Los Altos Real Estate Blog

NEW LISTING: 1361 Sherman Ave, West Menlo Park, CA 3BR/3BA home

Wed, 16 May 2012 07:17:51 -0700

1361 Sherman Avenue

Menlo Park, CA 94025

Price: $1,998,000

Virtual Tour: www.1361ShermanAve.com

Charming country home on a quiet street in West Menlo Park with Las Lomitas schools. Situated on a huge 9,375sf lot, this 3 bedroom, 3 bathroom home offers both ample living space and a cozy country feeling. The master bedroom suite features a walk-out patio with space for plants and sitting area. The master bathroom offers a traditional Japanese soaking tub with views of the tranquil yard below. The adjoining walk-in closet has plenty of space.

There is a separate spacious bonus area perfect for a play room or casual entertaining. Recently landscaped back yard features built-in grill and space to entertain on the Arizona flagstone patio. The home has been repainted inside and out. The downstairs has hardwood floors. Minutes to Stanford University, and downtown Palo Alto or Menlo Park.

OPEN HOUSE: Saturday and Sunday 1:30-4:30PM

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The Facebook Effect - How the IPO impacts Palo Alto and Los Altos

Thu, 10 May 2012 15:29:08 -0700

With the impending Facebook IPO, there has been a lot of gossip about what impact it will have on local real estate. I've written about this before but as time moves on, the markets continue to evolve. Two of the hottest nearby markets are Palo Alto and Los Altos. Will people with wealth from the Facebook IPO drive sales and prices higher?

Yes and no. The Facebook Effect is already starting to be seen in these markets (as well as Menlo Park and others). The anticipation of higher prices is driving prices up as other buyers snap up homes which prices are within their reach. This is driving sales (number of homes sold) a bit higher as well.

What is The Facebook Effect?

Sellers on the market expect multiple offers and higher prices
Some sellers are holding off selling hoping for a future windfall
Prices in Palo Alto and Los Altos are up sharply so far this year, before the Facebook IPO happens
Buyers are moving quickly on nearly anything on the market in many local towns
Some buyers are "settling" now instead of waiting in the belief prices will rise
General market euphoria feels like the boom markets of 2000 and 2005

Is The Facebook Effect Good For Real Estate?

Absolutely but it has changed the dynamics of how homes are sold. One effect I've seen is a rise in off-market sales. Sellers are willing to sell off the MLS to any buyer who will pay a price close to the open market. This gives buyers who don't have Facebook money a chance to buy without having to compete with cash-rich buyers.

The other factor is that average and median sales prices are rising at a steady pace with Palo Alto leading the way. As prices return to their dot-com peaks, the euphoria is likely to abate a little as buyers settle down. Sellers will still be in control for a long time and hopefully this market sustains itself.

Lastly, new construction is plentiful which is great for local builders who were hit hard by the economic downturn. There are a lot of speculative builders coming back into the market which should continue well into 2013.

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Your best offer...wasn't the best you could make

Wed, 09 May 2012 14:59:01 -0700

In many competitive real estate markets, home buyers are coached by their agents to write their "highest and best" offer to get the home. In a multiple offer situation (which is becoming more common again), a buyer has ONE SHOT to win. As a home buyer, you write your "best" offer but...not really. You probably held back a little, right?

Real Estate Is Like Poker

When it's the final table, last two players...you and the seller...you have to go "all in" to win. Take the Palo Alto market for example. You write a full price offer on a house listed at $1.1M knowing you could write at $1.2M - that isn't your best offer. The house sells at $1.2 leaving you wondering what happened. A hot market like Palo Alto requires going "all in" to win. The same applies to Cupertino and Los Altos in many cases. Don't hold back!

The Need To Save

As with anything else, you want to get the best deal possible. I get that. My job as your agent is to get you the best deal possible. But, you have to actually get the deal. Making offers that don't get accepted is just a waste of time. So, you'll get guidance from me telling you what your highest and best offer need to be. That guidance is based on what is happening right now. I beat out 34 offers on a house in Cupertino, trust me, I know what you need to do to win.

What's Your Best Offer?

The offer I tell you to write will be your best offer. That's my job and what you pay me for - guidance on what the best offer is. I'll tell you the price and terms. We can certainly talk through all the points but just remember - this is what I do every day. You'll want to hold back. Don't. Let me guide you and you'll walk away with a good deal but a winning deal.

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What do I do about a home inspection that's wrong?

Thu, 03 May 2012 08:05:27 -0700

I had a recent client buy a home where the termite inspection ordered by the seller turned out to be wrong. The buyer, my client, had their own inspection done and it showed drywood termites - in contrast to the original report obtained by the seller. The second inspection wasn't convincing and since the original inspection company had such a strong reputation, we all decided the termites probably weren't really there.

Big Mistake

My client decided to have the original inspection company come back and take a second look at the places termites were supposed to be. The inspector CHANGED HIS MIND! and confirmed there were, indeed, termites. This happens and the company that did the work I still hold in high regard. People make mistakes. But, the buyer made a decision to purchase at a particular price based on NOT having to repair termite damage. Who's at fault here?

The Original Termite Inspector

My recommendation to the buyer (my client) was to go back to the original termite inspector and ask them to remediate the issue at little or no cost. Since their report was wrong, that seemed fair. The temite inspector agreed and my client is happy with the results.

What To Do When A Home Inspector Is Wrong

If a conflicting report is available, show it to the inspector
If the purchase has already been closed, ask the inspector who made the error to fix the issue
The cost of the fix should be reduced or zero
Work with the inspector to make sure there is no misunderstanding

Just keep in mind that people do make mistakes and the termite or home inspector should be treated with respect. A rational discussion of what mistake(s) were made and a reasonable solution will go a long way for all parties. One key thing to remember is that when an inspection mistake is made it is NOT the fault of the seller or the agents involved.

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Virtual tour of 27300 Ursula Lane

Beautiful 2+ acre lot with appr plans in Los Altos Hills $1,975,000

Wed, 02 May 2012 10:12:35 -0700

This is a beautiful lot with sweeping views of the Bay from San Francisco to Silicon Valley. Plenty of mature trees offer substantial privacy on this cul-de-sac lot. The back side of the lot is gently sloped and will be graded to offer approximately .75 acres of flat land. The front side of the lot is sloped down to a small creek and ample trees. The property is located within the Palo Alto school district.

There are approved plans with permits ready for a 5,780sf single-family home with 4 bedrooms and 6 bathrooms in an authentically-styled Mediterranean design. The permits can be pulled now and construction could be completed this year. The city has indicated they will allow modifications to the existing plans subject to approval.

This is a rare opportunity to get a build-to-suit new construction home in Los Altos Hills without waiting for the lengthy approval process.

This lot was been previously listed at 27755 Edgerton Road in Los Altos Hills, CA. The address changed when the plans were approved.

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The downtown Los Altos farmer's market returns May 3rd, 2012

Mon, 09 Apr 2012 08:44:04 -0700

Have you been missing the downtown Los Altos farmer's market? Well, it comes back on May 3rd, 2012 starting at 4PM and ending at 8PM. There is lots of quality produce, entertainment for kids, and other products available. If you've never been, come down an enjoy the lively atmosphere while shopping for quality produce, flowers, fish, and other products.

Make It An Outing

What I've seen for years and advise new shoppers to do is make a night of it. Head downtown and have a nice dinner (there are lots of places to go) before heading to the farmer's market. You can then do your shopping before heading home. Rather than a quick stop, it becomes a destination. It just gets better as the weather warms up because you can stay later.

Tips On Produce

Just like restaurants getting first pick produce, the best selection is available to those who arrive early. The earlier you arrive, the more selection you have of everything. If you get there right at 4PM, you should have the best pick of everything you need and it won't be so busy you can't talk to the seller about their recommendations.

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Should I make a pre-emptive offer on a house in Palo Alto, Cupertino, etc?

Thu, 26 Apr 2012 10:08:24 -0700

The local real estate market is now a seller's market, especially for homes in the low-end or median price ranges in many towns. The hottest markets such as Palo Alto, Los Altos, and Cupertino routinely see homes sell with multiple offers. Once in a while you'll see a home that goes on the market and sells on Day 0 or within 1-2 days of going on the MLS. As a buyer, this is frustrating because you didn't get a fair shot at seeing the home to make an offer. How did it sell so fast?

A Pre-Emptive Offer

A pre-emptive offer is made before the official offer date set by the seller and their agent. It's usually after the first weekend of open houses on the following Tuesday or Wednesday. If you write an offer the Friday before the open houses or over the weekend, unsolicited, then it's considered a pre-emptive offer.

Is A Pre-Emptive Offer Good?

Writing an unsolicited pre-emptive offer can backfire if the seller is expecting to see multiple offers and the "frenzy" of the current market. Your offer undermines that and could be viewed negatively. However, if you write a pre-emptive offer that meets the anticipated goals of the multiple-offer frenzy they expect, you just might get it.

How Do I Write A Pre-Emptive Offer?

Talk to your agent (me) and I'll talk to the listing agent about the seller's expectations and if they'll take a pre-emptive offer. If they will take an offer, we'll talk about price and terms that would be appealing. There is negotiation and diplomacy in getting this done right so everyone walks away feeling good about the transaction. It's NOT always about price alone.

The success of pre-emptive offers in Palo Alto, Los Altos, and Cupertino is rare but it does happen. If you're ready and able to move quickly, it could pay off and mean less stress for both you and the seller. If you're considering buying a home in any of these towns, call me to discuss your needs and the best approach to upcoming inventory.

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Most competitive properties in Cupertino, CA and how to get them

Wed, 25 Apr 2012 09:23:38 -0700

I represented the buyer on a single-family home in Cupertino that had 34 offers. My clients won out against all-cash buyers and others who, in theory, had strong offers. Why is it that some offers are beating others? Which price points are getting the most demand and competition? Right now, the most active price range in Cupertino are homes in the $900,000 to $1,100,000 price range. As long as the home is in decent condition and in a reasonable location, it will get multiple offers. How many depends on the overall size, condition, location, and starting price. A common configuration that gets multiple offers is a home that has 3 bedrooms, 2 bathrooms, about 1600 square feet, on a 6000 square foot lot. That home will typically be priced at $998,000.

What's the best offer to make with financing?

If you can line up real "pre-approval", meaning underwriting has done all their homework and is ready for fund a loan, that's an edge. You can fund in 21 days which makes you more appealing than other buyers with 30-45 days to close escrow. Of course, you'll need to offer a good price. I can tell you, based on the activity, what is optimal. In the current market the winning bids are 10-15% over the asking price - for homes in this hot range. That decreases with higher priced homes and goes away entirely on homes that have been on the market a while.

Other terms that could make you appealing include: no financing contingency (if you're absolutely approved), no property condition contingency (do your homework before the offer date), and "as is" condition. If you get the disclosures on the house and fully review them prior to making an offer, you could do this. If you want your own inspections, line them up to happen in the first 24 hours of your accepted offer and get the results a day later. You'll be within the 3-day right of recission period and could still cancel the contract if you find something serious.

What's the best offer to make with cash?

All cash buyers have an upper hand, BUT NOT ON PRICE! Just because you're "all cash" doesn't mean you will get a deal. Far from it. You need to make an offer that beats out the others on price as much as possible. Most agents will take an all cash offer over an offer with financing, if the cash offer is slightly less. However, it must be close. Other terms you'll want to consider: no property condition contingency, 10 day close, and "as is" condition. That's the strongest offer you can make.

If you want to make a competitive offer for a home in Cupertino, call me and we can discuss what you're needs are.

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Homes sold in Los Altos Hills March 2012 - Market Report

Tue, 24 Apr 2012 13:43:33 -0700

Being on of the most expensive luxury markets in the country is a big torch to carry. Los Altos Hills is often cited as the #3 real estate market in the country, which is often reflected in the lofty prices for single-family homes. Last year was a big recovery year and it look like that is continuing in 2012. The average sales price in March 2012 was $2,836,556 which is down from $3,025,000 in February. However, nine homes sold last month compared to only 3 the month before. It's actually well below the spike in prices we saw last year with the average went to $3,147,000 but that was a bit of a skewed statistic.

Two major changes in the market this month; the days on market is down to 146 from 181 last month and the inventory has dropped so there is only 4.8 months of inventory to meet demand. That's down from 10 last month and shows a shift in buyer behavior. While the high-end is still struggling, homes price in the $2.5-$4.0 million range are selling well and don't stay on the market long. Sales started in March and continued into April 2012.

While the Los Altos Hills real estate market often sees significant fluctuations from month-to-month, the general trend in Q1 is up. As long as buyers continue to snap up homes as they come on the market (as has happened recently) the overall price trend should continue. There were several homes sold in March that will close in April that will reflect this strength. One place that is still weak is the extreme high-end market. Homes price over $5 million are still seeing downward pricing pressure.

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Homes sold in Los Altos March 2012 - Market Report

Tue, 24 Apr 2012 13:31:07 -0700

The Los Altos real estate market is as strong as ever with the average selling price in March up to $2,032,075 and 37 single-family homes sold. That's up from 15 homes sold last month and up from 28 sold in March 2011. Prices are up and multiple offers have become standard as the median is now up to $1,915,000.

With only 1.8 months of inventory, the market is strongly biased to sellers. The sales price to list price ratio is one telling sign of this. In March 2012 the ratio was 102.7%, down a bit from 104.2% in February but still high. This means that offers over asking dominate the market. Another factor is that days on market is also low. Most sales are happening within one week on the market, with a few homes taking up to 2 weeks (depending on price and location). Low inventory is partially due to some sellers waiting for "The Facebook Effect" to occur - buyers with Facebook IPO money to get into the market.

Some of the major sales last month in Los Altos include 1310 Villa which sold for $3,450,000 and 307 Verano Drive which sold for $3,395,000. They were two of four sales that closed in March over $3 million. What's more interesting is five sales in the $2.4-2.6 million range. This is a major tier for builders and was a barrier in prior years. The increase in activity indicates more "move up" buyers who are buying larger, quality homes without pushing the top tier too far. If sales continue to hold in this price range, the overall market should continue its strong climb.

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Have a great weekend, wherever you are, whatever you do!

Sat, 21 Apr 2012 07:43:14 -0700

Spring is in full swing here in Silicon Valley with lots of sun, hot tempuratures (well over 80) and plenty of reasons to be outside! No matter what you do, or where you are, have some fun this weekend. I'll be outdoors enjoying the sunshine as much as I can today. Tonight I'll be enjoying drinks and dinner on the back deck at Silver Creek Country Club with my in-laws.

Looking for something fun to do this warm, spring weekend? Here's a few things I'd do:

Visit Pajaro Dunes! It's a fabulous beach, great for long walks and shell hunting. The warm temps will make it especially appealing. You can use public access to the beach north or south of the actual Pajaro Dunes resort.
Head over to Santa Cruz... It's got plenty of beach and the Santa Cruz Beach Boardwalk (rides, games, etc) but if you tire of that you can always just head downtown. There are lots of nice restaruants, wine tasting, galleries, interesting shops, and great people watching! Take a walk along the ocean by the lighthouse.
Go the Farmer's Market in...Campbell, Los Altos, Saratoga, etc. Find the one closest to you and head over. Lots of fresh veggies, organic meats, and more to make the perfect warm-weather meal.
Go for a walk, hike, play in the park...there are plenty around. For local hikes I like San Antonio Park but you can just as easily walk your neighborhood. Head over to the closest park and play catch, throw a frisbee, football, baseball, whatever.

If all else fails, just head to your backyard (or patio) with a good book, cold drink, and lots of sunscreen. I've had plenty of good times with friends on the back patio doing nothing more than talking about the life in general.

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OPEN HOUSE - 864 Kim St, Cupertino, CA SUN 1-5PM $998,000

Fri, 20 Apr 2012 10:11:45 -0700

Wow! Another amazing home in Cupertino at an incredible price. This 1388sf, 3 bedroom, 2 bathroom home has an updated kitchen with granite counters, remodeled bathrooms, hardwood floors, and central AC. The 7,168sf lot provides plenty of space outdoors. You get Lincoln Elementary, Lawson Middle, and Monte Vista High schools.

This home is located in one of the best areas of Cupertino, centrally located, and only minutes from parks, schools, and shopping. It's very close to Jollyman Park which offers a baseball field in addition to plenty of open space and picnic areas.

I'll be holding this home open along with the listing agent, Myrt Bauer, on Sunday from 1-5PM. We'll be working together to show this home because, based on the current market, we're expecting a huge turn-out. There will be NO early access. If you'd like details before the open house, please call me and I'll get you all the information I can.

We will have dsclosure packages handy at the open house so you can take them home to review without waiting.

LISTING PRICE: $998,000

OFFER DATE: To Be Determined

IMPORTANT *** OPEN HOUSE CANCELLED ***

The seller has decided to delay for 2 weeks.

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New construction luxury home for sale: 27300 Ursula Lane, Los Altos Hills - $4,200,000 4BR/6BA

Tue, 17 Jan 2012 16:38:38 -0800

Artisanal construction and custom flair bring this authentic Spanish Mediterranean estate home to life. Construction begins in April 2012 and completion is anticipated by December 2012. Painstaking effort was taken to identify the finest materials and finishes to create a home that is both comfortable and luxurious. While the buyer has the option to select their own finishes, colors, and appliances, a professional interior designer and decorator has already done the work.

The sweeping 270 degree views of the SF Bay, San Francisco, and the hills will impress anyone. Located at the end of a short cul-du-sac, this very private location will be secured by an automatic, wrought-iron gate. Mature trees offer both ambiance and additional privacy from neighbors.

For a short video show of the lot and views, please contact me. Additional photos and floor plans are also available.

Palo Alto schools, buyer to verify
5,780 square feet of living space
2.15 acre lot
Gated entrance
4 bedrooms with en-suite bathrooms
2 master bedrooms feature walk-in closets and bathooms with spa tubs and separate showers.
Main floor master suite
Formal living room
Formal dining room
Den with built-in library shelves and fireplace
Sweeping views of San Francisco and The Bay
Theater with 6-seats, HTDV projector, 120” screen, and Dolby 7.1 sound
Gourmet kitchen with Thermador Pro 6-burner stove, double-oven, and 48” built-in refrigerator
Butler pantry between dining room and kitchen
Elevator (optional)
Optional pool (additional cost)

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Skip the ZIP in market reports

Tue, 17 Apr 2012 06:28:41 -0700

The local paper wrote a nice article recently about the sharp rise of Silicon Valley property prices. Among the cited towns were Atherton (94027) and Palo Alto (9430x). There was some mention of Los Altos and a few other markets. Their analysis was broken down by ZIP codes and several of their figures were just plain wrong. When you're writing about real estate markets, SKIP THE ZIP.

A ZIP code often contains a combination of geographic areas including multiple towns, a mix of neighborhoods in a single town, a whole town (rare), or a mix of areas. ZIP codes seldom reflect accurate neighborhoods and hyperlocal markets. Often ZIP code reports will mix strong markets with weak ones, giving a false impression of how strong or weak a market is. Here are a few tips:

Agents - Report on towns and/or neighborhoods. SKIP THE ZIP because using ZIP codes in market reports can be misleading. This will vary from market to market but generally in Silicon Valley it's better to report on neighborhoods or specific towns.

Consumers - Market reports that focus on specific towns or neighborhoods will give a more accurate portrayal of local real estate. When reading market reports, be aware that a ZIP code may include more than one neighborhood which could skew results.

Examples of the flaws you'll find in ZIP code based market reports and statistics for Silicon Valley:

ZIP code 94022 includes both Los Altos and Los Altos Hills. Los Altos, with an average price of abotu $2 million, isn't as pricey as Los Altos Hills and does more volume. Lumping the two areas together makes Los Altos Hills look weaker than it is.
ZIP code 94040 in Mountain View includes neighborhoods such as Waverly Park, Cuesta Park, and Varsity Park each with substantially different price points. Even the schools are different and schools drive pricing!

My market reports always focus on a town in general or a neighborhood. My blog contains town-based market reports. My clients get neighborhood reports. If you want to know how well a market is doing, you, as the consumer, are better off getting a report about the neighborhood you want to buy in. Call me, become my client, and that's what you get as part of my services.

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