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  The appeal could be based on the appraiser using wrong or outdated comparable properties,  the appraiser’s lack of knowledge of the community (comparing two homes from different school systems etc.)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.

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.

The home was built by Custom Dreams Construction Group in Los Altos.  For pictures detailing the home’s construction click 25893 West Fremont Road Construction.

If you are interested in buying or selling a dream estate, please call or text me directly at 650 465-0755.

It is totally understandable that seller-agents want to sell their own home.  I’ve done it myself – once.  Why would I pay someone else to sell my home?  After all, that’s what I do for a living.  I know the real estate market.  I know the comparable properties.  I know the neighborhoods and what buyers like.  Lastly, I know my home like no other agent could.  And that is where the problems begin.

Dealing with for-sale-by-owners is difficult enough, but dealing with one who also is a real estate agent can be extremely difficult for the following five reasons:

1.  Agent-owners lack the objectivity to view their home as a buyer would.  That rust colored shag carpet does not make the home retro and worth more.  Rather, it makes it look old and tired and worth less.  Successful home sellers understand the need to look at the home through the eyes of a buyer.

2.  Agent-owners think the price they paid for their home is related to its current value. Too often agent-owners behave like traditional home sellers.  Even though they know there is no cause and effect relationship, agent-owners believe (or hope) that their home is worth more than the amount they paid for it. Hello, just because you paid $$$ for the home, doesn’t make it worth $$$ plus $.  This is especially true in today’s real estate climate.  Current market conditions determine a home’s current market value.  In a buyer’s eyes, your ownership does not add or detract value from the home.

3.  Agent-owners can be irrational.  This usually becomes apparent during negotiations.  Comparable homes sales are just that, comparable.  Agent-owners use comparable home sales when establishing market value for their client’s homes.  Yet this same process gets skewed when they are dealing with their own home.  I love it when you go over comparable sales with agent-owners, they invariably believe that their home is worth more because it has “potential.”  Hello, ground control to agent Tom, potential means nothing!  Look at the numbers.

4.  Agent-owners sometimes throw ethics out the window when they are dealing with others on the sale of their own home.   Is this intentional?  No, but it happens.  Do they fill out the disclosure documents thoroughly or is some information lacking?  Agent-owners understand the process of selling a home, yet often disregard these processes.   For example, an agent-owner may tell agents that offers will be looked at “as they come in.”  Then when only one offer is presented, they change the rules and tell the real estate community that they are holding off looking at offers until a certain date in the future.  Meanwhile they “shop” the original offer to interested buyers and their agents.  Changing the rules midstream usually bites the agent-owner in the backside by scaring off solid buyers and their agents.  Unlike when a traditional home seller enlists a Realtor to sell their home, there is no second pair of eyes to oversee the process when an agent-owner sells his/her home.

5.  Agent-owners can scare off potential homeowners with their “over-exuberance.“  Ever go to an open house hosted by the owner?  That owner follows you around, pointing out everything they like about the property.  Kind of irritating.  Agent-owners do this to the “Nth” degree.  They’ll meet you at the door, want you to “sign-in” and then walk two feet behind you pointing out the lovely fireplace mantle and how much it means to them.  C-r-e-e-p-y!  Back off and let the buyers take a look at the house at their own pace.

It really comes down to the fact that anyone selling their own house can be far too emotionally invested in the home to make good real estate decisions.  There is no objective filter, no second pair of eyes.  That is one of the benefits of hiring a Realtor to sell your house.  A Realtor will look at things objectively and give you the perspective needed to achieve your real estate goals.

If you need someone to give you real answers to your real estate questions, call or text me at 650 465-0755

Each unit will have over 3,900 square feet of interior living space and an additional 800 square feet of outdoor terrace space.  The anticipated list price for each property will be slightly below four million dollars.  The Terraces on Third Penthouses include a luxurious master suite, guest suite, large gourmet kitchen with walk-in pantry and wine cellar, powder room, media room, living/dining room, and laundry room.  The building will have private underground parking and elevator access.  The anticipated completion of the Terrace on Third is June 2012

The property is being represented by Kathy Bridgman of Alain Pinel Realtors.

A huge thank you goes out to our entire Los Altos/Mountain View community for voting Yes on Measure A.  For it was the Measure A funds that built this pool.  Thank you, thank you, thank you!

See below for pictures of today’s ribbon cutting and “first swim” by the boy’s and girl’s varsity water polo teams.

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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.

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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.

If your driving around Sunnyvale and happen to see additional signs, send them to me and I’ll add them here.  Enjoy!

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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.

27161 Moody Road, Los Altos Hills – This 4 bedroom 3.5 bath home is a visual masterpiece, a piece of art that one can live in.  Sitting nicely on a 3-acre wooded lot, this light filled home is impressive.  The residence has voluminous (and I mean high) ceilings, over 1500 square feet of deck space and a detached exercise room that could double as a beautiful private retreat.  The home appears to be well-built (I haven’t read the property inspection) and uses beautiful materials.  Ahhh, tranquility abounds.  This home is listed at $4,249,000. by Art Sharif of Sotheby’s International Realty.

11885 Francemont Avenue, Los Altos Hills – This 5 bedroom, 5.5 bath home is listed at $4,995,000 by Alan Dunckel and Derk Brill of Alain Pinel Realtors.  This is my favorite of the three properties.  Located in a very private setting, this home is an oasis.  The interior rooms are spacious but not so large that you feel like you are in an auditorium.  The beautiful main hallway doubles as a showcase for large art pieces.  There are fabulous covered outdoor entertaining spaces.  It’s a great party house!

24580 Ruth Lee Court, Los Altos – Newly constructed on a western facing hillside lot, this home is composed of 5 bedrooms, 4.5 bathrooms.  The views from the back of the property are absolutely stunning.  To me, this home doesn’t have the wow factor that the other Los Altos Hills homes have.  None-the-less, it is stunning.  Lastly, I am not a huge fan of reverse floor plans (bedrooms located below the main living spaces) but I can see why the builder did it (to maximize those stunning views).  The property is listed at $3,875,000. by Adina Vos of Morgan Lashley Distinctive Properties.

If you wish to view any of these beautifully built homes or want to see what other modern marvels might be available, please call or text me directly at 650 465-0755.  Thank you.

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.