Are you thinking of buying a home? Do you know which city you want to live in? Have you narrowed it down further? Do you know which neighborhoods you might want to live in? If not, check out my top five tips to help you find your perfect neighborhood.
As a home buyer, your likely to have many questions: Is now a good time to buy a home? What are my financing options? What type of home, remodeled or fixer upper, should I buy?
With almost 20 years experience of working with home buyers, there probably isn’t a question that I haven’t been asked. Below are articles that address many of the questions that home buyers may have about buying a home in Silicon Valley.
If you prefer to search for homes on your mobile device, click on Mobile MLS Search. All you’ll need to do is download the app from the Apple App Store or Android Market and input the activation code. It’s that easy!
Should you have any questions about buying a home in Silicon Valley please contact me directly at 650 917-4250.
Facebook is going public in a mere 15 days. Once it does, there will be hundreds of newly minted millionaires just clamoring for your home. Or at least that is what the press and a many real estate agents want you to think. So if you are thinking of selling your home and have flexibility, now may be the time to put your home on the market rather than waiting in anticipation of future riches that may never materialize. Here are three reasons why:
Currently Housing Inventory is Low -
The Los Altos real estate market has always been inventory driven. Typically, when single family home inventory spikes above 100 active listings, it is a strong buyers market. Conversely, when inventory drops below 30 homes for sale, it is a strong sellers market. Right now we are hovering around 45 active listings or a little over 2 months supply of salable homes. It is strong seller’s market currently.
If enough sellers “time the market” by waiting until the newly minted millionaires cash in on their stock windfall, we may actually see a huge increase in inventory resulting in an unforeseen buyer’s market.
Continued Strong Buyer Demand -
Buyer demand is higher than previously seen. More than two-thirds of the homes that closed escrow in Los Altos in the Month of April had multiple offers. Most of the over bids were in the 100k-130k range but a few topped 300K. Since January, multiple offers have become the norm rather than the exception.
Rather than wait, some of those who will benefit from their company going public have already joined the ranks of home buyers – only increasing the current demand for good homes.
Continued Low Interest Rates -
Twenty-six of the homes that closed escrow in April in Los Altos had financing. Even buyers who can pay cash, are financing. If they used cash to make the initial purchase, they are refinancing because the cost of money is historically low. Buyers are cashing in on the low interest rates by buying and/or refinancing now.
Today’s newly minted millionaires have learned from the “Google Effect” era millionaires. They aren’t going to rush out and buy a house just because they can. Sure, there may be a few who aren’t familiar with having and/or managing large amounts of money who will go out and buy a trophy house. But my bet is that those are few and far between. Many will buy, but when they do, it will be a careful and well thought out lifestyle or investment decision.
Interested in Selling your home?
Give me a call at 650 917-4250
I’ve been licensed and actively selling residential real estate locally since 1993
According to MLS Listings Inc. data there currently are eighty-three single family homes for sale in Los Altos. Forty-seven homes are active listings and the remaining thirty-six homes are under contract.
April Home Sales Activity For Los Altos – Red Hot Active:
35 single family homes (SFH) closed escrow in Los Altos in the month of April. This is the highest number of sales over the last 6 years in April. The 5 year average number of SFH sales in April has been 24.
Twenty-one properties had multiple offers and sold at or above their asking price. Homes in all prices ranges received tremendous activity due to a scarcity of good homes for sale.
Prices Are up Big Time Over Previous Years:
The median sales price for single family homes that closed escrow in April 2012 was $1,950,000. This is 20% higher than that of a year ago and 28% higher than April 2010.
Below is a five-year history of sales activity for single family homes in Los Altos:
If you are interested in selling your home give me a call at 650 917-4250. You will need a lot of information before you decide on who to list your home with. I’ve been licensed and actively selling residential real estate locally since 1993.
We’ve got a great new listing in the southern part of Midtown Palo Alto. I write “we” because I am co-listing this property with Hannelore Blanchard, my cubicle mate in the office. It really is a fantastic home with four good-sized bedrooms and two full bathrooms. The house has been remodeled, albeit an older remodel, but nicely done none the less.
The heart of the home (figurative and literally) is the kitchen which features granite counter tops with eat-in bar, stainless steel appliances (however, the ovens are older), and an abundance of cabinet space. Adjacent to the kitchen is a great workspace area that currently is being used as an office. The spacious living room is highlighted by the wood burning fireplace. Skylights provide additional light and a few open to provide air circulation.
The backyard is exquisite. Imagine relaxing on a lounge chair with a good glass of wine and looking out onto your own private oasis. Follow the strolling path as it meanders around Japanese Maples, fruit trees, redwoods and the beautiful Koi pond. The second bedroom has its own private deck with raised garden box.
The Los Altos real estate market is sizzling. Buyers are out in force, multiple offers are the norm rather than the exception and as might be expected, inventory is limited. Given our current strong seller’s market, why would any seller want to limit the amount of exposure (and therefore money) their home would receive by selling as a pocket listing?
If you are thinking of selling your home “off market” as a pocket listing, you should watch the following video.
Every so often, I receive flyers dropped off on my doorstep asking me to sell my home to someone who is “interested in buying a property in my neighborhood.” I’ve been receiving them from the same person for over 5 years, yet he hasn’t moved into the neighborhood. I wonder why?
In this particular flyer, the buyer’s terms were clearly spelled out:
I will buy the property in “as is: condition
I will pay a fair price
I will pay cash
You can remain in the home for a while after we close
I am not an agent
I will pay all closing costs
I will make this transaction easy and smooth
The second paragraph reads…
“If you are thinking of selling, please let me know and I will be happy to meet with you and make a fair offer. I am not a real estate agent. I am interested in property in this neighborhood. I look forward to hearing from you…. “
The bottom had a first name, phone and e-mail address.
From a quick glance it appears as if this is just a guy who wants to move into my Los Altos neighborhood. How flattering, he likes my neighborhood and wants to be my neighbor. I did a little research and this is what I found out.
The buyer is a real estate investor. He wants to buy a house if he can make money on it. I’m not going to see him doing yard work out front. His kids aren’t going to play with mine. He won’t be at the neighborhood block party!
His flyer makes it look as if he is really interested in buying in the neighborhood for personal use, but the reality is he buys and sells homes off market for a profit. It is a pretty sophisticated system whose success is based in part on the lack of knowledge or sophistication of the homeowner.
Here is how it works
After targeting a neighborhood with flyers (apparently his neighborhood is the entire peninsula), he receives a call from the unsuspecting home seller. He offers a substantially below market offer but makes it sound better by making the process easy on the seller (buying “as is,” pay cash (really does he?), pay closing costs, allow the homeowner to stay in-house etc.).
The contract puts him and/or an assignee as the buyer (this allows him to assign the buyer’s contractual rights to a third-party). Either before or while in contract, he secures an investor/buyer who will take over the purchase, he removes himself from the contract and a new investor/buyer becomes the buyer. He walks away with a large fee for setting up the deal (does he need a real estate license for this?). The new buyer gets a home below market and the seller is left wondering what happened.
The investor doesn’t want a real estate professional, real estate attorney, or anyone else who might scrutinize the deal involved. The more eyes that look at the deal the less likely the deal will go through.
Why is this a bad deal for the home seller?
The investor will only purchase properties that are sold substantially below market rate – seller is leaving a large sum of money on the table.
The investor will only purchase properties “off-market” because he knows a house exposed to the market will cost him substantially more money, thereby reducing his profit – again, seller leaves money on the table.
By assigning the contract to another, the seller doesn’t know who the buyer really is or what the buyer’s qualifications are – there is a much higher probability that the deal won’t go through.
The investor is not a licensed real estate sales person yet acts like one (are these activities illegal?) - could potentially involve the seller in future legal problems.
The investor can tie up a property for months (until he/she finds a buyer) – thereby preventing the seller from selling the home to anyone else.
Note: I don’t believe the investor’s activities are illegal. However, his flyers are misleading and his success is directly related to the seller’s lack of market knowledge.
If you receive one of these flyers and are curious, make sure you fully understand the deal and the person behind the deal before committing to anything. You must know that if you choose to sell your home off-market or as a pocket listing, it is highly likely that you will net less money than if you sold it with full market exposure. If approached, contact your local Realtor or a real estate attorney who specializes in these types of transactions to see if it is in your best interests to sell your home in this manner.
If you have questions about what is in your best interests when selling your home in today’s real estate market, please call me directly at 650 917-4250.
Low property appraisals can occur in any real estate market. In a rising market, multiple offers can create a final contract price higher than current comparable properties. In a declining market, appraisal values may not come in at value. Both buyer and seller want the home to appraise for the negotiated price, but sometimes it doesn’t. What can a buyer or seller do if a property doesn’t appraise at or above the negotiated purchase price?
1. The buyer can bring in additional cash to make up the difference between appraised value and contract value.
2. The buyer and seller can re-negotiate the contract price down to the appraised value price.
3. The seller can hold true to the purchase contract price and possibly carry a 2nd note for the difference between the appraised value and purchase contract value.
4. The lender could order a second appraisal that might come in at value and/or request to appeal the original appraisal. The appeal could be based on the appraiser using wrong or outdated comparable properties, the appraiser’s lack of knowledge of the community (comparing two homes from different school systems etc.) or the appraiser using incorrect information about the home (i.e. size, age amenities etc).
5. The buyer can kill the loan with the original lender and start fresh with a new loan and subsequently new appraisal. The seller must agree, this will take time and it might not yield different results. If there are questions about a property’s ability to appraise, one might double app with two lenders so you have a back-up in place should the first lender (do to low appraisal) not be able to perform.
6. Both parties can agree to cancel the transaction.
Since 1994, I have seen almost all of these strategies in reaction to a low appraisal value used. Renegotiating the purchase price and/or having the buyer bring in more cash seem to be most frequently used strategy for keeping the deal together. However, it really depends on the buyer, seller and real estate agents having a meeting of the mind to make it work.
Should you have questions about buying or selling a home, please call or text me directly at 650 465-0755.
A home came up on last Friday’s Los Altos Hills Broker tour that is one of the finest estates that I have ever toured. The Address is 25893 West Fremont Road. It is listed at $12,750,000. by Tim Anderson of Alain Pinel Realtors.
Why do I love this house? It is very much a visceral feeling and difficult to put into words. But as soon as I walked up the driveway and saw the home, I just knew it was something special.
To me, it is a soothing blend of architectural styles, modern and contemporary yet with touches of Prairie Style’s use of horizontal lines and open spaces. It has clean lines, flowing interiors spaces and beautiful details that are confirmation that one can build a substantial home, but it need not look ostentatious. It doesn’t dominate its space, but rather blends nicely, almost snugly, on its 1-acre parcel.
The inside spaces are nicely proportioned, tasteful and beautiful. Within this 11,425+- square foot home consists a total of 5 bedroom suites, 3 half baths, beautifully appointed gourmet kitchen, intimate living room, elegant dining room, family room, multiple offices, luxurious master suite, home theater, fitness center, elevator, an outstanding lower level wine cellar and tasting room and two garages that can house up to 6 automobiles.
The large retractable ground level doors bring the outdoors in. Enjoy the beautiful swimming pool and spa, kick a soccer ball around on the large grass area, relax in a hammock, or a play a little beach volleyball. The backyard has it all.
Not only is the home beautiful, it is a GREEN certified Smart home that features geothermal radiant heating, multiple zone A/C, and a Crestron home automation system that controls heating, light, security, video and sound.
According to Leslie Appleton Young, the Chief Economist for the California Association of Realtors, California’s home sales should increase approximately 2% and the median home price, which dropped 4% in 2011, should be up slightly. Click on CAR’s 2012 Housing Market Forecast for a 2-minute video snap shot.
That’s nice information, but it doesn’t really tell us the true story about what’s happening in our local real estate market. It is a statewide forecast, not a Los Altos or Mountain View Forecast. Below are our local numbers.
Single Family Home Sales In Los Altos – 2011
Los Altos saw 308 single family homes sell in 2011, a 7.8% drop from 2010 (334). One would think that because the number of sales are down that sales prices would also be down. However, this is not the case. Median sales prices were up 6.3% from $1,550,000 (2010) to $1,647,000 (2011). Sales were brisk, with the average days on the market down from 53 (2010) to 40 (2011). Lastly, the list price to sales price ratio was also up, from 98.1% (2010) to 99% (2011). Sellers were more realistic in their asking prices.
Condo/Townhome Sales in Los Altos – 2011
Forty-nine Condos/Townhomes close escrow in Los Altos in 2011. That is up 19% from 2010 (41) and 25% from 2009 (39). The median sales price was also up 5.3% from $760K (2009, 2010) to 800K in 2011. The number of days on the market for condos/townhomes was cut in half from 103 days (2010) to 52 days in 2011. Lastly, the list price to sales price ratio jumped two percentage points from 96% to 98.3%, indicating that sellers are realistically pricing their properties.
The graphs below show the numbers. Note: all data was taken from MLSListings.com our local Multiple listing service provider.
Are you curious to know what that Los Altos home sold for in 2011?
Click on 2011 Los Altos Residential Summary Report for details (address, sales price, size etc.) on the all the single family homes that closed escrow in 2011 in Los Altos. Note: all data was taken from our local MLS and is deemed accurate but not guaranteed.
Are you curious to know what that Los Altos Condo or Townhome sold for in 2011?
Click on 2011 Los Altos Condo:Townhome Residential Summary Report for details (address, sales price, size etc.) on the all the condos/townhomes that closed escrow in 2011 in Los Altos. Note: all data was taken from our local MLS and is deemed accurate but not guaranteed.
Should you have any questions about selling your home in today’s market or you wish to purchase a home, please call or text me at 650 465-0755.
Back in the early 1970′s when I went to Oak Avenue Elementary, the school was a small neighborhood school. My kindergarten class lasted all day, there was no after school child care like the YMCA Kid’s Place and there were just 12 classrooms. There was no multipurpose room or computer lab (what were computers). Kick ball, basketball, and “Kill the Pill” were the games played during lunch and recess and half of the field consisted of weeds and gopher holes.
Many of the teachers taught classes with combined grades. Students might be in a 2nd/3rd grade class or 3rd/4th grade class. Hot lunch consisted of McDonald’s hamburgers or Der Wienerschnitzel hot dogs. Mrs. Finch was our Principle and 6th graders, with their “safety” sashes and stop signs, did the cross walk duty.
Things have certainly change over the years and the school and it’s facilities have grown. Amy Romem is the Principle (although she’ll is out on maternity leave) and enrollment is up. This video shows why our south Los Altos community loves the “newer” Oak Elementary School.
One of the questions that buyers frequently ask when they are getting closer to finding the home of their dreams is “How should I hold title to my new home?” This is a great question and one I would love to answer. However, just as each home is unique, the way one holds title is also unique to that homeowner. And since I am not an attorney and can’t give legal advise, this question is best answered by seeking the advise of a qualified real estate attorney. If you don’t have one, I would be happy to refer you a few names.
For those of you who would like to research ways of holding title before you talk to your qualified real estate attorney, Kelly Collishaw and Cornerstone Title have provided me this handy chart on Ways to hold title in California.
Should you have any questions about buying a home locally, please call or text me at 650 465-0755 for a confidential discussion of your needs.
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