tag:blogger.com,1999:blog-29924609352650116732024-03-18T21:35:02.853-07:00Piedmont HomeA blog about the East Bay real estate scene, particularly in Piedmont, CA, of interest to buyers, sellers, and residents alike.Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.comBlogger315125tag:blogger.com,1999:blog-2992460935265011673.post-36751207858255828712018-04-14T13:55:00.000-07:002018-04-14T13:55:03.769-07:00<div dir="ltr" style="text-align: left;" trbidi="on">
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<i>Same Old Same Old-------</i></div>
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I've got my standard Italian bean soup cooking away on the stove, and prepared meyer lemon-chinotto marmalade during much of yesterday (back in the '60s and '70s, I made calamondin marmalade regularly with my grandmother; it starts with covering the seeds with water and waiting for hours for the pectin to draw out). So I'm very much in the "low and slow" frame of mind right now, and that describes the overall Piedmont market in many respects. </div>
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Last quarter, the average Piedmont home sold for $2.304 million (median $2.3M) in 13 days, at 14% over asking. That converts to an average $841/sf. The low and slow element is that in 1Q17, the average home sold for $2.318m, in 12 days, at 16% over asking, or $842/sf. So yet again, prices appear rather flat in contrast to all the hype. A few more details: In both quarters, only 14 or 15 homes sold, with about 5 offers on average and the lowest prices were at about $1.3-$1.4 million, and highest prices (remember, these are as reported by the MLS only) were well over $3.5 million.</div>
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Within this quarter's data however, there are a few shocking items: Two properties sold for more than 40% over the asking price, and one smaller home that hasn't closed yet will sell for over $2 million, despite missing the usually essential master bath! Buyers ignore homes that are completely rebuilt, with high-quality all-new everything, but go for broke when they see the big flat backyard, even if the infrastructure is original and the lot is likely to pose problems for future permits. There is a hard-to-predict impulsiveness in the market that we realtors rarely see, and I assume is buttressed by tech money. (And remember, it's the shocking outcomes that we all hear about, not the "now why did <em style="font-size: 14pt;"><strong>that</strong></em><span style="font-size: 14pt;"> take 3 weeks to sell?" outcomes.)</span></div>
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Looking further afield, our immediate Oakland neighbors (detached homes in Oakland 94610, 11, and 18) saw average sales prices of $1.413 million (compared to $1.387 million a year prior). This is a significant shift, representing a less-than-2% increase over the course of a year, after several years of double-digit increases. Particularly expensive homes have a place in the market; in both 1Q18 and 1Q17, the highest price sale was about $3.4 million. </div>
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Turning to all of Berkeley, 70 detached homes sold for an average $1.283 million, up less than 3% from $1.248 million a year ago. The typical home sold in 14 days, at 18% over the asking, and garnered 5 offers. Recall that the Ca Assoc of Realtors estimated price hikes of only 1% statewide in 2018.</div>
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While across our "inner East Bay" market, the total number of available listings was down about 1/3 during the quarter, total listings in both higher-end Oakland and all of Berkeley were down by only about 10% (and flat in Piedmont). Interestingly, in both high-end Oakland and Berkeley, the price per square foot was <strong>up</strong> 1Q18 over 1Q17, about 9%, quite a bit more than the average sale price. This suggests that smaller homes were capturing more of the price escalation than somewhat larger homes (perhaps because more buyers could afford only somewhat smaller homes, after a few years of jack-rabbit price increases, and 1/2% increases in mortgage interest rates).</div>
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<a href="mailto:Kennedy@MaureenKennedy.Net" linktype="2" shape="rect" style="color: blue;" target="_blank">Let me know</a> if you think this review suggests that now might be an excellent time to capture the last decade's rapid gains and sell.....</div>
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It's Garden Time!</div>
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<span style="font-size: 14pt;">As soon as the soup is done, I'm heading out to Ace Garden to pick up tomatoes, greens, eggplant, and cosmos (the end of last winter's chard is going into the soup at the last minute.....). But there's so much more to consider! Natives, vines for the back fence, rugosa roses for the birds out in Inverness, another Andean </span><span face="Garamond, Times New Roman, Times, serif" size="4" style="font-size: 14pt;">fuchsia for the hummingbirds....</span></div>
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<span face="Garamond, Times New Roman, Times, serif" size="4" style="font-size: 14pt;"><a alt="https://www.washingtonpost.com/news/where-we-live/wp/2015/04/01/how-much-value-does-landscaping-add-to-your-home-when-selling/?noredirect=on&utm_term=.6a4c862f32a7" href="https://www.washingtonpost.com/news/where-we-live/wp/2015/04/01/how-much-value-does-landscaping-add-to-your-home-when-selling/?noredirect=on&utm_term=.6a4c862f32a7" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">Here's</a> a little piece outlining how much landscaping improvements add to home value. I agree that the main goal of outdoor work when putting a home on the market is to ensure that the exterior is attractive enough that it encourages buyers to come in and look <strong>inside</strong> the house. </span></div>
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<span face="Garamond, Times New Roman, Times, serif" size="4" style="font-size: 14pt;">Sometimes we really need a colorful pot or bench to identify the front door (I can't tell you how many visitors out in Inverness end up at the right-side mudroom door rather than the attractive left-front door opening into a roomy entry space--a colorful pot at the front door would draw folks over). Or to enable the "the lot runs roughly out to that bench" small talk. Or to encourage folks to go up to a place where a nice Bay view unfolds unexpectedly.</span></div>
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<span face="Garamond, Times New Roman, Times, serif" size="4" style="font-size: 14pt;">If you're looking for some easy-care or aff<span style="font-size: 14pt;">ordable plants where your purchase will benefit the field, know that n</span></span><span style="font-size: 14pt;">ext Saturday is the </span><a alt="http://www.ebparks.org/activities/features/native_plant_sale.htm" href="http://www.ebparks.org/activities/features/native_plant_sale.htm" linktype="1" shape="rect" style="color: blue; font-size: 14pt;" target="_blank" track="on">East Bay Parks Botanic Garden native plant sale</a><span style="font-size: 14pt;"> (the sour chinottos came from my client, the Garden's director.....); and this entire coming week is the Ruth Bancroft Garden's </span><a alt="https://www.ruthbancroftgarden.org/rbgarden/pages/otherevents.html" href="https://www.ruthbancroftgarden.org/rbgarden/pages/otherevents.html" linktype="1" shape="rect" style="color: blue; font-size: 14pt;" target="_blank" track="on">annual succulent sale</a><span style="font-size: 14pt;">.</span></div>
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Coming Soon--</div>
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If you're pining for an extraordinarily private "killer" Bay view in central Piedmont, and can accommodate 2+ bedrooms (and 2.5 baths, in a roomy 2000 sf, with a fabulous big garden), watch this space for my newest listing, coming to market 4/26......</div>
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Capturing Gains....</div>
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Refer back to my <a alt="https://www.blogger.com/blogger.g?tab=wj&blogID=2992460935265011673#editor/target=post;postID=5184415840878547943;onPublishedMenu=allposts;onClosedMenu=allposts;postNum=0;src=postname" href="https://www.blogger.com/blogger.g?tab=wj&blogID=2992460935265011673#editor/target=post;postID=5184415840878547943;onPublishedMenu=allposts;onClosedMenu=allposts;postNum=0;src=postname" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">last newsletter</a> for an update on the new tax bill's not-so-great news for Californians with more expensive homes. (Quick summary--many of us will be able to deduct only half of our local tax bills ($10k max), and maybe 1/3 or 1/4 of our mortgage interest ($10k max) compared to very longstanding tax policy...maybe right-sizing makes even more sense now!) </div>
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Whenever you sell, you typically owe capital gains taxes on the gain between your purchase price and your sale price (after pulling out <a alt="https://www.irs.gov/taxtopics/tc701" href="https://www.irs.gov/taxtopics/tc701" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">$500,000 you get to keep tax-free</a>, your purchase costs, sales costs, capital improvements, and so on). </div>
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This typically is a non-issue anywhere other than the Bay area. But it's often not a huge deal, even in Piedmont: If you bought for $1 million and your home is now worth $2 million, your exposure might be $2 million sale price-$1 million purchase price-$500,000 capital gains excluded-$120,000 in sales costs and $20,000 in purchase costs and say $50,000 in capital improvements, or $300,000, and the tax might be $100,000. </div>
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Stop and think about that. You pay $100,000 tax on $1.88 million in cash out the door (assuming you've paid off your mortgage). <strong>No so bad.</strong> (See <a alt="https://www.irs.gov/publications/p523" href="https://www.irs.gov/publications/p523" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">this IRS pub</a> for more info--I send it to all my sellers, along with their settlement sheets, in late December as a courtesy for tax prep.)</div>
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If the loss of tax advantages is weighing on your mind, but your home is big enough that you're concerned about capital gains tax, consider two options (both of which I've personally experienced):</div>
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--If you're willing to rent your home for about a year (and have cash to live somewhere else), you can treat your home as both owner-occupied (for purposes of pulling out the $500,000 noted above), and as an investment property (in which case you can <em><strong>defer</strong></em> capital gains taxes into the future as you exchange this property for another investment property, which likely will throw off income for your future). See <a alt="https://www.1031exchange.com/converting-property/" href="https://www.1031exchange.com/converting-property/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">this factsheet</a> for more.</div>
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--If you're philanthropically inclined, and again have cash to cover living expenses, you can <em><strong>donate</strong></em> your home (or in my case an investment property) to a charity, ignore the capital gains issue entirely, and get a big charitable deduction (unchanged in the tax bill) that can shield significant regular income in the coming few years. Schwab Charitable, the East Bay Community Foundation, and other donor-advised funds will sell the property and pop the net proceeds into an account that you (or heirs) can direct to your favorite charities in the coming years. See <a alt="https://www.schwabcharitable.org/public/file/P-7256729" href="https://www.schwabcharitable.org/public/file/P-7256729" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">this factsheet</a>, written by Piedmont's<span style="font-size: 14pt;"> own Barbara Benware for Schwab for more. And large charities like my alma mater <a alt="https://alumni.harvard.edu/college/college-giving/gift-planning/real-estate" href="https://alumni.harvard.edu/college/college-giving/gift-planning/real-estate" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">Harvard</a>, will happily take your donation of real estate.</span></div>
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<span style="font-size: 14pt;">I'm not your lawyer; I'm not your tax advisor; I'm your real estate broker whose job is to help you make great real estate decisions. But if this makes sense, let's talk!</span></div>
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<span style="font-size: 14pt;">More later in the month!</span></div>
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<span style="font-size: 16pt;">As Always--</span></div>
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I hate spam and unauthorized phone solicitations as much as you do. Know that I'll never share your email, and that you may unsubscribe below.</div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-51844158408785479432018-01-18T20:40:00.000-08:002018-01-18T20:40:47.848-08:00Happy New Year! Piedmont RE Update--<div dir="ltr" style="text-align: left;" trbidi="on">
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<em>Happy New Year!</em></div>
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We're through the holidays and looking forward to the coming year--and all its changes and opportunities! Where might a home purchase or sale fit among your New Year's resolutions? I'm already slotting buyers and sellers into the calendar, so be sure to<a _mce_href="mailto:Kennedy@MaureenKennedy.Net" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="mailto:Kennedy@MaureenKennedy.Net" linktype="2" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank"> reach out </a>to get the process rolling. And remember, my job and passion is to help you make great real estate decisions; I get paid when you or someone you know buys or sells relying on my expertise. </div>
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Last year was really quite strong for me, with over $15 million in real estate bought and sold, including five over-$1.9 million sales. With the tax law now changed and demographic and economic forces uncertain, you especially need to rely on a deeply experienced licensed broker focused on <strong><em>your</em></strong> local market. And know that if you want assistance in a different state, different region, or over a bridge or through the tunnel, any broker working with your interests paramount will refer you to an agent or broker who focuses on <em><strong>that</strong></em> local market. We all should know what we don't know, and not be distracted by the possibility of making a buck at our clients' expense.</div>
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You'll find below an end-of-year recap on Piedmont, the East Bay, Bay Area, CA and national real estate trends, an update on the final final tax changes and what they might mean for you ( :( ), some analysis of the sell vs. renovate choice, and some other cats and dogs. By the way, did you know that 40% of homebuyers in CA drive their home-buying choices with pets in mind?</div>
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The Big Picture</div>
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I've been poring through various analyses of 2017, plus forecasts for 2018, including Pacific Union's Northern California analysis and forecast in collaboration with John Burns Real Estate Consulting (see the one-hour video <a _mce_href="https://youtu.be/8GXWwXNGPLw" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="https://youtu.be/8GXWwXNGPLw" linktype="1" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank" track="on">here</a>), Southern California forecast (see that video <a _mce_href="https://youtu.be/C1JMHsdQfUk" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="https://youtu.be/C1JMHsdQfUk" linktype="1" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank" track="on">here</a>), the Urban Land Institute's Fall 2017 forecast for commercial as well as residential real estate (<a _mce_href="https://youtu.be/LaMrEb2lbIE" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="https://youtu.be/LaMrEb2lbIE" linktype="1" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank" track="on">here</a>), and the excellent analysis and forecast of the Ca Association of Realtors (CAR) (you'll have to <a _mce_href="mailto:Kennedy@MaureenKennedy.Net" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="mailto:Kennedy@MaureenKennedy.Net" linktype="2" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank">email me</a> for a copy of the Powerpoint deck). If you just want the tasty bits, read on.</div>
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All the experts seem to think that the economy and job growth will be slowly cruising along through the coming couple of years. To the extent that real estate has derived demand, that's a good thing: It appears you'll have someone with a job and resources to sell your home to. The expectation is that interest rates will rise about 20 to 25% (from 3.x to 4.x) between now and 2020. That is, they will remain very low by historic standards, but note that when interest rates go up 20%, payments go up about 20%. And 20% more of a big number is a big number (even if incomes are expected to increase by 3% nationally and 4.3% in California in the coming year). So we'll be watching to see if rate hikes lead to some softening in the market. Unemployment will remain low (it was 4.2% nationally, 5.4% across CA, and 4.4% in Oakland/3.3% in SF at the time of the CAR report). Bay Area tech jobs have been not only growing at a slower rate, but actually declining slightly in overall numbers. </div>
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Similarly, and I'll go into it in greater detail below, the new tax law is expected to make owner-occupied residential real estate investment less attractive, at the margin, in high-income/high-cost states like California. At a minimum, I expect a bit of a "I hear that housing should drop in price--can I offer less?" effect through the market until buyers realize that even if we go from six offers to four offers on a great house, they'll still need to put their best foot forward to <em><strong>actually get the house</strong></em> (which is the goal, no?). </div>
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Both John Burns and Ken Rosen (formerly at Berkeley and heading the ULI panel) see a low and slow progression of the economy with regard to job growth, unemployment, and inflation, and both pointed out that just because this very low-key recovery is about to claim the title of longest expansion ever, there's no indication of an impending recession. Remember, recessions aren't typically at all like the last recession. Housing finance has been very carefully monitored, so neither expects the crunch to originate with real estate. Burns anticipates a tech-driven "hiccup" by 2020; both argue that tech is way overpriced, and obviously the Bay Area would be ground zero as any job-related impacts "infect" the regional real estate market. </div>
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Ken was concerned about the potential for inflation and an overheated economy as a result of tax cuts paid for through government borrowing. The ULI team focused on immigration policy as a significant potential threat--much of our economic activity and real estate activity today comes from legal immigrants--John Burns said 25-30% of LA area homebuyers are foreign-born. If that were to be cut by half as planned (and ignoring the effects of policy change on <em>illegal</em> immigration), the impact on the economy and real estate would be noticeable. [There was a year among the last few where every one of my clients had at least one partner who was born elsewhere.] </div>
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Speaking of demographics, the ULI analysis pointed out that homeownership rates are down 10-12% for Millennials compared to their parents at that same age. The CAR explains these new attitudes about homeownership by pointing to lack of affordability (the percentage of buyers able to qualify for a median-priced home is now 29% across the state and only 17% in Alameda County), student debt, skewed income distribution, Boomers who won't move (because of Prop 13, capital gains taxes, low low mortgage rates, and lack of retirement savings), tax reform and institutional investors buying up formerly owner-occupied single-family homes and renting them out. By the way, 37% of CA Realtors thought the market was just "too hot."</div>
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<strong><em>How hot is it?</em></strong> The CAR anticipates a 1% increase in the number of sales next year, along with a 4.2% increase in median price. Clearly, there will still be too much demand chasing too few offerings. The Housing Affordability Index, already super-low at 29%, will drop to 26%. If the tax bill leads to any marginal price drops, the Association anticipates that a number of sellers will just hold their homes off the market for a while, exacerbating the problem. Looking at the past year, the CAR reports that 50% of all CA real estate transactions went over the asking price (suggesting multiple offers) and that was the case with 77% of Bay Area transactions. The typical offering in the Bay Area went into contract in 10 days--the average across the state was an unheard of 13 days. </div>
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The Market</div>
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OK, OK. So what about Piedmont?? Last year saw 125 homes trade (as reported by the MLS) compared to only 97 in 2016. The average price was actually down 3.5% ($2.19M down from $2.27M the previous year), while the median price was down just a tad at 1%. Recall that last year this time, the differences between 2015 and 2016 were so inconsequential that I essentially dropped the details and said things were just "flat." The most expensive home closed at $5.25M (down from $6.2M in 2016) while the least expensive home traded $850K (down from $880K).</div>
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The velocity of the market was rather consistent: Homes closed in an average 14 days on the market, received 3-4 offers (if the number were reported) between the two years. This translated into a price per square foot of $820/sf in 2017 ($790/sf in '16 due to the slightly larger homes that sold that year).</div>
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<em><strong>Turning to surrounding neighborhoods, the story remains rather different, as was the case last year.</strong></em> Looking at single-family homes in the surrounding zip codes of Oakland (94610,11, and 18), 536 homes sold for an average $1.36M/median $1.3M in an average 21 days/median 14 days. The most expensive home closed at $3.03 million, and the least at $450,000. <strong><em>These data represent a price increase of approximately 9% over last year,</em></strong> though a drop of about 9% in <em><strong>number</strong></em> of homes sold. </div>
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Likewise, Berkeley saw 525 single-family homes close in 2017 (510 in 2016), leading to an average sale price of $1.306M ($1.211M in '16) and median sale price of $1.21M ($1.105M in the previous year). <strong><em>Thus, the average price went up 7.8% in Berkeley, and 9.5% on a median basis in 2017 over 2016.</em></strong></div>
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<span _mce_style="font-family: 'Garamond',' Times New Roman',' Times',' serif';" style="font-family: Garamond, " Times New Roman", " Times", " serif";">The pattern holds </span>at the state and regional levels: <em><strong>Prices across the state were up 8.8% Nov. '16-Nov '17 (the last month for which data are available), condos statewide were up 8.2%, the Bay Area broadly was up 12.5% and Alameda County was up 10%.</strong></em> In all cases, the number of homes sold was up or down less than one percent year over year.</div>
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So what's happening? Why are Piedmont's prices stuck in neutral while the surrounding areas continue their upward climb? A couple of possibilities:</div>
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--the "smart money" buying in Piedmont can see into the future and anticipates a slow down. We did see the Piedmont market flatten a full two years before the rest of the area in late 2005.</div>
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--preferences of buyers might have shifted. Are higher end buyers more comfortable in Berkeley or nearby areas of Oakland than in less transit- and latte-friendly Piedmont? I've talked in these pages about my perception that buyers rushing into Berkeley (and then into Crocker Highlands and Piedmont Ave. in the last two years) were not interested in Piedmont. </div>
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--have significant improvements in public schools in Oakland and Berkeley paid off for those neighborhoods, relative to Piedmont?</div>
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--are our regional move-up buyers locked into their current homes by rock-bottom mortgage rates or lack of needed downpayments, after accounting for capital gains taxes due and other debt?</div>
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Whatever the reason, know that a calm and flatter market is one that typically has more staying power. During the Crisis, it was the neighborhoods with super-rapid price increases, lower prices, lower downpayments, and owners with less capacity to roll with the economic punches that were hardest hit.</div>
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Given that the experts are anticipating more modest home price increases statewide in 2018, we may just be early to the party (which is certainly better than late to the party.....).</div>
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Cost vs. Value Report</div>
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It's time for an update of <a _mce_href="http://www.remodeling.hw.net/cost-vs-value/2017/pacific/san-francisco-ca/" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="http://www.remodeling.hw.net/cost-vs-value/2017/pacific/san-francisco-ca/" linktype="1" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank" track="on">that handy analysis</a> that looks at how much various improvements cost, compared to how much their construction adds to the value of the home at sale. As always, the report looks at a number of renovation projects across the nation, within the Pacific region, and in the SF Bay Area. </div>
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And as usual, the returns on investment in the Bay Area are significantly higher than for the same project done elsewhere in the country or in the Pacific region. In fact the payback rates are dramatically higher than they have been since the Crisis. My argument is that higher prices in combination with Prop 13-protected property tax levels lead more owners to reinvest in their properties rather than move to get what they want. <a _mce_href="mailto:Kennedy@MaureenKennedy.Net" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="mailto:Kennedy@MaureenKennedy.Net" linktype="2" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank">Email me</a> if you want me to email a copy to you--there's quite a rigamarole to get the doc at the website.</div>
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How 'bout that Tax Bill?</div>
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As I noted in <a _mce_href="https://www.facebook.com/maureen.kennedy.984349/posts/10155888366028909" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="https://www.facebook.com/maureen.kennedy.984349/posts/10155888366028909" linktype="1" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank" track="on">a Facebook post</a> a while ago, the tax changes seemed to have taken aim directly at communities like those of ours in the East Bay. While a few elements were dropped (so you still need to live in your house for 2 of 5 years to be exempt from some capital gains taxes, rather than the proposed 5 out of 8 years), many survive. Let's see how the key elements play out for a typical $1.2 million home, and then a $2 million home. Assume in both cases that the owner has an income of $200,000/year, and is taking out a $1 million mortgage when they purchased yesterday.</div>
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<span _mce_style="color: #000000; font-family: Garamond, "Times New Roman", Times, serif; font-size: 14pt;" style="font-family: Garamond, "Times New Roman", Times, serif; font-size: 14pt;">The $1.2 million homeowner would deduct about $15,600 in property taxes (1% Prop 13 taxes plus a number of other taxes), $40,000 in mortgage interest and $13,600 in state and </span><span _mce_style="font-family: Garamond, "Times New Roman", Times, serif; font-size: 14pt;" style="font-family: Garamond, "Times New Roman", Times, serif; font-size: 14pt;">local income taxes under last year's law. S/he also can deduct the personal exemption for say 4 family members, or $18,000. In total, these deductions represent $87,200 in deductions from that income. </span></div>
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<span _mce_style="font-family: Garamond, "Times New Roman", Times, serif; font-size: 14pt;" style="font-family: Garamond, "Times New Roman", Times, serif; font-size: 14pt;">Under the new law, the household would still benefit from itemizing deductions, compared to the doubled standard deduction. But new limits on the deductions are significant and "bite": The $29,200 in property and state and local taxes could be deducted only up to $10,000, while the limit on mortgage interest results in a $30,000 deduction there. The personal exemptions disappear, so rather than deducting $87,200 from income, this household deducts only $40,000. Assuming a rough 30% marginal tax rate, homeownership of </span><em _mce_style="font-family: Garamond, "Times New Roman", Times, serif; font-size: 14pt;" style="font-family: Garamond, "Times New Roman", Times, serif; font-size: 14pt;"><strong>that</strong></em><span _mce_style="font-family: Garamond, "Times New Roman", Times, serif; font-size: 14pt;" style="font-family: Garamond, "Times New Roman", Times, serif; font-size: 14pt;"> home will now result in savings of $1000/mo rather than about $2100/mo (before state taxes).</span></div>
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<span _mce_style="font-family: Garamond, "Times New Roman", Times, serif;" face="Garamond, Times New Roman, Times, serif" size="4" style="font-family: Garamond, "Times New Roman", Times, serif;">The $2 million homeowner would deduct about $26,000 in property taxes, the same $40,000 in mortgage interest (given that "old" law already allow deductions of interest on up to $1 million in mortgage debt), let's say $10,000 in state and local income taxes and $18,000 in personal exemptions, or $94,000 in deductions. Under the new law, the household is limited to the same $40,000 in deductions. So, at 30% marginal tax rate, $1,000 per month savings due to homeownership rather than about $2600/month.</span></div>
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<span _mce_style="font-family: Garamond, "Times New Roman", Times, serif;" face="Garamond, Times New Roman, Times, serif" size="4" style="font-family: Garamond, "Times New Roman", Times, serif;">Three things to focus on here: </span></div>
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<span _mce_style="font-family: Garamond, "Times New Roman", Times, serif;" face="Garamond, Times New Roman, Times, serif" size="4" style="font-family: Garamond, "Times New Roman", Times, serif;">--The state and local property and income tax limits and the interest deduction maximum will never "bite" owners of cheaper homes--i.e. a condo in Oakland or a large home in rural Ohio. So they can itemize as much as they want or perhaps more likely, just take the doubled standard deduction. It's only the homes in high-cost and high-paycheck areas that get bitten. That's one argument to make a move to a less expensive area now---</span></div>
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<span _mce_style="font-family: Garamond, "Times New Roman", Times, serif;" face="Garamond, Times New Roman, Times, serif" size="4" style="font-family: Garamond, "Times New Roman", Times, serif;">--Lenders don't consider these tax savings as they underwrite a loan. A buyer may (or may not) think ahead to those savings in figuring the home price they are comfortable with, but my experience is that <em><strong>buyers typically just let the banker tell them how much they can afford.</strong></em> In fact, buyers rarely think about monthly utility savings from double-paned windows or high-efficiency systems, or one-time transfer taxes and annual parcel taxes--unless I mention it. (Lenders do factor in these latter charges as they underwrite.) So I'm unclear whether these changes will affect buyer behavior on the ground in our high-demand markets. </span></div>
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<span _mce_style="font-family: Garamond, "Times New Roman", Times, serif;" face="Garamond, Times New Roman, Times, serif" size="4" style="font-family: Garamond, "Times New Roman", Times, serif;">--These effects may likely be matched or over-shadowed by the effects of higher interest rates (for new homes), if the expected modest rate rise takes place.</span></div>
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<span _mce_style="font-family: Garamond, "Times New Roman", Times, serif;" face="Garamond, Times New Roman, Times, serif" size="4" style="font-family: Garamond, "Times New Roman", Times, serif;">We'll see how these changes unfold, if states (or localities) c<a _mce_href="https://www.nytimes.com/2017/12/31/business/high-tax-states-law.html?_r=0" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="https://www.nytimes.com/2017/12/31/business/high-tax-states-law.html?_r=0" linktype="1" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank" track="on">ome up with strategies to dampen their impacts</a>, and if buyers change behavior. Note also that the mortgage deduction applies to $1 million in borrowing whether for a primary residence or a vacation home, that interest on your current home (up to $1 million, not the new $750,000 cap) is grandfathered in until you sell the house--even if you refinance as the NAR understands it, and that interest on home equity lines is no longer deductible. </span></div>
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<span _mce_style="font-family: Garamond, "Times New Roman", Times, serif;" face="Garamond, Times New Roman, Times, serif" size="4" style="font-family: Garamond, "Times New Roman", Times, serif;">Don't Forget about Scrip!</span></div>
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<span _mce_style="font-family: Garamond, "Times New Roman", Times, serif;" face="Garamond, Times New Roman, Times, serif" size="4" style="font-family: Garamond, "Times New Roman", Times, serif;">If you're thinking about that cost vs. value tradeoff, don't forget to consider paying in scrip! X% of a big number is a big number. Home Depot pays 4% of your purchase to Piedmont schools, Amazon pays 3%, and Pottery Barn/Williams Sonoma pays a hefty 8%. It adds up! Check out the program <a _mce_href="https://www.piedmontedfoundation.org/donate/scrip/" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="https://www.piedmontedfoundation.org/donate/scrip/" linktype="1" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank" track="on">here</a>, and while you're at it, sign up for monthly or one-time deliveries again. </span></div>
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<span _mce_style="font-family: Garamond, "Times New Roman", Times, serif;" face="Garamond, Times New Roman, Times, serif" size="4" style="font-family: Garamond, "Times New Roman", Times, serif;">On the Job with Energy Efficiency</span></div>
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<span _mce_style="font-family: Garamond, "Times New Roman", Times, serif;" face="Garamond, Times New Roman, Times, serif" size="4" style="font-family: Garamond, "Times New Roman", Times, serif;">I've just joined PGE's Energy Hub advisory team, exploring energy efficiency opportunities in the built environment. I'll pass on insights and useful tidbits as they emerge. And Pacific Union now has a joint venture with Nest thermostats--<a _mce_href="mailto:Kennedy@MaureenKennedy.Net" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="mailto:Kennedy@MaureenKennedy.Net" linktype="2" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank">reach out</a> if you want a great price for a new thermostat, and how-to instructions on the $50 rebate from PGE. Installing the thermostat locks in major energy savings for the life of your thermostat, and I can't tell you how many 1955 thermostats I see out on broker tour in our older homes! Don't forget, I'm one of the few deeply trained <a _mce_href="https://ecobroker.com/EBConsumer/WhatEcoBrokersDoForYou" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="https://ecobroker.com/EBConsumer/WhatEcoBrokersDoForYou" linktype="1" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank" track="on">EcoBrokers</a> in the area, and am a longtime co-sponsor of <a _mce_href="https://www.builditgreen.org" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="https://www.builditgreen.org/" linktype="1" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank" track="on">Build It Green</a>.</span></div>
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<span _mce_style="font-family: Garamond, "Times New Roman", Times, serif;" face="Garamond, Times New Roman, Times, serif" size="4" style="font-family: Garamond, "Times New Roman", Times, serif;">Lots of insights anticipated for the April Fool's Day update!</span></div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-87258785758527159952018-01-18T20:32:00.002-08:002018-01-18T20:32:38.257-08:00The State of the Real Estate Business in Piedmont<div dir="ltr" style="text-align: left;" trbidi="on">
Every year or two I review sales the previous year. I'm always amazed by how diverse the group of agents and brokers is who successfully help buyers and sellers move to the next stage of their lives!<br />
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For instance, 2017 saw 125 transactions close in Piedmont, as documented by the MLS. They totaled $273.5 million, a 24% increase over the previous year (good for City transfer tax revenue!). That means 250 "sides" were involved, typically with one agent on each side. <br />
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<b><i>In five cases, the same agent managed both sides</i></b> (and was ethically prohibited from advocating or working aggressively for either side--not a great place to be for typical buyers and sellers. I make it a policy to never represent both sides of a transaction).<br />
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Among these 125 transactions, <b><i>38 different brokerage firms </i></b><b><i>were involved, and 112 different agents (by my best count--careful eyeballing).</i></b> They are large and small firms, local and from further afield--through the tunnel, in Marin or the South Bay or sometimes San Francisco. Firms and agents you've heard of and those I have not. <br />
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<i><b>In most cases, the buyer and seller were represented by different firms.</b></i> In about 1/3 of the cases, the buyers and sellers were represented by the same firm (even if it's a Pacific Union office in Danville and mine in Montclair), but not the same agent. <br />
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And in case you're wondering, 13 of the sales involved a 3% fee to the buyer's brokerage (typically the same to the seller side, but the data technically doesn't say that in this file), <i><b>but 110 transactions (88%) had a 2.5% fee</b></i>, and one 2.25% and one a 2% fee.<br />
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Key takeaways:<br />
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--No one firm and no one agent "owns" Piedmont. <br />
--More than likely, you will take an offer from an agent and brokerage that is not the same as that of the person representing you. And that's good--the definition of an "arm's length transaction."<br />
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Call me for more detailed analysis of pricing trends among the market's price bands, and early reviews of impacts of the new tax legislation.<br />
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-88903527752460382752017-07-10T17:04:00.002-07:002017-07-10T17:04:36.133-07:00<div dir="ltr" style="text-align: left;" trbidi="on">
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<span _mce_style="color: #800000;" style="color: maroon;">Piedmont Update--2Q17-- </span></div>
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As mentioned last quarter, we've seen a flattening of the real estate market in San Francisco, and see that now in the East Bay as well. In the second quarter of 2017, Piedmont saw 48 homes sold, for a typical $2.075 million (median $2.033m; average $2.13m) in an average 14 days on market, for about 15% over the asking price. Sales typically saw three or four offers, though one 3 BR/1 BA home on Harvard offered at $1.15m sold for $1.7m, with 21 offers! As I've said before, prices for very attractive three-bedroom and 1 or 2-bath homes in under about 1700 sf in Piedmont, Berkeley and Oakland are now at about parity--new for our markets.</div>
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A year ago, also during the 2nd quarter, 36 homes sold for a typical $2.2 million (med $2.151m; av $2.255m). We saw lots of wobbles in the past year so don't get too hung up on that higher number. Then, the typical home sold in 12 days with three offers, and was 16% over asking.</div>
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More recently, last quarter (1Q17), 15 homes sold at a typical $2.15 million (med $1.975m, av $2.319m). Twelve days, 7 offers, 16% over asking.</div>
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So quite a bit of noise in there, but generally, continued strength in the market based on things like price, number of offers, length of time on the market, and so on. There are still way more buyers for a well-prepared home than there are sellers.</div>
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Looking at neighboring Oakland (94610, 11, 18), the market remains robust and up about 10% compared to a year ago. The typical single-family home in nearby Oakland sold for about $1.35 million this last quarter (compared to$1.35m in 1Q17 and $1.22m in 2Q16). Throughout, homes sold in about two weeks (they might have sold more quickly, but agents typically advise holding offers at bay until potential buyers have had two weeks to find the house, often through word-of-mouth, and visit). Again, we see a flattening of the market in the more recent time period. But no fall-off in buyer demand, and believe me, I've been looking for those signs on behalf of my buyer clients! </div>
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Most recently, I was looking at the over $2 million market in Berkeley. There has been some buzz about a quieter market, and there have been fewer very high-end homes sold more recently, but that's perhaps because the backlog of higher-end homes and long-held estates held off market during the downturn has come through the pipeline in the past year. But prices, time on market, price per square foot and sales prices have all held up in the past year, and three months.</div>
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Looking more broadly at Berkeley, prices there are up about 6% year-over-year, from a typical $1.2 million in 1Q16 (med $1.165m; av $1.263m) up to $1.275 million this past quarter (med $1.251m; av $1.307m). Homes there sold in an average 14 days, with 5-6 offers, and about 21% over asking this past quarter. The number of homes sold is down just a tad this big selling season compared to last, but price increases in that market are strongest in the region this year compared to last.</div>
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<a _mce_href="http://www.car.org/3550/pdf/econpdfs/952244/Alameda_05-17.pdf" _mce_style="color: #000000; text-decoration: underline;" href="http://www.car.org/3550/pdf/econpdfs/952244/Alameda_05-17.pdf" linktype="1" style="color: rgb(0, 0, 0) !important;" target="_blank" track="on">Click here</a> to see a nice graphic from the Ca Assoc of Realtors regarding trends across Alameda County (prices up 4.1% y-o-y), see below for the statewide market at a glance from CAR (prices up 2.6% y-o-y), and <a _mce_href="http://www.car.org/media/pdf/econpdf/6-28-17OaklandBerkeleyAOR.pdf" _mce_style="color: #000000; text-decoration: underline;" href="http://www.car.org/media/pdf/econpdf/6-28-17OaklandBerkeleyAOR.pdf" linktype="1" style="color: rgb(0, 0, 0) !important;" target="_blank" track="on">click here</a> for CAR's chief economist Leslie Appleton-Young's recent very detailed economic and housing market presentation to the Oakland-Berkeley Assoc of Realtors. A few juicy tidbits: </div>
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--the <em>number</em> of sales in the SF Bay Area is down 21% y-o-y (compared to down 13% in SoCal and down 11% in the Central Valley);</div>
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--the housing turnover rate (the frequency with which we move) is very low, in historic terms, at once every 10 years. This appears to be because of the boomer generation demographic bubble, low interest rates, the capital gains tax impact at sale, Prop 13/low property taxes, and the lack of inventory to move <em>to</em>;</div>
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--we are getting behinder and behinder (that's my attempt to introduce calculus into the discussion) in the ratio of <em>needed</em> new housing units based on demographics, to <em>available or newly constructed </em>housing units. We are missing about 80,000 needed housing units each year right now. (And this overarching shortage of supply leads to both long term upward price pressure and decreased affordability);</div>
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--the only areas of the state that have seen price increases back above the level of 2006 are in the immediate Bay Area. All of SoCal, the Central Valley, and the further flung counties in the Bay Area (e.g. Solano, Napa) are still "underwater" relative to their previous highs.</div>
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There is lots more there of interest----</div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-90536587388485861302017-07-10T13:57:00.001-07:002017-07-10T13:57:18.709-07:00<div dir="ltr" style="text-align: left;" trbidi="on">
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Is Now the Time to Re-Fi?</div>
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<span _mce_style="font-size: 19px;" style="font-size: 19px;">Rates are the lowest so far this year, so if you've been living under a rock these past five years, or have changes in your home equity or job situation that make a re-fi a constructive option, <a _mce_href="mailto:Kennedy@MaureenKennedy.Net" _mce_shape="rect" _mce_style="color: blue; text-decoration: underline;" href="mailto:Kennedy@MaureenKennedy.Net" linktype="2" shape="rect" style="color: blue !important;" target="_blank">ask me</a> for a referral to my favorite five local lenders. And you know that federal law prohibits kickbacks or referral fees among your real estate professionals (brokers, lenders, and title companies, for instance), right? I managed the promulgation of that reg in my former life, as Deputy Assistant Secretary for Policy at HUD......</span></div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-30609048321008489702017-07-10T13:56:00.004-07:002017-07-10T13:56:56.392-07:00<div dir="ltr" style="text-align: left;" trbidi="on">
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Honed Negotiation Skills</div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">Trained by the Harvard Negotiation Project (I'm a Harvard grad....), I help my buyers and sellers strike their optimal deal--or walk away. And it pays. In 2015, the typical Piedmont home sold for 8% over asking. My buyers on average paid 7% UNDER asking, while my sellers garnered an average 26% OVER asking. And that's the performance measure I most track.</span></div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-11804777698530471552017-07-10T13:56:00.002-07:002017-07-10T13:57:43.754-07:00<div dir="ltr" style="text-align: left;" trbidi="on">
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158 Holly Place in Piedmont Comes to Market! (In April 2017)</div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">If you're looking to simplify your life in a gorgeous storybook-style setting, consider 158 Holly Place, in Piedmont. </span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">Comprised of four bedrooms and two baths, the home is just a block from Dracena Park and its playground and dog romp area, and four blocks from Fenton's Ice Cream on Piedmont Avenue!</span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">Lots of Fabulous Light </span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">The East Bay's family light pours into this home through large banks of south- and east-facing windows. </span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">They also afford great views from the dining room, kitchen,and master bedroom suite. </span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">Surrounded by a hedge, the large flat lush yard is very private.</span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">Anticipate summer while washing the dishes--an apple tree's blooms frame the window over the kitchen sink! Enjoy the tray ceiings in living and dining rooms, and just refinished hardwood flooring throughout. </span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;"><img _mce_src="https://mlsvc01-prod.s3.amazonaws.com/481cd742401/59e8df8e-84e5-405b-8167-5a82618ac621.jpg" border="0" hspace="5" name="ACCOUNT.IMAGE.20" src="https://mlsvc01-prod.s3.amazonaws.com/481cd742401/59e8df8e-84e5-405b-8167-5a82618ac621.jpg" vspace="5" width="574" />When you're ready to entertain, the large formal dining room beckons, but start with cocktails on the remarkably private back patio. </span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">Close to Schools and Latte </span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">A better more walkable Piedmont location would be hard to find! Just a couple blocks from highly rated Beach Elementary, and a few more to the middle and high schools, commutes become a breeze. Drop off the kids at school and catch casual carpool to the City, or duck into one of the array of cafe options on Piedmont Avenue, and catch a WiFi-equipped bus to San Francisco. Downtown Oakland is a very manageable bike ride away. </span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">The elementary school offers on-site before- and after-school care run by the Recreation Department--and summer camps are well-organized and easy to coordinate as well! (Check PUSD for availability at Beach.) </span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;"> Great Layout and Systems; Ready for your Updates </span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">The home's very spacious master suite addition offers oh-so-rare large closets! And one bedroom includes access to a bonus playroom tucked above the one-car garage. </span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">The sewer lateral appears compliant; the gutter system, hot water heater and furnace are newer; electrical service is upgraded to 200 amps; and the home is bolted. And there's plenty of attic storage in both wings of this charming one-level home. Move in and relax, and when you're ready, make step-by-step kitchen and bath improvements on YOUR schedule and budget!</span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">--4 bedrooms and 2 baths;</span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">--large master suite with two large closets;</span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">--2161 square feet; big 6399 sf lot (per the assessor);</span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">--garage; and</span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">--great location close to Dracena Park's tot lot and dog run.</span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">Open Friday and Saturday 10 am-4 pm, consistent with the CSL Home Tour hours (see <a _mce_href="http://wehelpkids.org/" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="http://wehelpkids.org/" linktype="1" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank" track="on">wehelpkids.org</a> for more info and tickets). And then join <a _mce_href="http://us.farrow-ball.com/our-story/content/fcp-content" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="http://us.farrow-ball.com/our-story/content/fcp-content" linktype="1" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank" track="on">Farrow & Ball</a> staff from the 4th Street shop on Sunday, 2-5 pm for info about their high-end paints and wallpapers--Mouse's Back or Elephant Breath anyone? </span></div>
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<span _mce_style="color: #000000; font-size: 14pt;" style="color: black; font-size: 14pt;">On the market at $1.45 million; see <a _mce_href="http://www.158holly.com" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="http://www.158holly.com/" linktype="1" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank" track="on">158Holly.com</a> for more photos, and info about additional open houses and broker tours to which the public is invited!</span></div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-42106428699586035172017-04-17T17:39:00.003-07:002017-04-17T17:39:27.684-07:001Q17 Real Estate Update--plus more!<div dir="ltr" style="text-align: left;" trbidi="on">
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The Piedmont Market<br /><br /><div>
<span style="color: black; font-size: 14pt;">Man it's crazy out there! The upward push on prices feels unrelenting. And I say that with a bit of trepidation. As you know, my view is that the "relocation" of tech ground zero from Silicon Valley to San Francisco/Oakland, together with absurdly low (but nationally set) interest rates for this super-charged region moves us up the supply-demand curve.<br /><br />We saw 15 sales this quarter in Piedmont (as reported in the MLS), one-third of which were all cash. The average home sold for $2.32 million (median $1.975m) in only 7 days, at 16% over asking. This translates into $837/sf. Prices ranged from $1.28 million to $3.495 million (the latter with a price/sf of $997--this is consistently our high-end or small-house figure).<br /><br />A year ago, we had so few sales that the information was trash--8 sales, $2.475 million average price, $730/sf, 12% over asking. I won't event talk about change 1Q16 over 1Q17. <br /><br />But last quarter you might recall was consistent with, but a tad lower than, this quarter's activity: An average sales price of $2.15 million (median $1.85M), secured in an average 14 days at 8% over asking. <br /><br />In addition to the ever rising prices and consistently low inventory (call me now to plan for this year's sales cycle!), we also see a shift towards all-cash offers. As I say to my buyer clients, there is "god's price"--the price that the market suggests--and then there is "the price that gets the house." These days, there's an increasing delta between those two figures. And buyers have realized that in a rising market, an all-cash offer eliminates the only major risk sellers now face: That the appraisal might come in lower than the sales price. <br /><br />Most successful offers today are contingency free, but offers involving a loan require an appraisal, even if there's no appraisal contingency. And no buyer likes to be told by a professional that the house is worth less than their offer--even if the buyer has said over and over they are willing to run that risk. So a classic seller move is to go to the one all-cash buyer and say "we have an offer with a loan at $x; if you meet that price, you get the house." The corresponding buyer move is to borrow $x from mom and dad, and then get a purchase loan to "take out" mom and dad within the first 60 days of ownership.<br /><br />Unfortunately for my hardworking buyers without family money, this strategy is in play across all price points throughout the "inner" East Bay, at least for highly prized homes and locations. <br /><br />Expanding our view, the close-in neighborhoods of Oakland surrounding Piedmont (94610, 11 and 18) saw 88 sales of detached homes, an average sale price of $1.387 million, 12% over asking, $610/sf, in contract in 14 days, and a typical 5 offfers (when reported by the MLS). Note that $600/sf was the average in Piedmont back in 2006, and again only a couple of years ago. Looking at 1Q16, these same communities saw 81 sales averaging $1.15 million or $530/sf, and closing at 16% over asking. This suggests a price rise of about 20.6% over the past year. <br /><br />Similarly, Berkeley, which saw the upward pressure before higher-end neighborhoods in Oakland, saw nearly 20% increases in prices 1Q16-1Q17: The average single family home in Berkeley sold for $1.248 million this past quarter, or $738/sf, at 15% over asking. A year ago homes were selling for $1.052 million or $650/sf, 14% over asking--an increase of 18.6%.<br /><br /><em><strong>Key takeaway--the price gap among Piedmont, high-end Oakland, and Berkeley is narrowing compared to years past.</strong></em><br /><br />Across California, the CA Assoc of Realtors reports that in February, 2017, prices were up 7.6% year over year (to $479,000), total sales (#) were up about 5%, and days on market were down about 20% (to roughly a month, compared to our week in Piedmont). So higher interest rates (up about 1/2 percent to 4.18% for 30-year fixed financing) and tougher affordability (the ratio of costs to own to average income declined by just 1% during the year) did not create much drag on the housing market.<br /><br />Selma Hepp, Pacific Union's economist, does really nice work in my humble opinion, published <a alt="http://blog.pacificunion.com/category/pacific-union-insights/" href="http://blog.pacificunion.com/category/pacific-union-insights/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">here</a>. And if you want to scope out the region's markets, see <a alt="http://blog.pacificunion.com/category/market-conditions/pacific-union-quarterly-reports/" href="http://blog.pacificunion.com/category/market-conditions/pacific-union-quarterly-reports/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">these data</a> covering areas in which Pacific Union operates--from Silicon Valley to Napa and Sonoma, plus Tahoe and, very soon, Los Angeles. Remember, I can help you find a great agent to work with outside my Piedmont/Oakland/Berkeley/El Cerrito/Albany turf (I know what I don't know!)--I've recently done that for clients buying in Contra Costa, as well as on the East Coast and in San Francisco.<br /><br /><div>
<span style="color: maroon; font-size: 18pt;">Got Scrip? Renovating?<br /><br /><div>
<span style="color: black; font-size: 14pt;">You thought your scrip days were over. <strong><em>They are never over!</em></strong> I was at Home Depot recently buying a vanity and sink for my new listing, and was able to benefit the Piedmont schools at 4% of the investment. Years ago, when I ran the program, I put together a factsheet that emphasized all the ways your classic renovation purchases could drive money to our local public schools. I don't think the factsheet is still around, but check out <a alt="https://www.piedmontedfoundation.org/donate/scrip/" href="https://www.piedmontedfoundation.org/donate/scrip/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">this website</a> for more--those renovations involve big investments, compared to your weekly grocery bill--Pottery Barn/Williams Sonoma and family pays 8% to the schools!<br /><br /><span style="color: maroon; font-size: 18pt;">And While We're Talking Doing Good for Kids----<br /><br /><div>
<span style="color: black; font-size: 14pt;">The Children's Support League annual Heart of the Home Kitchen Tour comes up at the end of the month. Buy tickets online (through 4/21) <a alt="http://wehelpkids.org/" href="http://wehelpkids.org/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">here</a>, and don't forget to order lunch. And give a shout out to colleague Julie Gardner, whose gorgeous Crocker Highlands home is on the tour this year. We still love her, even if technically she left town! <br /><br /><div>
<span style="color: maroon; font-size: 18pt;">And while we're Talking the End of the Month----</span> </div>
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</span><br />It's the Heart of the Home tour, so I have a great new Piedmont listing. Level-living once in the front door, four bedrooms (including a big master with not one but two large closets), two baths, 2161 sf, lots of charming details and a nice big private flat yard. <br /><br />Looks like we'll have a special collaboration with <a alt="http://us.farrow-ball.com/our-story/content/fcp-content" href="http://us.farrow-ball.com/our-story/content/fcp-content" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">Farrow & Ball</a> paints and wallpapers--Piedmonter Terri Ashton is helming their new shop on 4th Street in Berkeley. More details later, but for now, be the first to<a href="mailto:Kennedy@MaureenKennedy.Net" linktype="2" shape="rect" style="color: black;" target="_blank"> email me</a> and receive a copy of the firm's big <em><strong>How to Decorate</strong></em> idea book, by Joa Studholme and Charlotte Cosby!<br /><br /><div style="text-align: center;">
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<span style="color: maroon; font-size: 18pt;">Another Strategy when Buying<br /><br /><div>
<span style="color: black; font-size: 14pt;">We and your loan officer often recommend looking at a home equity loan to solve the "do I buy first or sell first?" conundrum. Take a home equity line out on your long-held home, buy the new home outright (looks like all-cash--see above--to the seller) or at least make a hefty downpayment, and then circle back to sell the long-held home and close out your position. Following this approach typically eliminates the need to move to a rental for a while, pack up twice, board the dog, worry if you will <strong><em>ever</em></strong> find a new home, and so on. <br /><br />But home equity lines can take a long while to wrap up. You could sell stocks, but then you'll pay capital gains taxes. If you happen to have extensive equity holdings, you could alternatively borrow against your stocks for that short-term liquidity--as an example, Schwab calls this their Pledged Asset Loan. See this <a alt="http://www.schwab.com/public/schwab/banking_lending/pledged_asset_line.html" href="http://www.schwab.com/public/schwab/banking_lending/pledged_asset_line.html" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">factsheet</a> for their approach, which most firms offer. Again, once you sell the big house, you circle back and close out the short-term loan.<br /><br />All this applies if you happen to be thinking about helping the next generation buy into the market--lucky them------ </span></div>
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Baby Clothes for the Needy?</div>
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<a alt="http://blog.pacificunion.com/the-pacific-union-community-fund-giving-back-for-more-than-two-decades/" href="http://blog.pacificunion.com/the-pacific-union-community-fund-giving-back-for-more-than-two-decades/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">Pacific Union's community foundation</a> focuses firmly on those in need, as does that of the<a alt="http://oaklandberkeleyaor.com/community/community-foundation/" href="http://oaklandberkeleyaor.com/community/community-foundation/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on"> Oakland Berkeley Association of Realtors</a>. Combined, the two distribute about $150,000 annually to non-profits and needy families in the East Bay. You might not have extra cash, but what about <strong>baby clothes?</strong></div>
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The OBAR is collecting clean used baby clothes (up to 12 mos) for distribution by local hospitals, social workers and clinics to homeless families and others in need. If you have clothes languishing in the attic--or have a neighbor who's recently wrapped up that phase of life--just bring the clothes to our office (1900 Mountain Blvd. in Montclair) or to Holmgren and Associates (same address) during business hours. And if that's inconvenient, <a href="mailto:Kennedy@MaureenKennedy.Net" linktype="2" shape="rect" style="color: black;" target="_blank">email me</a> and I'll pick up! And....drumroll... this year's clothes are distributed on Mother's Day, so reach out soon.</div>
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East Bay Plant Sales!</div>
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It's that time of year! Now that the drought appears to be broken, maybe it's time to invest in the garden. </div>
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The East Bay Parks District sale is coming up this weekend at the District's botanic garden near the Brazil Room--<a alt="http://www.nativeplants.org/wp-content/uploads/PrelimPlantList_2017_04_06.pdf" href="http://www.nativeplants.org/wp-content/uploads/PrelimPlantList_2017_04_06.pdf" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">click here</a> for more details and a provisional list of available plants.</div>
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Merritt College's great sale is coming the first weekend in May. For more details, <a alt="http://merrittlandhort.com/community/plant-sales/" href="http://merrittlandhort.com/community/plant-sales/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">click here</a>.</div>
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And also in early May are two garden tours--<a alt="http://www.gngt.org/GNGT/HomeRO.php" href="http://www.gngt.org/GNGT/HomeRO.php" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">Going Native</a> and <a alt="http://www.bringingbackthenatives.net/winter-2017-native-plant-extravaganza" href="http://www.bringingbackthenatives.net/winter-2017-native-plant-extravaganza" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">Bringing Back the Natives</a>--that site also has a list of public and non-profit nurseries specializing in natives.<br /><br /><span style="color: maroon; font-size: 18pt;">And finally--<br /><br /><div>
<span class="ccFontUpdated" style="color: black; font-size: 14pt;">My annual pitch to get out into the East Bay's fabulous parks. My fave is Sibley Volcanic Regional Preserve (as the guides say, it's not a hip red pepper jelly). I've spent way too many hours up there thinking about how best to represent my buyers and sellers while walking the dog(s). (No bad news; Gus is at college with the Youngest Son, so it's Doc and me these days.)<br /><br />But with this year's dramatic rains, the wildflowers are more numerous, varied and later than usual. The lupines and farewell-to-springs are just coming into their prime, the blue dicks and poppies are ubiquitous, and the shooting stars have shot their wad already. If you're working on steps, miles and staircases, it's the place to go! </span></div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-15559813522503825672017-02-21T19:05:00.000-08:002017-02-21T19:05:03.553-08:00Towels Please?<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Georgia, Times New Roman, serif;">A colleague who belongs to the Rotary Club in Berkeley has a plea for towels for participants in the Rotary-supported BOSS (Building Opportunity in Self Sufficiency) homeless shelters. </span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">I'm going through my household for items for Dress Best for Less, the Discovery Shop on Piedmont Avenue, and Bambino (Children's Hospital) on College Avenue right now. Older towels seem like a no-brainer.</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Let me know if you want me to swing by and pick some towels up from you, or leave at the door at 312 Pacific Avenue, and I'll pass them on to Jack McPhail and the Berkeley Rotary Club (and can probably swing a donation receipt if that's important).</span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Thank you!</span></div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-12038338807096207332017-01-14T09:39:00.000-08:002017-01-14T09:39:57.386-08:00What Will my Taxes Look Like upon Sale?<div dir="ltr" style="text-align: left;" trbidi="on">
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Racing the clock so you get to the plant sales...... </div>
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<span _mce_style="font-size: 14pt;" style="font-size: 14pt;">Clients have been asking me questions about the details of selling their long-held home--as they should! It's an important transaction involving what's likely to be your largest asset.</span></div>
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<br /> I always say, "I'm not your attorney nor your tax advisor, so check with them, but in the main, ....." Issues range from how much taxes will be due/how much they will net for the future, to how to coordinate selling and buying in a convenient time frame, to whether it's risky--or possible!--to buy a new home before circling back to sell the old, to are there ways to avoid taxes or property tax increases (given that Prop 13 suppresses your property tax bill in your current home). I've covered many of these issues before, but will reiterate in the next couple of months.<br /><br />I've asked Piedmont tax advisor, Dean Emerita and current professor of the Golden Gate University Braden School of Taxation, Mary Canning to answer the most common questions I get.<br /><br /><strong>1. In the main, what kinds of taxes are due to the US and California when you sell your home? Can you assume a $1 million purchase price, $2 million sale price and $200,000 of transaction costs (escrow fees and brokerage costs when I bought and sold, and paint and new carpet when I go to sell)?</strong></div>
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Assuming taxpayers are married filing jointly, and they have lived in their home as a principal residence for 2 of the previous 5 years before the sale, the taxes would be calculated as follows:</div>
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$2,000,000 sales proceeds</div>
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-$140,000 (combination of commissions paid, selling costs, escrow fees, staging and other fix-up costs)</div>
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-$1,060,000 cost basis (purchase price plus closing costs paid on purchase)</div>
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$800,000 capital gain</div>
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-$500,000 Section 121 capital gain exclusion ($250,000 if single)</div>
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$300,000 Long term taxable gain</div>
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Federal tax liability at 20% preferential long term capital gain rate: $60,000</div>
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California tax liability at 10.3%* $30,900 </div>
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So after the sale and payment of taxes and expenses, you would have $1,769,100 in hand.</div>
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* Note CA does not have a fixed preferential long term capital gain rate as Federal has. California's tax rate can range upwards from 10.3% on $300,000 of gain to a top rate of 13.3% (with mental health tax on $1,000,000 of taxable income) depending on the taxpayer's other taxable income in the year of sale. </div>
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<br /><strong>2. What if I added a master suite? Replaced the roof?</strong></div>
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These expenses would increase the cost basis in the above example, thereby reducing the net taxable gain and taxes due.<br /><br /><strong>3. What if I still have a $1 million loan on the property?</strong></div>
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This affects after tax "cash-in-hand," but not the amount of tax due: </div>
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$2,000,000 sales proceeds</div>
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-$140,000 commissions, staging and fix up costs, other escrow and sales costs</div>
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-$90,900 (combination of Federal tax liability $60,000 and State tax liability $30,900)</div>
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-$1,000,000 payment of debt</div>
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Or $769,100 net spendable cash </div>
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<br /><strong>4. Isn't that a lot of tax, compared to investing $1 million in stocks?</strong></div>
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The tax liability (rates) would be the same, assuming that the stock was held for more than one year. There are fewer costs associated with the purchase and sale of stock, but generally the dollars invested in the purchase of a home are initially only the downpayment. Mortgage interest is fully deductible on up to $1,100,000 of debt used to purchase and improve the home so long as the debt is secured by a mortgage against the home. Any debt used to purchase stock is investment interest and is subject to limitations on deductibility. <br /><br /><strong>5. Is there a way to avoid paying taxes? I thought a home sale was tax-free as long as I bought something more expensive?</strong></div>
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It was never tax free. Prior to a tax law enacted in 1997, you could defer (but not escape) the gain on the sale of a residence so long as the purchase price of the new home equaled or exceeded the sales price of the old home. This law was repealed for sales after May 6, 1997 and the current law taxes the sale of a residence in the year of sale, but added either a $500,000 (if filing jointly) or $250,000 (if single) exclusion to reduce the gain on sale, and thereby reducing the tax. This exclusion, often referred to by the governing Internal Revenue Code section 121, is available for sales of homes that were the taxpayer's principal residence for 2 of the 5 years preceding the sale. See application of this exclusion in computation above at Q&A 1.<br /><br />Although generally not applicable to the sale of a principal residence, a tax-deferred exchange under Internal Revenue Code Section 1031 provides a way to avoid paying taxes on the sale of property used in a trade or business or held for investment (for instance, rented out), if the proceeds are invested in a replacement property (and other requirements are met). Although the tax liability on the sale is deferred, the basis of the new property is reduced by the amount of taxable gain on the sale of the old property (which will, among other things, affect the amount of depreciation available on the new property). </div>
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If the new or replacement property is later sold and the taxpayer wishes to "cash out," rather than reinvest in yet another property, the deferred tax will be due, together with the tax on the gain of the new property.</div>
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Sometimes, it is possible to combine the 121 exclusion and the 1031 deferral - a personal residence is converted to rental property and then exchanged into other rental property, providing income into the future. </div>
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If that same taxpayer rents out the new property for some period of time (a rule of thumb is 1 year), the taxpayer may then convert the new property back to a principal residence. The tax advantages of the Section 121 exclusion and the 1031 deferral are preserved so long as the new property met the requirements of investment property. </div>
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<strong>7. What about Proposition 13 Transfers?</strong></div>
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Before Proposition 13 passed in 1978, the average property tax rate in California was 3% of assessed value and there was no limit on annual increases. Under Proposition 13, the assessment rate is now only 1% for all California property (although counties are allowed to include additional assessments), and annual tax increases are limited to no more than 2%. </div>
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Proposition 60 was passed to allow taxpayers age 55 or older to buy a new home but keep their same property taxes so long as the new home is of equal or lesser value and is located in the same county. This is a once-in-a-lifetime election. Proposition 90 was passed to allow for transfers from one county to another (so called "inter-county transfers") if the new county has adopted an ordinance allowing such transfers. Under certain circumstances this can be a very beneficial tax savings. However, the counties accepting transfers are limited with currently only 11 out of a total of 58 California counties participating [see <a _mce_href="http://www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm#transfers" _mce_shape="rect" _mce_style="color: blue; text-decoration: underline;" href="http://www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm#transfers" linktype="1" shape="rect" style="color: blue !important;" target="_blank" track="on">this list and info sheet </a>from the state for more info-MK]. </div>
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Further, one should carefully consider the value of this step as the savings may not be as significant as they might initially seem, especially where the taxpayer is buying a much less expensive home. </div>
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<span _mce_style="color: #000000; font-family: Garamond, 'Times New Roman', Times, serif; font-size: 14pt;" style="font-family: Garamond, 'Times New Roman', Times, serif; font-size: 14pt;">Thanks Mary! She can be reached at </span><span _mce_style="font-size: 19px; font-family: Garamond, 'Times New Roman', Times, serif;" style="font-family: Garamond, 'Times New Roman', Times, serif; font-size: 19px;">canning.mary@gmail.com. </span></div>
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<span _mce_style="font-size: 19px; font-family: Garamond, 'Times New Roman', Times, serif;" style="font-family: Garamond, 'Times New Roman', Times, serif; font-size: 19px;">Mary, together with exchange specialist<a _mce_href="https://www.ipx1031.com/locations/northern-california/name/james-callejas/" _mce_shape="rect" _mce_style="color: blue; text-decoration: underline;" href="https://www.ipx1031.com/locations/northern-california/name/james-callejas/" linktype="1" shape="rect" style="color: blue !important;" target="_blank" track="on"> James Callejas of IPX 1031</a> helped us arrange a 1031-121 exchange when we bought our home on Pacific and 15 months later, after renting it out, sold our home on Pala. We were able to pull out $500,000 in cash (the Section 121 part), and invest the balance of our sale proceeds in rentals in the area and in Portland. (We now have two sons in Portland, and could potentially convert one of the rentals there into a <em>pied a terre</em> at some point in the future, converting the condo back into a personal residence. If we did that and later sold it prior to our deaths (when the estate tax rubric would kick in), there's some complicated tax calculations to be done).</span></div>
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<span _mce_style="font-size: 19px; font-family: Garamond, 'Times New Roman', Times, serif;" style="font-family: Garamond, 'Times New Roman', Times, serif; font-size: 19px;">We deferred tax, and could have used the $500,000 as a downpayment on a new home, securing a mortgage for the balance. Or you could set your sights on Ashland, OR, for instance, buy your retirement home for $500,000 cash, and live mortgage free.</span></div>
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<span _mce_style="font-size: 19px; font-family: Garamond, 'Times New Roman', Times, serif;" style="font-family: Garamond, 'Times New Roman', Times, serif; font-size: 19px;">The older of us (that would be me....) wasn't 55 yet, but if I had been, we would be saving about $10,000 a year in property taxes by taking advantage of Prop 60. Bummer. But a number of my clients want to sell their $2 million home and buy a $1 million home elsewhere. In Mary's scenario above, the future tax bill would be about the same either way, so no need to feel limited to 11 California counties if you really want to be in Marin (which is not on the Prop 90 list of cooperating counties).</span></div>
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<span _mce_style="font-size: 19px; font-family: Garamond, 'Times New Roman', Times, serif;" style="font-family: Garamond, 'Times New Roman', Times, serif; font-size: 19px;">If you're trying to think creatively about getting from here to there, be sure to work with an agent who knows the process and has a stable of tax, exchange, and property management professionals ready to make it happen for you. </span></div>
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<span _mce_style="font-size: 19px; font-family: Garamond, 'Times New Roman', Times, serif;" style="font-family: Garamond, 'Times New Roman', Times, serif; font-size: 19px;">So go to the plant sale and then <strong>take a hike</strong> in that great East Bay asset that is Tilden Park!</span></div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-50177132237044045512017-01-14T09:28:00.001-08:002017-01-14T09:28:28.868-08:00Out of Order!--3Q16 Piedmont Update--<div dir="ltr" style="text-align: left;" trbidi="on">
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Last newsletter we talked about softening markets in San Francisco and the South Bay (but not here). This quarter we see just a few signs of potential slowing. From July to yesterday, 30 homes sold in Piedmont (on the MLS) at an average price of $2.328 million ($789/sf) and median of $2.134 million ($805/sf). This compares with 26 homes selling for almost exactly $2.1 million median and mean in 3Q15 (and 44 in 2005). The median home sold in 13 days (two weekends of open houses) though one home sold after nearly four months, dragging down the average. The typical sale price was about 5% over asking, compared to something closer to 10% over asking a year ago.</div>
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Eight of the 30 homes sold for under the asking price--a new thing--though interestingly we also saw homes with only one offer selling for over the asking price. Presumably the agent didn't realize that there was no competition--always important to do your due diligence!--or the sellers convinced the buyers through negotiation to up their number. </div>
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Across the East Bay, we are certainly seeing sellers put their home on the market at an attractive, below-market number, hoping for multiple offers, but then get one or a couple offers below a number they think is fair. Sometimes the house comes off the market, sometimes the price goes <em _mce_style="font-size: 14pt;" style="font-size: 14pt;">up </em><span _mce_style="font-size: 14pt;" style="font-size: 14pt;">to that magic number on the MLS, but generally, sellers have still b</span><span _mce_style="font-size: 14pt;" style="font-size: 14pt;">een getting roughly what they want, perhaps after another couple of weeks, together with relate anxiety. But as we head into the more quiet 4th quarter of the year, things seem to be cooling at tad.</span></div>
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In our nearby Oakland neighborhoods (94610,11, 18), the average home price was $1.043 million, and $961,000 through 3Q15, an 8.5% bump. Coinci-dentally, 241 homes sold in both windows, about 20% fewer than in top-of-the-market 2005. </div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-67499462225728828642017-01-14T09:25:00.003-08:002017-01-14T09:25:32.386-08:00My CSL Kitchen Tour Weekend for a Home Sale is Still Open!<div dir="ltr" style="text-align: left;" trbidi="on">
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As many of you know, I've gotten into the habit of putting a centrally located home on the market over the weekend of the Children Support League Heart of the Home tour (this year scheduled for April 28-29th; see <a _mce_href="http://wehelpkids.org" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="http://wehelpkids.org/" linktype="1" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank" track="on">http://wehelpkids.org</a>). We annually have 2,000 well-networked folks driving through central Piedmont, and they are all going to chat with friends afterwards. Wouldn't you like one to stop into the all-day open houses and then later call a friend and say "you need to get young John over here to look at this Piedmont house I saw on the market this morning--it's got X, and Y, and Z, just as he wants!" That self-selected but carefully targeted word-of-mouth marketing, backed up by thoughtful advertising (including in the tour booklet itself) is priceless. </div>
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<span _mce_style="font-family: Garamond, 'Times New Roman', Times, serif;" face="Garamond, Times New Roman, Times, serif" size="4" style="font-family: Garamond, 'Times New Roman', Times, serif;">And the payoff has been dramatic. </span><a _mce_href="http://217bonitaave.com" _mce_shape="rect" _mce_style="font-family: Garamond, 'Times New Roman', Times, serif; color: #000000; text-decoration: underline;" href="http://217bonitaave.com/" linktype="1" shape="rect" style="color: rgb(0, 0, 0) !important; font-family: Garamond, 'Times New Roman', Times, serif;" target="_blank" track="on">Last year's offering</a><span _mce_style="font-family: Garamond, 'Times New Roman', Times, serif;" face="Garamond, Times New Roman, Times, serif" size="4" style="font-family: Garamond, 'Times New Roman', Times, serif;"> garnered 11 offers and went 48% over the asking price, and previous years' outcomes have been similarly impressive. When a fixer, or a cosmetic fixer is the subject of all-day Friday and Saturday open houses, plus the usual Sunday afternoon open, as was the case last year, I throw in my other specialty--the Renovator's Open House which earned </span><a _mce_href="http://www.sfgate.com/bayarea/article/SALE-BY-DESIGN-An-innovative-broker-coaxes-2653451.php" _mce_shape="rect" _mce_style="font-family: Garamond, 'Times New Roman', Times, serif; color: #000000; text-decoration: underline;" href="http://www.sfgate.com/bayarea/article/SALE-BY-DESIGN-An-innovative-broker-coaxes-2653451.php" linktype="1" shape="rect" style="color: rgb(0, 0, 0) !important; font-family: Garamond, 'Times New Roman', Times, serif;" target="_blank" track="on">front page coverage</a><span _mce_style="font-family: Garamond, 'Times New Roman', Times, serif;" face="Garamond, Times New Roman, Times, serif" size="4" style="font-family: Garamond, 'Times New Roman', Times, serif;"> ten years ago by the </span></div>
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So if you're anticipating a spring sale, <a _mce_href="mailto:Kennedy@MaureenKennedy.Net" _mce_shape="rect" _mce_style="color: #000000; text-decoration: underline;" href="mailto:Kennedy@MaureenKennedy.Net" linktype="2" shape="rect" style="color: rgb(0, 0, 0) !important;" target="_blank">get in touch</a> and reserve my time!</div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-46319628974788895672017-01-14T09:24:00.002-08:002017-01-14T09:24:39.978-08:00Say Goodbye to 2016<div dir="ltr" style="text-align: left;" trbidi="on">
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With taxes kept low by Prop 13, mortgage rates locked-in at historic lows, and the prospect of capital gains taxes dropping in the next tax reform package, we potential sellers are experiencing what economists call "stickiness." We're not overcoming inertia and moving when our circumstances change, but rather we're responding to incentives and staying put. </div>
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As a result, a large proportion of my work is educating my clients so they are comfortable and confident whenever they decide to make their next move. What's an electronic signature program? Why should you care about the financial strength of a new co-housing development? What options are out there to defer or avoid capital gains taxes on the sale of a long-held home, and make a planned charitable donation or get some nice monthly income in the bargain? I help people make great real estate decisions, and I get paid when they or their friends and colleagues rely on my advice when they buy or sell a home.</div>
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As I've said here before, the center of the Bay Area economic engine has been shifting gradually from Silicon Valley to San Francisco and Oakland. Based on Pacific Union's transaction data, we're increasingly seeing tech households purchasing in the East Bay rather than households from the legal, management and finance/insurance/real estate (FIRE) fields. And that means a number of tech households, looking for great schools and good housing stock, are focusing on Piedmont for the first time. </div>
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The median home price in Piedmont increased 5% this year (based on MLS data, through 12/29). Since 2014, prices jumped from a median $1.75 million ($652/sf) to $2.1 million ($791/sf), with a 15% increase in 2015. Not only did the rate of price increases slow down in 2016, so did the volume--only 95 homes traded in 2016 in contrast to 147 in 2014, and 116 in 2015. In fact the total volume of real estate sold in town declined by nearly $50 million/25% between 2014 and 2016, meaning transfer tax revenue is down rather dramatically. </div>
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We saw this decline in the number of homes sold across all markets and submarkets in the East Bay, even though underwriting criteria have eased. Downpayment requirements are the likely culprit--20% of a big(ger) number is a big(ger) number, and area incomes have not kept pace. With interest rates increasing since early November, we're likely to see more Bay Area first-time buyers falling away as their window for homeownership closes.</div>
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Prices in Berkeley shot up even further, particularly for the sweet spot of $1 million-$1.5 million homes. There, prices went up 16% in 2015, and then 8.6% over the course of this year. At this point, buyers will pay roughly the same for a 3 BR/1 BA home in 1600 sf in Berkeley as in Piedmont! </div>
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Prices in Oakland 94610 (Crocker), 94611 (Montclair/Piedmont Ave.) and 94618 (Rockridge/Upper Rockridge) also increased about 25% over the two-year window, but in a reverse of the trend in Piedmont and Berkeley, prices rose nearly 15% in 2016, but only 9% the previous year. Perhaps regional buyers have come to appreciate the great commutes, restaurants, movie houses, shopping districts and those fabulous La Farine savory morning buns only more recently. The entire Oakland market is up 31% over the two-year window, as neighborhoods recover from those deep dives of the housing crisis, and first-time homebuyers again find that Oakland neighborhoods offer affordability.</div>
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As always, I'm happy to help you think through your real estate options, whether buying, selling, renting or renovating. If you have colleagues, clients, friends or family who plan to buy or sell in the East Bay Hills, I promise to work hard to earn their trust, protect their privacy, and exceed their expectations.</div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-55933020339954578672017-01-14T09:23:00.002-08:002017-01-14T09:23:30.263-08:00Happy New Year!<div dir="ltr" style="text-align: left;" trbidi="on">
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Personally, I'm anxious to move on from last fall. So let's all recommit to act local again! Well, at least after vacations--</div>
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We've continued our commitment to take long hiking vacations; this past year to the Inner Hebrides and to the High Sierra. Those long hikes, interrupted only by a lovely shooting star or a tasty mushroom, provide time to think and plan, and sharpen my commitment to service, both professionally and personally. Even during the workyear, I find my best strategic thinking about marketing a home or building a winning offer for buyers happens up at Sibley while walking the dogs in the early morning.</div>
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<span _mce_style="font-family: Garamond, 'Times New Roman', Times, serif;" face="Garamond, Times New Roman, Times, serif" size="4" style="font-family: Garamond, 'Times New Roman', Times, serif;">Hiking may not be at the top of the list toward the end of this year though--I'm celebrating my next BIG birthday, and we're heading to Paris for art, food, and friends. </span></div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-65905811379265136332016-07-20T19:02:00.002-07:002016-07-20T19:02:35.332-07:002Q16 Piedmont Update<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-size: 18pt;">The Piedmont Market</span></div>
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The second quarter of 2016 consolidated gains made over the last couple of years in Piedmont. Low inventory and low interest rates kept prices up. About a quarter fewer homes sold this quarter (36 vs. 46 in 2Q15), with prices stable at right about $2.2 million, in the main.</div>
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The mix of homes is slightly smaller or more upscale this year compared to last--both factors lead to higher prices per square foot, even though the overall sales prices were relatively constant. While the average last spring was $755/sf, this year the $/sf increased a bit to $790. My sense is that offering prices stayed relatively consistent this year to last, in part to encourage auction-like behavior where that was possible. While sold prices were about the same, they were about 15% over asking this 2Q16 while only 9 or 10% over asking last year. </div>
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Homes sold in a brisk 12 days on average, and there were very strong sales all along the price spectrum--from the lower end up to the four over-$3 million sales reported to the MLS. Nearly all of our sales were in multiple offers.</div>
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Solid news for homeowners does not mean great news for the City, however. Because so many fewer homes were sold this quarter compared to 2Q15, transfer tax revenues are down by nearly 30%, again based on properties reported on the MLS.</div>
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Similar consolidating trends describe the surrounding neighborhoods of Oakland-94610, 94611, and 94618. The average single family home sold for roughly $1.2 million both this spring and last, in 14 days, at 18% over the asking price. In close-in Oakland as well as Berkeley, however, the total number of homes sold was very stable year over year, in contrast to the decline in available homes in Piedmont. That's good news for those thinking about a move to Oakland. Today's staff meeting included a report that the absorption rate (ratio of homes hitting the market compared to those going into contract) remains super-low in Berkeley, but is appreciably higher (though still a seller's market) in Oakland. And total inventory in the Oakland-Berkeley-Piedmont area is up to the highest level this year as we swing through the July 4th pause.</div>
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Berkeley is seeing sizeable price increases this quarter compared to 2Q15--average prices rose from about $1.1 million to about $1.25 million, a 13% jump. Several of my clients have been in that mixing bowl this spring, and it is not fun. Homes are selling for 25% over asking, on average, in 14 days, at about $720/sf. In fact I've mentioned to several clients that in the $1-1.5 million range, prices are essentially the same in Piedmont and Berkeley right now, given the upward trends there. Across Alameda County, prices were up 9% this May compared to last, per the CA Assoc of Realtors.</div>
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We have been hearing about a cooling housing market in San Francisco for a couple of months (see <a alt="http://www.paragon-re.com/A_Soft_Landing_for_SF_Real_Estate_July_2016_Rpt" href="http://www.paragon-re.com/A_Soft_Landing_for_SF_Real_Estate_July_2016_Rpt" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">this analysis</a> from my colleague Deborah Lopez at Paragon in the City), and many of us in the business are wondering if some of "our" San Francisco buyers are now able to stay there rather than cross the bridge. And yesterday I even wondered if, in the depths of the Great Recession, families postponed childbearing a bit, just in case, which would lead to a few fewer 5-year olds looking for great kindergartens about now! And a quick Google search confirmed the <a alt="http://www.pewsocialtrends.org/2011/10/12/in-a-down-economy-fewer-births/" href="http://www.pewsocialtrends.org/2011/10/12/in-a-down-economy-fewer-births/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">theory</a>.</div>
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Speaking of colleagues, <a alt="http://www.siliconvalleyandbeyond.com" href="http://www.siliconvalleyandbeyond.com/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">Dawn Thomas</a> down in Silicon Valley reports a similar softening in her market. Across the state, home prices were up 5.1% in April 2016 compared to 4/15, though prices statewide are still well below the peak of May, 2007. The international buyer, who represented up to 10% of total statewide home sales in the past several years, has declined to less than 4% of the market. And as I say regularly, remember that these folks are not just the stereotypical Chinese and Russian buyers, but the UC professor from Latin America, or the high tech worker with UK citizenship.</div>
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The California Association of Realtors points to 6 factors contributing to the shortage of inventory in the state:</div>
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--Low interest rates on current mortgage (leading owners to "stick" in place)</div>
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--Low tax bill in current home (ditto)</div>
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--Fear of the capital gains hit in communities like Piedmont (with extra-long "tenure," high initial prices and high appreciation, we are more likely to bust through the $500,000 capital gains exclusion for homeowners)</div>
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--Tougher mortgage requirements today</div>
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--Slow new-home construction, and</div>
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--Perception of few move-to options.</div>
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In fact, California homeowners are moving after 10 years now, compared to 5-8 years before the crisis. Think for a moment about the multiplier effect of just one homeowner staying in place for one extra year.</div>
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Layering over all of these housing elements is the overall job market. Between 2012 and 2015, the Bay Area saw 235,000 new jobs, but only 30,000 additional housing units built (and many of those are not near where the jobs were created). No wonder our commutes are getting longer! We'll see how long it takes for the market to get to stability--something we really haven't known for 15 years. But meanwhile, give me a call and we can talk about your situation!</div>
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Speaking of Giving Me a Call....</div>
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I've recently talked to heirs of a client about market dynamics and the sell vs. rent choice, a downtown Piedmont homeowner about various "move down" scenarios and implications, a longtime homeowner about thoughtful renovation choices for now that will make sense whenever she sells, and a local real estate investor about potential returns on several local possibilities. I help people make great real estate decisions, and I get paid when you or friends and family use me to buy or sell a home.</div>
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Still haven't gotten around to a Re-Fi?</div>
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I have two buyers in contract right now, and both will be getting financing in the 3.6% range. Rates are extraordinarily low, and there is so much re-fi activity that the appraisers are overwhelmed (my big issue this morning). If you haven't refinanced recently, email me for a list of my five most reliable lenders. And if you're only 10 years away from paying off the mortgage, know that lenders can organize a new 10- (or 15-) year loan at today's low rates. No reason to pay 5% or more, just to avoid another 30-year mortgage--put those savings into your pocket, not the bank's!</div>
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The Christie's Magazine</div>
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<span style="color: black; font-size: 14pt;">For all you shelter magazine readers looking for a free fix--<a alt="http://magazine.christiesrealestate.com/Portal/PAGETURNERS/CIRE_02_2016/#/1/" href="http://magazine.christiesrealestate.com/Portal/PAGETURNERS/CIRE_02_2016/#/1/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">The Outdoor Issue</a>made me feel like I was at the <a alt="http://www.postranchinn.com" href="http://www.postranchinn.com/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">Post Ranch Inn</a>, in my living room!</span><br /></div>
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Garden Ideas!</div>
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A client works for the East Bay Park District's Botanical Garden up near Tilden. If you haven't taken a morning walk up there (no dogs, unfortunately for us), you are missing out. The <a alt="http://www.ebparks.org/page156.aspx" href="http://www.ebparks.org/page156.aspx" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">website</a> says that penstemons and red mimulus (sticky monkey flower) are out in force this month. I'm always blown away by what I see up there.</div>
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I've been hard at work these last few weeks on the garden in Inverness--propagating and transplanting from Piedmont to West Marin, and setting aside bearded and Douglas iris bulbs for the Inverness Fair in August. Let me know if you'd like a few yellow Douglas (PCH) bulbs, or frilly white or simple light purple bearded iris bulbs later in the summer.</div>
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And of course, following a 15-year old tradition instigated by Judy Rosenberg, I'm making <a alt="http://cooking.nytimes.com/recipes/3783-original-plum-torte" href="http://cooking.nytimes.com/recipes/3783-original-plum-torte" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">NYT Plum Tortes</a> for the fair and freezer, with the gargantuan crop of wild plums this year. In fact last weekend we hosted the Spouse's annual old-time string band extravaganza, and dessert was fruit crisp, with rhubarb, plums, blueberries, apples, huckleberries and blackberries from the yard. Luscious with the youngest Son's homemade ice cream!</div>
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The Race of Things</div>
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See two recent NYT stories <a alt="http://www.nytimes.com/2015/10/18/upshot/police-killings-of-blacks-what-the-data-says.html?smprod=nytcore-ipad&smid=nytcore-ipad-share&_r=0" href="http://www.nytimes.com/2015/10/18/upshot/police-killings-of-blacks-what-the-data-says.html?smprod=nytcore-ipad&smid=nytcore-ipad-share&_r=0" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">here</a> and <a alt="http://www.nytimes.com/2016/07/19/business/dealbook/race-strongly-influences-mortgage-lending-in-st-louis-study-finds.html" href="http://www.nytimes.com/2016/07/19/business/dealbook/race-strongly-influences-mortgage-lending-in-st-louis-study-finds.html" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">here</a> that really reinforce the notion that a key driver of longstanding inappropriate police killings of African Americans (only now caught on tape) is the broader role of race in American society. Today's story, based on the Home Mortgage Disclosure Act data I spent much of my previous professional life working on, outlines the continuing role race plays in where we live, even as we approach the 50th anniversary of the Fair Housing Act. </div>
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Did you know that during the depths of the Great Recession, lenders sent <a alt="http://www.washingtonpost.com/wp-dyn/content/article/2008/02/01/AR2008020101680.html" href="http://www.washingtonpost.com/wp-dyn/content/article/2008/02/01/AR2008020101680.html" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">out word</a> that they would not lend in certain zip codes (including our neighboring Oakland 94610, 94611, and 94618) without disproportionate downpayments? What impact do you think that had on family wealth, rates of foreclosure, and neighborhood strength? "You can buy in Piedmont with 20% down, but you need 40% down to move to Montclair or the Glenview."</div>
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I can only hope that as we pull apart these issues this summer and really start to talk about race discrimination and its effects on all of us, we'll get to a more real place in this country and will be stronger and more unified for it. Ann Coulter's comments today, to the CA delegation no less, are not a step in the right direction ("Ann Coulter warns California Republicans the nation could turn into California"-- <em>LA Times</em>).</div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-46858686079055073362016-07-20T19:01:00.001-07:002016-07-20T19:01:26.003-07:00Pension or No Pension? On-Market Sale or Off-Market Sale?<div dir="ltr" style="text-align: left;" trbidi="on">
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Pension or No Pension?</div>
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I had a nice cup of iced tea with a local lender this morning--he's one of my "Five Great Lenders to Meet your Needs"--let me know if you need the contact list. We were talking about how "stuck" the market is today: Higher-end sellers aren't moving as frequently as in the past, so mid-range buyers don't have anything to buy, and so on down the line to entry-level buyers. Moreover the lack of upper-end sales is leading to the supply shortage that is driving up prices, adding to affordability problems. (Full disclosure--agents and others associated with the business are suffering as well, as we tour available homes, read all those detailed disclosure packages, attend pre-inspections, and make offers--yet our clients don't get the house--until they finally do. Remember, we only get paid when the transaction closes!)</div>
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Anyway, he saw a split in financial picture between older Baby Boomers who more frequently have pensions (and who can typically afford to stay in the Big House) and those without pensions (who too frequently really can't afford to stay in the Big House, but often want to). Sometimes there's ego associated with staying in the Big House. We wondered whether "moving down" is a pivotal move that makes the aging process real--once one "moves down," do we acknowledge in some ways--or not--that we're on the back side of a career?</div>
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Maybe two-income households--or two-IRA households--can better afford to stay in the Big House than their earlier cohort could, so of course the pipeline would naturally slow. </div>
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Moving can be intimidating, time-consuming and emotion-laden of course. "Change sucks" I used to say when heading a federal agency through some radical change back in the Reinventing Government '90s. I get it. </div>
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And for many, it's so much easier to just stay in place, paying the same mortgage you've had for years, even if it might be more logical to switch to a cheaper mortgage and invest the difference. Inertia is so hard to resist, say the physicists.</div>
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Some might think the funds are best "invested" in the house, but remember that the average $/sf in Piedmont over the past 10 years has gone from $600/sf, to $750/sf during the end of last year/beginning of this year and to $685/sf looking only at YTD 2016. That's only about 15-25% appreciation</div>
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<em><strong>over ten years</strong></em>-about what finance folks say to expect from real estate over time.</div>
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If moving on is what you want to do, but moving seems like more than you can handle, remember that your agent can handle lots of the details. Especially if you buy the move-to house before selling (typically getting a home equity line on the current house to help fund your purchase), it's easy to prep an empty house for sale.</div>
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<em><strong>We do it all the time. </strong></em>While there was no renovation involved in my recent sale of 217 Bonita, Teresa Baum and I arranged to move 60 years of household goods, paint, replace some fixtures, and prep the yard; we were on the market in 27 days. </div>
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If you haven't yet bought the move-to home, so sorting, donating, and gifting items and renovating a bath or two is part of your process, we can arrange for a professional organizer and contractor to help you do it efficiently, and on <strong><em>your</em></strong> schedule. And your lender can walk you through how to get from here to there in a way that reduces risk and perhaps decreases your overall interest payments [still paying on your student's college loans?]. Let me know how I can help!</div>
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A "Bonita" Sale</div>
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Speaking of 217 Bonita Avenue, it sold way over asking with eleven offers in 12 days, and will close in about three weeks from first hitting the market. Admittedly, this 1907 house is perfectly located for today's drop-off-the-kids/walk-to-latte/catch-casual-carpool buyers. It's perfectly sited on a big deep lot with nice Bay views, and offers fabulous architectural details. But then there's the thoughtful and creative advice that my client is paying just the going-rate for: We carefully timed the offering to coincide with the annual CSL Heart of the Home tour (about 100 of our 350 visitors came during those tour hours), and offered the insights of an architect and contractor during the Saturday afternoon Renovator's Open House. We also strategically advised the seller regarding which prep items would lead to more offers and a higher net price, and which prep items would just chew up valuable time and not add to the bottom line. </div>
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"Bonita" Avenue speaks to the new owners--they are from Chile! </div>
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(And they have no idea I'm a member of the National Association of Hispanic Real Estate Professionals [NAHREP] and have NAR At-Home-with-Diversity training. Based on open house chats and names alone, eight of our 11 fabulous potential buyers do not look like my own white-dad-mom-and-three-boys family (actually, my mother was born and raised in Argentina, but how could you tell, and, anyway, why?))</div>
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So Who's Selling Piedmont, Anyway?</div>
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As you know, I've been in DC a good amount of the past year or so, but I'm back full-time now. Pacific Union colleague Teresa Baum and I have been working together to cover my clients. Looking at the sales so far this year (as reported by the MLS), and understanding that the 23 sales have 46 "sides," we find that:</div>
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--32 different agents or brokers (yes, there is a difference....) were involved in the 23 sales.</div>
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--13 different brokerages were involved in the 23 sales.</div>
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--In just two cases, one agent represented both the buyer and seller; one of these in an off-market situation (later reported in the MLS).</div>
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--Firms were evenly spread across the price spectrum--no firm "owns" the upper or lower end.</div>
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--In about half of the transactions, buyer and seller agents were from different firms (meaning that it's not particularly common that buyer and seller are both represented by the same firm).</div>
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--Only once in 23 sales was the brokerage fee 6%.</div>
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Bottom line: Buyers and sellers entrust their assets to lots of brokerages and lots of agents in Piedmont. As always, you should interview three agents and decide whose style and approach best matches your needs.</div>
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The Christie's Magazine--</div>
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Is available <a alt="http://magazine.christiesrealestate.com/Portal/PAGETURNERS/CIRE_01_2016/#/1/" href="http://magazine.christiesrealestate.com/Portal/PAGETURNERS/CIRE_01_2016/#/1/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">here</a>. Be prepared to wait a bit while it uploads.</div>
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On- or Off-Market?</div>
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As noted, these sales are only those that hit the MLS. Others have sold off-market and were never reported to the MLS. What's up with that? </div>
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With so much competition, too many buyers are missing out on a purchase over and over again. They are anxious to hear about off-market listings, <em><strong>because they hope to avoid competition and higher prices.</strong></em> (Now, really, how is that good for a seller?)</div>
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Some sellers think that selling off-market is the new new thing, which it might be, but it's typically not the way to get the highest and best price for a home. (Let's say right now that some sellers aren't interested in highest and best price--they'd rather protect their privacy, or sell super-quickly, and they are prepared to leave money on the table to do so. I respect that, and always ask about my clients' goal first. They are the principal; I am just the agent.)</div>
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For those who want highest and best price (say, those of us who don't have a pension), why is an off-market sale not a great idea? I'd say there are four basic arguments:</div>
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--In a rising market, as we have now, an off-market price is based not on what today's buyers are willing to pay, but what a few buyers a couple of months ago were willing to pay.</div>
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--In today's market, we often see those way-over-asking-prices when a half dozen or so buyers are bidding, and one party digs deep and offers substantially more than the competition (who are all focused on what some buyers a couple of months ago were willing to pay). If you want a chance of a way-over-asking price, you need to go on the MLS, priced for multiple offers.</div>
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--Off-market buyers think they are doing the seller a favor, and off-market sellers think they are doing the buyer a favor. Once in escrow, they both get cranky and feel used, and try to adjust their side of the bargain downward or upward. And,</div>
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--Off-market buyers have no "Buyer B" nipping at their heels, ready to step in if "Buyer A" wants to reduce the price, or get all the furniture for free, or have you replace the roof. On the MLS, buyers who are in contract are generally well-behaved, and follow the terms of the contract, because they fear that the seller might ditch them and go to Buyer B.</div>
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And there's basically one benefit to an off-market sale:</div>
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The agent who orchestrates an off-market sale typically spends a lot less time on the effort. They might even broker both ends of the deal (and what happens when one party wants to cancel--I do not want to even <em><strong>go</strong></em> there on fiduciary duty....). Two clients in one transaction is much better financially than a one-purchase-in-three-or-four-attempts, and just might be attractive enough to lead an agent to throw your interests overboard.</div>
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Which gets us back to the beginning--if you're thinking through the next 15 years and trying to optimize your retirement prospects, now might be a fabulous time to get the highest and best price for your current home, and then a new home here or elsewhere (I can track down a great agent <em><strong>there</strong></em>) for all-cash, or at super-low interest rates. Give me a call to discuss your situation--</div>
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After all, I help buyers and sellers make great real estate decisions.</div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-56078506654924318672016-07-20T19:00:00.000-07:002016-07-20T19:00:11.840-07:00The Perfect Piedmont Brown Shingle--On the Market<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="color: maroon;">The Perfect Piedmont Brown Shingle-- </span></div>
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You know, I'm actually famous for doing two things (actually <a alt="http://www.theonion.com/article/report-nations-gentrified-neighborhoods-threatened-2419" href="http://www.theonion.com/article/report-nations-gentrified-neighborhoods-threatened-2419" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">three things</a>), and I'm doing them both this weekend at <a alt="http://www.217BonitaAve.com" href="http://www.217bonitaave.com/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">217 Bonita Ave.</a> </div>
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The <em>Chron</em> did a story way back in 2007 on my innovative Renovator's Open House at 25 Mesa Ave. An architect and contractor spent Saturday afternoon at the ready-for-renovation house fielding questions about options and opportunities, and talking about what they do. Nothing like a renovator's open house to draw renovation-ready buyers in a targeted-like-a-laser fashion.<br /></div>
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And then about 6 years ago, I started bringing central Piedmont homes to market during the <a alt="http://www.wehelpkids.org" href="http://www.wehelpkids.org/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">Children's Support League Heart of the Home Tour. </a> If all those well-connected folks are coming through downtown, won't they make a slight detour to look at a house on the market? And then won't they do targeted word-of-mouth marketing on my clients' behalf while out and about that weekend? So here we are, and I'm spending sixteen hours at the house this weekend! </div>
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217 Bonita Avenue in Central Piedmont is fabulous, and on the market at $1.75 million. </div>
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Teresa Baum and I were open today, and will be open Saturday 10-5 (from 2-5 pm visit with local architect Carolyn Van Lang and master builder Nick Ozier who will be at the house to discuss your ideas and plans), and Sunday 2-5 pm.</div>
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<strong>Built at Piedmont's Founding </strong></div>
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Filled with graceful proportions, classic details and great East Bay light, this central Piedmont "centennial" home was handcrafted in 1907. Invite guests into the foyer and through grand pocket doors into the dining room. The spacious living room overlooks the nearly 8000 square foot lot, with its long sight lines and central brick patio perfect for entertaining. Upstairs find three large bedrooms with coved ceilings--the large master suite includes a wonderful fireplace, two large closets, enclosed porch as well as Bay views. Downstairs is a rumpus room with walk-out access to the yard. There's plenty of storage in the lower level, and in the large redwood-timbered detached garage. </div>
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<strong>The Perfect Piedmont Location</strong> </div>
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Situated on one of Piedmont's best streets, the home is just a couple of blocks from recently rebuilt Havens Elementary (and its Schoolmates before- and after-school care), the middle and high schools, casual carpool to San Francisco, fast bus service to downtown Oakland or BART, and Mulberry Market at the center of town. Tot-friendly Dracena and Piedmont Parks are very closeby, as is the Mediterranean-style community center and Bushy Dell Canyon (off-leash for dogs). With plenty of staffed cross walks and child-friendly drivers, playdates and games of catch or Frisbee are easy to organize.</div>
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<strong>Renovation-Ready</strong> </div>
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Owned by the same family for nearly 60 years, 217 Bonita is ready for a refresh--and attractively priced! Put your own stamp on the home and grounds for the coming decades, all at once or over time. The pest bill is a measly $730. The roof was recently replaced and seismic upgrades completed. </div>
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So swing by sometime, and do your part for the campaign and talk it up to someone who should know over the weekend. And see the website--<a alt="http://www.217BonitaAve.com" href="http://www.217bonitaave.com/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">www.217BonitaAve.com</a>--for lots of photos and more info.</div>
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<span style="color: maroon; font-size: 16pt;">The Market--</span></div>
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What to say? I've already explained the <span style="text-decoration: underline;"><em><strong>why</strong></em></span> of our current market--all those well-heeled tech workers for whom Piedmont is now a very convenient bedroom community, plus low low interest rates (if you're planning a once-in-30-year purchase, how could buying at today's rates not be a good idea?), and a radically constrained supply. But what's the what?</div>
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Hard to say, given that only 8 homes traded in 1Q16--1 in January and 7 in March. The average $/sf is still in the $740-50/sf range, but that means nothing with such a small sample size. The median days on market is 10. The ratio of asking price to sales price is about 112%--but one home sold for 41% over asking. How do we counsel our buyers? </div>
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[By the way, 12 homes have sold thus far in April, with roughly the same ratio of asking to sales price, and median days on market. But the price per square foot shot up to $800/sf, pulled up by two high-end homes that traded at over $1000/sf. Remember--small n, and few conclusions can be drawn.]</div>
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And all the surrounding neighborhoods are seeing the same upward pressure.</div>
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Any interest in selling and helping to ease supply problems? We're typically lucky enough to have a good amount of equity in our homes at this stage of life, so you might consider buying your "go-to" home now, potentially with a home equity loan on your current house, and then circling back to close your position later in the summer or fall. I've got lots of info on the state props which allow you to take your tax bill to a new home once you hit 55. And don't forget the federal capital gains exclusion.</div>
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We may not see prices like these for another decade!</div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-41490730552276003612016-07-20T18:58:00.001-07:002016-07-20T18:58:36.462-07:004Q15 Piedmont Update<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="background-color: #d5c48f; color: maroon; font-family: Garamond, 'Times New Roman', Times, serif; font-size: 24px;">Happy New Year!</span><br style="color: maroon; font-family: Garamond, 'Times New Roman', Times, serif; font-size: 24px;" /><br />
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<span style="color: black; font-size: 12pt;">For those of you who receive my annual calendar mailing, this will be an update of what you already know--the Piedmont market popped this year! After cleaning up the MLS data a bit, we're left with 115 sales (230 "sides") selling at an average $2.122 million ($2 million median) or an average $747/square foot. The typical home sold in 13 days (two weekends of open houses) and at about 11% over the asking price. <br /><br />In 2014, we saw a quarter more homes sell, but sales prices were a bit lower--an average of $1.922 million (median $1.75 million). Homes then sold in about 13 days, and for about 9% over the asking price. <strong>Thus, 2015's listings sold for about 12% more than did 2014's offerings (15% more on a price/sf basis, and 10% more on a gross sales price basis). </strong><br /><br />Remember that at the top of the last price peak, homes in Piedmont were selling for $605/sf, so we have far surpassed those heights in the intervening 10 years (while <a alt="http://economistsoutlook.blogs.realtor.org/files/2015/12/case-shiller.png" href="http://economistsoutlook.blogs.realtor.org/files/2015/12/case-shiller.png" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">so much more of the country</a> has not). Despite this year's higher prices, the lower <em>number</em> of sales means that the net basis for our transfer tax actually declined by about $25 million, meaning about $325,000 less in transfer tax revenue for the city's budget this year than last. <br /><br />I spent quite a bit of time dealing with family issues on the East Coast this year, but the nine transactions I was involved with compare very nicely to these stats. My four sellers garnered 22% over their asking prices, while my five buyers purchased for an average 3% over the asking price. I keep my eyes open for very good values, and dig deep into the DNA of my listings to draw out (and draw attention to) details that add real value for buyers. None of this "lush garden, bright kitchen and family room" stuff.<br /><strong><br />The entire East Bay saw significant appreciation. </strong> The areas of Oakland that share our zip codes saw average single-family home prices of $1.147 million in 2015 (an 11% rise from 2014's sales, though interestingly, almost identical <strong><em>numbers</em></strong> of sales). Oakland S-F homes as a whole averaged $698k, a nearly 17% increase over 2014, when just a few more homes sold in just a few days more, on average. <br /><br /><strong>Berkeley</strong> tracked the trend as well--about 10% fewer homes sold in '15 compared to '14, but at about a 13% increase, to $1.15 million, on average. Click <a alt="http://www.pacificunion.com/market-insights/regions/alameda-county" href="http://www.pacificunion.com/market-insights/regions/alameda-county" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">here</a> for details on markets in other East Bay locations, across the region, and in Tahoe (where Pacific Union opened offices last year!).<br /><br />The California Association of Realtors does a great job of reporting on housing trends. I often pass Leslie Appleton's analyses onto my clients. See <a alt="http://www.car.org/marketdata/marketforecast/" href="http://www.car.org/marketdata/marketforecast/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">this</a> for example. The Association reported recently that through 11/15, single-family home prices were up 6.8% <strong>statewide</strong>, condos were up 7.6%, and metro LA was up 5.8%. But at what "price"? <br /><br />There was a dramatic but transitory downward dive in the number of home sales closed in November compared to October. This I'm sure was due to the new mortgage regs from the Consumer Financial Protection Board (see below), which went into effect in October. But the Housing Affordability Index tells a more nuanced story. At the top of the market in 2005-6, only about 13% of Alameda County residents could afford to buy the average home, given their incomes. At the bottom of the market in late 2011, as many as 45% of County residents could. We are back down in the 18-20% affordability range now. <br /><br />First-time homebuyers are similarly stressed, both by mounting education loans on their balance sheets, and by stagnant wages. CAR tracks the rate at which the typical first-time homebuyer can afford an "entry-level" home in the market, and the index has gone from 65% at the bottom of the market, down to under 40% now. Since the index focuses only on income and home price, and not on W2 vs. 1099 income, not on whether the buyer has been at his/her job for at least two years, and not on net worth or debt load, it's easy to see how many of these buyers might look good on paper, so to speak, but not be able to actually qualify for a mortgage under current requirements.<br /><br />All these pressures are at play in the East Bay--historically low interest rates, strong economy, relatively fewer homes to choose from, not much new construction coming out of the pipeline yet--but in addition, we all have an additional upward pressure, which Piedmont has in spades. <em><strong>We never were a "bedroom community" to Silicon Valley. But we definitely are to Twitter and Google offices in San Francisco, and to Uber and Pandora just a roll down the hill in Oakland. </strong></em>I think these young, diverse executives find that Piedmont is exactly what they are looking for--a close-knit community that offers a very short commute and great after school care (particularly for two working spouses), one set in a quasi-urban area that's among the most diverse in the country, and one that reflects the high incomes and education levels that they already have. <br /><br />I can't tell you how many of my many many non-white and GLBT clients say they really feel at home in the East Bay rather than in Lamorinda or Marin (and I reinforce the point with my <em>Comparing Piedmont to Lamorinda</em> and <em>Comparing Piedmont to Mill Valley</em> factsheets, which even track the number of burrito joints within 4 miles of the center of towns!). By the way, I'm one of the very few of the hundred or so realtors working in Piedmont who has completed NAR's <em>At Home with Diversity</em> training.<br /><br /><div>
<span style="color: maroon; font-size: 18pt;">A 1-Bedroom Rental in Piedmont Available next Tuesday!<br /></span><span style="color: maroon; font-size: 18pt;"> </span>Set within this classic Piedmont home adjacent to Dracena Park's redwoods, this 750-sf legal 1 bedroom/1 bath unit offers privacy and quiet. The famous East Bay light pours into the living room, bedroom, and dining room/office. The kitchen and bath are both updated, the kitchen with gas range, new cabinets, dishwasher, and instant hot water. Access to large exterior patio, washer, dryer, additional freezer space and a sauna that's perfect after long bike rides or hikes in the East Bay hills and parks.<br /><div style="font-size: 12pt;">
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<span style="color: black; font-size: 12pt;"><span style="font-size: 12pt;">Enjoy access to Piedmont's excellent public schools, it-takes-a-village feel, local fire and rescue services, and community pool. Easy commutes via Rts. 13, 580, and 24, and easy access to SFO and OAK. $2500/month, most utilities included. <a href="mailto:Kennedy@MaureenKennedy.Net" linktype="2" shape="rect" style="color: black;" target="_blank">email me</a> for more info!<br /><br /><div>
<span style="color: maroon; font-size: 18pt;">Living Here is Good for your Health<br /><br /><span style="color: black; font-size: 12pt;">The Spouse got me a Fitbit for Christmas, and it has definitely cajoled me into going for that late night walk around the neighborhood to get my final 1800 steps in for the day. We're so lucky to live in a place that has great weather so much of the time, great outdoor spaces, and friends and colleagues who enjoy getting out with us. <br /><br />In fact Oakland was just rated #7 in the country by SmartAssets for outdoor enthusiasts. Read more about our virtues <a alt="http://blog.pacificunion.com/bay-area-cities-rank-among-nations-best-for-outdoor-lovers/" href="http://blog.pacificunion.com/bay-area-cities-rank-among-nations-best-for-outdoor-lovers/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">here</a>.</span></span><span style="font-size: 12pt;"> And then go take a hike!</span> <span style="font-size: 12pt;"> </span></div>
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<span style="color: maroon; font-size: 18pt;">Why Is my Mortgage Approval Taking So Long?<br /><br /><span style="color: black; font-size: 12pt;">The rules have changed, whether you're buying a home or doing a refi (and if you haven't, but can, do it now! <a href="mailto:Kennedy@MaureenKennedy.Net" linktype="2" shape="rect" style="color: black;" target="_blank">email me</a> for a list of my five "get it done" lenders). The Consumer Financial Protection Bureau has now <a alt="http://www.consumerfinance.gov/know-before-you-owe" href="http://www.consumerfinance.gov/know-before-you-owe" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">consolidated</a> several closing disclosures and documents into two clean and clear docs, <a alt="http://www.consumerfinance.gov/owning-a-home/loan-estimate/" href="http://www.consumerfinance.gov/owning-a-home/loan-estimate/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">one of which </a>should go to you with key terms shortly after you get into contract, and <a alt="http://www.consumerfinance.gov/owning-a-home/closing-disclosure/" href="http://www.consumerfinance.gov/owning-a-home/closing-disclosure/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">the other</a> should go to you with key terms a few days before you're asked to sign your loan documents. <br /><br />My assessment is that if successful, these new regs will force the mortgage industry kicking and screaming away from it's just-in-time roots to something more appropriate and responsible. Away from a world of constant drama and "but we need to remove our loan contingency in two hours, and you've known that for three weeks, and we've talked to each of the last three days, and this is the first time you mention your staffer is on vacation and you didn't think to solve it???" calls, and loan documents that finally finally finally show up in the buyer's email 20 minutes before the signing, and then are 1/3% off on the loan's interest rate (yes, that happened to a $4 million+ buyer of mine this year, and the lender was Morgan Stanley....).<br /><br />We all should get key information three business days in advance so we can check it and confirm it's the same as we agreed at the beginning of the process. Maybe the threat of the mandated three-day fix-it period will convince lenders to get it right the first time, but I'm not sure!<br /><br /><div>
<span style="color: maroon; font-size: 18pt;">Drought or no Drought?</span><br /></div>
As I write this, the second of three storms has blown through, scrubbing the air brilliantly clean in its wake. My hike this morning at Sibley was glorious. The cows were munching on green grass that wasn't evident just a few short weeks and months ago.<br /><br />Yet my drive last week past the Nicasio Reservoir suggested that water levels aren't really all that much better yet. Nevertheless, I was out in the rain earlier in the week ear-to-the-downspouts checking to make sure I could hear running water, checking our water collection gravel pits, checking the sump pumps were working (and, during an episode of <em>The Man in the High Castle</em>, even <a alt="http://www.airfiltersdelivered.com" href="http://www.airfiltersdelivered.com/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">changing the furnace filter</a>!).<br /><br /><a alt="http://blog.pacificunion.com/winter-storms-are-coming-are-you-ready/" href="http://blog.pacificunion.com/winter-storms-are-coming-are-you-ready/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">Here</a>'s a nice checklist for today's weather, and I hear great things about <a alt="http://watersprout.org/" href="http://watersprout.org/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">Water Sprouts</a> if a gray water system is in your future!<br /><br /><div>
<span style="color: maroon; font-size: 18pt;">Read the Newest Christie's Magazine<br /><br /><span style="color: black; font-size: 12pt;">Click <a alt="http://magazine.christiesrealestate.com/Portal/PAGETURNERS/CIRE_04_2015/#/1/" href="http://magazine.christiesrealestate.com/Portal/PAGETURNERS/CIRE_04_2015/#/1/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">here</a> for the juicy stuff in the <em>Architecture and Design Issue</em>......</span> </span></div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-84790166288965986442016-07-20T18:57:00.002-07:002016-07-20T18:57:17.487-07:00China, the Market, and the Virtual Food Drive<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="color: maroon;">PacUnion and the China Market-- </span></div>
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<span color="#800000" style="color: maroon;">The spouse and I were hiking in Japan last month, so I was reading the Asian <em>Wall Street Journal.</em> Was pleased to see that Pacific Union is the only real estate firm in the world (yes, you read that right) that advertises in that edition on its own (rather than through a network of many regional firms under an American umbrella like Luxury Homes, Luxury Portfolio, etc.). While other Bay Area firms might advertise there along with homes from Connecticut, Hawaii, and Colorado, our full-page ad covered only homes in the Bay Area, all listed by Pacific Union.</span></div>
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<span color="#800000" style="color: maroon;">It's part of our CEO's push to make Pacific Union the go-to locus for Chinese buyers interested in real estate here. See <a alt="http://www.sfgate.com/business/networth/article/How-and-why-buyers-from-China-are-snatching-up-5924991.php" href="http://www.sfgate.com/business/networth/article/How-and-why-buyers-from-China-are-snatching-up-5924991.php" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">this front page story</a> from last Sunday's <em>Chronicle</em> that supplies context and stories. As the Chinese economy continues to slow (and investigations ramp up), we may see more of these buyers looking for a haven.</span></div>
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<span color="#800000" style="color: maroon;">Several of my listings in the past year or so have garnered strong all-cash offers from mainland Chinese buyers, and I've advertised some of my more contemporary turn-key listings in the <em>Journal </em>to good effect. For those Mandarin readers, <a alt="http://pacificunion.com.cn" href="http://pacificunion.com.cn/" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">here's</a> our site--</span></div>
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<span style="color: maroon; font-size: 16pt;">The Market--</span></div>
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Today's staff meeting suggested that the local real estate market continues its strong upward push. The combination of 30% fewer listings than last year, yet strong buyer demand, means that our "absorption rate" is at the lowest point in two years--that is, there are way too many buyers chasing way too few listings, and homes are going off the market with great velocity. </div>
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Slightly fewer homes sold in multiple offers this November compared to last (72% vs. 75%) but otherwise, all signals are positive, and loan rates remain at rock-bottom levels (under 3% for a 5-year adjustable loan). </div>
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Alameda County Food Bank Gets Matching Funds TODAY</div>
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Planning a donation to the food bank? Do it today and Royal Coffee in Emeryville will match your donation! Click <a alt="https://www.vfd-accfb.org" href="https://www.vfd-accfb.org/" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">here</a> to choose the organization you'd like to donate through (top right under Start Shopping, Select Your Group). Two great choices are Pacific Union (we're more than halfway to our goal already) and the Piedmont BSA (Boy Scouts). Cash donations stretch much further than canned goods (as the food bank can tap into deep vendor discounts that we can't), though if you missed the canned good pickup last month, the Boy Scout office still has its barrel ready for your cans just outside the door at 10 Highland Way.</div>
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Enjoy the Holidays!</div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-80076176906677816682016-07-20T18:55:00.002-07:002016-07-20T18:55:58.872-07:00Piedmont Real Estate Update--3Q14<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="color: maroon;">3Q14 Piedmont Real Estate Update--- </span></div>
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The third quarter of the year maintained the sales trends from earlier in the year, and represented a big jump up from the third quarter of 2013. The average list price this quarter for the 37 homes closed was $1.858 million, and average sale price was $1.989 million. Before shock sets in, compare that to the <strong style="font-size: 12pt;">median</strong><span style="font-size: 12pt;"> price trends: The median asking price this quarter was $1.495 million, and median sales price was $1.775 million.</span></div>
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I rarely include both sets of data, because they so rarely diverge to this extent. There's a clear reason, however: 3Q<strong>13</strong> saw a highest price of $2.93 million--and that was about the max for the previous several years. The very high end of the market had seized up during the crisis. In contrast, in the past year, a large number of high-end homes have come to market and closed (though fully 1/3 of homes currently on the market in Piedmont are priced at over $3.5 million, suggesting buyer demand is not bottomless.)</div>
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This quarter we saw not only a highest sale price of $5.45 million in Piedmont (as reported by the MLS...), but there were <strong>four</strong> sales over 3Q13's max. That is, with actual sales to review and fold into the averages in the over-$3 million range, our <strong>average</strong> sales prices spike up.</div>
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Circling back, these figures represent a 17% increase in prices this quarter compared to 3Q13 on a median basis (which I would focus on), and 34% on an average sales-price basis.</div>
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Across all sales this quarter, the average sales price was 7% over the asking (the median was 19% over asking). Homes sold in a typical 15 days on the market, and for $670/sf (average $669/sf and median $671/sf). As I pointed out to buyer clients just today, don't consider $670/sf to be what you'd expect to pay for most homes in Piedmont, however. Those homes that punch many buyer buttons--those that are recently renovated in an of-the-moment style (see below for more on that!), include a master bath, have all bedrooms on the same level, include a family room, preferably that kitchen/family room opening onto a large and flat backyard, and a location walkable to both schools and Piedmont Avenue, <strong>then</strong> prices have consistently been closer to $850/sf or more.</div>
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Putting these stats in the context of last quarter's data--the prime sales window in Piedmont--the market has consolidated its gains--buyers are thankful we are at a bit of a plateau rather than still on that steep upward slope: </div>
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Last quarter, 65 homes sold for a median price of $1.758 million--nearly identical to the median this quarter. The average sale price then was $1.884 million (compared to this quarter's $1.989m).</div>
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Click <a alt="https://origin.library.constantcontact.com/doc206/1117303718276/doc/sbfYHKJkHyP28rl8.xls" href="https://origin.library.constantcontact.com/doc206/1117303718276/doc/sbfYHKJkHyP28rl8.xls" linktype="document" ref="ACCOUNT.DOCUMENT.9" shape="rect" style="color: black;" target="_blank" track="on">here</a> for the full data (click to download and then open the Excel file up). As always, I strip out the house numbers in this spreadsheet: We all need a bit more privacy in this town!</div>
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Pulling back to the regional and statewide data, the Ca. Association of Realtors reports that prices across Alameda County are up 9.2% July over July (on a median sales price basis). Check out a<a alt="http://www.car.org/marketdata/map" href="http://www.car.org/marketdata/map" linktype="1" shape="rect" style="color: black;" target="_blank" track="on"> new app</a> that the CAR has introduced if you're interested in looking at pricing trends (and other sales stats) in other counties in CA. </div>
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Across the state, median prices are up 8.9%, and the total number of sales was down by 9.3% on a year over year (through August) basis. This supply shortage of available homes certainly contributed to price spikes earlier in the year, but it appears that more sellers are motivated to put homes on the market (or are <strong>able</strong> to sell and not bring money to the table) because we see total inventory is increasing these last few months. </div>
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In addition, those Facebook and other IPO beneficiaries who had money burning a hole in their pockets have blown their wad, so the crazy money is not nearly as significant a factor today as it was earlier in the sellling season. (On the other hand, with the exception of one bizarre situation in which I was involved, homes are invariably appraising for the contract sales price--the all-cash and way-over-asking prices from the early- to mid-summer are still considered legitimate comparables today. If you've been postponing a re-fi for some reason, there's no reason to wait, as appraisals will be successful, and interest rates are finally creeping up.)</div>
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And finally, at the national level, my contacts at the<a alt="http://www.luxuryhomemarketing.com/real-estate-agents/leaders_in_luxury.html" href="http://www.luxuryhomemarketing.com/real-estate-agents/leaders_in_luxury.html" linktype="1" shape="rect" style="color: black;" target="_blank" track="on"> Institute for Luxury Home Marketing</a> (I won a national marketing award several years ago at this Dallas-based organization's annual conference--the only conference typically on my calendar) suggest that high-end properties across the country are seeing some price pressure. Click <a alt="http://www.luxuryhomemarketing.com/market_report/ILHM_National_2014_10_06_1224252860_3916.pdf" href="http://www.luxuryhomemarketing.com/market_report/ILHM_National_2014_10_06_1224252860_3916.pdf" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">here</a> for more national stats focused on the high end, generated by the same vendor who provides detailed info on the Piedmont market when I organize open houses for my listings.</div>
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Anytime you need more insight into local or regional housing trends, just<a href="mailto:Kennedy@MaureenKennedy.Net" linktype="2" shape="rect" style="color: black;" target="_blank"> let me know.</a> I appreciate the opportunity to review stats and market trends through the quarter--it helps inform my thinking, gives me something to talk to clients about, and certainly ensures that I operate in a data-driven manner, rather than relying on my gut only!</div>
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Today I polled my colleagues for caterer ideas for a holiday event at our house for my spouse's office. Here are the responses, in no order:</div>
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-Lois at Edgeworks, <a href="" shape="rect">Edgeworks@comcast.net</a><br /><a href="" shape="rect"><br /></a>-Susan Wong, formerly of Lalime's, <a href="" shape="rect">510.967.4136</a></div>
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-Blue Heron Catering (510) 533-0781</div>
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-Barbara Llewellyn <a href="" shape="rect">Info@BarbaraLlewellyn.com, </a><a href="" shape="rect">510.832.1967, </a>(looks like she does teambuilding events built around one-day cooking classes too)</div>
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-Grace Catering, <a href="" shape="rect">(510) 523-1600</a> <a alt="http://www.gracestreetcatering.com" href="http://www.gracestreetcatering.com/" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on"> www.gracestreetcatering.com/</a> </div>
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And for most creative (and thrifty) idea: </div>
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-Get food from Ann's Catering (of Rick and Ann's) and use Hostess Helpers (<a alt="http://www.hostesshelpers.com" href="http://www.hostesshelpers.com/" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">hostesshelpers.com</a>) or high schoolers from the Rec Department's database (call 420-3070) to do the actual staffing. </div>
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Finally, the high school's<em> a cappella</em> group will sing for pay (and has a multi-denominational playlist). If it's of interest, let me know and I'll track down who's in charge this year.</div>
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Top Ten in the Country--Two Miles Away</div>
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Real estate blog <a alt="http://sf.curbed.com" href="http://sf.curbed.com/" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">Curbed</a> highlighted the American Planning Association's selection of the Uptown neighborhood of Oakland as one of the top ten neighborhoods in the country. Read more about it and other coolest neighborhoods <a alt="https://www.planning.org/greatplaces/neighborhoods/2014/" href="https://www.planning.org/greatplaces/neighborhoods/2014/" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">here</a>. Note to calendar: Add next month's Art Murmur. See the <a alt="http://oaklandartmurmur.org/firstfriday" href="http://oaklandartmurmur.org/firstfriday" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">Art Murmur </a>site for arts listings and First Friday events for next month--</div>
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Need a Middleman for a Parent-to-Child Home Loan?</div>
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Longtime readers of this blog will remember Circle Lending, which took care of the paperwork for private loans, and Virgin Lending, which bought Circle Lending just before the crisis, and then folded shortly thereafter.<br /><br />Looks like National Family Mortgage has gotten organized to fill the void, per Kathleen Pender's <em>Chron</em> story in July. They charge $725 to originate the loan (set up, record and handle 1099 forms at the end of the year), and then there's a separate $15/mo servicing charge (to cover sending out monthly mortgage payment bills, letting you know if a payment issue comes up), which can be paid by the lender or borrower, at your direction.<br /><br />Note that if you were to "gift" funds to a relative, you are liable for gift taxes. The IRS has a "Applicable Federal Rate" which is a safe-harbor rate that avoids any liability. It's currently just over 3% for a long-term loan. So while market rates are closer to 4.375% for a 30-year loan, you could lend a relative at 3.06% and not worry about whether a portion of the arrangement would be considered a gift by the IRS. The program allows you to set the rate at whatever you agree on.<br /><br />See their site at <a alt="http://www.nationalfamilymortgage.com" href="http://www.nationalfamilymortgage.com/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">nationalfamilymortgage.com</a>, and/or check out a guide to borrowing at <a alt="https://www.nationalfamilymortgage.com/wp-content/themes/nationalfamilymortage/pdf/Family-Mortgage-Purchase.pdf" href="https://www.nationalfamilymortgage.com/wp-content/themes/nationalfamilymortage/pdf/Family-Mortgage-Purchase.pdf" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">this site.</a></div>
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By the way, I've turned a few clients who are not yet ready to buy or sell onto the IRS's taxpayer guides to buying and selling. They have great FAQs and scenarios. (I send these links out, along with the settlement sheet from transactions, to each of my clients on 12/31--who wants to go hunting for that one piece of paper when organizing for taxes when I have it tucked into my "settlement sheets" file at the office?) See <a alt="http://www.irs.gov/publications/p530/ar02.html" href="http://www.irs.gov/publications/p530/ar02.html" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">this site/doc for potential buyers</a> and <a alt="http://www.irs.gov/publications/p523/" href="http://www.irs.gov/publications/p523/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">this site for potential sellers.</a> Is that new roof a expense related to the sale or an addition to basis, or neither? What about an upgrade from vinyl to hardwood in the kitchen? Can you deduct transfer taxes? Loan points? <em>The answers might surprise you........ </em> As always, talk to your tax professional first and last!</div>
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Merritt College Plant Sale Coming Up this Weekend</div>
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In the middle of a drought, don't forget that natives and Mediterranean plants are great ways to reduce water consumption in your yard. Merritt College's non-profit plant sale happens this Saturday (9-3) and Sunday (12-3) at the College up Campus Drive. See <a alt="http://www.merrittlandhort.com" href="http://www.merrittlandhort.com/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">MerrittLandHort.com</a> for all the details. </div>
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Competing for your attention is the Ruth Bancroft Garden's plant sale also on Saturday 11-3 pm in Walnut Creek.</div>
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The following weekend is the native plant sale sponsored by the CA Native Plant Society, this year on October 18th at Hidden Villa Ranch in Santa Clara (do elementary school students still go to Hidden Villa for their eco-education overnight?). October 19th, go local to the Friends of Sausal Creek sale at Joaquin Miller Park 10-4 pm. Combine a plant sale and a Lawrence Hall of Science visit by stopping by the UC Botanic Garden's sale also Sunday 10-4 pm. See <a alt="http://ucbgcn.blogspot.com" href="http://ucbgcn.blogspot.com/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">their blog for more info</a>. </div>
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Bay Area Wide Market Trends--</div>
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If you have an interest in property values elsewhere in the Bay Area--thinking about a move or looking at current values of an investment property--take a peek at <a alt="http://issuu.com/pacificunion/docs/q22014_quarterlyreport_ezine_final" href="http://issuu.com/pacificunion/docs/q22014_quarterlyreport_ezine_final" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">Pacific Union's regional report for 2Q14</a> (this quarter's report will be coming out soon--keep an eye on my blog <a alt="http://www.tinyurl.com/piedmontHome" href="http://www.tinyurl.com/piedmontHome" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">(tinyurl.com/PiedmontHome)</a>. Lots of data, and it includes nice insights from the various regional VPs--remember we have offices <em>throughout</em> the Bay Area and in Tahoe, in contrast to the red guys.....</div>
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Also Courtesy of Pacific Union, and Christie's International--</div>
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You know Pacific Union is the longtime regional affiliate of <a alt="http://www.christiesrealestate.com/eng" href="http://www.christiesrealestate.com/eng" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">Christie's International Real Estate</a>, right? Christie's puts out a great read every quarter--check the last issue out <a alt="http://www.zebraprepress.co.uk/Portal/PAGETURNERS/CIRE_02_2014/#/1/" href="http://www.zebraprepress.co.uk/Portal/PAGETURNERS/CIRE_02_2014/#/1/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">here</a>. It's not just a compilation of big houses!</div>
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A Few Garden Ideas</div>
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--On <a alt="http://www.sunset.com/garden/landscaping-design/fall-color-garden-plants/view-all" href="http://www.sunset.com/garden/landscaping-design/fall-color-garden-plants/view-all" linktype="1" shape="rect" style="color: black;" target="_blank" track="on"><em>Sunset Magazine's</em> site </a>is a nice set of suggestions for great fall color. Think about shots of orange and purple, combined with waving grasses. </div>
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--Are you yet addicted to <a alt="http://www.gardenista.com" href="http://www.gardenista.com/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">Gardenista</a>? The <em>NYT</em>'s Michelle Slatalla's current roost, it's cooler than <em>Sunset,</em> and covers plants, hardscapes, floral, and has great graphics from correspondents in a few locations around the world. Because it's based here, much of the international coverage tends to be in other Mediterranean climates--South Africa, Australia, Spain and Italy, and so on. </div>
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--Been to the Bayview to <a alt="https://www.youtube.com/watch?v=Kde4qeV5iKU" href="https://www.youtube.com/watch?v=Kde4qeV5iKU" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">Flora Grubb's</a> shop? I hear succulents are heading toward passé, but otherwise, it's a great idea generator. </div>
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Enough about You; Let's Talk about Me (and Pacific Union a tad...)</div>
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This has been a very big year for me, and for PacUnion. You've probably seen the graphically striking full-page ads in the <em>Chron</em> pointing out that we have the most productive agents ($ sold/agent), the fastest growth rate, and the largest share of sold over-$1 million homes throughout the Bay Area. We've also been getting great press and awards for our <a alt="http://www.pacunion.com" href="http://www.pacunion.com/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">pacunion.com</a> website, and for our big presence in <a alt="http://pacificunion.com.cn" href="http://pacificunion.com.cn/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">China</a>. We have an office there, key staff have made several visits, all our listings are uploaded to the Zillow.com equivalent there (with text translated of course) and our concierge office here handles incoming inquiries ("I'd like to buy x house in Piedmont," as well as "I need a Chinese-speaking agent to help me buy my son a condo in Berkeley while he's at UC"), as well as advertising opportunities in a range of Asian pubs.</div>
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Meanwhile, back at the ranch, I've sold a bit under $25 million in real estate in the past year--85% of it in Piedmont. Prices have ranged from $665,000 to--oops I can't tell you because my clients' offer was confidential, and I never violate a confidentiality commitment.</div>
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A bit less than half involved buyers, and I represented sellers (or renters!) for the balance. </div>
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Of greatest interest to me is how I stack up against the "typical" sale. On average, homes closed in Piedmont at 8% over the asking price over the same period. In contrast, looking at my buyers and sellers, my buyers closed at an average 7% <strong><em>below</em></strong> asking, and my sellers closed at 24.6% <em><strong>above</strong></em> asking. </div>
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You can achieve that kind of performance while being a jerk, yelling and screaming, and developing a reputation among agents and clients for lack of transparency and ethics. <strong><em>Actually, I'd argue that you can't,</em></strong> and have always approached my business hoping to deliver thoughtful, insightful advice in a collegial fashion while keeping my clients' interests paramount. Click <a alt="https://sites.google.com/site/aboutmaureenkennedy/what-clients-say" href="https://sites.google.com/site/aboutmaureenkennedy/what-clients-say" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">here</a> for more of what my clients say.</div>
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Should I Sell my Home Off-Market?</div>
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I don't know why it took me this long to mention this, but this spring, I had a client who thought seriously about selling his home off market. Price was important, and privacy was not a big issue. I argued that to get the best price, there's no doubt the best approach is to stage, market a home very strategically, and open it up to the broadest range of potential buyers possible. You want multiple buyers, in part to keep the prevailing buyer "in line." Off market, too often, the sole buyer thinks s/he is doing a seller a big favor, and begins asking for lots of concessions in return. </div>
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Of course I know I'm the agent and you're the principal, so I do whatever you tell me to do. In this case, the seller was convinced to list the house off-market with another brokerage in town. They opened it up unstaged, to about a half-dozen buyers working with (only) their agents. None felt the look of love, and the seller felt that none was really properly pre-selected (we agents typically will bring <strong>all</strong> financially qualified buyers to an off-market listing, in part because our buyers would want to get in when others can't (why? They are hoping for a bargain.....)). The asking price was x. No bites. Not even an offer below asking.</div>
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I got the listing a few days later, staged, cleaned up the tax record to reflect about 1000 sf of <strong>permitted</strong> additional space, did a bang-up marketing job, and put the house on the market shortly thereafter for 93% of x, hoping for x or more. </div>
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The prevailing buyer closed with zero complications at 27% over x (and 40% over asking). </div>
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There were a number of extraordinarily strong offers, and the three strongest were from agents who don't traditionally work in Piedmont--two from Berkeley and one from San Francisco. (You remember my story a few years ago that in a year with say 140 sales or 280 "sides," there were something like 200 different agents and dozens of firms which had participated in the Piedmont market?)</div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-58522137141362576952016-07-20T18:54:00.002-07:002016-07-20T18:54:22.416-07:00100 Echo--On the Market Summer 2014<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="color: maroon;">Gorgeously Renovated, Meticulously Maintained, but First-- </span></div>
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You might have noticed my reference last week to "AARP-certified"--a young buyer came into a recent level listing and said "my mom said this home was AARP-certified." What a great concept. For the last few months, coincidentally, I've been making my way through</div>
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<em><strong>The Accessible Home</strong></em> by Deborah Pierce (feel free to <a href="mailto:Kennedy@MaureenKennedy.Net" linktype="2" shape="rect" style="color: black;" target="_blank">contact me</a> to borrow it). Pierce creates a roadmap for owners looking to accommodate: </div>
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<li style="color: black;"> regular visitors with accessibility challenges (I regularly hear "this house won't work for us--my mother can't handle all those stairs when she comes for dinner"), </li>
<li style="color: black;">themselves at all ages, </li>
<li style="color: black;">a disabled child, or </li>
<li style="color: black;">a disabled partner. </li>
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Her mantra is "Universal Design Equals Intelligent Design," and she's so smart! Think about how much easier it was/is to use strollers on corners with curb cuts ostensibly for wheelchairs, or to change diapers in the disabled bath stall. And think about how many of us are likely to be inviting our parents into our lives and households in the coming years.<br /></div>
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Much of her thinking looks at changes you can make (or plan in a renovation) that are great now, but lifesavers later (and think about the costs if you<em><strong> had</strong></em> to move because a home no longer met your needs). Asking the right questions is as important as the anticipated needs you plan for.</div>
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Key insights for all of us include: <br /></div>
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--Closet planning can increase efficiency by 60%.</div>
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--Knobs are a problem; cabinet pulls and door lever handles are not.</div>
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--Pocket doors (and "barn" doors) can be really useful in avoiding do-si-do routines.</div>
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--Low maintenance layouts and surfaces are good for everyone.</div>
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--Can everyone get out safely in an emergency?</div>
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--Changes in stone or pavement color (slate to concrete) can signal surface or slope shifts, particularly for the visually impaired.</div>
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--Drawers for the fridge, for pots, for files are easier for everyone to access, as are side-swinging oven doors (Gaggenau has had them for years).</div>
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--Think about easy and rain-protected ways to get folks out into fresh air--level-out decks, etc.</div>
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--BathSimple.com turned me onto the notion of placing shower controls in a location that doesn't involve your getting wet every time you prep for a shower (try doing that in a wheelchair!)</div>
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--Bay windows are another way to create "elbow room" in tight spaces.</div>
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--Think about dual purpose grab bars/towel racks. </div>
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--Planning in laundry rooms and mud rooms is key. There's a lot of maneuvering that goes on in each, and a washer and dryer in the basement is a pain for everyone, including kids who can otherwise help out.</div>
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--In-bath storage. Use for linens now, and various medical supplies later. </div>
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--And what about a bidet after all, for keeping things clean? Those Japanese toilet retrofits (Google "Toto Washlet") work really well.</div>
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--Don't forget the needs of a caregiver (my new listing at <a alt="http://www.100Echo.com" href="http://www.100echo.com/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">100Echo.com</a> provides a great private housing arrangement.....)<br /></div>
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Lofts can often be just the ticket--they typically involve elevators, low-maintenance concrete floors, wide spaces and modular functionality.<br /></div>
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Note that the City of Piedmont, when recently overhauling its zoning code, added a "reasonable accommodation" reg. Historically it was very difficult to get a permit for otherwise-prohibited renovations needed for various disabilities--say to convert an existing half bath to a full bath in order to allow an owner to live comfortably on one floor, or to expand an entry porch roof into a setback to provide a sheltered area for someone to get keys to open a door. And frequently these adjustments had to come out when the owner sold the home, even though that meant the home again became less-accessible--a particular problem in Piedmont given that our housing stock is so old, on average. Now, the City "may" require that the space be returned to its original status, or it "may" leave that more accessible home as-is for future owners. See <a alt="http://www.ci.piedmont.ca.us/html/city_code/pdf/chapter17.pdf" href="http://www.ci.piedmont.ca.us/html/city_code/pdf/chapter17.pdf" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">Chapter17.22.a</a> of the City code for more.<br /></div>
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And finally, I've mentioned it before at Margie Bowman's suggestion, but take a peek at <a alt="http://www.northoaklandvillage.org/" href="http://www.northoaklandvillage.org/" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">North Oakland Village</a> for thoughts and resources on how to stay in your home longer--assuming that's your preference. If you're happy to move, just call me and we can make that happen too!<br /></div>
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<span style="color: maroon; font-size: 16pt;">100 Echo Avenue, A 3/2 Home with Legal 1/1 Unit<br />Tucked between the Piedmont Line and Piedmont Avenue<br />$929,000 </span></div>
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<br />Gorgeously renovated with careful attention paid to form and function, 100 Echo Avenue is tucked between the City of Piedmont border and Piedmont Avenue Elementary.<br /><br /><strong>Handcrafted Details Joined with Comfort</strong><br /><br />Walk through the gate under the handcrafted rose arbor and through the garden,<br /><br /><img border="0" height="433" hspace="5" name="ACCOUNT.IMAGE.8" src="https://mlsvc01-prod.s3.amazonaws.com/481cd742401/9e58c580-7cb8-4442-adfd-aee03630daa3.jpg" vspace="5" width="433" /><br /><br />and then revel in the historic home's gorgeous architecture, great light, thoughtful details, remarkably open layout, and fine materials--<br /><br />--host family and friends in the unique octagonal dining room with its coved ceiling, cozy fireplace and open connection to the kitchen;<br />--convene the book group in the large living room, while your spouse relaxes in the main-level parlor (originally a bedroom) or in the hot tub in the private rear garden;<br />--enjoy a bath in an original cast iron tub on the main level, or step into the upper bath with its luxurious warm floors and roomy stall shower; <br />--prep breakfast or dinner in the light and bright recently renovated kitchen with its heated tile floor and high-end finishes;<br />--appreciate the home's many built-in shelves, discreetly placed closets (including cedar-lined closets in the master), and thoughtful storage solutions.<br /><br /><img border="0" hspace="5" name="ACCOUNT.IMAGE.4" src="https://mlsvc01-prod.s3.amazonaws.com/481cd742401/4a80db4e-1b75-4bea-bd95-b3445525c9ec.jpg" vspace="5" width="608" /><br /><br /><strong>Take Advantage of the East Bay's Walkable Lifestyle</strong><br /><br />The secure and dog-friendly fenced home is just a long block from Piedmont Avenue and its cafes and prized restaurants (including Michelin-starred Commis, and highly rated Baywolf, Gregoire, Dopo, and Homestead), the Piedmont Theater, Piedmont Grocery and other amenities. Hoping for a big flat yard? The playground of up-and-coming Piedmont Elementary School is just across Glen Avenue (as is the new Piedmont Avenue library); several private elementary schools are within a few blocks of the home as well. <br /><br />Further afield are Lake Merritt, with its 3.5 mile run-walk trail, 700-acre Frederick Law Olmstead-designed Mountain View Cemetery at the top of Piedmont Ave., and the East Bay's parks-beloved photographer Galen Rowell said in Bay Area Wild, "we bought our ... home so we could run, hike, ride, and bike the extensive trail system through this section of a thirty-mile greenbelt that rims the back of the East Bay hills from Richmond to almost Hayward....No other major metropolitan center in the world boasts such an extensive system of wild greenbelts.... For years we surprised out-of-town guests by taking them on wildland walks along our favorite trail, frequently seeing deer, foxes, and coyotes at dawn or dusk."<br /><br />Hop on an AC Transit bus to downtown Oakland, the nearby McArthur BART station, or to San Francisco's Financial District (WiFi included!)--it's all so convenient you can sell the car! College Avenue, Berkeley's Elmwood, and Oakland's hip Uptown neighborhood (home of Art Murmur) are all closeby, as are Routes 580, 880, 24, 13, OAK and SFO.<br /><br /><strong>An Eco-Friendly and Efficient Option, Done Right</strong><br /><br /><table align="none" class="imgCaptionTable" style="margin-bottom: 20px; margin-top: 20px; text-align: center; width: 598px;"><tbody>
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Too frequently, buyers ignore a home's infrastructure. These smart owners have not! Through several rounds of renovation, the owners carefully upgraded to double-paned windows, high-efficiency furnace, Icynene insulation, Energy Star appliances and water-wise fixtures. The roof is sound, the foundation upgraded, the sewer lateral replaced, the garage is practically new, the galvanized plumbing is replaced with copper, the seismic work is done, the drainage system is tried and true, and the pest inspection is under $2,000. <br /><br />Moreover the homeowners have been great stewards of the place. They continually amended and enriched the property's soil, and used only natural fertilizers and pest control. (The garden's snails were for many years collected and sent over to the elementary school to feed the ducks and chickens that were raised there by a teacher!) Hummingbirds and butterflies enjoy the garden's carefully selected plantings. The home's layout and energy flow was improved based on feng shui consultations, and in front, a gorgeous rock "anchors" the home to the surrounds.<br /><br /><strong>The Lower-Level Unit Offers Great Flexibility</strong><br /><br /><table align="none" class="imgCaptionTable" style="margin-bottom: 20px; margin-top: 20px; text-align: center; width: 608px;"><tbody>
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Originally a single family home when built in the early 1900s, and a legal tri-plex more recently, the home has been used as a single-family home with a sound-insulated and attractively updated and spacious legal 1 bedroom/1 bath unit below for many years. Perfect for visiting relatives or friends, for an au pair or caregiver, for college students or as a large home office, the unit also can provide the buyers with a prudent financial cushion if rented out.</div>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-10632397348189387142016-07-20T18:52:00.002-07:002016-07-20T18:52:46.156-07:00Piedmont Real Estate Update 2Q14--<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="color: maroon;">Piedmont Real Estate Update, and Happy 4th!</span></div>
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<b>Dear Maureen,</b></div>
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Find thoughtful analysis on the Piedmont market, and local info on gardens, homes, renovation, community and more----</div>
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<span style="color: maroon; font-size: 16pt;">But First, 1119 Warfield Ave. Open just after the Parade--</span></div>
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<span style="color: black; font-size: 12pt;"><em>If friends or colleagues are looking to simplify life, consider 1119 Warfield Avenue, Piedmont! </em></span></div>
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<span style="color: black; font-size: 12pt;"><strong>Architectural Details Abound </strong></span></div>
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<span style="color: black; font-size: 12pt;">At the top of a knoll with a flat front yard, the home affords long views facing towards the south. Enjoy the barrel ceiling in the living room and other architectural details of this Mediterranean-style home-from coved ceilings, to crown molding, to ornate fireplace surround, to banks of windows that let in the East Bay's famous light. </span></div>
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<span style="color: black; font-size: 12pt;">When you're ready to entertain, the formal dining room beckons, but start with cocktails on the private front patio. The split-level layout works very well: a master suite and two bedrooms sharing a bath are a few steps up from the public rooms, while the rare family room and guest suite (plus interior access from the garage) are a few steps down. A total of four bedrooms and three baths! </span></div>
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<span style="color: black; font-size: 12pt;"><strong>The Perfect Location </strong></span></div>
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<span style="color: black; font-size: 12pt;">A better more walkable Piedmont location would be hard to find. Just a block and a half from Wildwood Elementary,* with the middle school, high school and dog-friendly Piedmont Park on the other side of the football field, students can head out to school 10 minutes before classes start. Or walk with them and stop at Mulberry Market for a latte, on your way to the casual carpool or Wi-Fi-equipped express bus to San Francisco's Financial District.</span></div>
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<span style="color: black; font-size: 12pt;">Wildwood Elementary has recently completed a seismic update, and ranks 10 out of 10 on the state's API scores. The elementary school offers before- and after-school care run by the Recreation Department on-site-and summer camps are well-organized and easy to coordinate as well. Piedmont High School is rated #200 in the country in US News and World Report's 2014 survey of public schools last year (and by far the smallest of the very few Bay Area schools receiving the Gold ranking), and is just a few blocks from the home. </span></div>
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<span style="color: black; font-size: 12pt;">This summer, enjoy Piedmont Community Pool for long afternoons or swimming lessons. See more on the pool <a alt="http://www.ci.piedmont.ca.us/recreation/pool.shtml" href="http://www.ci.piedmont.ca.us/recreation/pool.shtml" linktype="1" shape="rect" style="color: black;" target="_blank" track="on">here.</a> </span></div>
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<span style="color: black; font-size: 12pt;"><strong>The Improvements </strong></span></div>
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<span style="color: black; font-size: 12pt;">The current owners have made a number of improvements over the years, including the installation of Andersen dual-paned windows, seismic retrofit, sewer lateral replacement, Kohler low-flow toilet replacements, recent roof tune-up, and paint inside and out. Not one but two 40-gallon hot water heaters help ensure that showers never run cold (the plumbing lines are copper). </span></div>
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<span style="color: black; font-size: 12pt;"> *Check PUSD for availability in the fall. </span></div>
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<span style="color: black; font-size: 12pt;">--4 bedrooms and 3 baths in 2148 sf (per assessor) </span></div>
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<span style="color: black; font-size: 12pt;">--4452 sf lot (per assessor) </span></div>
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<span style="color: black; font-size: 12pt;">--1-car garage (check for size) </span></div>
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<span style="color: black; font-size: 12pt;">--Seismic Retrofit </span></div>
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<span style="color: black; font-size: 12pt;">--200-amp electrical service</span></div>
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<span style="color: black; font-size: 12pt;">--copper plumbing</span></div>
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<span style="color: black; font-size: 12pt;">Open Friday 12-1:30pm, Saturday & Sunday 2-4:30 pm </span></div>
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<span style="color: black; font-size: 12pt;">Broker's Tour (public welcome) Thursday AND Monday 10-1 pm</span></div>
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<span style="color: black; font-size: 12pt;">Offered at $1.195 million.</span></div>
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<span style="color: maroon; font-size: 16pt;">I Know It's Not My Listing, But--</span><br /><br /></div>
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Let me mention one of my favorite homes in Inverness, coming on the market this weekend, and owned by Piedmonters and Kensingtonians.<span style="font-size: 12pt;"> </span></div>
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<span style="font-size: 12pt;">125 Vision Rd. Is just a short distance from the tennis court, Inverness Yacht Club (shallow draft so we're talking kayaks and small boats here....), and downtown Inverness, including the very well reviewed <a alt="http://www.saltwateroysterdepot.com" href="http://www.saltwateroysterdepot.com/" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">Saltwater Oyster Depot</a>. Newly high-end grocer <a alt="http://perrysinvernessparkgrocery.com" href="http://perrysinvernessparkgrocery.com/" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">Perry's Deli</a> is a couple miles towards Olema (location of the Manka's team's new <a alt="http://www.sirandstar.com" href="http://www.sirandstar.com/" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">Sir and Star</a>), and Pt. Reyes Station (think <a alt="http://www.osteriastellina.com" href="http://www.osteriastellina.com/" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">Osteria Stellina</a>, the <a alt="http://www.dancepalace.org" href="http://www.dancepalace.org/" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">Dance Palace</a>, <a alt="http://www.Ptreyesbooks.com" href="http://www.ptreyesbooks.com/" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">Pt. Reyes Books</a>, and <a alt="http://www.cowgirlcreamery.com" href="http://www.cowgirlcreamery.com/" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">Cowgirl Creamery</a>). And Kehoe Beach in Pt. Reyes National Seashore, the best dog-walking beach on the Pacific Coast, is about 12 minutes away by car-I just got back from my hourlong Sunday constitutional there as I write this.</span></div>
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<span style="font-size: 12pt;"><a alt="http://www.bolinasroad.com/images/lola_beadh_0025.JPG" href="http://www.bolinasroad.com/images/lola_beadh_0025.JPG" linktype="1" shape="rect" style="color: blue;" target="_blank" track="on">See here for the view.</a></span></div>
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Formerly owned by the Cheda Garage family, the house was the new new thing in 1957--it's one of only a few--I can't think of another--mid-century modern homes in town with a classic south-facing horseshoe shape. The large living room is bracketed by a classic fireplace, and the interior courtyard which draws plenty of light into the home. Totalling 3 bedrooms and 2.5 baths, with a large garage with interior access, it's set on a half-acre lot with heirloom apple orchard already in place--I've made "Apple Trees at Olema" apple jelly for the garden club's scholarship fundraiser with permission of the owners and poet-laureate Robert Hass. </div>
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And did I mention the steel-reinforced foundation that would have been de rigeur in 1957? And the new roof? And the dog- and toddler-friendly privacy fence? And AARP-certified level-living? And 1 hour 10 minutes from Piedmont? </div>
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Get into town before the Inverness Fair in early August! Open this weekend by appointment and next. See 125Vision.com for more.</div>
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$925,000. </div>
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Contact Melissa Lyckberg at Melissa.Lyckberg@sothebysrealty.com</div>
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<span style="color: maroon; font-family: Garamond, 'Times New Roman', Times, serif; font-size: 16pt;">The Piedmont Update</span></blockquote>
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<span style="font-family: Garamond, 'Times New Roman', Times, serif; font-size: 12pt;">Well, the strong market continued apace this quarter--in contrast to reports elsewhere, we had 63 sales this quarter, compared to 42 for 2Q13. Average sales price was $1.903 million (usually I stick with median, but this quarter's number is skewed up by a few large sales. Even so, the median was $1.743 million). </span></blockquote>
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<span style="font-family: Garamond, 'Times New Roman', Times, serif; font-size: 12pt;">The average price per square foot was $661/sf (appropriately excluding several sales which show as $0 for privacy reasons....). This compares with $600/sf for us at the top of the market, and about $635-$650/sf over the course of the past year. So we seem to be at a new plateau about 10% above the previous market highs (though note that's 10% appreciation over 8 years.......).</span></blockquote>
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<span style="font-family: Garamond, 'Times New Roman', Times, serif; font-size: 12pt;">The average days on market was 16 (12 was the median). For hotly contested properties, we're typically seeing sales on the Friday of the first week, unless the seller commits to a second open house weekend.</span></blockquote>
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<span style="font-family: Garamond, 'Times New Roman', Times, serif; font-size: 12pt;">Anticipate that the market will remain active as buyers try to get into the market before the beginning of school. Sales tend to drop like a rock through August, however, and then pick up again for about 6-10 weeks after Labor Day, before the holiday lull sets in. </span></blockquote>
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<span style="font-family: Garamond, 'Times New Roman', Times, serif; font-size: 12pt;">Yesterday's strong economic data may suggest that this unexpected window of unusually low interest rates is about to end--as rates climb, homes become marginally less affordable--the same buyer can no longer afford your home as their payment rises. </span></blockquote>
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<span face="Garamond, Times New Roman, Times, serif" style="font-family: Garamond, 'Times New Roman', Times, serif;">Be sure to contact me (Kennedy@MaureenKennedy.Net) for any additional insights on the Piedmont market, or if your friends, family, or colleagues want to buy or sell in the East Bay market. I've closed nearly $25 million in real estate in the past year, ranging from the most expensive sale in Piedmont that was on the MLS to the least expensive home closed in Piedmont this year.</span></blockquote>
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<span face="Garamond, Times New Roman, Times, serif" style="font-family: Garamond, 'Times New Roman', Times, serif;">Enjoy the long weekend!</span></blockquote>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-11620380001948599422014-10-08T10:26:00.002-07:002014-10-08T10:26:43.540-07:00Why It's So Tough to Get a Loan These Days<div dir="ltr" style="text-align: left;" trbidi="on">
Bloomberg has a nice <a href="http://www.bloomberg.com/news/2014-10-08/tightest-credit-market-in-16-years-rejects-bernanke-s-bid.html">piece</a> today following up on Bernanke's comment last week that he applied to refinance his loan and was rejected recently. The story is pretty basic, but covers the "pendulum has swung too far back" issue, the "lenders' job is to find what's wrong with your package" issue, as well as the "our incomes are actually lower now than 10 years ago, on average, so of course lending is more difficult" issue. This latter point I've not heard paired with the tightening guidelines issue before (though of course folks lost so much equity and savings during the downturn, that downpayments are dramatically more difficult to pull together these days--for instance, 10 years ago, you could buy a $1 million home with $50,000 down, let's say. Today you might need $200,000 down (a 300% increase, and savings are incredibly hard to set aside quickly!), and your income might be 3% lower, on average (but rates are too, so......).</div>
Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-68661412221330340182014-10-07T14:37:00.004-07:002014-10-07T14:37:52.868-07:00Should I Sell my Home Off-Market?<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Georgia, 'Times New Roman', serif; text-align: -webkit-auto;">I don't know why it took me this long to mention this, but this spring, I had a </span><br />
<br />
<pre style="text-align: -webkit-auto;"><span style="font-family: Georgia, Times New Roman, serif;">client who thought seriously about selling his home off market. Price was important,
and privacy was not a big issue. I argued that to get the best price, there's no
doubt the best approach is to stage, market a home very strategically, and open
it up to the broadest range of potential buyers possible. You want multiple buyers,
in part to keep the prevailing buyer "in line." Off market, too often, the sole
buyer thinks s/he is doing a seller a big favor, and begins asking for lots of
concessions in return.</span></pre>
<pre style="text-align: -webkit-auto;"><span style="font-family: Georgia, Times New Roman, serif;">
Of course I know I'm the agent and you're the principal, so I do whatever you tell
me to do. In this case, the seller was convinced to list the house off-market with
another brokerage in town. They opened it up unstaged, to about a half-dozen buyers
working with (only) their agents. None felt the look of love, and the seller felt
that none was really properly pre-selected (we agents typically will bring all financially
qualified buyers to an off-market listing, in part because our buyers would want
to get in when others can't (why? They are hoping for a bargain.....)). The asking
price was x. No bites. Not even an offer below asking.</span></pre>
<pre style="text-align: -webkit-auto;"><span style="font-family: Georgia, Times New Roman, serif;">
I got the listing a few days later, staged, cleaned up the tax record to reflect
about 1000 sf of permitted additional space, did a bang-up marketing job, and put
the house on the market shortly thereafter for 93% of x, hoping for x or more.
The prevailing buyer closed with zero complications at 27% over x (and 40% over
asking).</span></pre>
<pre style="text-align: -webkit-auto;"><span style="font-family: Georgia, Times New Roman, serif;">
There were a number of extraordinarily strong offers, and the three strongest were
from agents who don't traditionally work in Piedmont--two from Berkeley and one
from San Francisco. (You remember my story a few years ago that in a year with
say 140 sales or 280 "sides," there were something like 200 different agents and
dozens of firms which had participated in the Piedmont market?)
</span></pre>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0tag:blogger.com,1999:blog-2992460935265011673.post-41362890934996314462014-10-07T14:37:00.000-07:002014-10-07T14:37:16.488-07:00Enough about You; Let's Talk about Me (and Pacific Union a tad...)<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Georgia, 'Times New Roman', serif; text-align: -webkit-auto;">This has been a very big year for me, and for PacUnion. You've probably seen the</span><br />
<br />
<pre style="text-align: -webkit-auto;"><span style="font-family: Georgia, Times New Roman, serif;">graphically striking full-page ads in the <i>Chron</i> pointing out that we have the most
productive agents ($ sold/agent), the fastest growth rate, and the largest share
of sold over-$1 million homes throughout the Bay Area. We've also been getting
great press and awards for our <a href="http://pacunion.com/">pacunion.com</a> website, and for our big presence in <a href="http://www.pacificunion.com/cn">China</a>.
We have an office there, key staff have made several visits, all our listings are
uploaded to the Zillow.com equivalent there (with text translated of course) and
our concierge office here handles incoming inquiries ("I'd like to buy x house
in Piedmont," as well as "I need a Chinese-speaking agent to help me buy my son
a condo in Berkeley while he's at UC"), as well as advertising opportunities in
a range of Asian pubs.</span></pre>
<pre style="text-align: -webkit-auto;"><span style="font-family: Georgia, Times New Roman, serif;">
Meanwhile, back at the ranch, I've sold a bit under $25 million in real estate in
the past year--85% of it in Piedmont. Prices have ranged from $665,000 to--oops
I can't tell you because my clients' offer was confidential, and I never violate
a confidentiality commitment. </span><span style="font-family: Georgia, 'Times New Roman', serif;">A bit less than half involved buyers, and I represented sellers (or renters!) for </span><span style="font-family: Georgia, 'Times New Roman', serif;">the balance.</span></pre>
<pre style="text-align: -webkit-auto;"><span style="font-family: Georgia, Times New Roman, serif;">
Of greatest interest to me is how I stack up against the "typical" sale. On average,
homes closed in Piedmont at 8% over the asking price over the same period. In contrast,
looking at my buyers and sellers, my buyers closed at an average 7% below asking,
and my sellers closed at 24.6% above asking.</span></pre>
<pre style="text-align: -webkit-auto;"><span style="font-family: Georgia, Times New Roman, serif;">
You can achieve that kind of performance while being a jerk, yelling and screaming,
and developing a reputation among agents and clients for lack of transparency and
ethics. Actually, I'd argue that you can't, and have always approached my business
hoping to deliver thoughtful, insightful advice in a collegial fashion while keeping
my clients' interests paramount. <a href="http://r20.rs6.net/tn.jsp?t=exkfj6rab.0.0.emq8hsqab.0&id=preview&r=3&p=https%3A%2F%2Fsites.google.com%2Fsite%2Faboutmaureenkennedy%2Fwhat-clients-say">Click here</a> for more of what my clients say.</span></pre>
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Maureen Kennedy, Brokerhttp://www.blogger.com/profile/09909541512015254791noreply@blogger.com0