De-stressing Distressed Purchases

The rule I’ve always heard is to stay away from foreclosed properties, which can be a morass of construction and legal problems. But now that REOs, or bank-owned properties, actually make up more than half the market in some areas, they’re becoming more attractive, especially in our overpriced market.

One of the best guides to successfully buying a distressed property recently appeared in the Wall Street Journal. An outstanding tip: If you can’t get an inspection, don’t even consider buying the house. Other important steps to take: Read the rest of this entry »

Real Estate Agents Trading Their BMWs For Bikes: What Next?

Berkeley is a pretty bicycle-friendly city. The serious, Lycra-clad crowd convenes at Peet’s on Domingo Avenue before tackling the steep climbs into the Oakland hills. For those who cycle for more pragmatic reasons — getting around or commuting to work — a network of Bicycle Boulevards eases their path through the ever-present traffic (see green streets highlighted on map below).

I have seen security staff and even police officers on bikes, but I have yet to see a real-estate agent on one. It could happen, though. According to a piece in the Wall Street Journal, “some real-estate agents have traded their suits for spandex and are leading clients from house to house on two wheels instead of four” (pictured right: Pedal to Properties in Boulder, Colorado).

The move has been prompted, inevitably, by high gas prices and growing environmental concerns, as well as the fact that more home buyers are seeking out bicycle-friendly neighborhoods. If you love bikes, it follows that it will make a favorable impression if your realtor turns up on a bike to give you a house tour.

Somehow I don’t see Berkeley’s largely sharp-suited real-estate agents abandoning their BMWs any time soon. In the meantime, find out all you need to know about cycling in Berkeley here. And then consider these three homes currently for sale on or near some of Berkeley’s Bicycle Boulevards (BBs). Buying one could see you embark on a whole new, largely car-free life:

1631 Belvedere Avenue is close to Virginia Street which is a BB. It’s a 3/1 Craftsman with a large garden and significant storage space in the basement. Also convenient to Cedar Rose Park and North Berkeley BART. Price: $619,000.

2209 5th Street #C is a 2/2 contemporary townhouse near 9th Street which is a BB. Good looking interiors, close to University Avenue and upmarket shopping on Fourth Street. Price: $945,000.

338 63rd Street, Oakland is intriguing because it’s a 5/5, nice-looking brown-shingle home in a good spot, close to Rockridge and College Avenue as well as Rockridge BART, and the price is $1,350,000 — or a reasonable sounding $495/sq ft. It’s right near Hillegass Avenue which, you guessed it, is a BB.

Today’s Oakland Sales Update

As summer comes to a close, we continue to see many sales around Oakland, often due to bank buy-backs. However, there are still a good number of homes selling that are neither short sales nor foreclosures.  I’ve also noticed a trend of homes selling that have been renovated with additions.  Going through the SFGate sales listing today, below are some highlights.

 Although listed as a 1bd/1ba on SFGate, the realtor’s website  shows this Montclair home (pictured above) as being remodeled into a  2bd/2ba. (I was wondering how a 1bd/1ba could sell for over $600k.) 6433 Oakwood Dr. sold for $630,500.

This home at  4965 Coronado Ave. pictured above sold for $871,500. It is listed on SFGate as a 3bd/1.5ba with 2116 SF, but the realtor website shows it being renovated into a 4bd/2ba. While I drive through this area all the time, I don’t know what the name of the neighborhood is. It’s east of Temescal, south of Rockridge and north of Downtown Oakland. Anyone? Let me know if you know.

4778 Davenport Ave. is north of Mills College across the freeway in the East Oakland Hills. With just over 1000 SF, this 2bd/1ba 1950′s rancher sold for $459,000. It previously sold for close to its current sales price at $435,000 four years ago in March of 2004.

 This Tudor home at 836 Northvale Rd. in Crocker Highlands was originally listed for  $1,100,000 and ended up selling for $1,010,000. It has 3bd/2ba and 1867 SF.

More of my picks without pix:

Temescal

One of our past commenters posted on 486 43rd St. a 3bd/2ba, 2878 SF home in November 2007 here. At that time, the property was listed for $550,000. It finally sold at the end of this July for $610,000.

Lower Glenview

From the Google street view picture, 3857 Brighton Ave. looks like a cute craftsman. It’s a 3bd/2ba with 1267 SF and sold for exactly its same sales price back in March of 2005:  $695,000.

One “Perk” of a Student City: The Opportunity to Buy a Frat House

I was surprised to see an FSBO (For Sale By Owner) turn up in the Chronicle’s Open Homes listings at the weekend. It was the first time I had spotted an owner rather than an agent taking out an ad in these pages.

But I’m sure there have been others, and I don’t see why more homeowners don’t take this route — it’s a high-profile, highly targeted way to reach home-seekers in that sweet spot that is Sunday morning, coffee in hand, browsing the open-home pages.

(You might think cost is preventing more people from choosing this option, but by my rough calculation the ad I’m referring to would have set the owner back about $200 — small fry if it helps sell your home.)

The home in question is 496 Gravatt Drive, Berkeley, a contemporary, 3/3 hillside with views and the potential for an in-law unit with private entrance. Price: $1,076,000. (Tel. owner on 510-295 4292.)

If I was going it alone, not only would I run this sort of classified ad (in the Chronicle, Craiglist, and other, more local media), I would put a big sign outside my home (with the caveat that interested parties had to call rather than knock on the door), and I would create a simple website for the home which would include comprehensive, honest information and lots of good-quality photographs.

Another FSBO that caught my eye is 2901 Channing Way (above): this enormous house near the campus has been used as a frat house and student accommodation. It’s an elegant Craftsman home designed by Julia Morgan, marred not a little by the ugly concrete wall built in front of its facade. Price: $2,100,000.

Seeing this listing reminded me that I recently discovered that one of the few houses in northern California designed by renowned architects Greene & Greene is the William R. Thorsen house (above) on Piedmont Avenue in Berkeley — which is also being used as a fraternity house.

I wonder what the famous Pasadena brothers would have thought about beer-swilling students squinting out of the stained-glass windows and roaming the paneled rooms of this work of beauty?

[Photo credit of Thorsen House: http://en.wikipedia.org/wiki/Thorsen_House]

Oakland: Eat Your Way Through Temescal and Visit Homes While You’re At It

Like many folks in the Bay Area I tend to eat my way through life. So what better thing to do this past weekend than go to Bakesale Betty’s in the Temescal neighborhood of North Oakland under the guise of checking out homes for sale? If you haven’t been to Betty’s yet, you must go now. Don’t wait another second. It is some of the most delicious baked goods (sweet and savory) around. They are located at 5098 Telegraph Ave., corner of 51st St. and across from the Walgreens/Genova Deli shopping plaza. Since there are no signs outside to demarcate the place, you could easily miss it, save for the line going out the door and a full sidewalk of folks grubbin’ on strawberry shortcake, fried chicken sandwiches (yes!) and lemon ice. Yuuuuuummmmm. Check out the photos I took below: the first is a picture of some of their cookies, sticky buns and scones; the second is the peach pie I brought home. That one didn’t last long. Oh yeah.

There are a whole bunch of incrediblly tasty eats in this area: try Pizzaiolo for, you guessed it, pizza; Dona Tomas for delicious Mexican food (I’ve been to their restaurant, Tacubaya, a taqueria in Berkeley’s 4th St. area—absolutely fabulous!) and across the street, Genova Delicatessen for incredible Italian sandwiches, cold cuts and pasta. Man, I’m getting hungry just writing about these joints so I better start talking about real estate. Around the corner from the above mentioned eateries is a renovated condo complex at 483 49th St. (pictured below).

At $429,000, this 2bd/1ba renovated condo has been reduced from $459,000. Checking out the latest data on Redfin, the condo’s list price for the Temescal area is below the median of $460,000 and above the median selling price of $330,000 (see Summary Data chart at bottom of this page). Also when you click on the listing link you can see what the complex used to look like before renovation (scroll down to the Google street view photo).

Next up for my picks we have 546 47th St. a 3bd/2ba SFR with in-law rental potential in back listed for $349,900. This home last sold for $499,000 in January 2008. There don’t seem to be any interior photos posted so you’ll have to check it out in person to see what’s happening inside.

Lastly we have 472 41st St. for $469,000, a 2bd/1ba condo located in lower Temescal and very close to BART. It has been reduced from $489,00 and is also renovated with plenty of pix showing an apparently spacious and light-filled home. The condo is one of four in this building.

You Don’t Have To Be Average To Like These Averagely Priced Homes

Sweet Digs readers are not a bland, homogeneous lot, with similar incomes, aspirations and taste. That much we know from surveys conducted by Redfin to ascertain just who those bright sparks are out there who clinch great real-estate deals and leave insightful comments on my posts.

But we do know that many Sweet Digs readers are partial to homes in the $600-$700K range. Given that the median house price in Berkeley is currently $689,000 ($463/sq ft), that makes two good reasons to cherry pick my two favorite fresh listings on the market in that price bracket.

First up, 1415 Allston Way: this is a 2/2 home with a detached studio/cottage close to University Avenue with its choice of shops and restaurants, and not far from BART’s North Berkeley station. I like the look of this place — the open-plan kitchen (above left), the taste, the garden with its decks and hot tub (as well as a creek that runs through it — how romantic), and the “boathouse” cottage (above right) which makes a perfect office/guest house. Price: $680,000.

Next up, 2327 Cedar Street: despite being British, I am not usually drawn to what are referred to as “storybook English homes”– as this one is. And I think $657/ sq ft is steep for Berkeley. But, this home (above left) appeals to me because it is in a good location (the paramount consideration in my humble opinion) and it’s really very pretty (including its “petite” kitchen). Price: $685,000.

Finally, just so you know, the lovely John Hudson Thomas designed home at 6412 Benvenue Avenue (pictured above) in The Elmwood is back on the market after being Sale Pending. It comes with lashings of Craftsman features and a deep lot with a hot tub house (sorry, “spa pavilion” — above right) on a great street. Price: $1,095,000.

New Search Features Redfin-Style: Sample Oakland

This week Redfin rolled out some cool new features. To search Oakland listings, I simply typed “Oakland” in the Search box. Once the results are mapped, a link appears under the box titled: “View Oakland Inventory and Pricing Trends“. Clicking on that link I get a screen like this:

Clicking on the tab Newest Listings one can view the most recent additions to the MLS scrolling horizontally (as pictured) or in the bottom of this box, click All Oakland Newest Listings to see a vertical listing of everything in Oakland, along with thumbnails. This option is nice because you can scan hundreds of properties at once (Oakland’s first page lists 500 out of 1989 total SFR listings). Another cool feature on the top of this page is the Oakland Neighborhoods and Zip Codes link which lists the well-know Oakland neighborhoods (Rockridge, Crocker Highlands, Montclair) along with many “micro-neighorhoods” (Bella Vista, Frick, Sausal Creek) each neighborhood’s median home price, median price per square foot and total number of homes for sale. This is really great news in particular for East Oakland, an area which I have long complained of being the king-of-neighborhood-mash-ups. Also, the zip code column on this page is nice since clicking on these you can get a better sense of how prices fall within a particular geographic area (since every zipcode contains multiple neighborhoods that can vary widely by price). For example, the 94602 zip encompasses areas of Glenview, Dimond Heights, the Laurel, as well as Oakland Hills areas such as Joaquin Miller and Oakmore. Finally, I really appreciate the “Summary Data” table at the bottom which lists data for all of Oakland such as total homes for sale (1694 SFRs) median list price ($285k for houses and $349k for condos–hey, is Oakland the only Bay Area city where SFRs are cheaper than condos?) and percentage of homes with price reductions (43%). All of this is great news for us bloggers, plus Redfin’s been getting pretty positive feedback (check out I Think I Just Had a Nerdgasm). Oooof, nerdgasm? Hmmm. Well, just let me know what you think, even if it’s not as breathtaking as a nerdgasm.

Buying In The Bay Area’s Playground Just Got Cheaper

With home ownership providing more stress than serenity these days, second homes are hardly a top priority.

If you have always lusted for one, it’s likely you’ve put that fantasy on the back burner. If you own one, you might be trying to offload it — I was in Tahoe last week and I can testify to the fact that there are “For Sale” signs everywhere — or at the very least make it pay its way by finding people to rent it over the holiday months.

Tahoe, the Bay Area’s winter and summer playground, has seen residential sales decrease by about 40% according to Shari Chase, president of Zephyr Cove real estate firm Chase International, quoted in a piece in today’s Chronicle. And at least 60% of homes in the area are vacation properties.

Even luxury homes in the area, which are generally immune to even steep real-estate downturns, are finding it hard to find buyers — to the extent that 18 high-end getaways in Kirkwood, originally priced from $1.5 million to $3.6 million, are set to be auctioned in Palo Alto on September 14. Some minimum bids will be nearly half the initial list price.

The five-bedroom Kirkwood home pictured above, for instance, will be on offer with a minimum bid of $2.5 million, down from $3.58 million.

Long term , however, it is predicted the second home market will grow rapidly during the next 10 years, driven by the swelling number of high-net-worth individuals around the world — according to the 2008 Annual Wealth Report produced by property Knight Frank and Citi Private Bank.

With that in mind — and I appreciate we are in la-la land here given how little spare cash most of us have right now — I picked out two weekend homes I wouldn’t turn my nose up at. I’m partial to the ocean rather than the mountains, so both are beach bound:

250 Kale Road, Bolinas: Classic A-frame home is located on the Big Mesa, above Duxbury Reef. The Sand Castle is a 30-minute walk to downtown beaches, restaurants and shops and a 10-minute walk to Agate Beach State Park. Ocean views from front deck. Price: $780,000.

162 Seadrift Road, Stinson has been languishing on Redfin for 157 days. Perhaps the fact that this 3/2 “shabby chic” oceanfront cottage costs a staggering $2,269 per square foot has something to do with it. (If you need to know the price, you probably can’t afford it.)
[Photo credit of Kirkwood home: Don Stasenka Canon USA - Editori.]

Surprisingly Perhaps, Berkeley Homes Sell At a Snappy Pace

Before launching into today’s post on recent home sales in Berkeley, I just wanted point to another example of the not-so-subtle art of “relisting” — as discussed at some length by readers following my post on the subject a few days back. (This issue obviously touches a collective nerve.)

“Back on the market” (with, to my knowledge, no credible break from the market) is 1730 Sonoma Avenue, a 3/2.5 home in north Berkeley that has sustained three price cuts: from an original $1,849,000, via $1,595,000 and $1,485,000 to its current $1,389,000 sticker tag. (That’s a significant 25% cut — of course my readers saw that one coming…) This home used to be described as “Hawaii in Berkeley”. It’s now being referred to as a “tropical oasis”. Either way, I think it’s misleading to state it has been “3 days on Redfin”.

Onwards. The week ending August 10, saw 21 homes registered as having sold in Berkeley. The story, surprisingly, is one of relatively swift sales, although not always at the price the seller was hoping for.

I wrote about 551 Neilson Street (pictured above left) when it hit the MLS in April. This home with more than a little charm sold for $744,500, 6% under its $795,000 asking price. It seems that, despite its good location, nobody was willing to fork out $658/sq ft for a 2/1 bungalow.

2 Quail Avenue, a 4/2.5 custom-built 1950s home above La Loma Park, sold quickly but for $890,000, $50,000 less than its $940,000 asking price.

1740 McGee, a 2/1 Craftsman close to North Berkeley BART, also sold rapidly (I mentioned it here), and for 15% more than its $579,000 asking price ($665,000). Maybe that walkability factor is beginning to have an effect on prices.

3300 Claremont Avenue (pictured above right), a 3/3″Prairie-style” house tucked into a triangular-shaped lot at the intersection of Alcatraz and Claremont Avenue, sold for $975,000, exactly what it went on the market for. A case of a knowledgeable owner and/or real estate agent setting the right price, perhaps?

Lastly, 3020 Bateman Street, the 3/2 “story book English country style” home that went on the market for $799,000 in early June (and which prompted me to write about the discovery of a “new neighborhood”) was pending very quickly — and sold for $26,000 over its $825,000 asking price — a testament, I think, to the desirability of this particular Berkeley street.

Berkeley Homes Sold: One Happy FSBO As Others Sell Under

Berkeley homes sold data for the weeks ending July 27 and August 3 are listed below.

Worthy of note is 2815 Park Street (pictured above left), a 4/2 “lovingly restored” 1930s home with garage opposite San Pablo Park in West Berkeley. It went on the market as an FSBO in May priced $660,000. It sold the following month for $683,000 making one very happy seller no doubt.

28 Oakvale Avenue (pictured above right), a 3/2.5 in the Claremont, sold for $1,350,000, 3% under its $1,395,000 asking price. Although in a grand location, the house needed some work

2440 Prince Street, a 2/2 Victorian in the Elmwood (which I flagged up in May) sold for 4% under its $799,000 price tag. I’m not altogether surprised because, although this is a great, kid-friendly/walkable neighborhood, $617/sq ft for two bedrooms is a lot to pay, particularly in the current climate.