Posts Tagged ‘Palo Alto’

Are Bank Owned and Short Sales Always a Good Deal?

By Russ Boyd | January 25th, 2010 0 Comments

All home buyers have one thing in common: Everyone wants a great deal. The buying public seems to think that “great deal” equals foreclosure, short sale or bank-owned property. The truth is that these properties may appear to be bargains, but in many cases you could be buying someone else’s problems. So the real issue is whether the foreclosure, bank owned or short-sale property you’re considering is a bargain or problem. If you’re looking for a bargain property, here are some key issues to consider:


1. What is your time line for purchasing?
You may find the perfect short-sale property, and the seller may accept your offer. The challenge is that you don’t have a deal until the bank approves the short sale. At many large lenders, a single short sale processor may have hundreds of files to handle at one time. I’ve experience delays of up six to get an offer approved. The wait can be extremely frustrating and it can also be costly.

For example, months from now the offer made today you may be too high or to low. Also, interest rates are more likely to go up rather than down during the coming year. And, just because the seller has accepted your price, it doesn’t mean the bank will. You will have a better shot at buying a short sale where the bank has preapproved the sales price. It still may take a long time to close, but not as long as it would if the price was not preapproved.


2. Are you prepared to be in a multiple-offer situation?
You’re not the only one looking for a “bargain.” Many buyers are searching for distressed properties and the approval process takes so long, multiple offers are common. The sellers agent or lender will not tell you about the details of other offers.


If another offer comes in at a higher price and at better terms, the bank is obligated to take the best offer. If the property is a short sale, the seller’s signature on the document merely opens the negotiation – it does not finalize it. Furthermore, the seller/lender may continue to market the property even after they have signed a contract with you.

3. Ask the agent if the seller participated in the “Cash for Keys” program
The best candidates for good bargains are those properties where the sellers are still occupying them. Many banks have a program called “Cash for Keys.” This program pays the owners of foreclosure and short-sale properties money to keep the owner from trashing the property when they move out. It’s not uncommon for disgruntled owners or tenants to remove or damage appliances, plumbing and electrical systems. Cash for Keys is designed to minimize these behaviors.


4. Beware of tenant occupied and vacant properties
It’s never a good practice to purchase a property without doing a physical inspection. Also, be sure you have stipulated the right to make a final inspection prior to closing.  This is especially important with distress sales.  Also, if the property is tenant occupied be sure the contract states the property must be delivered to you vacant.  Trust me, you don’t want to be responsible for evicting a tenant.   Also, the longer a house stays vacant, the more likely it is that problems will develop.  Not only vandalism, but rats and mice are more likely to move into vacant properties. Rodents can chew through the wiring and generally wreak havoc with the home’s electrical systems.


5. Is the deal more important than your lifestyle?
A property can be a great deal in terms of the price, but is it worth it if it’s in a poorly rated school district or if you end up with an extended the commute? A “bargain price” won’t make up for a poor floor plan, airplane, train or traffic noise or the occasionally whiff of the sewage treatment plant? When you purchase, it’s important that you take all of these issues into consideration rather than focusing exclusively on the price. A property with any of these types of problems will be harder to sell in the future.

As you can see, it’s important to consider the price in conjunction with the quality and the convenience of your lifestyle once you move in.

Of course there are good distressed property deals out there. Nevertheless, don’t limit your search. Keep in mind that, depending on the neighborhood and price range, anywhere for 10 to 50 percent of the sales may be distress sales. This means that 50 to 90 percent of the available homes are likely occupied by owners that are maintaining their homes and in better neighborhoods. In the long run, they may be a much better bargain.


A true bargain is when you find a home in the neighborhood and price ranges that fits your lifestyle. A house you will be proud to call home.

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Moving at the Speed of Opportunity

By Russ Boyd | January 11th, 2010 0 Comments

You’ve probably heard the old saying “You Snooze, You Lose!” I’m told that the line came from the character known as George Owens on the 80’s sit com, “Mr. Belvedere.”

I think the words spoken by “George Owens” say a lot about where some “homebuyers” are relative to this market. Hopefully that’s not you.

Some people are sitting on the sidelines…taking a wait and see attitude, waiting for the market to “change,” hoping that some of the perceived risk will be reduced by more stable credit and mortgage markets, and wishing that just one more piece of positive news would filter out of the media to convince them to become active and take action.

Well, guess what? It just isn’t going to happen that way. Not if you want to capture the market at the bottom, at least. Let me explain why, and how to avoid “staying sidelined,” so you are in the right position to capture current opportunities.

Imagine for a moment that you are attempting to merge onto the freeway, where traffic is moving at 65 miles per hour -  now picture yourself coming to a stop.

Being behind somebody that stops on an on ramp waiting for the “right opportunity” can be scary, yet I imagine it’s happened to all of us at one point or another.

So, when you’re at a standstill, how hard it is to find just the right opening between the rapidly moving cars. You know how hard it is to get your car to go from zero to 65 miles an hour in a very short distance and merge into flowing traffic. It’s not easy.

Now, picture yourself in this same situation – only this time, you continue moving down the on-ramp, and, once you find the right opening to merge, you join effortlessly into the moving traffic.

Simply put – it’s hard to find an opening when you are standing still. You know this – but did you know that this principle is not just a question of physics – it’s a question of money and opportunity? And did you know that it applies to many would be home-buyers?

Movement creates opportunity. It invites new things to happen. Movement means you are ready to take action – that you are responding and adapting to the changing marketplace.

As the market continues to evolve we are past the time to watch, to wonder and to wait. Now is the time to pay attention! Watch what’s happening, and look for your opportunity. Believe me the growing positive statistics, like those at our Market Activity website, www.bayareamarketmetrics.com reveal that there are plenty of buyers ready to jump at the right opportunity. Remember, if you are sitting on the sidelines, all you can do is watch.

But what about those that “just got lucky”, right? Well here’s how people get “lucky”, they (1) they get into motion, (2) they get their financing lined up, (3) they find a great agent who welcomes their business and they start looking for the right home (4) They make an offer that fits the circumstances, (5) and THEN they “get lucky”. In other words, they are people willing to move at the “speed of opportunity”.

Remember, just like you can’t easily merge onto a highway from a dead stop -  neither can you find the best home buying opportunity unless you are moving at the “speed of opportunity.”

If you want to move at the “speed of opportunity”, a good place to start is understanding the current level of market activity. Our Bay Area Market Metrics Report can be viewed at www.bayareamarketmetrics.com.

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Top 10 Silicon Valley Real Estate Trends for 2009

By Dawn Thomas | December 16th, 2009 0 Comments

As 2009 draws to a close – you’ll soon be reading lots of  top 10 lists for the movers, shakers, and trends of the year and the decade!   In the spirit of being just a little ahead of the crowd, here’s our list of the top Silicon Valley Real Estate trends of 2009:

1. Low Interest Rates – with More Strings –  Interest rates have been low this year, with periodic dips into historic record  ”low” territory.   These great rates, though, come with seemingly ever-changing requirements and conditions.  Selecting a great financing source who can get you great rates AND help you navigate through the process has never been more important.

2. We’ve Got to Keep It Together For Longer – With the changing lending guidelines, it’s been taking longer for properties to close escrow and having a signed purchase contract did not automatically mean a closed escrow in 2009.   Having a black belt negotiator on your real estate team has been critical this year.

3. “Turn Key” is Hotter than Ever – A few years ago – buyers could purchase a property & count on some quick appreciation to pay for a remodel in just a little time.  Now – buyers can’t count on home appreciation to finance a remodel in the near term & are looking for great condition, move-in ready homes to buy  (as if location and condition ever go out of style in the world of real estate!).  On the other hand – for buyers seeking to purchase a property in a high-demand area like Palo Alto or Cupertino – it may pay to look for properties needing some work.  If you can see the potential in a fixer – you may have fewer competing bids from other potential buyers.

4. Buying a Silicon Valley Foreclosure is not as Easy As It Sounds - Some of the busiest agents in any real estate office are the ones listing “Real Estate Owned” or REO properties for the banks.    Buying one of these properties means navigating a maze of bank-specific requirements for making the offer, competing against multiple offers (some properties are getting 20, 30 or even 50 offers), and positioning your offer against “all cash” investors.  Finding a deal & making sure it stays a “good deal” through the process is not for the faint-of-heart!

5. No Shortage of Short Sales – over the course of 2009 – we continued to see properties listed for less than what is owed to the lender(s) – resulting in a short sale requiring lender(s) approval to go through.   We’re starting to see short sale listings where the lender has approved a short listing price – allowing the whole process to go smoother and quicker.

6. The Year of the First-Time Buyer – with more affordable home prices, the First Time Home Buyer Tax Credit, and sweet interest rates – many of the homes sold in 2009 went to first time home buyers.   In the final months of the year – we are starting to see more and more “move up” buyers rousing the mid and higher-end price points.  Welcome!  Please bring friends!   This is a trend we want to see continue & grow in 2010!

7. Deal Hunting in Palo Alto – Where’s the deal on a single family home in Palo Alto for less than $300,000?  The media in 2009 did a fantastic job of painting the picture of real estate in free fall, and we went through a period in the spring where every day brought Internet inquiries looking for the extraordinary deal in Palo Alto.  According to the MLS – the least expensive Palo Alto single family home sold so far in 2009 went for $703,000 for a 67 year old, 703 square foot cottage with foundation issues.

8. Your Home May Have a Bigger Electronic Footprint than You Do - Social media sites like Facebook and Twitter are 2009 Trendsetters above and beyond the world of buying and selling dirt.  In real estate, though,  the savvy home seller now ensures that their Real Estate agent is marketing  their property through multiple Internet channels.    Wouldn’t  you want 30 million visitors at your open house – especially the ones who can’t leave foot prints on your new carpet?

9. Welcome to California! – We are working with an increasing number of clients who are relocating to Silicon Valley for a new job.  It looks like both our job market and our real estate market are picking up!   Welcome!

10. Less to Pick From, More Competition – And finally, in many areas of Silicon Valley – we are seeing fewer homes on the market.    In fact, for Silicon Valley overall – more homes are “pending sale” than are actively for sale.  For buyers – this means that there are fewer homes to consider and more competition to get  your offer accepted. For sellers – it means that there are fewer competing properties.  This sets the stage for an even brighter 2010!

We wish you the best holiday season & look forward to serving you and your referrals in 2010!

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Top Ten Reasons To Love Palo Alto

By Marcy Moyer | September 21st, 2009 0 Comments

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1. Schools, Schools, Schools!

Palo Alto has some of the greatest schools in the country. Whether your kid is seven or seventeen, going to school in Palo Alto guarantees access to incredible academic resources and enrichment programs.

Gunn High School is renowned for its competitive academics (and award-winning robotics team!) They send over twenty graduates a year to college right around the corner at Stanford University.

Palo Alto Children’s Theatre sponsors outreach programs in district elementary, middle, and high schools.

First-rate music programs are available at every turn, and choice programs like teacher-directed learning at Hoover, conceptual learning at Ohlone, and Connections at JLS are always options for parents interested in exploring a wide range of learning possibilities for their children.

2. Rolling Foothills, Open Spaces, Artfully Landscaped Public Gardens, Jasmine Flowers

Palo Alto is a community that treasures its trees and open spaces. The city is classified as an urban forest, and Palo Alto stays true to that description with 34 city parks and almost 4,000 acres of wildlife preserves. A local commitment to keeping businesses “green” ensures a healthy environment, as does a requirement forcing all new buildings to adhere to strict environmental codes. There’s also a Zero Waste Initiative and a dedication to alternative transportation.

3. Calling All Bookworms! Libraries in Palo Alto are truly exemplary.

Creativity blossoms during the interactive story-telling programs at the Children’s Library, and annual summer reading programs keep pages turning. Visits from famous writers dot the library’s schedule. Online programs offer opportunities to learn a new language or to survey newspapers from other countries. Libraries here are a community hallmark and a great enrichment resource.

4. Nationally Acclaimed Theaters

Catch the world premiere of an original play or a Shakespeare staple at TheatreWorks, the best repertory theatre in the Bay Area.

The current season includes the Pulitzer-Prize winning drama Doubt, August Wilson’s Radio Golf, and beloved musical Grey Gardens. Local theatre company the Palo Alto Players mount yearly productions in case you exhaust the shows at TheatreWorks.

The Palo Alto Children’s Theatre gives kids a place to test their acting chops.

5. Easy Access to San Francisco and San Jose

Two nearby CalTrain stops make getting to San Francisco, San Jose, and other Northern California locations a snap.

6. Red Mango Yogurt! Enough said.

If you’ve never tasted Red Mango’s creamy froyo perfection laced with your choice of mango, kiwi, strawberry, blueberry, coconut, blackberry, raspberry, chocolate chips, almonds, or basically any other delicious topping imaginable–that’s reason enough to move to Palo Alto. Or at least visit.

7. University and California Avenues

Both avenues embody Palo Alto’s quaint downtown appeal–personalized local shops and restaurants are nestled next to the Apple Store on University, and at night the thriving bar scene makes this area a prime destination for coeds and graduates.

Word-class Indian, Chinese, Thai, Mediterranean, and Italian restaurants are among the many dining choices.

8. Architecture.

Diverse housing styles make Palo Alto visually appealing. New homes with cutting-edge design line blocks alongside cottages, ranch homes, Eichlers, Tudors, and Spanish Style houses.

9. The Baylands.

The largest tract of undisturbed marshland remaining in the San Francisco Bay is hemmed in by Mountain View and East Palo Alto. The Baylands encompass 1940 acres of unique tidal and freshwater habitats. The best bird watching in the world is done right here. Wildlife observation platforms and picnic areas with barbecues make this spot a family favorite.

10. Locally Sustained Farmers Markets.

From mid-May through mid-December farmers markets downtown and on California Avenue are open every Saturday from 8AM to 12PM.

Local vendors offer a wide array of fresh produce and specialty items like grass-fed beef, artisan cheese, Bay Area wines, California-grown bananas, mangoes, and avocados. Local musicians provide a relaxing atmosphere for browsing samplings from nearby ranches and farms.

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Ten Reasons To Love Menlo Park

By Marcy Moyer | August 12th, 2009 2 Comments

1. Schools, Schools, Schools! Menlo Park, like Palo Alto and Mountain View, have some really outstanding schools. Students in this district are consistently high performers and many gain admission to top universities after high school.  There are two public elementary school districts:  Menlo Park and Las Lomitas. As well as many private schools which include: Trinity, Phillips Brooks, St. Raymond, St. Joseph’s (part of the Sacred Heart Schools), and Peninsula School.

2. Burgess Park. located next the Civic Center, this park features a little league baseball field, a regulation baseball field, an open play field, lighted tennis courts, a soccer field, picnic areas, and children’s playgrounds. The Burgess pool, rec center, sports center, and skate park are adjacent to the main park area. There’s also a lovely and relaxing duck pond here that’s a great place to relax and read a book.

3. Huge Library. Menlo’s library (a quick walk from Burgess Park) is one of the town’s focal points, especially for children and families. My two sons always enjoyed the Summer Reading Programs, and Storytimes are another free, entertaining, educational, and kid-approved favorite. Professional storytellers spin their magic at scheduled times throughout the week. On certain days, the stories cater to younger or older kids. The online live homework help program is one of the library’s new services. It’s totally free, and many of the tutors also speak Spanish.

4. Annual Connoisseurs’ Marketplace. This is the summer festival for summer festival lovers – and one of the best events in the area. There’s hardly anything more enjoyable than wandering a tree-lined street while local bands play during this popular festival of visual, performing, and culinary arts. It’s always the third weekend of July on Santa Cruz Avenue. This year, Organic Alley will highlight samplings of the finest organic food the area offers. Old favorites like the cooking demos and the kid’s fun zone will be up and running. The festival is always as eco-friendly as possible, and it embodies community values and the sense of civic responsibility cherished in Menlo Park and the Bay Area.

5. The Guild. This independent movie theatre is the place for real film lovers. Hard-to-find independent and foreign films play here, and the space itself has art-deco touches everywhere and velvet curtains surrounding the movie screens. Plus, it’s free refills on Mighty Leaf Tea AND all you can drink coffee (two great touches that make movie-going a lot less draining on your wallet and more pleasurable.) This is not your basic space-age blockbuster twelve screen Cinemax, and sometimes you have to put up with crackly sound or finicky seats. Nevertheless I’ve never had a bad experience here–the movies are always thought provoking, and sometimes the manager thanks you personally for coming.

6. Santa Cruz Avenue. This is the main drag of Menlo Park, where great shopping and world-class restaurants are crammed in side by side. You have endless options here – craft shops, clothing boutiques, interior design stores, bistros – literally anything you need. During lunch time it’s crawling with business professionals eating at sidewalk tables, and there are always shoppers resting on benches or teenagers hanging out in the coffee shops.

7. Every Kind of Home. Wonderful housing options here as well.  New homes, green homes on Willow, ranch homes on huge lots, condos, town homes, and tons of rentals near downtown ensure you’ll find exactly what you’re looking for in Menlo Park when it comes to your living needs.

8. Caltrain Station. You can get anywhere from here! You can also get here from anywhere on Santa Cruz Avenue, which is the biggest plus of all. This station is literally steps from Cafe Barrone and Kepler’s Books, so if you arrive a little early you can always grab a magazine or a cup of coffee to ease your wait.

9. Kepler’s Books. When the final Harry Potter book came out last summer, Kepler’s threw the bash of the century. There was a brass band, tents selling magic charms, Hogwart’s culinary staples, and a sorting hat. Kids of all ages wandered around in robes with magic wands tucked under their arms, and it seemed like everyone from the Bay Area decided Kepler’s was the place to snag this  seventh wonder. My favorite touch was the keepsake ticket handed out at the beginning. You paid for the ticket, and traded the ticket in for the book. The line of Potter fans snaked out the door and around the corner, and the Kepler’s staff did everything possible to make sure the night went smoothly. This place has a great history, and is one of the last independent bookstores standing in the Menlo Park/Palo Alto area. If they don’t have something in stock, they’re always happy to order it for you.

10. Menlo Medical Clinic. The staff here is friendly and accommodating, and the clinic gives off a good – we actually care about your health vibe – instead of that sterile, impersonal feeling. The lab staff is well trained, and it’s very clean. The doctors in this group are among the best in their fields, and everyone in the facility is professional and helpful. MMC is affiliated with Stanford Hospital, so coming here with any illness or ailment guarantees you’ll receive the best medical attention possible.

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