The Keys to the Castle! The Piedmont Perspective, February 4, 2009
What's New?
There was a time(before the introduction of The Multiple Listing Service)when Realtors held the keys to the castle - quite literally. As the gatekeepers for the majority of sale transactions in any given neighborhood, Real Estate Brokers and Realtors controlled and released the appropriate information on an "as need to know" basis.
Today's immediate access to Internet sites such as Zillow, Trulia, Realtor.com and the still closely guarded Multiple Listing Service (MLS) makes every prospective buyer or seller an instant expert - and herein lies the danger.
With public records as close as a click, prospective buyers can quickly and easily ascertain tax records, assessed value and purchase price for any given home and begin to form an opinion of value based on information that isn't exactly accurate, specifically relevant or in some cases, even true.
While it's good practice to understand the recent market activity surrounding a listing, the geographical demand and the larger economic picture, the price the current owners paid may or may not be relevant to the resale value in today's marketplace.
So let's begin by analyzing what is, what isn't and what may be relevant to a prospective purchase offer:
Seller/Buyer motivation is relevant - Understanding the reasons why the Seller or Buyer is moving sets the agenda.
Terms are relevant - How quickly would the Sellers like to close? How soon do the Buyers need to move? When can inspections take place? And are the Buyers preapproved through a reputable lender? Write a contract without ascertaining these answers and you are sure to be missing important key components.
Price and condition are relevant - Whether it's a dilapidated "fixer" or a pristine estate, the price must accurately reflect the condition of, and the demand for, the property. Grossly overpriced homes don't sell in any market while conversely, aggressively priced homes do! Ultimately, it is the market that determines the value of a home.
The previous purchase price isn't relevant (except in cases of a "short sale" - one where the outstanding loan is higher than the list price of the house. Sellers in these cases have very little room to move.)
What a Seller wants or needs isn't relevant - Buyers don't care about what you want or what you need, nor more than Sellers care about what Buyers can afford. Once again, it is the market that determines the value of a home.
Outstanding loans/liens may be relevant. Understanding how much money is owed on the note may give you valuable insight and inform your purchase offer. On the other hand, don't expect a "steal" just because the owner bought 40 years ago and now owns the house outright.
Days on Market (DOM) may be relevant -but only if the MLS is reporting them accurately. Agents have been known to manipulate the reported DOM by removing listings for a few weeks and then placing them back on so that they remain "fresh." When accurately reported, DOM may indeed signal a buying opportunity.
Finally, are Real Estate Websites relevant? - Tread carefully! "Zestimates" don't see the improvements an owner has made to a home or the number of offers the property down the street received in a recent sale. They don't personally visit a home so how can they accurately assess value?
More often than not, homes values on Internet sites are merely a matter of averages. Compare that to your personal home-shopping experience where many homes (especially those in competition) are far above average, while some are well below! Get caught up in this kind of faulty information, and you are sure to form opinions that work against a successful outcome.
When crafting an offer, I work to collect, organize and analyze as many facts as possible, but truth be told, decisions by Buyers and Sellers regarding Real Estate often have less to do with stats and more to do with feelings than anything else. While empirical evidence would make my job much easier, at the end of the day, there's a certain amount of leg work, gut instinct, subjective opinion and well-honed intuition that comes into play on every successful transaction.
That's when working with an experienced local Realtor pays off in spades! Find one and be open to his/her experience and you are sure to obtain a set of keys to your very own castle in the near future!
What's Coming?
I will be bringing a wonderful Spanish Mediterranean to the market in the next few weeks. This inviting 4bdrm/3bth home with potential au pair/guest suite down has a terrific Central Piedmont location on a shady tree-lined street and has recently undergone an extensive rear yard renovation.
Please join me for a special Piedmont Preview on Thursday evening, February 18 from 6-8pm with opens to the public on Sunday, February 15,and Sunday, February 22, 2-4:30pm. List price: $1,850,000. Please call me for more details.
What's Pending?
Here's a true Tale of Two Cities . . . while Liz Dickson's fabulous remodeled listing on El Cerrito Avenue jumped off the market in mere days, a much more modest 2bdrm/1.5 bth home on Oakland Avenue spent 120 days on market before attracting a willing and able buyer. Originally listed at $813,950 - it rode the market down, down, down, to $654,700 before doing so. (This illustrates my point above with respect to price and condition.)
Every house has a "tipping point," but finding it quickly, statistically has better results for Sellers. Setting a realistic list price may be the single most important component to a successful outcome!
What's Happening?
After last week's discussion of how critical banks have become with respect to Buyer's Fico Scores (above 740 to qualify for Jumbo Loan financing) one reader and good friend (we'll call him "A") wrote back to assert that his Fico score of 700 is still "good!" (Sorry "A," no offense. Please don't shoot the messenger!)
But he's right in one sense, because getting a loan is about so much more - including the home appraisal, the location, the down payment and the credit risk.
Which only emphasizes my point that before you begin to shop for a home purchase, it is indeed wise to put yourselves in the hands of an experienced loan broker or private banker to smooth the way and help cement the deal! www.lasallefinancial.com
(Here's a shout out to Patty Edmonds, my personal Wells Fargo Banker.)
What's Fun!
It's the Year of the Ox and as my neighbor and friend, Kevin informs me, "the year of the Ox signals a year of hard work."
Given the economy, it's only natural to dig in, pull up one's sleeves and work harder than ever, but as I pointed out to Kevin, "A year of hard work beats the alternative, which is a year of too little or worse yet, NO WORK. (Bring on the ox! I'm ready for it!)
San Francisco's China Town celebrates The Year of the Ox in all of its glory, this Saturday night, February 7 from 5:15 -8:00pm. Rated as one of the top ten parades in the nation, it is one of the few remaining night-illuminated parades and is the oldest in the country. Begun in 1860 this crowd-pleasing, fun event, celebrates the Chinese culture with singing children, floats, stilt walkers and a 201 foot long, Golden Dragon -"Gum Ling."
If you're up for large crowds, grab BART and view this exciting spectacle which begins at 2nd and Market Streets and winds it's way toward China Town! Best of all, it's FREE!
The Piedmont Plug!
Last week I wrote about the upcoming Beach Dad's Jazz Night and in an effort to avoid playing favorites, am now announcing the Wildwood Dad's Club Crab Feed this Saturday, February 7. Gates open at 6:00pm and everyone is welcome!
This fun, annual event, featuring fresh crab, no-host bar, lasagna, salad and great french bread, takes place this Saturday at the Piedmont Veteran's Hall in the center of town. (Clearly, the dads in this town, know how to have fun!)
Please join the Wildwood Community in this Funraiser!Tickets $40 in advance and $45 at the door! Childcare available at Haven's School Mates.
For more information or to secure your reservation, email Jeff Porter at jgport@pacbell.net or Jim Gardner (no relation) at jgardcon@sbcglobal.net.
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 email me atjgarnder@grubbco.com. 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.
I honor your privacy and requests to be deleted from the mailing list. Simply click on to the "opt out" link below if you are receiving this newsletter, but would prefer not to. On the other hand, if you'd like to pass it along, please do so!
Real Estate License #R01431765
There was a time(before the introduction of The Multiple Listing Service)when Realtors held the keys to the castle - quite literally. As the gatekeepers for the majority of sale transactions in any given neighborhood, Real Estate Brokers and Realtors controlled and released the appropriate information on an "as need to know" basis.
Today's immediate access to Internet sites such as Zillow, Trulia, Realtor.com and the still closely guarded Multiple Listing Service (MLS) makes every prospective buyer or seller an instant expert - and herein lies the danger.
With public records as close as a click, prospective buyers can quickly and easily ascertain tax records, assessed value and purchase price for any given home and begin to form an opinion of value based on information that isn't exactly accurate, specifically relevant or in some cases, even true.
While it's good practice to understand the recent market activity surrounding a listing, the geographical demand and the larger economic picture, the price the current owners paid may or may not be relevant to the resale value in today's marketplace.
So let's begin by analyzing what is, what isn't and what may be relevant to a prospective purchase offer:
Seller/Buyer motivation is relevant - Understanding the reasons why the Seller or Buyer is moving sets the agenda.
Terms are relevant - How quickly would the Sellers like to close? How soon do the Buyers need to move? When can inspections take place? And are the Buyers preapproved through a reputable lender? Write a contract without ascertaining these answers and you are sure to be missing important key components.
Price and condition are relevant - Whether it's a dilapidated "fixer" or a pristine estate, the price must accurately reflect the condition of, and the demand for, the property. Grossly overpriced homes don't sell in any market while conversely, aggressively priced homes do! Ultimately, it is the market that determines the value of a home.
The previous purchase price isn't relevant (except in cases of a "short sale" - one where the outstanding loan is higher than the list price of the house. Sellers in these cases have very little room to move.)
What a Seller wants or needs isn't relevant - Buyers don't care about what you want or what you need, nor more than Sellers care about what Buyers can afford. Once again, it is the market that determines the value of a home.
Outstanding loans/liens may be relevant. Understanding how much money is owed on the note may give you valuable insight and inform your purchase offer. On the other hand, don't expect a "steal" just because the owner bought 40 years ago and now owns the house outright.
Days on Market (DOM) may be relevant -but only if the MLS is reporting them accurately. Agents have been known to manipulate the reported DOM by removing listings for a few weeks and then placing them back on so that they remain "fresh." When accurately reported, DOM may indeed signal a buying opportunity.
Finally, are Real Estate Websites relevant? - Tread carefully! "Zestimates" don't see the improvements an owner has made to a home or the number of offers the property down the street received in a recent sale. They don't personally visit a home so how can they accurately assess value?
More often than not, homes values on Internet sites are merely a matter of averages. Compare that to your personal home-shopping experience where many homes (especially those in competition) are far above average, while some are well below! Get caught up in this kind of faulty information, and you are sure to form opinions that work against a successful outcome.
When crafting an offer, I work to collect, organize and analyze as many facts as possible, but truth be told, decisions by Buyers and Sellers regarding Real Estate often have less to do with stats and more to do with feelings than anything else. While empirical evidence would make my job much easier, at the end of the day, there's a certain amount of leg work, gut instinct, subjective opinion and well-honed intuition that comes into play on every successful transaction.
That's when working with an experienced local Realtor pays off in spades! Find one and be open to his/her experience and you are sure to obtain a set of keys to your very own castle in the near future!
What's Coming?
I will be bringing a wonderful Spanish Mediterranean to the market in the next few weeks. This inviting 4bdrm/3bth home with potential au pair/guest suite down has a terrific Central Piedmont location on a shady tree-lined street and has recently undergone an extensive rear yard renovation.
Please join me for a special Piedmont Preview on Thursday evening, February 18 from 6-8pm with opens to the public on Sunday, February 15,and Sunday, February 22, 2-4:30pm. List price: $1,850,000. Please call me for more details.
What's Pending?
Here's a true Tale of Two Cities . . . while Liz Dickson's fabulous remodeled listing on El Cerrito Avenue jumped off the market in mere days, a much more modest 2bdrm/1.5 bth home on Oakland Avenue spent 120 days on market before attracting a willing and able buyer. Originally listed at $813,950 - it rode the market down, down, down, to $654,700 before doing so. (This illustrates my point above with respect to price and condition.)
Every house has a "tipping point," but finding it quickly, statistically has better results for Sellers. Setting a realistic list price may be the single most important component to a successful outcome!
What's Happening?
After last week's discussion of how critical banks have become with respect to Buyer's Fico Scores (above 740 to qualify for Jumbo Loan financing) one reader and good friend (we'll call him "A") wrote back to assert that his Fico score of 700 is still "good!" (Sorry "A," no offense. Please don't shoot the messenger!)
But he's right in one sense, because getting a loan is about so much more - including the home appraisal, the location, the down payment and the credit risk.
Which only emphasizes my point that before you begin to shop for a home purchase, it is indeed wise to put yourselves in the hands of an experienced loan broker or private banker to smooth the way and help cement the deal! www.lasallefinancial.com
(Here's a shout out to Patty Edmonds, my personal Wells Fargo Banker.)
What's Fun!
It's the Year of the Ox and as my neighbor and friend, Kevin informs me, "the year of the Ox signals a year of hard work."
Given the economy, it's only natural to dig in, pull up one's sleeves and work harder than ever, but as I pointed out to Kevin, "A year of hard work beats the alternative, which is a year of too little or worse yet, NO WORK. (Bring on the ox! I'm ready for it!)
San Francisco's China Town celebrates The Year of the Ox in all of its glory, this Saturday night, February 7 from 5:15 -8:00pm. Rated as one of the top ten parades in the nation, it is one of the few remaining night-illuminated parades and is the oldest in the country. Begun in 1860 this crowd-pleasing, fun event, celebrates the Chinese culture with singing children, floats, stilt walkers and a 201 foot long, Golden Dragon -"Gum Ling."
If you're up for large crowds, grab BART and view this exciting spectacle which begins at 2nd and Market Streets and winds it's way toward China Town! Best of all, it's FREE!
The Piedmont Plug!
Last week I wrote about the upcoming Beach Dad's Jazz Night and in an effort to avoid playing favorites, am now announcing the Wildwood Dad's Club Crab Feed this Saturday, February 7. Gates open at 6:00pm and everyone is welcome!
This fun, annual event, featuring fresh crab, no-host bar, lasagna, salad and great french bread, takes place this Saturday at the Piedmont Veteran's Hall in the center of town. (Clearly, the dads in this town, know how to have fun!)
Please join the Wildwood Community in this Funraiser!Tickets $40 in advance and $45 at the door! Childcare available at Haven's School Mates.
For more information or to secure your reservation, email Jeff Porter at jgport@pacbell.net or Jim Gardner (no relation) at jgardcon@sbcglobal.net.
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 email me atjgarnder@grubbco.com. 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.
I honor your privacy and requests to be deleted from the mailing list. Simply click on to the "opt out" link below if you are receiving this newsletter, but would prefer not to. On the other hand, if you'd like to pass it along, please do so!
Real Estate License #R01431765
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12:46 PM
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