Archive for October, 2008
October 13, 2008
When I think mansion, I think old-school, with wide baseboards and crown moulding, architectural flourishes inside and out, wide spiral or grand staircase, multi-levels, pool, guest house, wine cellar, library…you know, the stuff of movies. While Tiburon may have these (somehwhere), this town prefers the more contemporary and laid-back. I’ll Call it California Mansion style. Soaring ceilings, lots of light, open floor plans. Even the oldest of those on the market in Tiburon (built in 1926) fits into this category. So Tiburon is an island unto itself when it comes to mansions, of which 14 are currently for sale (using the $5mil price tag criterion).
The largest of the bunch at 60 Mount Tiburon is a 7900 square foot contemporary home with Bay views. Boasting 6 bedrooms and 7.5 baths, it’s a nice place, but not a typical “mansion.” You do get 1 acre but no guest house, no pool, no tennis court, all for $10,299,000. The agent didn’t do any kind of descriptive write up, but did post this You Tube video.The most expensive spread in this tony town is listed for $22,600,000. The home, while large, is not a typical multi-storied mansion or architectural masterpiece. Built in 1926 and owned by the same family, it is a solid 5/5 California-style home with tennis court, and pool, on over 6 acres. The price is in the property and its location on a cove in San Francisco Bay. A perfect retreat, with children’s playground, multiple outdoor entertaining spaces, and views galore, it has, alas, been on the market 131 days with no price reduction.
My favorite is this modern marvel built in 2004 at the top of Mount Tiburon. With clean lines, floor-to-ceiling windows, views of the Bay, I want to cook in that kitchen and have my morning coffee on the wraparound deck, watching the sun come up. Sitting on a third of an acre, it has 4 bedroom and 3.5 baths, so its not too oversized. In fact, it is downright small for a “mansion,” but I love the design, somewhat mid-mod and I think it fits in as a coastline home. This certainly isn’t the type of house for everyone, but given what is on the market in this town, I think it will appeal to Tiberonians.
Recent Sweet Digs Posts:
SF and Daly City: FSBO Homes not Immune to Price Cuts
Berkeley and Oakland Homes: Price Cuts Come to Those Who Wait
Upcoming REO Workshops in the South Bay
Getting Hit in San Rafael: More REO Listings
If I Ruled the World – Or Were At Least the President…..
Bay Area: Comical, Useless Real Estate Advertisement
Back on the Market: My Visit to a Home Auction, Part 2
October 12, 2008
I’ve heard it said that people who try to sell their own homes are like those who try to represent themselves in courts of law: Each has a fool for a client.
But with all the info on the web these days on homes, real estate, comps, price reductions, blogs, records of all kinds, it seems a for-sale-by-owner seller would have plenty of solid material with which to come to a reasonable listing price for his or her home. Still, few of us could have predicted the current market, and its effects on home prices is still evolving; thus, even the most educated seller is having to come down from initial asking, especially as homes linger on the market longer and buyers get harder to find.
Here then are a crop of FSBO listings that have come down in asking since they hit the market; or, if they haven’t come down, they should, because they’ve been on the market a long, lonnnng time. You might then find that special deal, sans commission, at an already discount price.
1. 112 28th St.: 2/1 SFH home in Noe, with parking, asking $929K. After 200+ days on the market, this one is ripe for a lesser offer. Know going in that it sold in ‘05 for $825,000.
2. 1 Daniel Burnham Ct.: 2/2 condo with 1 parking space, shared deck and pool (pictured).
This one is interesting because it lists for $719,000. The write up claims this price to be a $75K reduction off the unit’s “recent market valuation,” yet comps show the highest current listing in the same building (and the same size/# of beds) at $660K, and one 2/2, #609 is $599K.
3. 101 Crescent Way: This is a 2/2 Bayview Heights condo that came on the market in July of ‘08 for $665K. Today it’s still available, though it offers a 2 car garage and panoramic view (you can see plenty of light in kitchen below). Currently $639K.
Daly City
1. Down 4 times since first listing in April of this year is 310 Barbara Ln (pictured below), a 2/1.5 townhouse with parking. Currently rests at $539K.
2. 30 Clearview Dr.: $699,00 may be optimistic for this 4/3 SFH with 109 DOM. Highest priced nearby listing is $640K, and, more tellingly, the highest similar sale, in July of ‘08, was $605K.
October 12, 2008
Given the current state of the market, the argument for waiting before pouncing on a home sale is stronger than ever. An added advantage is you might benefit from nervous sellers cutting their prices.
If you’re in the requisite price bracket, these three homes are worth investigating in my view:
931 Grizzly Peak Boulevard (above) is that rare thing in Berkeley: a new home. Or effectively new. It was recently rebuilt from the bottom up and is all shiny and squeaky-clean inside and out. There’s a vaguely nautical atmosphere to the way it is being presented (staging by Scout), accentuated by multiple decks and Bay views. The kitchen (above right) is particularly nice. Reduced from $1,499,999 to $1,399,000 ($508/sq ft) after 25 days on the market.
791 Hilldale Avenue in north Berkeley is an attractive 4/2 traditional on a double lot. It has partial Bay views, a lush garden and its stand-alone studio cottage is a cut above (above right). Its price has been reduced from $1,150,000 to $1,085,000 ($481/sq ft) after 60 days on the market.
6421 Benvenue Avenue in Oakland (above) intrigued me when it was first listed in July. A swift potential sale fell through and it has been back on the market for a few weeks (although it’s being touted as a new list).
Designed by John Hudson Thomas in 1916, it’s a good-looking house with all the ingredients necessary to make something pretty special — good layout, original features, large bedrooms, a “spa pavilion” and a huge garden. There’s updating to do, a large studio with potential — and a more elegant way to access to the backyard would be nice, but it’s a great neighborhood. I like this place. Price reduced from original $1,095,000 to $1,049,000 ($528/sq ft).
October 12, 2008
BayareabankREO.com has announced a series of workshops for investors and potential homeowners interested in negotiating with banks to buy REOs, which could be a highly profitable venture to enter, given today’s market conditions.
On Tuesday night from 7PM – 8:30PM, a workshop entitled “Buying Bank Foreclosures Made Simple” will be held at 1067 Blossom Hill Road in San Jose. Subject material will include how prices are determined, how to research REOs, and how to use experts and your research to negotiate with the banks.
These San Jose workshops are held weekly at this Blossom Hill location, and somewhat less frequently in Willow Glen as well. Milpitas workshops are held every third Thursday of the month also.
These workshops are free, and look like they could be very useful and informative if you plan to plunge into the REO market.
October 12, 2008
Marin hasn’t been hit that hard (yet) in general by the decline in housing prices. With home prices that hover here and there around the million dollar mark, wealthy Marinites are riding out this storm in a decent fashion. But not all of Marin is immune to what is going on in the rest of the country. San Rafael and Novato are the two cities where the income and home prices of residents ranges more substantially. And unfortunately, where the foreclosure bug of the rest of the country has infected.
This week, a host of REO homes came onto the market in San Rafael. An indication that San Rafael is still getting hit by the downturn. A sample of the listings that just came on to the markets:
3665 Kerner Blvd #A San Rafael – 2 beds, 2 baths – $150,000: This was the lowest of the bunch that popped up on the market. In the canal area, where a lot of foreclosures are taking place. Looks like the bank owns it for about $325,000. A good starter property if you are on a budget or possibly a good investment property.
15 Stevens Pl San Rafael - 3 beds, 2 baths – $450,000: A single family home north of downtown by Lincoln Ave. No pics (none of these listings seem to have them). Close to 101 may be a distractor, especially currently witht the construction going on. Last estimated minimum value was around $570,000.
262 Prospect Dr San Rafael - 4 beds, 3 baths – $642,900: Another single family home and further north in San Rafael. In somewhat the general vicinity of the one above but further north and not by the highway. House is just over 2000 SF. Plenty of room here for a large family.
6 Redwood Dr San Rafael – 4 beds, 3 baths – $975,000: In the Gerstle Park area of San Rafael. While a REO, the bank seems to be trying to get their full dollar back. Last assessed at $970,000 and the bank owns if for just above $1 million. Home value estimates range from a low of $1.1 million to a high of $1.9 million.
October 10, 2008
Not too long ago, I saw a PR video by Paris Hilton that has been watched by millions, developed in response to a comment made by John McCain. She was certainly coached as to what to say, but her compromise position on off-shore drilling made a great deal of sense more than anything said by either candidate! To this I say …..hey……if she can do it, so can I.
If I were the one with the microphone in my face being asked what should be done about the housing crisis, and the economic crisis in general, here is what my response would be:
The crisis we are facing now was many years in the making. It didn’t happen overnight, and it is not going to be fixed overnight. Nevertheless, there are some concrete steps we can take to make sure that things stablize and begin to change for the better.
For the next 3 months, I would freeze all gasoline prices in the US and suspend all futures speculation on oil or petroleum products in general. The futures market drove many of the volatile prices we saw at the pumps. And if other petroleum products are not frozen as well, the oil companies will just raise prices on them to help make up the difference. Imagine a $20 jar of Vaseline!
Next, instead of moving forward with the AIG bailout (whom I think richly deserve their demise), I would announce a new federally backed credit program where gainfully employed families can apply for lower interest rate loans (one point below prime) for everything from $1K to a $100K down payment for a home, and I would suspend the rules about not allowing borrowing for a down payment. After all, many Americans have been forced to use their savings to pay extra gasoline bills and extra medical expenses – as insurance companies have found more and more ways to increase deductables and disallow claims. Unless I miss my guess, this program would cost less than the AIG bailout. Other insurance companies will rise to fill in the prominent AIG gap – maybe even some ethical (imagine that) companies who will work with their customers and actually focus on the needs of the people. And this loan program would help to spur the consumer economy, and consumer spending.
Next, I would start a program just for the unemployed if their current jobs were lost expressly due to the housing crisis. These workers would be given a one time grant of $500 if they add their resumes into a new federal jobs data base for potential hiring by the newly announced federal $1K-20K loan program.
Anyone who lost their home in the last two years due to the rapid adjustment of ARM rates would be given unmistakable priority in receiving the newly announced HUD loans for 3% down. I didn’t see any such provision when I attempted to plow through bits and pieces of the lengthy mortgage bailout program document. Another provision that should be added to this document is additional qualifications for buyers before they are allowed to participate in an ARM loan of any kind, qualifications that include being able to show probable income growth, passing a questionnaire that shows a high level of understanding of what an ARM actually is and what it does, and having the ability to make a payment at the highest levels of adjustment the loan can reach.
Last but not least, I would increase government tax credits to those who upgrade their homes to wind power or solar power, and create a government funded venture arm with at least a $100M investment budget solely to fund startup companies that are focused in three areas:
- Creating new methods of transportation that don’t involve oil or oil products in any way. It is time to think “outside the boxy electric car”
- Creating alternate sources of energy for large scale industrial processes, or alternatively reducing the energy consumption of these processes
- Finding or creating lower cost methods of expanding preventative medicinal services to millions of Americans – services such as IPTV-based interactive patient monitoring (to eliminate costly visits and predict health crises in those at risk before they consume emergency services), immune enhancing services for the populace (think fortified foods and water), and actually removing the AMA and pharmaceutical companies resistance to herbal products that solve problems less intrusively and expensively.
But alas, I am neither Paris Hilton, Barack Obama, or John McCain. I can only put my ideas out here for my readers to comment on.
Comments anyone??
October 10, 2008
House porn I get: you’re looking to buy a house. You want to see the exterior, the interior. You want to imagine yourself cooking something steamy and sinful in that glossy kitchen. You want to plan a party in that backyard, feeling the sunshine (magically captured in the photo) on your graying, coastal climate skin. Sexy.
But why are agents’ self promotion ads also sexy? I am not expecting to buy also the agent, so his/her appearance is really far, far beside the point. Why the glam shot then? Why that weird shine the face? What is that? It just makes agents look plastic, made by Mattel-like, Barbies and Kens; it does not engender trust then, but rather the opposite, because no one in her right mind trusts Barbie and Ken.
I also hate the poses in these ads. They remind me of high school year book photos: gentle, wise prom queen/king, chin on hand, hair just so, glazed “you can-trust-me” expression. Also the wild promises of dreams coming true and ending world hunger and such. Let’s be realistic, shall we? It’s real estate, not a religious conversion.
Finally, the placement of these ads is often cause for much mirth. My favorite pointless placements are in the small plastic squares that adorn shopping carts. These are particulary entertaining glimpsed in the Golden Gate Park, captured by one of the more intrepid homeless, smattered with dirt and beer and less mentionables. One can just make
out the “are you looking for a home” tagline.
My point here: Agent, save your money. What you spend on bad ads and stiff hair styles, you could offer in kick backs off your commission. Better yet, be real.
October 10, 2008
A couple of weeks ago, I wrote about my visit to th
e REDC Home Auction in Oakland, with hopes of being the winning bidder on a small 1 bedroom condo that sits just around the corner from me.
As you know, I walked out empty handed after 4+ hours, but having enjoyed the event and feeling somewhat empowered at understanding the home auction process.
Lo and behold, early last week, as I was cruising the latest Redfin listings, the condo made another debut on MLS. The ask: $225,100. Quite a big range from the opening auction price of $139,000 and the winning bidder’s price of $175,000. Based on my Redfin data, the bank owned it for $247,000+ and the last assessed value was just over $200,000.
For that price, no way was I pursuing that any further.
Fast forward a couple of days later. Unfortunately, I was travelling and didn’t get to my usual daily Redfin updates, but the price was dropped to $179,900. And swoosh, it was in contract within a day.
So what happened?
The listing agent knew that it had been up for auction but didn’t know why the transaction didn’t get completed. I called REDC and while they couldn’t give me the specifics, here are some reasons why an auction property may not close:
1) Seller couldn’t obtain the financing
2) Seller didn’t have the full deposit amount needed at the auction
3) Winning bid did not meet the reserve price
My best guess is that this property fell into either 1 or 2. The winning bid was less than $5,000 from the current list, so I’m assuming that it is not #3.
What I didn’t know and learned is that all properties do have an undisclosed reserve price, set by the bank and like in Ebay, typically higher than the opening bid. With this condo, REDC said that since it was back on MLS, most likely the bank took it back for some reason or another and then had it listed. I had put in a back up bid before I left the auction for $170,000, but obviously that didn’t seem to appeal to the bank.
I still think this property is still a great value, but given the current state of the union, I’m glad I’m not the buyer since I was planning for it to be an investment property (way too small for our household).
If you are looking for some values or just want to attend an auction to get a first hand experience for yourself, REDC is holding another smaller auction next week for some Nor Cal homes, next Monday and Tuesday evening. Unfortunately, this appears to have been recently scheduled as there isn’t any open houses being held for these properties. Check out their site for details.
October 10, 2008
Well, I rolled into San Diego yesterday. Wish I could have taken scenic route down, but an heirloom delivery to La Canada necessitated use of Interstate 5. Good thing we remembered to bring a book on tape! I’ve been down to SD twice before, for youth soccer tournaments. Those adventures did not lend themselves to seeing much; a glimpse of the beach for ½ hour was about it. So I look forward to exploring the towns and making a determination if this is the place for us to retire.
The three best things so far? The price of gas: $3.39 for regular (I paid $3.79 a week ago on the Peninsula), the weather (went to bed, it was 70, woke up, it was 70) and the beach. My home base is in Carlsbad, a house located just 1.7 miles from the sand and surf. We took a ride down to the waterfront last night, lots of hustle and bustle, visitors walking the long winding path that fronts the ocean. Happy people with happy dogs. Light breeze, the lapping ocean waves against the sand. Definitely gonna spend more time down there.
Carlsbad is a cute, laidback city, and the downtown appears to be a cross between Santa Cruz and Cambria. Lots of independent shops, with a few chains like Cold Stone, Starbucks and Jamba Juice. You can hear music, restaurants do a brisk trade, people get around on foot and bicycle. There are a few shopping and strip malls, as well, and the housing I have seen so far varies. Some great beach houses right on the water, mostly rentals, several high-end retirement communities, and your typical apartments, condos, and SFRs. I found one street that I loved, with huge lots and unique homes – Painted ladies, Craftsman, and Spanish style. Larger homes, some I would go so far as to call “compounds” where multiple families could live, which appeals to me as my parents age. My guess is that it is a smaller version of San Mateo, given the types and ages of housing and the overall feel of the city.
I am staying in a neighborhood made up primarily of single family ranchers, and I’m guessing the bulk were built in the ’50s and ’60s. San Diego has been hit fairly hard with the mortgage and credit crisis. When my friends were looking, there were a lot of short sales and REOs. Three in the neighborhood were available, all in the low 500’s, high 400’s. One specific home last sold for $656,000, had been initially listed at $515,000, and got its first and final bid about 30-40 days in for $469,000. That’s for a standard rancher, 3/2, on almost a 10,000 sf lot. This home, along with two others around the corner are being remodeled at the same time. Two older homes within a block are undergoing exterior changes and upgrades, as well. The area seems to be seeing a revitalization and I was surprised by the lack of FOR SALE signs as we drove around, although remodeling efforts were visible everywhere.
On my agenda this week: Fallbrook, Vista, Santee, Escondido, Ramona…plus a few others, if I have time.
October 9, 2008
I have long thought the Piedmont Avenue area of Oakland has a huge amount to offer and yet seems to be somewhat overlooked when surveys are taken of the joys to be had of living in the Bay Area.
Reasons to like this spot include the fabulous Piedmont Avenue itself with its extensive choice of stores, restaurants and cafes. It’s all there, from Fenton’s Creamery to Piedmont Grocery, from a highly regarded yoga studio, to the quirky Dr Comics & Mr Games, from useful stores such as a cobbler to serious cycling hot spot Montana Velo, from where my son is determined to acquire his next bike.
Half a dozen of my favorite restaurants are on this street — including Dopo and Bar Cesar (above, middle), and at least one is run by an Alice Waters alum: Mary Jo Thorenson’s Jojo.
The Piedmont cinema (above left) is a gem — showing art house and foreign movies; the Frederick Law Olmstead designed Mountain View Cemetery (above right) is a splendid place to take a bracing walk and pause for spectacular Bay views; and to top it all there’s a real down-home neighborhood feel to this enclave — not something that can necessarily be said of nearby chi-chi Piedmont proper.
The Chronicle might have put it best:
“Block for block, it may be the most interesting and eclectic district in Oakland.”
Current Redfin estimates put the median price per square foot of a single family house in the neighborhood at $469. Here are three interesting recent listings to investigate:
4384 Howe Street: a remodeled, 2+/2, one-level Craftsman with bonus room opening onto back deck. Price: $549,000 ($469/sq ft).
4135 Howe Street: a 2/1 updated Craftsman bungalow with two car garage and French doors to large deck and garden. Price: $675,000 ($764/sq ft).
4141 Piedmont Avenue: 1/1 condo in 1970s 10-unit block, with one-car garage, updated in “mid-century” style with bamboo floors. Price: $369,000 ($590/sq ft).
Related links:
Piedmont Avenue neighborhood data from Redfin
Sweet Digs: A Neighborhood with Curb Appeal
San Francisco Chronicle neighborhood review: Piedmont Avenue
[Photo credits: cemetery: www.mountainviewcemetery.org/; Cesar: www.barcesar.com; cinema: flickr.com]
