hills, and Mountain View, we are seeing some upward momentum in certain areas and fairly regular activity in others (stats from April 2009):

Los Altos—New listings increased (118% of April 2008); Inventory is 203% of April 2008; Closed sales are 45% of April 2008.

Los Altos (comparing April ’09 to March ’09)—17 more new listings entered the market in April, making the current inventory of active homes 132. Closed sales were down a bit—11, which was 78.5% of March’s closings.

Los Altos Hills—New listings increased – 1.5 times more in April 2009 than in April 2008; Inventory is 159% of April 2008; Closed sales were right on point with April 2008.

Los Altos Hills (comparing April ’09 to March ’09)—27 more listings came on in April, making the current inventory of active homes 70. Closed sales were 6, which is the total of combined sales for all of Dec. ‘08 – Mar. ’09). This is an excellent trend for the higher-end!

Mountain View—New listings increased (115% of April 2008); Inventory is 200% of April 2008; Closed sales are 133% of April 2008—another great upward momentum indicator for our market!

Mountain View (comparing April ’09 to March ’09)—45 more listings came onto the market in April, completing month-end active inventory at 108. April’s closed sales exactly doubled March’s at 20!

So, I will ask you—have we hit bottom? I would love hear your comments!

 

 

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So what is an Eichler?

By Marcy Moyer | April 21st, 2009 0 Comments

echlerPalo Alto is home to many Eichlers, mid-century single story homes with walls of windows, tar and gravel roofs, wood siding, radiant heat, and a concept of indoor/outdoor living. In the 50’s these homes were considered modern, quintessentially Californian, or fire traps called 7 minute Eichlers because they could burn to the ground in 7 minutes or less. The mahogany walls had no fire retardant properties so the homes burned quickly if there was a fire.

Joseph Eichler was a student of famed architect Frank Lloyd Wright and learned from Wright the beauty of clean lines, a wonderful use of light, and a contemporary feel. What Eichler did that was so influential was taking these lofty architectural concepts and mass producing them for the families of young GI’s after WWII. He built large tracts of affordable homes, many in south Palo Alto. While builders like Roger Kohler (father of well known Palo Alto Architect Roger Kohler), or Barret and Hilp were building the typical 3 bedroom 1 bath cottages for the new young families, Eichler figured out that by adding a 2 bath he could have a huge leg up over the competition as well as adding great value to his inexpensive homes. Eichler had some good and some bad copiers. Kaufman and Brown Stern, and Macay also built contemporary style homes in the bay area. These homes have many similar features and some features that are better (like central heat) and some worse (like a floor plan that does not flow as well or use the inside/outside feel as well).

I do not think that in 1952 Eichler believed his homes would be in their original condition in 2009. Having the plumbing and heating under a cement slab sitting on expansive soil has been a problem. The lack of insulation is a problem in our energy conscious society. Many of the homes have had the mahogany walls replaced with sheetrock which makes for a much more fire safe abode. However, the style of an Eichler is very pleasing to many modern buyers. The kitchen faces the living area and looks out to the back yard. This is the open great room style that is found in most new construction today. When updated, these can be wonderfully comfortable, energy efficient homes.

There is some debate as to whether an Eichler sells for less than a ranch style or cottage style home. It is not a simple question because many Eichler’s are in the flood zone in Palo Alto which will bring the price down. Also, some Palo Alto Eichler neighborhoods have voted in restrictions on building a second story in order to preserve the privacy that Eichler built into his developments. However, this restriction has a dampening effect on re-sale value.

Right now the contemporary, mid century style of an Eichler is in favor with many buyers. With modernization of the windows, heating system, roof, and finishes, these homes will probably last for many more years to come.

 

 

 


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