We "Rock" in Sunnyvale!

Statistics were just released of the market share of the various offices in our local communities. It didn't surprise me to see that our Coldwell Banker DeAnza office leads all competitors (and our sister offices of CB)in Cupertino, where the office is located,but a delightful bonus was our status in Sunnyvale, my home base.
In both dollar volume and total number of sales and listings sold during the past year, we come out ahead of all the other offices in the area.
I had been slightly concerned that the closing of the Sunnyvale office might effect my activities in the Sunnyvale marketplace, but I have come to realize that the support of the #1 team, and our outstanding manager can give me everything I...and my clients...could possibly need.

The One That Got Away

My client was "in mourning" for the overpriced listing that we made an offer on last week, but enough days have passed, and she was able to look at her number two choice more logically. This was the beautiful and reasonably priced property that I wrote about in "Location, location, location."
No, the townhouse didn't move, but she looked at the distance to the nearest shopping center and decided that she could live with the short drive after all. (Especially since this place needs no work, and is priced at about $200,000 less than the first.)
As soon as we came back this afternoon, I called the listing agent, only to find out that the property was in counter offer. Then the agent called back to tell me that the counter has been accepted. Timing is everything in this business, and these few days were crucial.

When Kitchen Remodels are Overdone

I've often said that all or most of the cost to redo a kitchen can be recouped when the house is sold, but when does a homeowner go too far? I guess that the key is not to over improve for the size and location of the house.
We see the so-called "monster homes," with kitchens that dwarf the living rooms. Often the only cooking that will be done there is in the microwave oven.
Things you can probably do without: (even if you do like to cook!)
1. Professional-style ranges that are expensive to repair and perform no better than those that cost thousands of dollars less.
2. Multimedia refrigerators. Do you really need a TV in the door?
3. A turbocharged dishwasher. Many regular models clean efficiently, have shorter cycle times, and run quietly.
4. Trendy concrete or limestone counter tops that damage easily.
5. Thinking green may sound good when you are choosing a kitchen floor, but some types of eco-friendly cork, bamboo and linoleum may not hold up with regular use.

Sunnyvale Landmark's on the Market

Whatever your opinions of Mathilda Place, (the three building complex built by Mozart Development at the bottom of the Mathilda Avenue overpass) you can't help but notice them. They are the city's only concession to high-rise in our downtown area. My friends and fellow Realtors, Norma and Suzanne, grumble every time we drive by. They would prefer a consistent one or two story downtown.
I just heard that the buildings are for sale. This is prime office space, with great potential, now that the downtown is being redeveloped. Although they are only partially full, with tenants such as Seagate Technology, Impac Medical Systems and Broadcom, the buildings are estimated to be worth as much as $330 million. The location is ideal...near the Caltrain station, and right next to downtown, with its restaurants and shops.

Senior Housing Solutions

Many of my clients these days seem to be seniors, partly because the baby boomers are getting older, and mostly because of the contacts through my Seniors Real Estate Specialist designation. That's why I was especially pleased that the Realtors' Charitable Foundation, through our local association of Realtors, Silvar, gave a large check at our meeting this morning to Senior Housing Solutions.
Their work focuses on retirees whose monthly income is $1000 or less, giving them good housing for no more than a third of their income. They provide shared housing in the area, giving these seniors privacy, dignity, and a better way of life. Our contribution will be used for much needed replacement or repair of the heating and air conditioning in four local houses. As my old broker used to say, "Good on you."

Farms in Sunnyvale?

I remember an old commercial for a milk company that asked, "Farms in Berkeley?"
After watching the Olson orchard come down to make room for a shopping center, we now can see the city come full circle. The Sunnyvale Planning Commission has approved a proposal by Full Circle Farms (an appropriate name) to use an empty field at Peterson Middle School for an 11 acre organic farm.
This will be a 10 year lease with the city, with a possible twenty year extension.
A bonus will be the use of the farm as a classroom by local students, and a 2000 square foot commercial kitchen. Plans include a produce stand on Dunford Way, but Full Circle also plans to sell at farmers' markets, to the Santa Clara School District, and to local restaurants.
We could be seeing their fresh local produce as early as next year.

Do You Want To Be the Third Realtor?

There's an old saying that you should be the first love, the second wife, and the third Realtor.
As I wait expectantly for an acceptance of my client's offer on the townhouse she loves, I realize that this saying is true....at least the last part. The sellers have the property listed above the recent sales, and several Realtors had approached the listing agent to see if they would accept a lower offer. His answer was the obvious, "Write an offer." We are the first to try, even though the townhouse has been on the market for nearly three months.
It would be easier to approach the sellers with a reasonable, but less than full price offer, if one or two had preceded ours.
Anyway, we'll cross our fingers and hope for the best.

Location, Location, Location

My townhouse client thought that she had decided on one property, but after a restless night's sleep, she realized that her first choice was just too far away from her job, favorite stores, and doctors' offices.
Today we went back to her third choice. It is higher priced than the other two, but backs on a beautiful green belt, and includes membership in the adjoining golf course.
Buyers, especially the seniors that I work with, often will choose a home based on location...thus the old Realtor adage, "location, etc., etc." For families, the important factor is the quality of the nearby schools and parks. For young singles and couples, it's usually the proximity to their jobs. For retired individuals, it can be the familiar signs of a Long's Drugs or Safeway around the corner

There are Choices Out There

My client who needs a one story townhouse went previewing with me today. Surprisingly, there were a few places that not only met her needs, but were in a workable price range and had been on the market for a while.
Usually a one story model is more difficult to find, because they are sold quickly to seniors who must avoid stairs and yard work. We'll go back tomorrow so she can choose her favorite. All three had pluses and minuses, but one seemed to stand out from the group.
Perhaps the market is actually slowing down a little. Certainly, we are hearing fewer stories about huge multiple offer presentations at our weekly office meetings.

It Pays to Wait

I've compared the search for Mr. Right to looking for "just the right house" in previous posts. Now I can see a similarity in the patience needed to wait for "just the right offer." As we reach mid-summer and the area market begins to slow just a little, the big multiple offers are not seen as often.
Mr. Wrong showed up earlier this week with a poorly written offer on my townhouse listing. The price was low, the down payment minuscule, and the deposit check was copied on the wrong side. The buyers also asked the seller to take care of extra items, and to allow an unusually long contingency period. After the agent left, we decided to wait for something better.
Here we are, only two days later, with the perfect contract in hand. A wonderful professional buyers' agent, a solid contract at an excellent price, and terms to make any seller happy. Tomorrow, we can begin to look for a new home for the seller, knowing that her place really is sold.

Rain, Rain Go Away...and It Did!

Only in our area could five-hundredths of an inch of rain in July set a record and make the front page of the local newspaper....more reinforcement for my belief that we live in paradise here.
I looked out onto my patio yesterday morning, and thought that the Homeowner Association's sprinklers had gone haywire. The concrete was wet, and I hadn't been watering my plants. Then I realized that I might not have to water, after all. Nature had done the job.
Unfortunately, it had also done a job on my car, which was covered with rapidly drying water spots, so I joined the long lines at the car wash today. (At least they use recycled water there.)

Big Piles of Concrete

On my way to Murphy Avenue in downtown Sunnyvale, I couldn't help but notice the concrete rubble from the old shopping mall structure, piled in mini-mountains near the former J.C. Penney site. I've read that this material will be ground up and recycled as a base for the foundation of the new parking garages.
Sand Hill Property Company, the downtown developers, are still butting heads with the planning commissions about details in the landscape design (Should there be a grassy area in the public plaza, Redwood Square?)and about the ratio of retail versus hotel and office space.
Despite the controversy, I still expect the new downtown to be spectacular. The Pacific Coast Builders Conference recently named the town center plan "best new site plan of the year."
Want a sneak peek? Devcon, the builders, will be installing a web cam on a pole near one of its construction trailers, and you'll be able to watch the activity online within a few weeks.

"Remodel Without Remorse"

I had another wonderful lunch in downtown Sunnyvale on Monday, this time with a fascinating home remodel consultant, Elaine Schultz. She was referred to me by a mutual friend, a past client of mine who now lives in Marin County.
We had an immediate rapport, and each had information to share...a perfect example of one-on-one networking.
Elaine has been working with homeowners, helping them to understand the projects that they are undertaking, before they hire the professionals. She has also been giving seminars and workshops, on the theme "Educating the Homeowners, Eliminating the Nightmares." I hope to arrange for her to speak to our office at one of our upcoming "lender lunches."
Her next exciting project is a book on the subject, titled Remodel Without Remorse.
More reinforcement in the idea that Sunnyvale is really a small, friendly town in many ways...It turns out that Ed Schultz, her husband, and I were both in the first Leadership Sunnyvale class together in the 1980's.

Why it's Tougher to Refinance

I had a couple come through yesterday's Open House who talked about refinancing a loan on their house. They had done this before, and didn't seem concerned, but times are changing, and would-be refinancers are finding it harder to get new loans.
Some things to watch for:
Loan Fees. Experienced borrowers are used to origination fees that can total an average of nearly 2% of the loan amount...many of which are hidden in the so-called "no cost" loans. Be sure to check the APR, or annual percentage rate, in comparing mortgage offers. Also watch for a prepayment penalty...a fee of up to 3% may be written into your loan documents. A good way to compare offers is to use the refinancing calculator on bankrate.com.
Higher Rates. Lenders are getter tighter on their requirements, so get your credit cards debt down, and check out your credit score. You should also expect a higher interest rate as some lenders struggle to cover their losses.
Tougher Appraisals. Many bank appraisers are doing "drive by" appraisals, and may not give you credit for recent upgrades. Make sure that a thorough appraisal is done, and that the best comparable sales are used.

Kitchen Remodel on a Budget

I am always being asked how much it will cost to update a kitchen that is showing its age...dark cabinets, avocado appliances and worn Formica just don't do it in today's market. The answer isn't so simple. A homeowner can easily spend $50,000 to $100,000 for high-end renovation, but statistics from the National Association of Realtors say that this kind of workmanship will only recoup about 80% of its cost when the home is sold.
A better investment(if the layout is good and the cabinets are sturdy)is to invest a few thousand dollars, sticking with neutral colors and natural materials. It's also a good idea to spend a few hundred dollars on a professional kitchen designer to suggest products, colors and materials.
The steps to take include new lighting, flooring and cabinet hardware first. With a slightly larger budget, reface the cabinets and update the back splash with laminate or tile. The final step in "economy mode" is to replace the appliances, if budget allows, using good quality but moderately priced choices.
Et voila...a "new" kitchen!

Why are our prices so high?

I was sitting at a shady table on Murphy Avenue in Sunnyvale, waiting for a friend to join me for lunch. The temperature was in the seventies, the sky was blue, and the street was already busy with people enjoying the day. Many were obviously on their lunch hour from local businesses.
While I waited, I was reminded of a recent "opinion" from Bob Kieve, who can be heard on radio stations, KLIV and KRTY. He had just returned from five days on the East Coast, and was so grateful to be back in the valley. Without the extremes of weather...hot muggy summers and freezing, snowy winters...he commented that our lives are so much more uncomplicated.
No wonder so many residents are willing to pay a premium to live in a paradise where available jobs and a more relaxed lifestyle combine to make a better life.
And besides, think of all the money we save on winter jackets and snow shovels!

Water, Water, (Everywhere???)

The City of Sunnyvale has decided that it has enough water from its three sources this year, and will not institute drought restrictions. This could change if we have another dry winter this year.
The townhouse development where I live pays for my water as part of the Homeowners dues, but I still feel an obligation to try to save as much water as I can.
What can you do?
Most conservation methods involve using common sense, like watering your lawn and yard less frequently and doing it early in the morning when it is cooler. Check your sprinklers...you may be watering cement, too. Sweep your sidewalks and driveway, instead of using your hose.Be sure to use a car wash that recycles water.
...and don't forget to dispose of hazardous materials like motor oil properly so they don't contaminate our clean water supply.
For more tips, visit www.valleywater.org.

The School of Real Estate

Broderick Perkins, in his article on business in today's Sunnyvale Sun,comments on the fact that consumers are woefully unprepared for their first purchase of a property. He compared this lack in today's school systems to sex education in the '50's.
He also quoted statistics from the Consumer Federation of America which say that only 34% of buyers know that the MLS is the best source of real estate information, and only 30% knew that the State regulates the real estate industry. The figures are higher for those who work with an agent or broker, but are still lower than I would expect in this relatively sophisticated area.
The point that seems to be missed here is the fact that Realtors in California are the specialists. We would not expect the school system to prepare the average student to replace an attorney in handling his own legal problems. An experienced real estate broker is trained not only in the practices and principles of real estate, but also in real estate law. We are also required to take continuing education in all aspects of our business, including consumer protection.
When in doubt, hire a professional!

Beware of "Side Deals"

I am asked questions about real estate and the market almost every day.
Yesterday, the question came from my mailman, who knows that I'm in the business.
He was concerned because a friend told him that a relative of his was offering a higher than list price for a property located in a nearby buyer's market. The buyer had made a private agreement with the seller to credit him $10,000 at closing. My mailman wanted to know if this person could get in trouble for doing this.
My answer was "yes!" Unless this credit was documented in the contract and approved by the lender, it could constitute fraud. Attorney Oliver Frascona warns that homeowners should avoid getting tangled in the buyer's attempt to defraud the lender.
Any concessions paid to the buyer, such a gifts or economic incentives, must be disclosed to the lender and properly documented in the HUD1 closing statement...no oral side agreements or "buried" addenda.

Cost vs Value

I always tell my clients that a kitchen or bathroom remodel is an excellent investment in their homes. But today's email brought a question from Kathi, a long time client...How much of the investment in a central air conditioning system would they expect to recoup when the property is sold someday?
Central air falls in the category of optional (at least in our climate) items that attract buyers and will make the home more appealing. These are the things that make the house sell more quickly and for top dollar, but don't necessarily return all of the cost to the sellers.
Other examples are ultra-expensive materials used in remodeling, and top grade hardwood floors,appliances, carpeting and window coverings.
By all means, buy yourselves these luxuries, especially if you expect to be in the house for many years, but be aware that the $20,000 Wolf range won't pay for itself when you sell a mid-priced rancher.

Bank-Owned Properties

The San Jose Mercury News today featured an article on REOs...real estate owned properties, clearly explaining why there are so few sales at foreclosure auctions in this area. (See my earlier posts on foreclosures, July 2 & 3) The writer explains that bidding typically starts at the amount of the unpaid balance of the first mortgage, and in a soft market, some homes are no longer worth that much.
No wonder the "bargain hunters" at these auctions aren't bidding! In May, $2.8 billion worth of California real estate went up for sale in foreclosure auctions. $2.6 billion worth didn't sell and ended up owned by the banks that held the mortgages, according to ForeclosureRadar which tracks these things.
Right now, only 8 percent of homes for sale in Santa Clara County (about 450 properties) are considered "distressed." These are either being sold in short sales (my May 21 blog,)in foreclosure or as REOs. These numbers have increased dramatically in the last year.
The numbers are not high enough in the county for us to be concerned yet, because lenders are not deeply discounting, but I'll keep watching this trend.

A "Snoring Room?"

Just when I think designers are running out of remodeling ideas, a new one pops up. This one is a sleeping closet, or snoring room, where the wide-awake spouse can retreat to blissful quiet when the decibel level gets too high. My sister keeps an extra bedroom handy (she admits to being the "offender" in her household) but these are much fancier versions.
According to 2007's "What's In, What's Out for Homebuyers" survey, snoring rooms are on the rise. These do not have to be new construction, although soundproofing and reconfiguring the floor plan may cost several thousand dollars. A contractor will usually adapt an existing space, such as an office or large closet into these quiet, peaceful havens.
Baby boomers need their rest!

A Weekly Update on Sunnyvale's Downtown

Well, dry weather makes the demolition (and future construction) go quickly, but some downtown businesses are starting to think that Sand Hill Development is well named, since dust and dirt are an ongoing problem. The developers and their demolition company, Devcon, are trying to mitigate the mess by adding a second daily street sweeper and using water trucks to control the dust.
Night work on Washington Avenue should finish this week, and then truck traffic on Mathilda will be less of a problem. Next on the agenda are design plans for sidewalks, tree wells and streetlights.
One positive development from all this activity...the six protected redwood trees that will create Redwood Plaza are starting to show new growth, now that there are fewer buildings around them!

July Fourth...Welcome to America

As I get ready for the House party/Potluck later in the day, I am reminded of the wonderful melting pot this country has always been, and continues to be. Our founding fathers were pretty much a "white bread" bunch, identical in appearance to the Englishmen they declared independence from.
Over the centuries, the look and feel of the country has changed and been strengthened by newcomers from a variety of other lands. Our local demographics have changed, and continue to change, as new citizens join us.
Nowhere was this more visible than my last open houses, where most of the young families were originally from other countries. They were looking for a home in a good school district where they can raise their children and live the "American Dream."
The Spirit of the Fourth lives on.

Playing the Foreclosure Game...From a Pro

What a coincidence! I just started reading the book on the top of my "books waiting to be read" pile, and it was Diary of a Real Estate Rookie, by Alison Rogers, a columnist for Inman News.
Her third chapter, in this eminently-readable book is called, The Sheriff's Sale.
Her advice mirrors some of that in yesterday's post, but she also has some worthwhile suggestions, like remembering that the current inhabitants are losing their home, and might not appreciate your trying to view it prior to the sale. Her idea is a knock on the door with a couple of fifties in hand.
She quotes The Journal of Real Estate Research which says, "If foreclosure, per se, results in such a large discount, we wonder why such properties were not purchased long before they made the multiple listing service. If real estate professionals handling these foreclosure sales do not recognize such profitable arbitrage prospects, who would?"...Intellectual jargon for "If it's such a good deal, why didn't the agent buy it?" She also strongly suggests that you have your repair team already in place. In the rehab world, time is money, as anyone who has watched Flip This House on HGTV knows.

Foreclosures, anyone?

A friend asked me last night how to get updated information on foreclosure properties. In our area, most properties are being sold before they reach that point, but he lives near Sacramento, where the market is much slower.
Foreclosures have skyrocketed in some areas of California over the last year, almost quadrupling in the last six months, due to a combination of a slowing market and risky subprime mortgages.
A little research on my part discovered several web sites with foreclosure data. Since a large number of auctions are postponed or canceled, it is worth a monthly fee to track these changes, even though the data itself is public. Postponed auctions can be potential bargains later, when the bank and homeowner run out of other options and finally agree that the property must be sold.
Sites that track national foreclosure data are: www.foreclosure.com, www.foreclosures.com, and www.realtytrac.com. For a site specializing in California only, try: www.foreclosureradar.com. They all charge about $50 a month for their service.
...and just remember, this is always a risky business, not advisable for any but the seasoned investor. Minimum bids are high, and the winning bidder must be able to pay the full amount in cash on the spot. Properties are sold "as-is" with no chance to inspect them, and there is no guarantee of clear title.