Archive for the ‘Palo Alto, Mountain View, Menlo Park’ Category
October 1, 2008
We’ve seen some strange sales incentives in this down real estate market, including offering one’s self in marriage with successful close of escrow as well as putting one’s home on Ebay.
These strategies get points for creativity, but do they work? One Michigan owner auctioned off a home on Ebay, only to then receive a high bid of $1.75. The winner plans to try to sell the home herself now– hopefully not on Ebay.
Here are some more confusing strategies:
A seller offering a $2000 “finder’s fee” at close of escrow. So, if I find a buyer for this property, I get the money; the buyer gets no incentive. Um…
An investment/mulit-unit property offering a mystery incentive: tiny font print proves too small to read. Must follow nonending trail of links to uncover the prize. More video game than home-for-sale ad.
Builder incentives: with the slowdown on buying, new construction is growing cobwebs. Building companies offer now everything from a trip to Tahiti to a wide-screen TV. A price reduction might be more enticing, but then, what do I know. I’m just a potential buyer who likes to read more than watch TV. Tahiti would be nice though, I admit.
Okay, your turn: In this crazy buyer’s market, what’s the strangest incentive you’ve seen lately?
September 30, 2008
A couple of weeks ago, I wrote about several Oakland properties north of me that have been inching closer in price to the amount I paid for my house two years ago. I lamented that I would have done well to wait out the housing bubble: had I done so, I likely could have scored a larger house in a more valuable neighborhood. One of the properties, 1267 Bates Rd., was puzzling since it’s price ($529,000) did not seem to match its location (the coveted Trestle Glen). Readers Rbehs and Optionarm pointed out respectively:
I believe Bates is under large powerlines
and
In the street view for Bates, if you angle the view upwards you can see the large powerstructure
Sure enough, checking out the Google street view for the Bates home, you can see a humongous transformer in the backyard. Ahhh…Nothing like Redfin readers to give you the lowdown on real estate. This prompted several other cool readers (hi Art, David, Jackie and Adam!) to discuss the perils of having a huge hunk of power structure hovering over you: loud humming, definitely not eye candy and possible adverse health effects from EMFs (electromagnetic fields). Thanks dear readers! Not only did you educate me on yet one more item to be aware of when purchasing a house, you got me investigating EMF’s (for this thirtysomething, I hitherto only knew EMF as the band that sang the catchy “Unbelievable”, you know, that song that was played at proms and clubs across the US in the ’90’s?) Interestingly, I couldn’t find much that has been written about EMFs after 2002 when the California Environmental Health Investigations Branch was commissioned to do a study on their alleged health hazards. (See California EMF Program and their Short Fact Sheet on EMF ).
The World Health Organization (WHO) website also has a pretty comprehensive and user friendly overview of EMF’s. What sturck me most was one of their tables comparing acceptable exposure limits. They note that 5,000 V/m (volts per meter) is the highest acceptable “public exposure” while 10,000 V/m is the highest “occupational exposure”. Ok. Fine. So just know what you’re getting into if you work in a field where you’ll have high occupational exposure, right? Not so fast. You should also be aware of possible high exposure if your home is close (under?!?) a power transformer, since “powerline exposure beneath large power lines” is estimated to be around 10,000 V/m (compare this to only 100 V/m exposure for homes not near power structures). Of course, this brings me to the Trestle Glen homes. How much will you be exposed to under those big suckers? While much of the research has not found conclusive evidence of the health risks they pose, WHO states:
There is no doubt that short-term exposure to very high levels of electromagnetic fields can be harmful to health. Current public concern focuses on possible long-term health effects caused by exposure to electromagnetic fields at levels below those required to trigger acute biological responses.
and
Despite extensive research, to date there is no evidence to conclude that exposure to low level electromagnetic fields is harmful to human health.
However, the 2002 California study found:
an association between leukemia and…high magnetic field exposure such as living very near a powerline…
All of this sheds some light on why some of these Trestle Glen homes might be having a hard time selling (on top of our already disastrous market). But what do you say? Would you think twice about living under a power transformer? Let me know your thoughts, and again, a big shout out to everyone who brought my attention to transformers and EMFs in the first place!
More links discussing EMFs:
National Institute of Environmental Health Sciences, National Institutes of Health
US Department of Labor OSHA ELF Radiation Hazard Locations and Solutions
Wi-Fi As A Health Hazard
Electric Power Research Institute
September 15, 2008
Yes indeed, we have a winner! In fact, several! Last week we ran a contest to see who could guess what the new sexy amenity is, replacing the now-ubiquitous if-not-tired granite countertop. After a number of excellent guesses (more on that latuh), Jackie nailed it, guessing that the answer is C*L*O*S*E*T*S.
“Giant closets have become the new granite countertop,” Carol Lloyd proclaimed in an SF Chronicle article last week, citing and once again proving that size does matter. Because these are not, as they say, your mother’s closets. Oh no.
Readers of Apartment Therapy, the real estate blog with the juciest photos (at least in my eyes), surveyed its readers, who agreed that a larger closet is “very very sexy.” We’re talking six-foot closets, designer closets, his-and-her room-sized closets.
Meanwhile, reader Debbie suggested that the new sexy amenity is custom concrete countertops, and after checking these out, I can see why she (and Sweet Digs Fearless Leader Susan Brady) like ‘em. Alexandra V. voted for quartz countertops, which she saw on David Bromstad’s show. (Big thanks to Los Angeles Apartment Therapy blog for the juicy photos of celebrity closets.)
August 29, 2008
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 »
June 27, 2008
Forget your psychic friend and magic 8 ball. CurbedSF has it that today’s savvy home hunters leave it to programmers to come up with a way to tell them, via scientific survey, whether a neighborhood is a good fit or not. Indeed, Hoodeo is the “neighborhood match maker,” your online connector of human to ‘hood.
So I gave it a spin- God knows I am having a hard time finding a place I can afford in SF; maybe Hoodeo knows something I don’t. Among its questions, the survey asks me if I wanted to stay in this city or if I would go anywhere. Since my job and friends and life are here, I actually do want to stay here, but just for fun, I chose “will go anywhere.” Hoodeo also smartly inquires how much I make and how much I “want to spend” on my next home, as well as how big I want it, cleverly reminding me that those square feet I desire will also have to be cleaned (I picked 1000 square feet, and since I had the option, 2 beds and at least 1.5 baths since I share with a man whom occasionally disgusts me). I decided the fair amount to pay, based on what we make, and that we would like to have money left over to travel and buy beer and such, would be 400 to 450K.
I should be, according to Hoodeo, living in Philidelphia. Wait, but you didn’t ask if I like sub-zero winters! I don’t!
Back to Hoodeo then, this time insisting on staying in the Bay Area. If I am to spend what I want to spend, I will need to think about Pacifica, San Bruno, South San Francisco, or– if I want the city proper– Bayview. Wait, you didn’t ask if I like gunfire in my front yard. I don’t!
Needless to say, Hoodeo has left some poignant questions off the list in determining if a ‘hood will fit you. For instance, nowhere am I asked what I think of On Deadline’s report that
Members of the Presidential Memorial Commission tell the San Francisco Chronicle that they’ve already collected 8,500 signatures on a petition to put the proposal before voters this November. If it passes, the Oceanside Water Pollution Control Plant would be renamed [the "George W. Bush Sewage Plant.]
To which I say: I am home.
May 17, 2008
I know—there are more than 6, but it’s a beautiful day. Hard to imagine who’s in the mood to sit and read long blog posts at the computer. Plus, I found an interesting article in the Washington Post that actually reduces homebuyer essential knowledge to 5 categories, to which I would like to add one.
From The Post:
1. Mortgage interest rates can change quickly, pushing a home out of your budget in a matter of days. Check in with lenders before making a bid to get an up-to-date estimate of monthly payments based on current rates.
2. Include in your offer a requirement that the sales price be equal to or less than the appraised value as determined by the mortgage lender. Without such a contingency, a lender can require the buyer to make up the difference between the appraised value and the sales price.
3. Do your research. Compare the price of the home you are interested in with the prices of similar homes on the market or recently sold. In areas where home prices have been falling quickly, some real estate agents recommend narrowing the data to the last three or four months instead of year-old sales, which can be outdated.
4. If you decide to bid significantly below the asking price, be prepared for rejection. A lowball offer could be flatly rejected by an annoyed seller or viewed as the starting volley in negotiations.
5. Don’t assume that because the price of a home has been reduced, there isn’t more room for negotiation. Research prices in the area, and compare the lowered price with recent sales.
As an extension of #2, however, comes my number 6. In the wake of our current mortgage sunami, appraisal is becoming a complicated issue. An SF Gate article warns that “A major legal brawl is breaking out over how homes are appraised, at what cost and by whom. The outcome could directly affect the price you pay for your next piece of real estate and the amount of mortgage money you can obtain.”
Under then tenants of the out-of-court settlement, the result of New York Attorner General Cuomo’s investigation of “the mortgage finance giants’ appraisal practices,” these giants must adopt a particular “home valuation code of conduct.”
The code, which is scheduled to take effect on Jan. 1, would shake up the entire appraisal system:
—Mortgage brokers, who originate roughly 60 percent of all new loans, no longer would be allowed to select or pay appraisers. That could force some mortgage shoppers to pay for multiple appraisals rather than just one.
—In-house appraisers at banks and mortgage firms no longer would be permitted to do appraisals for loans to be funded by their organizations.
—Lenders would not be able to use appraisals generated by management companies – firms that contract with networks of appraisers nationwide – if they have a significant financial stake in the management company.
To some eyes, forcing Fannie Mae and Freddie Mac to reform appraisal is a great idea: “Inflated appraisals—often involving either pressure by loan officers or fraudulent collusion by appraisers themselves—played a role in at least some of the mess we’re seeing in many housing markets.”
Opponents meanwhile, such as financial and banking trade groups, claim the settlement is “bad policy.” Aside from the potential dismissal of qualified and ethical professional appraisers who work for banks, brokers “should not be prohibited from hiring independent appraisers because the current system—if strengthened by greater use of review appraisals to double-check accuracy—works efficiently for consumers and the mortgage industry as well.”
Plus, under this new agreement, “consumers would be financially tied to the first lender they, or their mortgage or real estate professional, submits their application.”
The upshot of this debate is that 6th thing homebuyers should know: Appraisal is a complicated process, with multiple (and often conflicting interests) at stake. Until we achieve an improved system with “much-tougher penalties for lenders who pressure appraisers, much-tougher penalties for appraisers who give in, and more accurate appraisals for the consumers who pay for them,” proceed with caution.
May 12, 2008
Back in February, a whole bunch of readers vociferously opposed the idea of the federal government’s economic stimulus package bailing out homebuyers facing foreclosure. At the time, I was caught by surprise and wondered if David, Doug, Slappy, Scott, Red and others weren’t being a bit cold. Well, looks like they were way ahead of a national movement.
The Angry Renter blog exists for one purpose: to oppose government bailouts, and man, when they say they’re angry, they mean it. (Check out the video, above, they created to oppose the bailouts.) They claim to have gained 45,000 signatures on the petition they posted on the site.
But how is throwing these people into the street going to help the angry renters on this and related sites such as ”Stop The Subprime Bailout,” “NoBailout.org,” and “NoMortgageBailout.com“? Isn’t it going to mean their neighborhoods will soon be infested with drug dealers and homeless people squatting in abandoned, foreclosed houses? (This is going on in my Contra Costa County ‘hood right now and it is not fun.) And that their entire neighborhoods will suffer? How does punishing these people do renters or non-foreclosed homeowners any good?
April 21, 2008
The real estate information service DataQuick reported last week that March was the slowest month in the Bay Area since they started recording statistics in 1988. Monthly sales numbers have been setting record monthly lows each month since September.
The nine-county Bay Area saw 4,898 sales take place in March, an increase of only 22.8% from February. Compare this to the historical jump from February to March each year at 40% and we are off to a poor start in the spring selling season.
DataQuick President Marshall Prentice is quoted as saying the following:
“Other parts of the state have been hit harder by the downturn in the housing market than the Bay Area. Most of the distress is in areas that absorbed spillover activity during the 2004 and 2005 frenzy. For the most part that’s the Central Valley and inland Southern California. It still appears that a lot of Bay Area activity is just on hold, waiting for the mortgage markets to open back up.”
I agree with him on the comments regarding the Central Valley and Southern California, but I disagree that the Bay Area activity is simply on hold. There may be some buyers and sellers who were waiting for the jumbo-conforming loans to come online, which they now are but at higher rates than regular conforming loans, but I don’t think they are waiting any longer. Supply is growing and demand is softening as more and more are figuring out it is a buyer’s market and prices are heading down quickly in most areas. Supply will continue to increase this summer and there won’t be enough buyers to absorb this growing supply. It isn’t just as simple as supply and demand. but it explains a lot of it! This is just the natural correction process for a ridiculously overvalued market. I don’t the think “activity is on hold” as he puts it – it is falling off a cliff just the way it should be.
January 20, 2008
With the holidays over, free workshops and seminars for the real estate neophyte are back in full swing. Especially in this time of uncertainty on the market, seems you’d want to be as smart as possible about selling or buying… and what’s smarter than taking advantage of free expert advice?
Note this week the seminars are being held all over the Bay Area.
Monday
Home-Buyer Seminar:
Presented by Pier Porrino of Caldecott Properties with Joseph Held and Sue Ballinger of Guarantee Mortgage, 6:30-8 p.m., 5251 Broadway, Oakland, free, reservation required, (510) 437-9953.
First-Time Home-Buyer Seminar:
Sponsored by Whitney Davis of Zephyr Real Estate and Tina Leonardi of Guarantee Mortgage, 6-7:30 p.m., Opera Plaza, 601 Van Ness Ave., Suite P, San Francisco, free, reservation required, (415) 533-3990.
Wednesday
Credit Reports for First-Time Home Buyers:
Presented by Consumer Credit Counseling Service of San Francisco, 5:30-7:30 p.m., 595 Market St., 15th Floor, San Francisco, free, (877) 511-2272.
Thursday
1031 Exchange Seminar:
With Katharine Holland of Coldwell Banker and Larry Weiss of Lau Financial Services, 6-7:30 p.m., 2355 Market St., San Francisco, free, reservation required, (415) 437-4588.
Saturday
Home-Buyer Seminar:
Presented by Steve Cohn of Golden State Home Loans and Robin Neydavoud of Keller Williams Realty, 10-11:30 a.m., 1528 S. El Camino Real, Suite 110, San Mateo, free, reservation required, (650) 349-7257.
First-Time Home-Buyer Workshop Certification:
Presented by Mission Economic Development Agency, 9 a.m.-5 p.m., Women’s Building, 3543 18th St., San Francisco, free, reservation required, (415) 282-3334, Ext. 21.
The Basics for First-Time Home Buyers:
Presented by Consumer Credit Counseling Service of San Francisco, 835 Market St., Room N609, San Francisco, free, (877) 511-2272.
—-
source: SFgate.com
December 21, 2007
My guess is that you will be doing one of three things this weekend: (1) on the road, traveling to festivities, (2) staying at home, wrapping and baking, (3) heading out to finish up that last-minute shopping. If you are in the third category and heading to one of the Mid-Peninsula malls, you might want to stop off at an open house to get a taste of an uncrowded atmosphere.
Hillsdale Shopping Center
981 Patricia Ave, San Mateo 3/1 $ 629,000 Sat 1-4
321 N San Mateo Dr #105, San Mateo 2/2.5 $ 725,000 Sun 1:30-4
BridgePoint Shopping Center
310 Trysail Ct, Foster City 5/3 $ 1,220,000 Sun 1:30-4:30
Stanford Shopping Center:
859 Lytton Ave, Palo Alto 4/2.5 $ 1,495,000 Sat/Sun 1:30-4:30
800 High St #105, Palo Alto 2/2 $ 1,098,000 Sat/Sun 1:30-4:30
800 High St #115, Palo Alto 2/2 $ 1,098,000 Sun 1:30-4:30
334 Poe St, Palo Alto 5/4 $ 4,750,000 Sun 1:30-4:30
