Is a 1031 Exchange in Your Future? The Piedmont Perspective, Vol. 46, April 31, 2008

What's New?

Here's the scenario . . . You own a home in Piedmont or Crocker Highlands that has appreciated beyond your wildest dreams. While you would like to sell it and realize some of this timely profit, the thought of paying Uncle Sam his share of capital gains doesn't quite appeal to you. (Hmmm . . .) Capital gains currently allow for $250,000 tax-free profit for a single owner or $500,000 tax-free profit for a married couple every two years!

While that amounts to a good deal of equity, it still may not cover those of you who bought your home ten, twenty or thirty years ago, and have potentially far more!

Have you considered renting your home for a few years instead of selling it?


Once your primary residence gains new status as an "income-producing" property, you may defer ALL of your capital gains into a "like-kind" property through a 1031 exchange. "Like-kind" properties can include a duplex, rental unit, apartment house, or a coin-operated laundry mat for that matter! (There's quite a bit of latitude in the term "like-kind.")*

*Please speak with your tax advisor about the implications of a 1031 exchange. For the name of a tax exchange representative, please give me a call.
Sounds interesting, but how do I rent my home?

No problem, I just happen to have the perfect solution (you knew it was coming). I am currently assisting a foreign diplomat secure a home in the Piedmont/Crocker/ Berkeley area. The family includes his wife, four children and one beloved elderly dog. They need a rather large home and one in which they can entertain dignitaries. Privacy and security a real plus. They will need it for 3-4 years.

If you would like more information, please contact me. Or if you know of anyone who might benefit from such an arrangement (perhaps they spend the bulk of their time in a second home?) please pass this information along. This may be a terrific solution for everyone concerned.

What's Coming?

With 24 current active listings in the Piedmont Market, there is an abundance of choice, but if you haven't yet found your ideal home, more are coming. Stay tuned and stay close. At the risk of repeating myself, we have a very late spring market under way!

Candice Economides and Dave Hill have a Dazzling Mediterranean listing on Ardmore Avenue in Crocker Highlands that is absolutely spectacular! Remodeled and restored from top to bottom, it encompasses three floors, and features 4bdrms/4bths, formal dining room, massive gourmet kitchen with great room, media room, and private patios throughout. Filled with true Spanish detail, it's simply stunning. For more information: www.GrubbCo.com.

My neighbor has alerted me to a new listing that is set to hit this weekend on Littlewood Drive. This large and wonderful Gray-Shingled Modern, nestled amongst the Oaks is set back from the road, and features 5bdrms/4bths, swimming pool and privacy on an approximately 23,000 square foot lot! Please call for more information.

Debbi DiMaggio is getting ready to bring a Cool Contemporary to the market in the next few weeks. Set in Wildwood Gardens, this unique nearly level Mid-Century offers 4+bdrms/3bths, light-filled rooms and hallways, large level lot, swimming pool and updated kitchen and baths.

What's Pending?

As I predicted, the cool Mid-Century on Glen Alpine went pending in relatively quick time. For buyers, it's all about perceived value and this one offered value in spades!

Speaking of good values, the wonderful Mediterranean at 330 LaSalle Avenue has also found the perfect buyer! I am especially excited to share the news, as I represented the buyer who read about this unique opportunity in (where else?) The Piedmont Perspective! Thanks for reading.

How can I help you?

What's Happening?

Anian Tunney's special two-home listing (that's two homes on one lot) on Sheridan Avenue has been reduced from $2,490,000 to $2,150,000. This wonderful family-compound property in the heart of Piedmont offers tremendous opportunity. Open this Sunday from 2-4:30.

The home at 952 Kingston Avenue in Piedmont has also had a price reduction and is now $1,098,000. This Romantic Craftsman features 3bdrm/2bths, new colors and staging and looks fantastic. Don't miss the charming garden oasis out back and take note of its Piedmont Avenue proximity. This is a sweet home in a great location. www.952kingston.com

The stunning Mediterranean on Westminster in Rockridge has also had a price reduction and is now offered at $3,700,000. Interested? Now is the time to take another look.

Don't assume everything is being sold below asking. It isn't. A cute listing on Mountain Boulevard in Montclair had more than six offers last week and 55% of The Grubb Co's sales are still experiencing multiple offers. Shop for value!

What's Fun!

A few weeks back, a dear friend visited from Connecticut and we reunited on the beach at Crissy Field in San Francisco. We lucked upon one of those rare warm days the city only receives about five times a year and by 11:00 am the beach was filled with joggers, swimmers and dogs of every ilk.

I brought along my younger son, Tristan and my black lab, Buck and it's a toss up for who enjoyed the sand and waves more. Tracy brought three of her five gorgeous children and together, we walked (and talked) all the way to the Warming Hut for iced teas and cinnamon rolls. (The trip to the beach took less than 20 minutes from my home on Littlewood. Our walk lasted much longer.)

What's better than long lost friendships and the first days of Spring? In the hustle and bustle of daily life, it is easy to forget how close San Francisco really is. Take advantage of this internationally cherished city and meet a friend for a walk. That's my idea of casual fun!

And speaking of Casual Fun, there are still a few tickets available for Chase The Blues, this Saturday evening, May 3. Blue Jeans, blues music, and even blue margaritas! It's a great evening of fun as we join together to support a very worthy cause - Oakland Childrens Hospital. To buy your tickets, go to www.chasetheblues.com . Hope to see you there!

The Piedmont Plug!

Recently my family dined at Redboy Pizza at 1500 Leimert Avenue in Oakmore. I should preface this by saying that my husband is a hard-core New Yorker (is there any other kind?) and as a result, critiquing pizza is his birthright(or so he believes).

None of that Chicago deep-dish or California cornbread crust for him! Imagine my relief when the pizza arrived thin and crisp with a spicy bite to the sauce and just the right amount of cheese. We all loved it (even Cliff).

Offering a warm and friendly atmosphere and a full menu, this family-run establishment, just off Park Avenue is a welcome addition to the neighborhood. Give it a try and see if you don't agree. And look for their second location to arrive in the next few months up at the Lincoln Shopping Center, across from Long's Drug Store.

Redboy Pizza also delivers! (510) 594-1030


THANKS FOR READING!

For more information about any of the properties or events listed above, please call me at (510) 339-0400 x264, or simply respond to this email. I'd love to share my real estate tips and my experience in the Piedmont community with you!

Feel free to visit my website at JulieGardner.com for more information as well.

Why Not throw Your Hat in the Ring and See Where it Lands? April 24, 2008

What's New?

Welcome back from Spring Break. Whether you basked in the sun in Hawaii, skied in Tahoe, built houses in Mexico with Piedmont's high school students, or stayed close to home as I did, Piedmont is officially bursting with listing activity and the available home offerings keep on growing! That's great news for interested buyers. Piedmont now has 25 active listings with the average list price reported at $1,933,960 and average days on market (DOM) hovering at 47 days.

The DOM number may sound high, given past years' performances, but it doesn't represent the full picture. The home at 220 Scenic Avenue sold in eight days in this year's Spring Market, while 320 Sea View has clocked in more than 170 days and counting.

Why? The view home on Scenic Avenue finally found the price the market was willing to absorb, while the Mediterranean home on Sea View has not. In short, Scenic found its true value and the market responded quickly with multiple offers. I suspect that when the home on Sea View offers perceived value, the market will follow suit.

Price a home too high and you will be working against your own best outcome.

That's hard to hear and even harder to explain to eager sellers who really "want what they want" or really "want what they need."

TRUTH - The market doesn't care what you want or what you need.

Often when sellers hold out for more, they receive less. The longer a house sits on the market, the larger the discount the buyers will come to expect. Your first offer is often your most motivated buyer!

What's Coming?

Mindy Scott brings a lovely 5bdrm/4bth Traditional with expansive Bay Views to the market on Selborne Drive. Featuring large rumpus rooms, updated eat-in kitchen with adjoining family room and two-car garage with interior access, this great home is now available for private viewings and open to the public this Sunday 2-4:30!

Steve Michaelides offers an Enchanting English Tudor on Hubert Road that features 3bdrms/3bths, custom office, updated kitchen, elegant formal living and dining rooms, and gorgeous garden setting. With a prime Crocker Highlands location, this charming storybook home is very special. Open Sunday 2-4:30!

For more on both these homes, visit www.Grubbco.com.

Adorable best describes the new listing in Upper Lakeshore, featuring three sweet bedrooms, remodeled kitchen and bath, friendly floor plan, newly planted rear garden, fresh paint and loads of CHARM throughout. This darling 1923 Colonial complete with shuttered windows (I'm a sucker for shuttered windows) packs a big punch for the affordable price of $799,000. Interested? Please give me a call.


What's Pending?

As I mentioned above, 220 Scenic Avenue went pending in quick time (8 days) while 221Mountain Avenue took closer to 90 days to find its perfect buyers.

With many of you away over the last week or so, there was less corresponding "pending" activity than we might expect this far into Spring. This delayed response reinforces my last newsletter where I predicted a "late Spring Market." Stay tuned and stay close. Now that inventory is at its peak and interest rates are once again, close to historical lows, I would expect the pending home sales to increase dramatically over the next few weeks.

What's keeping you from making an offer?

Even a lower than expected offer can often start the negotiation process that may ultimately achieve your goal. Why not throw your hat in the ring and see where it lands? Savvy buyers in today's market are being rewarding by reaping great values!

What's Happening?

A client called me last week with genuine concern about the value of her home. She and her husband are refinancing the property they bought a few short years ago and their appraisal has come in for less than they anticipated.

Here's the news . . .
Any lender who is underwriting the loan traditionally orders the appraisal. Makes sense - they want to ensure their investment is "worthy." However, in this more conservative market, many lenders are requiring a 10% deduction off the top of the appraisal to offset the news of a "declining marketplace."

"Declining marketplaces" are determined by zip codes - not neighborhoods or communities (that would be illegal). As a result, homes get bundled regardless of where they actually sit. Your home may in fact, have retained its value and it would still be penalized for sharing a zip code with a neighborhood that may have lost value half a mile down the road. Banks are painting with a very broad brush!

Or, in fact, your home may have lost some of its equity. I understand your concern (I also bought at the TOP of the market) and I'd lay odds that I could probably buy my home for less today than I paid for it four years ago. On the other hand, I couldn't expect the significant profit in today's market that I made on the sale of my San Francisco home four years ago either. . . Profit is often relative.

What's my point?

We all make decisions in the context of the moment and we make them with the best information we have at the time and with good intentions. (How else does one explain 80's hair?) Looking back, it's easy to second guess ourselves, but it's important to honor our decisions and understand that hindsight is always 20/20.

Investments grow over T I M E. You and I may need to sit on our investments longer and let them recoup any loss they may have experienced. If history teaches us anything, it is that the real estate market goes UP over time and has historically outperformed the stock market over time as well! Sit tight.

What's Fun!

What isn't fun? We are rounding out April and coming into May where the fundraising season really goes into full swing. Whether you are attending the CSL Heart of the Home Tour this Friday and Saturday, shopping for designer handbags at The Cancer League's first Handbags for Hope auction on May 1, dancing the night away at Chase the Blues on May 3, www.chasetheblues.com, joining the parent body for the Tri-School Fundraiser, Moonstruck, on May 10, www.piedmontspringfling.org, or bidding on birdhouses at Paints Annual Birdhouse Gala and Auction on May 23, www.piedmontpaints.org, there is tons of fun to be had.

All of these worthy Piedmont events raise dollars for local East Bay charities. Pick one or all of them to attend and enjoy yourself. It's support for one another that makes our community so special!

Finally, Dining Out for Life is today - Thursday, April 24 . Proceeds support vital life services for those struggling and living with HIV/AIDS (a cause very near and dear to my own heart, having lost a sister several years ago to this disease). Dozens of local restaurants will be donating 25%-50% of their net proceeds to this extremely important cause.

Local favorites include Fentons, Italian Colors, Brown Sugar Cafe, Bay Wolf, Cesars, Citron, Crogans and Dopo.
A complete list can be found at: www.diningoutforlife.com.

This is a great excuse for taking a night off from cooking! (Not that you really needed one.) You deserve it!


The Piedmont Plug!

Earth Day was celebrated this week, and I am acknowledging this very important event by giving away reusable Farmer's Market/grocery/library bags to anyone who wants them. (I have plenty to go around) Let's all do our part to steer away from plastic bags that end up in our land fills.

Look for me and my son at the Farmer's Market on Grand on Saturday and in Montclair on Sunday, or shoot me back an email with your address and I'll drop one by. You get to do something nice for the planet and my younger son gets to earn a few bucks helping me deliver bags (and hopefully learning to take ownership of the Earth) and that's a win-win for all of us!

See you next week!


THANKS FOR READING!

For more information about any of the properties or events listed above, please call me at (510) 339-0400 x264, or simply respond to this email. I'd love to share my real estate tips and my experience in the Piedmont community with you!

Feel free to visit my website at JulieGardner.com for more information as well.

Think "Value," Not "Bargain!"

What's New?

There are currently 22 active listings in Piedmont, making this week's total the high point in 2008 thus far. Ranging from a low of $899,000 to a high of $5,600,000, there seems to be a home for every price point.

Let's begin with Angela Grubb's latest visual treat on King Avenue. This home tells two stories. From the outside, it's an unassuming gray-shingle, but inside, it reveals a modern, daring and sophisticated 2-story contemporary that offers 6bdrms/6bths, level entry with wet bar, formal living and dining rooms, library, family room, study and massive chef's kitchen. With a large open floor plan that surprises and delights at every corner, this unassuming façade is really a transplanted New York Penthouse (sans Central Park) complete with breathtaking floor to ceiling glass walls looking out onto a beautifully landscaped level garden with built-in pool! One-of-a-kind? I suspect so. Exquisite? Absolutely! To see photographs, click onto:

www.Grubbco.com

For Mid-Century Modern, check out Glen Alpine Road. This 4bdrm/3bth home offers the complete California lifestyle with large open floor plan and backyard featuring a paddle tennis court (think trikes, bikes and basketball hoops!). Just up the street from Hampton field, it's a trendy opportunity in a terrific location and perhaps, this week's best value!

Not every home is worth the climb, but make an exception for 95 Oakmont Avenue. Work your way up the brick stairs and you will find a charming and elegant 4bdrm/3bth multi-level Mediterranean with vaulted living room ceiling, formal dining room, remodeled kitchen, secluded brick patio and lush landscaping. It's a little bit of Italy right here in Piedmont. (Now all you need is an olive orchard or two!) Bellisamo!

Perhaps my favorite home this week sits in Upper Rockridge on Amy Drive. This impeccably Smart and Sophisticated 4bdrm/2bth Prairie Style Beauty, featuring open floor plan, chef's kitchen, and family room leading to lovely garden and patio is a winner! Remodeled from top to bottom, it's truly a "turn-key" home in a charming neighborhood. (Make sure you ask for the Fortuny chandelier when negotiating your offer!)

What's Coming?

Buyers are coming! With lenders reentering the marketplace, buyers are following, chasing better interest rates, strong inventory and motivated sellers. However, value is being defined house by house and property by property with the best choices still demanding (and getting) top dollar. Good buys do exists and they are worth pursuing, but multiple offers are not a thing of the past. Last week saw six offers on the duplex I highlighted off Piedmont Avenue a few weeks back. With the rental market ratcheting up, rents are on the increase! This is a great time to be thinking investment opportunities.

What's Pending?

What's pending is a late spring market! I want to repeat that as we see more affordable money make its way to the market - as demonstrated by Wachovia Bank, Union Bank and ING this week - we are sure to see buyers follow suit. With strong inventory just now debuting, get ready for a healthy and active late spring market. It's all about media perception and availability of funds.

Perception cuts both ways. If the media has convinced you to hold out for the "bottom," be careful. Wait too long and you'll find yourself back in competition, potentially paying a higher price than you might have if you had stepped forward alone. In a shifting marketplace, it's easy to play the waiting game, but not always the wisest move. Don't think "bargain," think "value!"

What's Happening?

Appraisals are happening and more often than not, it's not one, but two (even three) appraisals a bank is demanding before underwriting a loan. Now, more than ever, you will want to get your mortgage-lending piece in place before entering the marketplace. Make sure you work with a very experienced mortgage broker/bank, a top-notch title company, and a well-regarded Realtor. There are bound to be a few surprises in this newer market, and our ability to anticipate and respond to much more stringent guidelines, benefits everyone involved - especially you! This isn't the time to be working the discount angle. Experience is more important than ever!

Did you know The GRUBB Co. has 41 years of experience in the Piedmont/Oakland/Berkeley marketplace? That's a lot of collective creativity and power!

What's Fun!

The CSL Kitchen and Home Tour is fun and it's coming this April 25 and 26! This annual Piedmont event is more than just a vicarious view into other people's stunning homes, it's a fully orchestrated boutique and luncheon as well. Invite a new friend, your mother-in-law or even, your good-natured husband and spend a few hours supporting a very worthy cause while getting inspired!

My colleague, Debbi DiMaggio, is still seeking volunteers for this fun-filled event. To participate, and receive a complimentary ticket and lunch, please contact her at debbidimaggio.com or here at GRUBB Co. (510) 339-0400 and thanks for your support!

The Piedmont Plug!

The Piedmont Choirs Administration Seeks New Offices!

Did you know that Piedmont is home to one of the most prestigious and acclaimed children's choral programs in the world? (It's true.) With more than 350 students actively recruited from all over the East Bay, Piedmont Childrens Choirs study, train and perform both locally and abroad, emphasizing ensemble performance, vocal technique and musical theory. Amazingly, the whole program is run from cramped headquarters right above the Piedmont police station!

Having outgrown this space, it is now time for the administrative offices to move. They need a reasonably priced office space, approximately 1500-1700 square feet, including 4-5 office spaces, within 5-10 minutes drive from their rehearsal spaces in downtown Piedmont. (They would also consider consolidating the administration and rehearsal spaces into a larger facility/campus if one could be procured.) Friends of the choirs, please contact Cynthia Doll at cdoll@piedmontchoirs.org with any leads. Your help is greatly appreciated!

THANKS FOR READING!

For more information about any of the properties or events listed above, please call me at (510) 339-0400 x264, or simply respond to this email. I'd love to share my real estate tips and my experience in the Piedmont community with you!

Feel free to visit my website at JulieGardner.com for more information as well.

Flight to Quality

What's New?

Looking at the calendar, there are 60 days left until June!

Why is this important? Because the spring market is historically, the most active market in which to sell your home. While mainstream press might lead you to believe that ALL real estate value is down, that wouldn't be an entirely accurate statement. A colleague of mine drew the perfect analogy last week which I am borrowing here (thank you David): Making conclusions about the real estate market based on national figures, is like looking at the national weather report in order to get dressed!

In truth, real estate breaks down not just city by city, or neighborhood by neighborhood, but block by block! With the understanding that there is a flight to quality in a transitioning marketplace . . . What is the recent activity on your particular street? If you don't know, ask your local Realtor and find out. Knowing the value of your single largest investment is relevant and important information worth investigating. (Need a Comparative Market Analysis (CMA)? E-mail back!.)


What's Coming?

Gracious living and grand rooms abound at 359 El Cerrito in Piedmont. This centrally located, Stately Traditional on large corner parcel, features 4bdrms/4+bths and has just hit the market. Price: $2,495,000.

Some homes are best described as "adorable" and that's the appropriate word for 751 Wala Vista, in the heart of Crocker Highlands. This darling 3bdrm/1bth Traditional, near Lakeshore Avenue, has been thoroughly updated and restored from top to bottom and it shows! With designer touches throughout and priced to sell at $899,000, it shouldn't last long.

Bebe McRae invites you to join her at her latest listing at 4 Alvarado Place, behind the Claremont Hotel on a coveted cul-de-sac. This Exquisite Modern Masterpiece, featuring 4bdrms/3bths, including master suite, au pair quarters, office, gourmet kitchen and magnificent open living area out to broad deck and landscaped gardens is a once in a lifetime opportunity. Price: $1,780,000. Open this Sunday 2-4:30! www.Grubbco.com
Judith Glass and Sheila Sabine joined The GRUBB Co. several months ago and are a welcome addition to our experienced team. This week, they bring a superbly located duplex in the heart of Rockridge to the market, featuring side-by-side 1bdrm/1bth units that are truly special. Just off College Avenue at 23-25 Armanino Court and close to EVERYTHING, these sweet and vacant units, each with their own magical garden and garage, are a great investment property with real charm and appeal. Although this street is easy to miss, make sure you find it. These stellar units are worth your time and attention and offer an easy breezy lifestyle for those seeking good coffee and great restaurants right out their front door! It's a perfect location for the owner/occupier. Open this Saturday and Sunday from 2-5:00 Price: $895,000. To see more, go to: www.glasssabine.com.

While you are considering investment properties, seriously consider Dana Cohen's new 4-plex listing on York off of Mandana Avenue in Oakland. Offering an ideal location, just a few blocks to Lakeshore and Grand, this unique and charming builing features high ceilings, period detailing, abundant light and on-site parking. Recent remodeling in 2 of the 4 units makes it the perfect purchase for the owner who also wants to occupy. In light of the recent volatility of the stock market, now might be an excellent time to consider investing in quality real estate! Price: $1,150,000.

What's Pending?

The fixer on York Avenue in Piedmont had strong interest initially and I am told double-digit requests for disclosure packages, but did not receive any offers on its offer date last week. Typically, the number of disclosure packages is a good indicator of how many offers a seller might expect. In this case, it wasn't. Even fixers (ESPECIALLY fixers) have to pencil out! Which brings up an interesting point.

What is your remodel worth? That depends. When did you do it and did you make wise choices? Kitchens and bathrooms that were remodeled 10 years ago may be dated by today's standard. Your decision to spend top-dollar on custom cherry cabinets from Brazil may bring no more value than well-designed stock cabinetry might from the buyer's perspective. Likewise, bolting a foundation makes good sense in earthquake country, but may not translate into good cents (if you get my point) come the offer date. Be critical when assessing your improvements. This can be very sophisticated. Give me a call before you make these decisions.


What's Happening?

Forbes Magazine crowned Piedmont as one of its Top Suburbs to Live Well, in last week's edition. (Thank you Debbie Kelley for passing this article my way.) Forbes looked at 15 of the largest cities in America and evaluated the surrounding communities and Piedmont ranked as one of the best! (But you knew that, didn't you?) With tree-lined streets and top-rated schools weighing heavily in our favor, it makes more sense than ever, to support the Mark Becker/Andy Ball Havens School rebuild. To read what Forbes had to say, go to:

http://www.forbes.com/2008/03/25/suburbs-quality-lifestyle-forbeslife-cx_mw_0326realestate.html?partner=forbeslife_newsletter

And make sure you scroll through the photos. Piedmont shows up in the third photograph!


What's Fun!

I invited a new friend to join me at the Piedmont Neighbors and Newcomers wine party last Saturday which was held at the Vine Bar on Lakeshore Avenue and we had a terrific time. This snazzy, trend-setting venue was the perfect setting for an informal "meet and greet" and was just perfect for the early evening event. Offering an extensive wine list by the glass - or by the bottle - as well as a nifty self-pour carousel (featuring several other vintages) The Vine Bar makes for a fun night for both the wine aficionado and the wine novice - like me! Private parties welcome. The Vine Bar is located at Lakeshore and Mandana Avenues.

Mark your calendars fo the next fun PNNC event - The annual Progressive Dinner on Staurday, May 31!


The Piedmont Plug!

While you are on Lakeshore Avenue, check out Urban Indigo a few doors down. This fairly recent and welcome addition to Lakeshore Avenue offers cool gifts and hip housewares at affordable prices in a friendly, welcoming atmosphere. Although it's a little shop, it packs a big punch!


THANKS FOR READING!

For more information about any of the properties or events listed above, please call me at (510) 339-0400 x264, or simply respond to this email. I'd love to share my real estate tips and my experience in the Piedmont community with you!

Feel free to visit my website at JulieGardner.com for more information as well.