It's been an active Fall season for me, both personally and professionally, and one filled with exciting changes. Our high-school graduate headed off to college in Arizona. (He's adjusting to Freshman life at the U of A, while I'm adjusting to a quieter home life back here in Piedmont - thank you very much!) His absence has given me license to gut the entire downstairs and make long overdue adjustments to the existing floor plan. (A too funky bathroom had begun to resemble a science experiment - sound familiar?)
In both cases - departure and renovation - there is an audible disturbance to the force, and although I miss my elder son (just a wee bit) I am extremely excited about his new journey - as well as my own. (Not everyone gets turned on by a construction site, but I do!) It's a fresh start and a reinvention of sorts - for both Case and for me. As a Realtor, the magic of "reinvention" comes in handy whenever I help sellers prepare their homes for market, which typically includes fresh paint and carpets, purged closets, updated lighting and primped gardens, BUT may also evolve to encompass entire kitchen and bathroom remodels as well. Not infrequently, once the workmen have left, the Sellers will invariably turn to me, and say, "Gee, I wish we had done this while we were still living here!" (So true!) Heeding their observations, I am seizing upon my son's absence (and input) in order to execute some badly needed changes to the house that will benefit my family now. If we wait much longer, Tristan will be off to greener pastures and Cliff and I may find that A) our home is larger than we require, OR B) we are too broke to make the improvements. (Both likely scenarios in light of the expense of higher education!) While we remodel downstairs, we will also earthquake retrofit the home, address some termite damage, replace an inefficient and outdated furnace and water heater, insulate the exterior walls, and put in new windows. Will these items add significant value to the home? Not likely, but they will certainly take away several objectionable hurdles that would likely be negotiated against the selling price when we do eventually decide to move on. More importantly, these upgrades should significantly reduce our monthly utility bills and dramatically improve the way we actually live in our home today and that's really the end goal and the smarter choice to my way of thinking. Gone will be the dark stairwell and long hallways, better suited to vampire bats, to be replaced by a sunny open family room, a brand new bath, a more convenient laundry area, a handy mud room and two bright new bedrooms (yeah!) While I believe each of these changes is ultimately practical (and will add tremendously to the home's appeal) I'm not necessarily expecting them to be profitable. Yes, our home is an investment, but it's first and foremost, our home - not a bank. Like many of us, the aesthetic choices I make regarding my home may not always be practical (a new duvet cover is nice but it doesn't add value) but they are, more often than not, justifiable. So embrace change! These are indeed, interesting times and change (hopefully for the better) seems to me, to be a natural progression. I for one, am looking forward to it. Whatever comes up, I know that Cliff and I (and Case and Tristan) will handle these transitions the same way we address all changes - by simply placing one foot in front of the other and moving forward. Reflecting on how far we have already come, it is amazing to me to contemplate just how far we can still go . . . and we will do it step-by-step. Now isn't that exciting? I think so. . .
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My husband, Cliff, delights in poking fun at me at every opportunity and he's certainly earned the right. Ever since The Perspective came along, I have been using my own unedited forum to even the score. (Luckily, we both have thick skins.)
Cliff's usually writing much more intellectual Supreme Court Briefs (which for the record, ain't so brief!) so imagine my surprise and delight when I received the following email from him last week. (I'm still stunned that he found time to pen this Sci-fi "lead-in," but has yet to find the time to fold the laundry! Hmmm . . . there I go again.) Juls: I have noted, as have your Readers, the pattern to your Perspective: generally speaking, an observation about life (yours, mine or the kids) followed by a transition into how the observation relates to Real Estate and so I have the beginning of your next Perspective, here you go: As the Killian Star Cruisers closed in upon them, the Captain thought about how much simpler it had been when all they had to contend with were the Drivellian slave traders of Rigellan IV. Sure the Drivellians were tough fighters, but they didn't have a lethal death ray; much less one that could immobilize an entire lunar colony! Still, the Earthlings were not without their defenses. After all the new Comark Shield System (CSS) had worked perfectly in all its tests. This would be the big one though - women and children, ready for transport to the outer colonies - were depending on it. If the shield could turn the death ray into a harmless light particle beam, they would all be safe, and not only would the Killians be rendered harmless for years to come, but the energy derived from the particle beam could actually power the colony! Of course, energy efficiency is something which is not just the province of Star Defenders, but important to the purchase of a home as well. (FILL IN REAL ESTATE SECTION). Okay Cliff, here I go . . . "Energy efficiency" has been front and foremost in the news and in home design for the past several years. It's caught on in a BIG way in our liberal, collective, California psyches - and so it should. In fact, it's the rare Buyer who isn't adding up the costs of new windows and insulated attics as they consider older homes these days and wondering if there is a discount to be had??? Uh, there isn't. (Mind you, the single-pane glass in Notre Dame has been virtually intact for almost 900 years and its windows haven't clouded up as our energy efficient, modern, double-pane windows tend to do within a mere 15-20 years!) Dual-pane windows, attic insulation, recirculating water systems, wrapped heating ducts, etc, etc, etc; they're all important in terms of maintaining a home's efficiency and in keeping utility costs in check. AND they're good for the environment to boot - so why not just install them, especially if you'll be undertaking a remodel anyway? A) Because these upgrades still tend to be more expensive than their older less costly counter parts. A tankless water heater will run you considerably more than the old-fashioned 50-gallon water heater currently sitting in your basement. It can takes serious "green" to live "green" (the $160,000 price tag for the electric Tesla is no joke!) or to quote Kermit the Frog, "It's not so easy being green." B) The buying public isn't yet willing to pay you more for your "smart" home - no matter how smart it is! Sure, they love the idea that the property can practically run itself, and the fact that they can positively impact their "carbon footprint" for the good of mankind certainly provides bonus points, but neither of these factors typically sway value-oriented buyers when it comes to writing the BIG check (Buyer's are still looking for the deal)! If you have installed solar panels on your roof, good for you, but don't expect to be reimbursed for this upgrade when you go to sell your home. It just isn't part of the calculation - yet! (Sexy kitchen and bathroom remodels typically reap big dividends; less exciting solar panels do not. which makes "green upgrades" less smart from a seller's point of view - not from an environmentalist's!) C) The good of the colony tends to take a back seat to the needs of the individual. (Unless you're my "zero-carbon footprint" sainted sister Karen who grows her own vegetables, shops at a co-op grocery, raises egg-laying ducks, knits her own sweaters, drives a corn-oil car, hunts for mushrooms in the woods and produces more solar power than her household consumes . . . , you are probably negatively impacting the environment - even with your best efforts.) The cold hard truth is that there are still far fewer choices in "green" options than in the rest of the color spectrum. Individual expression tends to be significantly curtailed when limited to those few choices that are more "environmentally friendly" (and let's face it, raising ducks isn't that easy within the city limits). Quack! Still, cookie-cutter choices or not (have I mentioned the Prius yet?) I'm not ready to concede that the good fight is over and I'll be the first to cheer you on for following your conscience - not your checkbook in undertaking improvements more beneficial to all. If nothing else, living "green" is highly admirable. And the good news is that energy efficiency is still in its infancy so we have much to look forward to in terms of accessibility, affordability and style. Here's the 411, when "green options" become as economically feasible as the much cheaper red, white and blue choices with which we are already familiar and more accustomed to (in other words, when the Tesla costs the same as the Prius) I believe the Killians will give up their supreme fight for power and live peacefully alongside the rest of us mere mortals. And that's NOT just Science Fiction . . . (How'd I do Cliff?) BTW - If anyone else would like to submit a "lead-in," be my guest. I really enjoyed the challenge. I'll treat any takers (authors) to lattes and scones at Mulberry's - whether or not I use your story (literary privilege). I have been contemplating cutting bangs once again. I do this every few years when the lines on my forehead seem more pronounced than usual (which probably coincides with me turning fifty). Bangs are cheaper than Botox, I figure, and they'll cover the imperfections almost as well. Without giving away any classified secrets, aging gracefully involves a little smoke and mirrors . . .
Still, aging (and vanity) aside, it's the constant upkeep that I am beginning to resent just a wee bit. (Of course, "growing older" beats the alternative). I'll be the first to admit that I don't like the physical aspects of aging; however, I'm not quite ready enough, motivated enough, or brave enough (depending on how you look at it) to take more permanent "corrective measures" which I'm quite certain would involve eliminating ice cream, heavy exercise and a certified plastic surgeon! That's usually when I pick up the scissors and cut away . . . Just like the human body, houses tend to show their age - unless they are well maintained. Home ownership (like aging) ain't for sissies. No matter how many inspections we perform prior to the sale, I can guarantee you with almost 100% certainty that you are going to move into the home of your dreams and quickly discover something that isn't working properly, something that wasn't disclosed fully or something that needs immediate attention. Yikes! For me, it was a massive 100-year old redwood that was quite literally pushing the guest house off its foundation. I guess the notched roof and the gap in the patio, should have been my first clues, but I wasn't paying close enough attention at the time (I was spellbound by the garden and the gazebo - go figure!). "You can keep the tree or the structure," my contractor politely informed me, "but not both." Five thousand dollars and a GIGANTIC pile of redwood mulch later, the problem was solved. It's been the first of many and I am still looking at a major remodel this year. But on balance, pine needles and fresh cut wood are the kinds of problems to have. They're truly "gold- plated." Let me put it bluntly: roofs leak, drains clog, refrigerators go on the fritz and so it goes; the list is truly endless . . . So why own?" Aside from the obvious financial tax advantages (Uncle Sam clearly rewards those who participate in "The American Dream") there are the more compelling emotional aspects of owning to contemplate . . . One dynamic couple I worked with were renters by nature, but had also been forced to move four times in the last ten years. Each time they settled in, their current landlord would call to say that they were either selling the house or retaking possession. (That's more than just inconvenient; it's downright unsettling.) Happily, they were in a position to finally buy when we met. For these fortunate buyers, home ownership is a chance to truly establish roots and provide security for their family. While they won't have the luxury of calling their landlord each time the pipes squeak or the garbage disposal backs up, they'll make decisions about the house that best suits their needs. They will choose paint colors they like, expand a bathroom as needed, and entertain to their hearts content with complete abandon (and this is a family that knows how to have a good time! ) All the while, knowing that never again will someone be demanding their home back and uprooting the kids. And while home appreciation may have taken a hit in the last few years, I would still rather place my money in four walls and a roof than in the temperamental ups and downs of the stock market. (What exactly is a "derivative" anyway? Talk about smoke and mirrors!!!) Sure, I may not like it when cracks show up in the driveway or my trees need trimming, but I take pride in the fact that I have earned every squeaky floor board, every peeling shutter and every chipped tile in the place. (Lest you think new homes fare any better - they don't. They too, require ongoing maintenance as well; ALL homes do!) Old home? New home? (Rich Man, Poor Man, Beggar Man, Thief?) It comes with the territory and ultimately, a home is a work in progress (as are we all!). Enjoy your hard-earned abode; live, in it, entertain in it, and come home to it with the clear understanding that it isn't going to be perfect. (Nothing is). Count yourself lucky. For most of the world's population, home ownership is rarely a reality; in fact, it isn't even a dream for the majority of people. WE lucky few, get to realize ours. So get familiar with a screwdriver and an electric drill. You'll most likely need them. And if home repair isn't your thing, let me introduce you to a good, reliable handyman I know and use frequently! (He's on speed dial.) Gotta run, I've got a sprinkler head to replace. As for bangs, I'm still on the fence. I secretly scoff at all of you double latte, mochachino, espresso shot coffeeholics, as if I am somehow morally superior for avoiding the daily pull of Starbuck's or Peet's. The ugly truth is, I'm stubbornly hooked on Raspberry Snapple, allowing myself just one each morning. (Mulberry Market stocks the sugary fix just for me - thank you Chad and Laura!)
When life gets really hectic, I'll succumb to a second Snapple by late afternoon. You can pretty much gauge the level of my work load by the number of raspberry teas I drink! (Sadly, there's no 12-step program for Snapple addicts.) Last week proved busier than usual. Between the demands of end-of-the-year school activities, community fund-raisers and my work as a Real Estate professional, I was forced to spring for an entire case of the caffeine-fueled nectar (Ah -Sweet Nirvana)! As Realtors, we wear many hats, often pulling up our shirt sleeves to work side-by-side with the Sellers to prepare their home for market. Part mover, part landscaper, part cheerleader, part caterer . . . indeed, part therapist - I'm whatever I need to be in the moment. It's not unusual for me to help a client clean out a closet, rearrange the furniture, or plant a flower bed. (The butcher, the baker, the candlestick maker!) Even so, prepping, staging and marketing a home in a short period of time, requires a team of dedicated professionals far beyond me. From tree trimmers, to house painters, to designers, to photographers . . . (you get the picture) it's the sum total of many talented professionals who create the polished final act. As much as I really enjoy the "hands-on" experience, I'm better off delegating these tasks to those more experienced than I am in their particular skill set - and so are you! Let's face it, selling a home, under the best of circumstances, is incredibly invasive. Even when the move is happily anticipated, there's no shortcut to the work involved, let alone the emotions that go with packing away your memories. Our homes have value far beyond the balance sheet. Letting go can be extremely tough (unexpectedly so) and fraught with emotional land mines. To the extent that you can lighten your burden and delegate some of the overwhelming tasks at hand - do it! Do it! Asking for help and then letting others actually help you can be invaluable and incredibly time efficient. It's also surprisingly satisfying - whether you are the Seller or the Realtor! Learn to delegate. Speaking of which, it's time to crack open another Snapple. I've another busy day ahead of me! Can I offer you to a cup of Joe? I'm sure most of you are all familiar with Aesop's tale of The Tortoise and the Hare - but just in case you don't remember it, here is a quick recap . . . The tortoise challenges the hare to a foot race to teach the bragging rabbit a lesson. The cocky hare is so certain of his ability and the foregone conclusion that he decides to nap along the route while the tortoise methodically plods along and eventually passes the sleeping bunny. By the time the hare wakes up, the tortoise has already crossed the finish line and handily won the foot race. (Oh yes, now I remember it.)
The real estate market often reminds me of that timeless fable. Never more so than last week, when I helped a smart young couple (let's call them Mr. & Mrs. Slow & Steady) secure a promising home here in Piedmont. Like the tortoise, they had patiently waited for a home they could afford and took their time finding it (a fixer with great potential). While patiently waiting for prices to soften in Piedmont, Mr. and Mrs. S continued to pay down the mortgage on the home in El Cerrito that they had purchased more than a decade ago. Although they have clearly upgraded their El Cerrito home, they never borrowed against it, nor used its growing equity like an ATM machine. As a result, Mr. and Mrs. S were in a position to buy first and sell second! (Doesn't that make life easier?) Once the El Cerrito home is sold, Mr. and Mrs. S will use the net proceeds to refinance and update their new Piedmont residence. With a plan to move slowly and renovate on a budget, they hope to stay put for the next decade. This is "old school" or Real Estate 101 at its best. It's the way our parents and their parents before them, bought homes - often staying in them until the mortgage was paid in full. Meanwhile the ambitious hares, hopped from house to house, often increasing their debt and their risk along the way. With tax advantages that rewarded Sellers every two years, aggressive bunnies joined the race and were often well-rewarded (who could blame them for using the market to their advantage?) Many thrill-seeking rabbits even leveraged the appreciation on their burrows to buy vacation homes or investment properties and are now struggling to keep their homes. With little to NO equity to speak of and a market experiencing a significant correction, these overreaching hares are struggling to figure out how and when the race was lost. (Hare today, gone tomorrow). In the interest of full disclosure, I will share that I have been both a tortoise and a hare over the past 18 years. Often referring to myself as a "serial renovator," my husband and I bought and renovated four homes in 12 quick years, growing our seed money (and our family simultaneously) but also expanding our debt with each successive upgrade (our "hare" phase). Sweat equity, fortuitous timing and advantageous tax laws ultimately provided the down payment on our current Piedmont home. With a promise to my husband that we would not move again (at least until the boys graduate from high school) and my solemn vow not to "touch anything" until we can pay for it in cash, my husband and I have clearly entered our "tortoise" phase. While we may never fully pay down the 30-year fixed mortgage before we sell, we will have made a sizable dent, hopefully allowing us to realize a substantial profit when we go to sell - years from now. Here's the irony. Had we held onto our very first flat off Lake Street in San Francisco and never hopped at all, we would have realized almost the same gain and maintained a much lower tax base . Hmmm. . . Lucky rabbit's foot aside, slow and steady wins the race! Truth be told, my pragmatic hard-working father was never a hopeless romantic. He was the kind of husband who gave my mother a dishwasher, a vacuum cleaner or a washing machine come the holidays and she - equally sensible - was thrilled to have them.
My mother had grown up in San Marino (the Piedmont of Pasadena) while my father hailed from the pastures of Davis. In her family's eyes, Dad was a bit of a "diamond in the rough" compared to Mom's more gentile upbringing. My mother said she married Dad because "he made her laugh." In spite of her family's strong objections to the pairing, their union stuck. They've weathered 56 years together - sometimes laughing, sometimes crying - but all of it together. That's about as romantic as it gets. So when it came time for me to choose a mate, I followed my mother's example and married a man who made me laugh, who engaged my mind and who always believed in me - even when I faltered. Even without romantic gestures on Valentine's Day -that's true love! With respect to homes, "the diamond in the rough" is the home that's badly in need of TLC (tender loving care). The trick in this or any market, is getting the lump of coal for a discounted price in order to offset the costs of renovations and repairs that are necessary to bring out the "sparkle." That seems basic but it's a tougher challenge than statistics bear out. Too often, I see hopeful buyers excitedly jump into a bidding war on these "fixer" properties with the expectation that they are achieving a "below market value" when all too often, the opposite result plays out. Unfortunately, the large number of "fixer buyers" often drives the selling price well beyond the asking price, erasing any potential appreciation the home may have had. Ironically, these homes often math out at much higher prices per square foot than their "fixed" counterparts down the street! Go figure! (Seriously, go figure!) When buying a "diamond in the rough," carefully do the math and understand your end game. If the goal is to "flip" the house in a short amount of time, be certain you are not overpaying for the project on the front end. If on the other hand, you plan on renovating and staying for many years, then the price you pay in the short term may hardly be relevant. If that's the case - as with marriage - commit to the long term and carve out the diamond of your dreams . . . Happy Valentines Day Mom and Dad! I returned to college after the birth of my son, Case, planning to put some of my dancer's training to work as a physical therapist (for anyone who's counting, he's now 17). Enrolling at the College of Marin, I discovered my previous science education left much to be desired. (Choreographers didn't inquire as to one's science background and a career in real estate was still several years away.)
Scanning the course directory, I strategically selected a geology class, believing it would be the path of least resistance (it wasn't). As the pedantic, white-haired professor loved to frequently remind us (speak really, really slow while saying this) "geological time spans millions of years . . ." which means that geological time moves more quickly than my teenager! Last Friday I was reacquainted with the concept of "geological time" when I went to hear Howard Cook speak at the Oakland Association of Realtors offices in downtown Oakland. (No, I'm not implying that he spoke too long.) Mr. Cook is a partner at Bay Area Retrofit and was speaking to the complicated, yet compelling tax rebate programs currently being offered by the cities of Oakland and Berkeley. The retrofit program doesn't apply to those of us living here in Piedmont - but does apply to anyone in Oakland or Berkeley who has recently bought, or is in the process of buying; however, the qualifying criteria is specific to each city and extremely time sensitive so act quickly if you are interested. For a detailed description of qualifying criteria, go to www.bayarearetrofit.com. Cognizant that most of us in the room didn't have geological hours to spare, Mr. Cook (Howard) and his partners limited their remarks to a few digestible hours. (I think I speak for the handful of REALTORS who had gathered when I say, "thank you - we appreciated your brevity.") Still "geological time" was very much in the forefront as each partner spoke, in turn, about the Hayward Fault, which spans 40 miles and runs 20 miles deep. According to Howard, "The Hayward Fault is continuously in motion, but its history shows a major tectonic event of a 6.9 earthquake or more, every 140 years (give or take 25 years)!" Guess what? It's been 140 years since the last major event. Here's some of what Howard had to say (I'm paraphrasing to save you all two hours):
To reach Bay Area Retrofit, call 510- 418-1676. Piedmont currently has 24 active listings. While the beginning of the year saw a build-up in inventory as Buyers waited out the market, Piedmont activity has now settled into a more consistent rhythm of listing-to-pending sales. Buyers continue to be attracted to our wonderful community and that's great news!
Still, strategic pricing has never been more important. Price your home sharply and the market WILL carry it where it should go. Price your home too high and you are likely to be penalized as you chase the market downward. If it is underselling you are worried about - avoid overpricing! This is where the real danger of selling a home "under value" truly lies. While we are speaking of well-priced properties, Anian Tunney brings to market a terrific opportunity at 310 Highland Avenue. This 3bdrm/2bth home in the center of town is ready for your vision and is close to schools, the park and Mulberry Market. If "fixers" are high on your wish list, this house is definitely worth your consideration. Continuing on the theme of "fixers," the new listing on Howard Avenue offers 3+bdrms/1+bth, sunny breakfast room, lower level plus rooms and original architectural details. At $775,000, this home is currently the least expensive listing in Piedmont. (Although the home on Howard Avenue represents the least expensive property in Piedmont, the best "value" is Carol Brown's listing at 21 Park Way. Do the math. Across from Dracena Park and centrally located, this home may offer the best upside potential of them all. ) |
AuthorJulie Gardner, has been writing The Perspective for 18 years and has published more than 750 humorous but always informative, essays on life and real estate. Categories
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