David Blockhus, Los Altos Realtor and Silicon Valley Real Estate Pro's Blog

School funding, the Superintendent Discusses Mountain View Whisman School District's Finances

Wed, 04 Mar 2009 15:18:23 -0800

The Mountain View Whisman School district receives the core of its financing based on the average daily attendance of it's students. In short, it is a Revenue Limit funded district.

Revenue limit income is a combination of local property taxes and state money. As property taxes increase, they are offset by a reduction in state money. A district that relies solely on local taxes becomes a basic aid funded school district (ie. Palo Alto Unified). For further information, read the Guide to California's School Finance System and/or California's school finance system.

In the video below, Dr. Maurice Ghysels, the Superintendent of the Mountain View Whisman School District, discusses the district's finances, parcel taxes and foundation monies.

Blogging Adopted by Coldwell Banker Leadership

Wed, 04 Mar 2009 14:55:01 -0800

Joe Brown, a 28-year real estate veteran and President of Coldwell Banker Residential Brokerage's Silicon Valley, Monterey Bay and East Bay regions has started a real estate blog called Weekly Market Watch. It's good to see Coldwell Banker's leadership adopting some of the technologies that have proven effective for their agents as well as in other industries.

Joe is a fairly straight shooter and I hope the content is one of transparency and not just corporate spin. Check out Joe's weekly market updates and decide for yourself. This week's topic is "It May Be Time To Get Off The Fence."

On another Coldwell Banker/technology front, CB has started a technology advisory group and I am one of the 20 or so members chosen to check out technologies that have uses in real estate. If you have any suggestions or know of technologies that might be useful to consumer's real estate research/search/purchase or selling experience shoot me an e-mail at dblockhus@cbnorcal.com and I will try to check them out. Thanks.

Home is Destroyed in Los Altos, California

Wed, 04 Mar 2009 14:48:33 -0800

The economy is soft and money is tight yet there continues to be a lot of construction occurring in Los Altos and it's surrounding communities. On my street alone, there are five homes under construction. Check out the short video below and see the demolition of one of my neighbor's home.

It probably took a year to build, was lived in for over a half century, yet took just 75 minutes to tear down. If you enjoy watching a large excavator smash into a wooden framed house, you'll love the video.

January 2009 Single Family Home Sales Statistics For Los Altos, California

Wed, 04 Mar 2009 14:41:49 -0800

Los Altos single family home sales were down in January 2009. However, given the state of home financing and consumer confidence, I expected the numbers to be even worse. Below is an 11 year history of Los Altos single family homes that have sold in the month of January.

A quick calculation shows that the eleven year average for home sales in January is 18, new listings is 35 and inventory is 52. In January 2009, we were at 7 sales, 41 new listings and 76 homes in inventory. The trend of fewer sales and more inventory continues...

The chart below shows the average and median sales prices for homes sold in Los Altos in the month of January. It appears that sales prices for homes sold in January peaked in 2008. 2009 prices are falling. I wouldn't use these numbers as gospel because the sample size for the number of sales is pretty small. However, there is a strong inferance that both average and median sales prices are falling.

The chart below shows the list price to sales price ratio of homes that have closed escrow in January 2009. A point to remember is most of the sales (closed escrows) went into contract in the prior month (December). January 2009 was the lowest list price to sales price ratio at 93.9% (for a January) in the last 11 years.

Lastly, the chart below shows the MLS data from the seven homes that closed escrow in January 2009. An interesting footnote is that the three homes that sold above the $2.4 million price point were sold at an *18%+ discount off of their original list prices. The three lowest sales were sold at an *8%+ discount off of their original list prices. So it does appear that higher priced homes are being sold for a higher percentage discount than their lower price counterparts. Could this be a good buying opportunity for a move up buyer in Los Altos? Could there be opportunities for investors to exchange into Los Altos real estate?

Why are home prices dropping? Besides the obvious, "It's the economy stupid" there are three reasons: (1) listing agents are taking listings too high (over promise and under deliver), OR (2) homeowner's want too much money for their home ("my house is the best in the neighborhood...."), OR (3) if the property is correctly priced and marketed, prices for homes in Los Altos are falling (ding, ding, ding you hit it on the head!). In reality, it is a combination of all three.

*statistics are from initial listing period through COE (includes properties listed, expired/cancelled and then re-listed again with same brokerage).

Thanks for reading and feel free to contact me for statistics on your neighborhood.

Note: all statistics/charts are taking from MLSListings, Inc. data, our local MLS provider and are deemed accurate but not guaranteed.

Mountain View Whisman School District's Core Values as narrated by Dr. Maurice Ghysels, the Superintendent of the Mountain View Whisman School District

Wed, 04 Mar 2009 14:34:12 -0800

In part two of the Magical Mystery (bus) Tour of the Mountain View Whisman School District (MVWSD), Dr. Maurice Ghysels, the Superintendent of the Mountain View Whisman School District, shares his thoughts about the district's core values. It's these core values of (1) academic excellence, (2) a strong collaborative community and (3) a broad world view that make the MVWSD so successful!

Note: I took this video a few months ago (fall 2008). The Mountain View Whisman School District was hosting a morning event designed to inform local Realtors about the benefits of the MVWSD and the Mountain View Educational Foundation (MVEF).

According to the MVEF web site, "the MVEF provides financial support for essential enrichment programs and educational materials district wide, for which not other funding source exists." MVEF is a non profit charity run by parents and community volunteers in an effort to raise money for the Arts, Science, Physical Education and other programs that don't receive funding. Their revised goal for 2008-2009 is $300,000 or approximately $360. per student. Please see their website for further information and/or to donate.

Single Family Home Sales in Mountain View Were Down in 2008. How Did Prices Fair?

Wed, 04 Mar 2009 14:07:48 -0800

The Multiple Listing Service is the most reliable source of local real estate market information. The following information was take from our local MLS provider (ProMLSlistings.com) and is deemed reliable but not guaranteed.

There are currently are 91 single family homes for sale in Mountain View. Of these, 14 are under contract. Therefore, 77 homes don't have buyers. At the current rate of absorption, we have over 6 months of inventory.

Below is the annual listing and sales activity for single family homes in Mountain View for each year since 1998.

As one can tell, sales numbers are down substantially from the 11 year average of 340 by 105 homes or 30%. The number of homes listed is also down but not as drastically. They are down slightly from the 11 year average (452) by 35 homes or 8%.

According to the chart below, Mountain View home prices are also starting to recede.

In 2007, the average sales price for a home in Mountain View was almost slightly over $1,085,000. In 2008 that number dropped just slightly to $1,067,000.

Due to a lack of available financing (in the higher price points), a poor overall economy and low consumer confidence, the higher end has stalled somewhat. What once drove the market is now a burden on it. How long will the local real estate market be challenged is unknown, but the economics of our market today could create opportunities for someone interested in moving up (assuming one can get financing).

As always I would be happy to provide information/statistics for your neighborhood.

Crittenden Middle School as Narrated Dr. Maurice Ghysels, the Superintendent of the Mountain View Whisman School District

Wed, 04 Mar 2009 13:59:02 -0800

I was fortunate to attend the Magical Mystery (bus) Tour of the Mountain View Whisman School District. Below is one (of many) video clips taken during a morning tour of the district. Our tour guide was Dr. Maurice Ghysels, the Superintendent of the Mountain View Whisman School District. In this video, he shares some of his thoughts about Crittenden Middle School.

Los Altos Real Estate Market Update

Wed, 04 Mar 2009 13:47:45 -0800

The Multiple Listing Service is our most efficient means to sell a home and the most reliable source of local market information. The following information was taken from our local MLS and is deemed reliable but not guaranteed.

According to our local MLS provider (ProMLSlistings.com), there currently are 65 single family homes for sale in Los Altos. Of these, 10 are under contract. That leaves us with 55 homes that are actively being marketed for sale on the MLS. I anticipate many of last year's listings that did not sell will come back on the market within the next two weeks.

Above is the October through December (4th Quarter) sales statistics for Los Altos single family homes since 2004. As one can see, over the last five years, listings have averaged 72 and sales have averaged 73. However, there was a huge drop off in the number of sales in the fourth quarter of 2008. Although listings (during the 4th quarter) have remained fairly constant over the last 5 year, the number of sales was off by approximately 50% in 2008 over the five year average. How has the huge drop in sales numbers affected Los Altos real estate values?

During the 4th quarter in Los Altos, we have seen a profound drop in both the average sales price and median sales price. Take a look for yourself. The graph below depicts the year over year sales prices (for 4th quarter of each year) for single family homes in Los Altos since 2004. Are we back to 2005 prices?

The graph below indicates that there hasn't been a significant shift in the days on the amount of time that a listing sits on the market. Although December is the typical month when listings are taken off the market and then re-listed thereby restarting the "days on market (DOM)" clock.

Tip

If a listing is re-listed and off the market for 30 days or more, it will appear on the Multiple Listing Service as a new listing with DOM and CDOM reset at zero. Always have your agent research thoroughly any listing before you make a pricing decision on a property.

Two reason's Investors are Purchasing Los Altos Real Estate.

Wed, 04 Mar 2009 13:43:03 -0800

Sue McAllister had an interesting article in the San Jose Mercury News. The topic of the article focused on who is buying homes in our declining real estate market. Her conclusion; first time home buyers and investors made up the majority of today's home buyers.

Below is an example detailing one investor's reasoning for purchasing a single family home in Los Altos as an investment.

I represented the seller of a property in south Los Altos that closed escrow in December 2008. The buyer completed a 1031 exchange, selling two properties in southern California and "trading up" and purchasing a single family home as an investment property in Los Altos. Each of the properties in southern California had good cash flow and a reasonable rate of return (apparently, he owned them for quite some time).

One may ask why this investor took two properties that had good cash flow and a reasonable rate of return and traded up to a home in Los Altos that would (initially) have a much poorer rate of return and less cash flow? Usually, one doesn't buy a $1,350,000. home and rent it out for $4,500. per month and call it a good investment. The answer...

Two reasons:

(1) Short term: the ability to locally manage the investment property - it tends to be easier and less expensive.

(2) Long term: the Los Altos investment property will eventually be converted into a personal residence and the investor's current (personal) residence will be sold. This allows the investor to take the 500K capital gains exclusion on the sale of their personal residence yet maintain a residence in Los Altos.

This type of transaction has tax implications and the 1031 exchange has specific rules to follow, but with proper planning this type of investment can save an investor tens of thousands of dollars. This investor analyzed the real estate market in Los Altos and saw the potential to make a wise investment that made sense with his overall investment objectives. Smart guy!

Note: Should you be interesting in investing in real estate, make sure that you have a well qualified tax consultant to answer questions specific to your tax situation. Without one, you can get yourself into a lot of financial trouble.

Great Value In This South Los Altos Home!

Mon, 24 Nov 2008 21:10:09 -0800

I just received a price reduction for my listing at 1701 Penny Way in Los Altos.

For those of you who may have missed it, it's a 4 bedroom 3 full bath home located on the Cupertino School District side of Fremont Avenue in South Los Altos. At almost 2100 sf and on a lot of slightly over 9500 sf, it's a great value at $1,428,000.

The home was remodeled and expanded approximately 20 years ago and features a fabulous living room with vaulted ceiling and bay window. The kitchen is spacious with an abundance of counter space and storage. Each of the bedrooms are over-sized for the tract. There is a separate family room with fireplace. The garage has been extended and has extra storage via a pull down ladder to the attic area.

Children would attend Cupertino Elementary School District: Montclaire Elementary School (956 API) , Cupertino Middle School (915 API) and Homestead High School (846 API).

The home is in close proximity to Grant Park (a 4.5 acre city park), the Foothill Crossing Shopping Center (Trader Joe's, Peet's Coffee, Starbucks Coffee etc.), and Rancho San Antonio County Park.

Below are pictures of the property:

1701 Penny Way map
View Larger Map

Grant Park, A South Los Altos Gem!

Mon, 24 Nov 2008 21:06:33 -0800

Located at the old Grant Elementary school site at 1575 Holt Avenue, the Grant Park Center offers south Los Altos residents excellent recreation facilities. There is a large natural grass soccer field, three outdoor basketball hoops, a playground area with two age appropriate play structures, toddler water play area, individual barbecues and picnic area. Most importantly, there are public restrooms.

In the summer, there are outdoor concerts where locals come with folding chairs and food to enjoy the music. There are also meeting/classrooms and a large multipurpose room with stage available for rent. Dogs are allowed on leash. Note: I've been there numerous times when dogs were running off leash. However, their owners picked up after them. See below for pictures of the park.

2-5 year old play area

5-12 year old play area

Picnic tables and barbecue area

Soccer field (notice the dogs off leash in background)

3 basketball hoops (I think they are going to resurface the courts)

Grant Park dedication plaque 6/21/1991

Is Real Estate Selling in Los Altos?

Mon, 17 Nov 2008 12:44:35 -0800

Are homes selling in Los Altos or has the economy tank our local market? If you look below, homes are still selling, but not quite as briskly as in prior years. You will also see that prices haven't tanked as well. However, single family home sales in Los Altos continue to trend down. Below is a year over year look at the last three months of sales for single family homes in Los Altos.

2006 2007 2008

August 39 28 26

September 33 15 21

October 26 21 18

Totals 98 64 65

Below is the most recent 90 day history of the single family homes sales (41 sales) in Los Altos (information taken from Promlslistings.com, our local multiple listing service. Information is deemed reliable but not guaranteed). Note: CDOM is continuous days a listing has been on the market.

Address Beds Baths CDOM List Price Sold Price

1355 Arbor 5 3.5 90 $2,995,000 $2,902,500

1551 Plateau 5 4+ 150 $2,848,000 $2,800,000

238 Valley 5 3 9 $2,695,000 $2,695,000

87 Pasa Robles 5 4+ 19 $2,495,000 $2,495,000

175 Galli 5 3 7 $2,395,000 $2,348,000

148 Garland 3 2 8 $2,199,000 $2,350,000

132 Hawthorne 3 3 12 $2,098,000 $2,300,000

60 E Portola 4 3.5 86 $2,495,000 $2,300,000

120 S Gordon 4 2.5 97 $2,295,000 $,2225,000

121 Pepper 2 1.5 168 $2,200,000 $2,225,000

926 Lundy 4 2.5 17 $2,195,000 $2,195,000

888 Stagi 4 4+ 122 $2,278,000 $2,175,000

1480 Frontero 4 3.5 20 $2,098,000 $2,065,000

1265 Thurston 4 3 51 $2,150,000 $2,040,000

1196 St. Charles 5 3 9 $1,858,000 $1,952,000

1373 Pritchett 5 4+ 49 $1,990,000 $1,900,000

656 Palm 3 3 7 $1,795,000 $1,815,000

450 Azalea 5 2.5 12 $1,795,000 $1,795,000

152 Pasa Robles 4 3.5 144 $1,828,000 $1,745,000

557 Casita 4 3 12 $1,795,000 $1,738,500

1945 Knollwood 4 2.5 9 $1,598,000 $1,725,000

949 Altos Oaks 6+ 3.5 7 $1,698,000 $1,688,000

656 Kingswood 3 2 8 $1,550,000 $1,605,000

80 Cody 4 2.5 9 $1,600,000 $1,600,300

835 Orchid 3 2.5 35 $1,698,000 $1,599,000

722 Brentwood 4 2 9 $1,598,000 $1,598,000

618 Hawthorne 3 2 15 $1,598,000 $1,598,000

1632 Kensington 3 2 27 $1,595,000 $1,500,000

545 Clark 3 2 12 $1,450,000 $1,400,000

1611 Havenhurst 3 2 37 $1,448,000 $1,400,000

1086 Los Altos 2 1 41 $1,395,000 $1,385,000

653 Arboleda 2 1 11 $1,349,000 $1,380,000

1608 Shirley 3 2 34 $1,349,000 $1,375,000

1994 Newcastle 4 2.5 80 $1,449,000 $1,370,000

710 Berry 3 2 11 $1,395,000 $1,359,500

793 Berry 2 2 15 $1,149,000 $1,158,000

1235 S Springer 3 2 110 $1,125,000 $1,090,000

934 Loraine 2 2 396 $997,000 $1,000,000

1175 Peninsular 2 1 12 $998,000 $965,000

1474 Topar 3 3 36 $2,088,000 not reported

Averages Values 50 $1,840,600 $1,819,149

The price per square foot averaged out to be $823.29/ft.

The average length of escrow was 25 days.

Los Altos Real Estate, What A Difference A Year Makes!

Mon, 17 Nov 2008 12:41:02 -0800

Image via Wikipedia

I recently had a discussion with another realtor about the state of the Los Altos real estate market. We both felt that it is somewhat easy to tract the number of home sales. However, we also both felt that due to the lower volume, the effect on sales price trends was not as easy to tract. Because sales volume is drastically down, each individual sale has a greater affect on the MLS statistical trend data.

In order to get a better understanding of Los Altos price trends, I ran a little experiment. Note: I realize that this may not be statistically sound, but I do think it is interesting.

I compared three homes that were similar in size, condition and location. The variable was in the timing of the sale. I compared two homes that sold late summer/early fall 2007 with a home that just closed escrow (early fall 2008). The difference in the sales price will (in theory) give us a better idea as to the effect the real estate downturn has had on our local real estate prices.

The sample properties are:

575 Arboleda Drive, Los Altos. This home was listed on July 17th, 2007 for $1,295,000. It was a 2 bedroom 1 bath home (approximately 1168 sf) on a 10,019 sf lot. It sold with multiple offers for $1,500,000.

535 Arboleda Drive, Los Altos. This home was listed on August 23rd, 2007 for $1,425,000. It was a 3 bedroom 1 bath home (approximately 1268 sf) on a 10,018 sf lot. It sold with multiple offers for $1,450,000.

653 Arboleda Drive, Los Altos. This home was listed on September 25th 2008 for $1,349,000. It was a 2 bedroom 1 bath home (approximately 1129 sf) on a 10,234 sf lot. It sold with multiple offers for $1,380,000.

All three homes were similar in size, condition and located within the same block on the same side of the street. The two homes that sold in 2007 have been torn down and are in the process of being re-built. The home that just closed escrow, 653 Arboleda Drive (which closed escrow on Friday), already has a chain fence around it indicating that the buyer is going to do extensive construction on the property.

Comparing these homes and the time-lines in which they sold, one can (loosely) conclude that over the past year, the price (demand) for this type of home in Los altos has dropped by approximately 8%.

Today's Los Altos Real Estate Tour, A Retrospective

Mon, 20 Oct 2008 19:55:42 -0700

Today's Los Altos/Los Altos Hills Real Estate tour consisted of 14 single family homes priced from $1,290,000 to $5,195,000. Eleven of these homes are new listings and 3 are properties being re-toured. Below are some of my thoughts on today's tour.

Highlights

1142 Lisa Lane - Listed by Brandon Schaeffer of Coldwell Banker. This is an original 3 bedroom 2 bath home on a large lot. The hardwood floors are quite nice and the spacious yard make this a home to buy and, within a few years, do a major expansion. The list price is $1,290,000.

932 Parma Way - Listed by Marc Roos of Intero Real Estate. This also is a home in original condition on an over-sized 14K+ lot. The front part of the lot is smaller than the back, so someone will need to have a good architect to design a good floor plan for the lot. The list price is $1,698,000.

530 Torwood Court - Listed by Anne Ward of Coldwell Banker. This is a tastefully remodeled 3 bedroom 3 bath home that backs to the creek. A nice home at the end of a cul-de-sac, but not a whole lot of space in the backyard. The list price is $2,195,000.

316 Sunkist Lane - Listed by Chin Hsu of Alain Pinel Realtors. This is a very clean 4 bedroom 4.5 bath home near the end of a cul-de-sac. The list price is $3,380,000.

204 Alvarado Avenue - Listed by David Troyer of Intero Real Estate. This is a 5 bedroom 4+ bath home with a nice wine cellar. The house was tastefully done and the backyard has a great swimming pool and entertainment area. The only downside to this home is the next door neighbor's property - it's not nearly as nice. I thought this was the best home on today's tour. The list price is $4,650,000.

12011 Greenhills Court, Los Altos Hills - Listed by Judy Bogard and Sheri Hughes of Alain Pinel. Good house and location, but it appears that it hasn't been updated at all. One could easily spend a lot of coin remodeling this one. However, it might be worth it because the location and usable yard are great. I think the list price is a little aggressive at $5,195,000.

Other

1625 Hazelaar Way - Listed by Lorraine Combs of the Sereno Group. This 3 bedroom 2 bath home has an odd floor-plan, no master bedroom and no garage. However, two of the bedrooms are quite large. The list price is $1,499,000.

975 Berry Avenue - Listed by Cindy Mattison of Coldwell Banker. Odd house, odd floor-plan, and large but irregular lot. The list price is $1,798,000.

1285 Richardson Avenue - Listed by Catherine Qian of Intero Real Estate Services. This is a renovated and expanded home located on the corner of Richardson and Grant Road. Uninspiring! The list price is $2,388,000.

Highlights and Lowlights of Today's Sunnyvale Real Estate Broker’s Tour

Mon, 20 Oct 2008 19:53:08 -0700

It was such a beautiful morning that I decided to go on the Sunnyvale Broker's tour on my mountain bike. You should have seen some of the reactions of my fellow Realtor's. It was as if they had never seen someone on a bike before. Anyway, outside of making one wrong turn, it was a great morning combining exercise and work.

The first home I saw was 1582 Belleville Way, listed by Sharon Arnold of Coldwell Banker. This was a beautifully remodeled 3 bedroom 2 bath home on a double lot just a half block from West Valley Elementary school. It is listed at $1,198,800. Unfortunately, the home backs up to highway 85, so it will be interesting to see where this one ends up.

1321 Pauline Drive is listed by Dave Clark of Coldwell Banker. Unfortunately, this 3 bedroom 1 bath home didn't show well because it is tenant occupied and very cluttered. Priced at $1,150,000, the home has a nice floor-plan with some remodeling and a large yard with room to expand. It's advantage is also a drawback - schools. Stocklmeir Elementary and Cupertino Middle School are outstanding schools, but Fremont High is not.

1031 Pilinut Court is listed by Mei Chan of Intero Real Estate Services. This 4 bedroom 2 bath home has a great location and is nicely remodeled. Priced at $1,098,000, I think it should sell right away. It is my pick as the best home on tour today.

880 Mockingbird Lane is listed by the Blair Team, Keller Williams. I did not like the house or it's price ($1,280,000). It is my pick as the worst home on tour today.

1145 S. Bernardo Avenue is listed by Don and Sally of Alain Pinel (sorry, no web link). The house has a good floor-plan, is a little dark and smells like the Great Dane dog (especially the master bedroom). It is listed at $988,888.

1141 Rockefeller Drive is listed by Nil Erdal of Coldwell Banker. I really liked what they did with this Ditz-Crane home. However, the interior colors may be too specific for a buyer and the living room walls will need to be repainted because of their integration with the wall art (you have to see it to understand). Still, it is a very nice (artsy) home with good schools. It is listed at $1,318,000., which might be a little aggressive.

Los Altos Real Estate, Home To Two Of America's Most Expensive Zip Codes

Mon, 20 Oct 2008 19:50:34 -0700

Image via CrunchBase

According to a recent article by Matt Woolsey of Forbes.com, Los Altos real estate is home to two of the most expensive zip codes in the nation, 94024 and 94022. The zip code 94024, which covers much of the southern portion of Los altos and Los Altos hills, was ranked 30th with a median price of 1.57 million dollars. The zip code 94022, which covers much of the northern part of Los altos and Los altos hills, was ranked 45th with a median sales price of 1.5 million dollars.

Los Altos Real Estate Statistics, What Do The Third Quarter Sales Numbers Tell Us?

Mon, 20 Oct 2008 19:47:50 -0700

According to our local MLS provider (ProMLSlistings.com), there currently are 98 single family homes for sale in Los Altos. Of these, 23 are under contract. That leaves us with 75 homes that are actively being marketed for sale on the MLS.

Above is the July through September (3rd Quarter) sales statistics for Los Altos single family homes since 2004. As one can see, over the last five years, listings have averaged 141 and sales have averaged 95. However, there continues to be a downward trend for both listings and sales. In fact, in the third quarter 2008, the number of listings was off by approximately 19% and the number of sales was off by approximately 28% over their five year averages. How has this overall decline in listings and sales affected Los Altos real estate values?

In a word (actually two words), just slightly! The graph below depicts the year over year sales prices (for 3rd quarter of each year) for single family homes in Los Altos since 2004.

As one can see, both the median and average sales prices have gone up every year. Although the year over year increases aren't the large scale ones we saw from 1997-2000 or 2003-2005, they are trending in the right direction.

Days on the market continues to hover around 27-30 days. If you have a home on the market for 4-6 weeks (especially in the lower price range), it might be time to adjust the price or ramp up the marketing efforts.

Interesting enough, the average sales price to list price ratio continues to remain strong, hovering around 100%. In Q3 2004, the average sales price to list price ratio was 101.06%. In Q3, 2005 it was 100.03%. In Q3, 2006, 99.11%. In Q3, 2007, 99.77% and in Q3 2008, 99.03%.

This year's market will continue to be driven by the first time and Los Altos home buyer and those who want to move up. Those are the two markets that appear to be the most active. We are seeing a few multiple offers (the exception rather than the rule) on properties priced between $1,400,000 and $1,800,000.

As we head to the late fall and early winter, our market activity will continue to slow. As always, pricing strategies and how one prepares one's home for the market will be extremely important.

Risk Management And Six Steps Every Home Seller (And His/Her Agent) Should Take To Protect Themselves From Future Lawsuits

Mon, 20 Oct 2008 19:44:30 -0700

It always seems that with a softening in our local real estate market, there is an increase in real estate related lawsuits. When the real estate market is good (and appreciating), buyers are happy. But when it softens, buyers are looking for someone to bail them out. According to four prominant Silicon Valley real estate attorneys, we are seeing an increase in litigation surrounding homes purchased within the last few years.

On Monday I sat through a 2+ hour legal forum put on by out local real estate board that featured Stan Smith, attorney for Alain Pinel Realtors, Bill Jansen attorney for Cashin Company, Ron Rossi, attorney for Intero Real Estate and Victoria Naidorf, Attorney for Coldwell Banker. The topic was Risk Management and how to protect one's client and oneself from lawsuits.

One issue that seller's rarely think about when they are selling their home is Risk Management. Usually a seller's focus is on the money and/or how soon they will get it. Disclosure law rarely factors into the equation. Unfortunately, incomplete or inaccurate real estate disclosure increases a seller's liability which can lead to costly and unnecessary lawsuits.

For those of you who are attempting to sell your property yourself (for sale by owner) and not employing the services of an experienced real estate professional, be aware! Given that I have found that many real estate professionals don't understand the disclosure process, it is less likely that you will. The liability for full disclosure falls solely on your shoulders. Do it incorrectly and it might be a very expensive lesson.

Many uninformed sellers (and short sighted real estate agents) look at disclosure documents as marketing pieces used to make the property more saleable. Adjectives like "minor ponding," "hairline cracks," and "slight traffic noise," are used to describe a garage that floods annually, a shifting foundation, and a house backs up to a major freeway. In good times, these adjectives are sometimes overlooked. Today, they are the foundation (pun intended) of an expensive lawsuit.

Now, I am not a real estate attorney, nor do I play one on T.V. However, I do have 15+ years experience in selling homes and making sure that I don't put my clients in a situation that might cost them down the line. These are some of the steps that I use to make sure that my client is protected: Note: you should check with your own real estate agent for their recommendations. For those going it alone, I would strongly recommend talking with a real estate attorney (not your brother's room mate who is a Trust and Wills attorney).

Disclose everything. As a seller, if you are questioning whether or not an issue should be disclosed, the fact that you're questioning it, probably means that you should disclose it.
If you have any reports, inspections (regardless of age) on the property, included them as part of your disclosure.
Don't leave any questions on the disclosure documents blank. It makes a buyer wonder what you are hiding.
Complete the documents legibly and with the same pen (same ink color). Illegible writing makes a buyer wonder what you are hiding. Different colored inks could indicate that the disclosure information was changed or added after the fact.
If there is a change or update to a disclosure, make sure it is put in writing. Have it dated and acknowledged by the other side (e-mail works great for this).
Complete all of the disclosure documents at the same time and give them to any potential buyer prior to a buyer writing an offer.

Your real estate professional should review the disclosure documents with you in order to get clarification on the issues contained in the disclosure documents. If he/she doesn't, ask him/her why. If he/she hasn't read your disclosures, how can he/she intelligently answer questions about your property. Remember your agent has a fiduciary responsibility to maximize your sales price. Your agent must do the things necessary to allow you to keep all proceeds from the sale of your home. In addition to having a good marketing plan, web presence, experience, etc, a good real estate agent must do all the things necessary to keep you out of any future legal problems.

Los Altos Elementary School's Academic Performance Index (API) Scores Are Up Slightly

Wed, 10 Sep 2008 19:08:08 -0700

In results released last week, the Los Altos Elementary School District's Academic Performance Index (API) increased 5 points from 954 to 959. API Scores are used to determine the academic performance and improvement of a school and/or school district. Below is the break down of the Los Altos school's API scores:

Elementary School 2007 Base 2008 Growth Improvement

Almond Elementary 968 964 4

Covington Elelmentary 928 954 26

Loyola Elementary 972 974 2

Oak Elementary 969 982 13

Santa Rita Elementary 952 959 7

Springer Elementary 948 959 11

Middle School 2007 Base 2008 Growth Improvement

Egan Junior High 958 962 4

Blach Junior High 950 937 -13

High School 2007 Base 2008 Growth Improvement

Los Altos High 802 795 -7

Mountain View High 833 854 21

For further information about the Accountability progress reporting system, the California Department of Education has prepared an informational guide entitled the 2007-08 Academic Performance Index Reports Information Guide.

An In-Depth Look At The Oak Park Condominiums In Mountain View

Wed, 10 Sep 2008 19:04:15 -0700

The Oak Park Condominium complex, located just west of El Camino Real at 938 Clark Avenue in Mountain View, consists of 62 units spread out over 4+ acres of Oak studded grounds. Built in 1978, the complex consist of eleven 2+story buildings, a nice swimming pool and clubhouse.

There are thirtytwo 2-bedroom 1-bath units which are located in buildings 2, 3, 5, and 11 and thirty 2-bedroom 2-bath units which are located in buildings 1, 4, 6, 7, 8, 9, and 10. Located on the street level of each building is an extra long 1-car garage. Walk up two small flights of stairs (7 steps each) to reach the "first floor" units. Two more small flights of stairs (7 steps each) and you reach the second and/or top floor units.

According to county records, the 2-bedroom, 2-bath units have 1069 square feet of livable space and the 2-bedroom, 1-bath units have 982 square feet of livable space. Unlike many of the new condo complexes that are being built today, one can actually get a decent sized bed and furniture in the bedrooms.

The galley style kitchen leads to a small dining area. Many of the kitchens have been remodeled, but there still are a few that haven't. Note: the kitchens are all electric, so no gas appliances. The living room looks out on to the small deck with storage closet. Note: the living room in end units have an additional window that provides more natural light. Each unit has an interior closet area for a stack-able washer and dryer (most washer/dryers are left at the property when the property is sold, but I would confirm that with the seller and note it in any offer).

The units are heated with electric baseboard heaters and there is no fireplace or air conditioning.

Upgrades that I have seen in the units over the years include: double pane windows, solar tubes that allow more light (top floor units only), and hardwood floors.

As you can tell from the information below, not many units sell in any given year.

Sales of units at 938 Clark Avenue since 2005(statistics taken from pro.mlslistings.com and are deemed accurate, but not guaranteed)

Address Bds/Bths Sq. Ft. List Price Sales Price Date

938 Clark Ave #45 2/2 1069 $589,000 $570,000 4/01/08

938 Clark Ave #3 2/2 1069 $580,000 $567,000 1/23/07

938 Clark Ave #15 2/1 982 $549,000 $540,000 12/13/07

938 Clark Ave #18 2/1 982 $543,000 $533,500 6/23/06

938 Clark Ave #36 2/2 1069 $575,000 $580,000 4/28/06

938 Clark Ave #1 2/2 1069 $519,000 $507,000 9/20/05

There currently is one unit for sale. It is listed by Chuck Lane of Coldwell Banker Los Altos (the office that I work in).

938 Clark Ave #33 2/1 982 $498,000 List date 09/04/08

Photos of the Oak Park Condominium Complex: click on thumb nail to enlarge

Are Los Altos Real Estate Agents Still Using Old School Marketing Techniques?

Wed, 10 Sep 2008 19:01:24 -0700

Promotional flyers have been used by agents in marketing homes in Los Altos and the surrounding cities for many years. With technology getting better and more sophisticated, one would think that the number of agents who use promotional flyers targeted at real estate agents as part of their marketing efforts would be zero (or close to that).

Promotional flyers are just that, 8 1/2 by 11 inch flyers that describe a property and it's amenities. They are targeted towards the real estate agent and are similar to the flyer that is handed out at open houses.

About 15 years ago, when the MLS consisted of a 1/2 inch thick book of homes for sale, I used to use a company to distribute promotional flyers about my listings to local real estate professionals. This company would hand deliver my flyers to all the local real estate offices and they would be put in the individual agent's mail box. The cost was relatively cheap (about $15.00 for 450 flyers) and, at the time, a relatively good method of keeping agents informed about my listings.

Today, this method of property promotion is about as effective as the using the Pony Express to deliver documents. It's extremely out-dated. It is a huge waste of money, time and more importantly, resources. Most active real estate agents have a network of e-mail contacts and/or personal contacts within the real estate community that makes paying for the distribution of information via a paper flyer useless. (picture courtesy of http://www.jankyvision.com/2008/01/this-day-in-history-pony-express-when.html)

Most agents who receive these flyers, either recycle them or throw them away without ever reading them. They are the real estate equivalent of junk mail solicitations that we all receive at home. No one wants them, they aren't read and they're thrown away very quickly.

In addition to not being an effective means of property promotion, they waste a lot of paper and other resources. The minimum order quantity currently is about 400 flyers and the cost is about $35.00 per area. If 10 agents mailed weekly (just to the Los Altos, Palo Alto and Menlo Park area), that's over 16,000 sheets of paper ending up in the trash/recycle bin per month. Multiply that by the 26 delivery areas and that's a lot of dead trees.

If your real estate agent boasts about his or her marketing plan that involves the use of distributing real estate flyers to each agent, I would question whether the rest of the marketing plan was current and targeted for today's buyers and their agents.

How To Reduce Your Title Insurance Costs When You Purchase A Home In Los Altos?

Wed, 27 Aug 2008 20:25:03 -0700

When I began selling homes in Los Altos 15 years ago, a consumer's knowledge of the Title Insurance product was relatively low. Today, that level of knowledge isn't much better. What I have found is that the consumer assumes that the cost of title insurance is somehow fixed and rather than investigate, they take the recommendation of their agent.

Taking the recommendation of your agent is not a bad thing. In fact, the consumer should rely on their agent. After-all, that is (in part) why Seller's hire a real estate professional in the first place (because we have experience and knowledge related to buying and selling residential real estate). A problem can occur if the agent hasn't investigated and compared the costs of title policies.

Picture courtesy of Title Insurance Panama

Since there are at least half a dozen title companies in Los Altos, how do agents choose a title company for their client? More often than not, the title company is picked based on the relationship between the agent and title representative. This can be good, but it also can be bad.

As a Realtor, I want a title company to be responsive. Having a good relationship with my title rep can make it easier to get things done for my client. Conversely, if the agent hasn't checked the fee structure out, the client may pay more for title insurance than necessary.

In Santa Clara County, the Seller pays the title and escrow fees, the Buyer pays the lender's policy. In San Mateo County, the buyer pays the title and escrow fees as well as the lender's policy.

I recommend consumers go to the California Land Title Association web site to get a better understanding of title insurance, to understand what is covered in a title policy and lastly, to compare the costs between the different title insurance providers.

I did a quick comparison of title fees amongst Los Altos Title companies using using the CLTA's Title Wizard. I wanted to get an estimate as if I was a Seller of a single family home in Los Altos. The other parameters that I used are below:

Purchase price - $1,750,000

Long term rate - Haven't purchased or re-financed in last 5 years

ALTA/CLTA Homeowner's policy

THE RESULTS:

Cornerstone Title and First American Title were the least expensive at $3,291.00

Stewart Title was next at $3,370.00

Old Republic Title was next at $3,487.00

Fidelity National Title and Chicago Title were next at $3,775.00

North American Title was next at $4,268.00

Several of the companies are within 3-4%, but if you compare the lowest with the highest, there is almost a 30% difference ($977.00). You can run this analysis as a buyer as well. However the fee difference for a lender's policy is minor.

Note: In an effort to disclose fully (that whole transparency thing), I have my real estate license housed at Coldwell Banker which has a financial interest in Cornerstone Title. However, the analysis was done by a third party, the California Land Title Association which is not affiliated with Coldwell Banker (at least not that I'm aware of).

If you are buying and/or selling a home and want to save a little money on your title policy, a quick check online can help you understand the fees. If it were me, I would contact the title company and have them give you a written estimate of the fees up front. It could save you money in the long run.

Crime in Los Altos? Crime in Sunnyvale? Check It Out Online!

Wed, 27 Aug 2008 17:20:01 -0700

This is an update to a post I wrote on February 26th, 2008 titled "Crime In Your Neighborhood? Check It Out Online!." Crimereports.com now includes crime statistics for the cities of Los Altos and Sunnyvale.

Los Altos Real Estate Statistics, What Do The First Half Sales Numbers Tell Us?

Wed, 27 Aug 2008 17:15:59 -0700

The Multiple Listing Service is our most efficient means to sell a home and the most reliable source of local market information. The following information was take from our local MLS and is deemed reliable but not guaranteed.

According to our local MLS provider (ProMLSlistings.com), there currently are 94 single family homes for sale in Los Altos. Of these, 30 are under contract. That leaves us with 60 homes that are actively being market for sale on the MLS.

Above is the January through July semi-annual sales statistics for single family homes since 2005. As one can see, over the last four years, listings have averaged 281 and sales have averaged 173. However, there continues to be a downward trend for both listings and sales. In fact, in the first six months in 2008, the number of listings is off by approximately 13% and the number of sales is off by approximately 17% over their four year averages. How has this overall decline in listings and sales affected Los Altos real estate values?

In a word (actually two words), not much! The graph below depicts the year over year sales prices (first half of each year) for single family homes in Los Altos over the last four years.

As one can see, both the median and average sales prices have gone up every year except 2006. Although the year over year increases aren't the large scale ones we saw from 1997-2000 or 2003-2005, they are trending in the right direction.

An interesting footnote to these sales stats is the fact that the average sales price to list price ratio has also declined over the last four years. In 2005, The average sales price to list price ratio was 104.09%. In 2006 it was 101.78%. In 2007, 101.92% and in 2008, 99.77%. I guess that explains why not too many listing agents are touting their sales price to list price ratio in their advertisements anymore.

The first half of 2008 has not been as bad as many had predicted. We have been fairly insulated from the problems associated with short sales and REO's . The on-going problem is finding lenders who aren't afraid to loan money to qualified buyers.

This year's market will continue to be driven by the first time Los Altos home buyer and those who want to move up. Those are the two markets that appear to be the most active. We are seeing multiple offers on many properties priced between $1,300,000 and $1,700,000. On homes priced between $1,700,000 and $2,300,000 it's hit or miss on whether the home gets an immediate offer. On homes priced above the $2,300,000 price point, homes tend to be sitting for awhile and it's the exception rather than the rule if a home in this price point sells right away. As always, pricing strategies and how one prices one's home for the market is extremely important.

Mountain View Real Estate Statistics, What Do The First Half Sales Numbers Tell Us?

Wed, 27 Aug 2008 17:13:03 -0700

The Multiple Listing Service is our most efficient means to sell a home and the most reliable source of local real estate market information. The following information was take from our local MLS and is deemed reliable but not guaranteed.

According to our local MLS provider (ProMLSlistings.com), there currently are 101 single family homes for sale in Mountain View. Of these, 35 are under contract. That leaves us with 66 homes that are actively being market for sale on the MLS.

Below is the listing and sales activity for single family homes in Mountain View for the first six months for each year since 2005.

As one can see, over the last four years, listings have averaged 233 and sales have averaged 151. However, there continues to be a downward trend for both listings and sales. In the first six months of 2008, the number of listings is right at its four year average (233). The number of sales is off by approximately 24% over their four year averages. How has this overall decline in sales affected Mountain View real estate values?

In a word (actually two words), not much! The graph below depicts the year over year sales prices (first half of each year) for single family homes in Mountain View over the last four years.

As one can see, both the median and average sales prices have gone up until a slight drop for this year. Although the year over year increases aren't the large scale ones we saw from 1997-2000 or 2003-2005, they are trending in the right direction. This year we have seen a higher percentage of entry level homes in Mountain view sold versus the higher end or west of El Camino Real homes.

The first half of 2008 has not been as bad as many had predicted. Although we have been fairly insulated from the problems associated with short sales and REO's, we are seeing more of them in Mountain View, especially east of El Camino Real. The on-going problem is finding lenders who aren't afraid to loan money to qualified buyers.

This year's market will continue to be driven by the first time Mountain View home buyer and those who want to move up. These are the two markets that appear to be the most active. Short sales will continue to have a slight downward pressure on sales prices east of El Camino Real.

We are seeing multiple offers on the few homes available west of El Camino Real and those neighborhoods that are within the Los Altos School District. As always, pricing strategies and how one prices one's home for the market is extremely important.