The Piedmont Perspective, Vol 117 Trick OR Treat?

What's New?

Watching Montclair's cheerfully costumed participants parade down Mountain Boulevard in front of our GRUBB Co. office last Friday, I was once again struck by how magical a celebration Halloween is for everyone involved. From the tiniest bumblebee to the tallest and oldest trick or treater, children of all ages seem to enjoy this gleeful opportunity to explore their more dramatic side.

When it comes to Halloween, the scarier the better!

Not true for Real Estate . . . in home sales, I prefer to avoid the truly scary! As such, I've learned to cherish the transaction that runs from the beginning to the end of the process with nary a fright. In this more competitive marketplace, that disappearing transaction may have gone the way of the invisible man.

I asked my GRUBB Co. colleagues to contribute their ideas on this Halloween special edition I am calling: "Trick OR Treat? Here are some of my favorites with my thanks to Michael, Bebe, Karen, Tricia, Dana and Carol!

Trick: Is there anything trickier than navigating a deal where buyers and sellers aren't telling you the whole story? (Now that's spooky!) Realtors do our best work when we have all the facts and can truly meet your needs. When hidden agendas exist, we are truly working in the dark.
Treat: The buyers or sellers who comes to you with thoughtful intentions, true motivations, appropriate time limits, pre-approved financing and realistic market expectations! (Now we're talking daylight!)

Trick: Entering into a multiple offer situation without a buyer feeling as if he/she is overpaying for the home. (Honestly, we get that can be frightening and GOOD Realtors build in a safety net! )
Treat: Buyersr who puts their best offer forward, with the knowledge that someone is going to purchase the home. Why not you? If a more motivated buyer succeeds, so be it. You can't control that but know this - the best agents protect their buyers by supplying market data that justifies an over-asking purchase offer and insist on inspections, due diligence and an appraisal contingency! (If yours doesn't, it may be time to work with another agent.)

Trick: Renegotiating a purchase offer on behalf of a buyer after inspections and avoiding a defensive or confrontational response or stance from the seller (very, very tricky!).
Treat: Working with Real Estate professionals on both sides of the transaction who understand that negotiations are more and more, a part of the buying and selling process and in turn, working with buyers and sellers who understand the need to obtain value. Negotiations should never be personal - they are simply business!

Trick: Explaining to a buyer that the cost to acquire a home may be more than its price per square foot." In fact, house values are more than a multiplier - there is an "intangible" that goes far beyond the basic math of many houses. Figuring out or assigning the "true market value" is, in reality, exceedingly tricky!
Treat: The buyer who is both pragmatic and yet remains open to the information provided about the market, about a specific home and about it's likely outcome. If you are still willing to go well beyond the neighborhood sales, that is your decision (buyers often buy emotionally) but know the facts beforehand so that you are truly educated about the price you are offering. Then move comfortably forward if you so desire!

Trick: Sellers who turn down a good offer in the hopes of a better offer (really frightening)!
Treat: Sellers who understanding that the first offer is often the best offer. (Really, it almost always is!)

Trick: Sellers who overprice a home in a more challenging marketplace.
Treat: Sellers who price a home competitively to attract the highest number of buyers and the best possible outcome.

Trick: Buyers or sellers who work with an out-of-area realtor, an on-line lender (Warning Will Robinson!) or an out-of-town appraiser and are disappointed with the results. Don't expect these "out-of-towners" to know the standard practice, the geographical customs, the other players involved or the value of the local marketplace. (They just don't and it's silly to expect them to!)
Treat: Buyers and sellers who work with their local specialists; professionals who knoweldgeably understand the neighborhood you seek - not the one you are departing!

Trick: Finding the house of your dreams and having it realized!
Treat: Finding the house of your dreams and having it realized!

Halloween should be scary fun. Buying a home shouldn't be scary at all. While buying or selling Real Estate might seem frightening at first glance, beneath the make-up and with the right representative, partnered with a well-respected brokerage firm, it isn't actually scary at all.

Trick or Treat!

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.

Volume 115 - A Very Scary Tale! - October 21, 2009

What's New?

Halloween is just around the corner and things are beginning to look frightening. Graveyards are popping up all over Piedmont and the ghosts are flying on Dracena Avenue once again. My younger son, Tristan, loves this time of year (What kid doesn't? Costumes and candycorn? Seriously, it's a winning combination - even for me). Unlike my sister's darling daughters who tend to dress as flappers or Dorothy from the Wizard of Oz,no saccharin cartoon character costumes will do for him. If it doesn't involve a medieval weapon, a black hooded cape and a scary mask, Tristan's just not interested.


Recently, I had quite a scare when I called my local mortgage broker, Melissa Milton of LaSalle Financial, and asked her to do a credit check on me! Like many of you, I am keeping my options open and wanted to know: "Would I qualify for a loan in this "more conservative lending climate" - OR did I have some heavy housework ahead with respect to my "credit worthiness?"

While I never miss a mortgage payment, in the interest of full disclosure, I have to admit that I am occasionally tardy on the PG&E bill and there was that one accidental overdraft last year . . . so I was legitimately worried. In the absence of any real knowledge, I had forecast all kinds of spooky scenarios!

This is where fear and denial walk hand-in-hand. For the last few years, I had been putting off obtaining a credit review even though I believe it's the smarter choice - especially now. Still, I imagined the grim reaper delivering the bad news (not that Melissa's the grim reaper. She's more like Glenda, the good witch).

Would I be heavily penalized for my few brief lapses in time? Would my husband? Truth be told, I really had no clue. Invoices come in and payments go out (typically in a timely fashion) but how do I stack up where it really counts?

No, not St. Peter (I'm hoping Heaven's gates are more forgiving) I'm talking about the big three credit bureaus; I'm talkin' FICO SCORES!

So with courage in hand, I gave Melissa a call and guess what? After all that senseless worrying, I qualify as "good to excellent" and so does my husband (no sense in obtaining only half the equation). While neither of us is perfect (who is?) we are both in the UPPER range. Yoo hoo! (Credit scores, like SATs, range from a low of 300 to a high of 850.) Now that's just good to know. Turns out, knowledge is a powerful sleeping aid.

While a move isn't in my imminent future (college tuition is) perhaps, it is in yours. My advice is that you follow my lead, pick up the phone, obtain a credit history and line up your lending options BEFORE identifying the home of your dreams. Put your bank representative or your favorite mortgage broker to work for you. That's part of the service they provide.

IF there is a problem, any experienced mortgage broker worth her salt (or sugar) will help you navigate the hurdles and rectify any outstanding concerns. (This can involve a few letters or it can be more complicated but the sooner you have the information, the better off you'll be.) Whatever the outcome, it can't possibly be as scary as your imagination might lead you to believe!

Now break out the candycorn and let's bob for apples. Boo!

(Melissa Milton and the many other fine agents of LaSalle Financial can be reached at (510) 339-4300 or at www.lasallefinance.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 www.JulieGardner.com for more information as well.

The Piedmont Perspective, Vol 113 - Negotiation; It's A Brave New World! October 7, 2009

What's New?

"How much is this?" I asked the pretty antique vendor as I eyed the small Stoneware pitcher on her table at the Alameda Flea Market last Sunday. "Twenty-eight dollars," she politely answered. "Hmmm, can you do better?" I inquired as I carefully looked it over. "What were you thinking?" she said. "Eighteen?" I replied. "How about twenty-three?" she offered. "How about twenty?" I responded. "That's a hard size to find," she countered, "you'd pay much more for it in a shop." (very true) "I'll let it go for twenty-one."

This is when I PAUSE FOR DRAMATIC EFFECT. "OK, I'll take it," I said with a smile (certain I'd just gotten a very good deal). "Terrific," she said (knowing she'd made a few dollars on the sale). "Would you like that wrapped up?" "Yes, please and thank you."

Another successful and happy transaction!

Back and forth negotiation at the flea market isn't the exception, it's the norm! There's rarely a sale that doesn't engage in this banter before settling on a mutually satisfactory price. Buyers are looking for the "find" and sellers are interested in making a profit. It's the well-practiced give and take of human interaction. Not surprisingly, experienced vendors are far more likely to become truly competitive by the end of the day - then they are at the beginning.

I'm an early bird by nature and habit-up with the moon and at the front gate with the rest of the flea market junkies before the crack of dawn. For me, there's a significant trade-off. Experience has taught me that the best finds go early . . . the best deals; however, come late!

The same is true for real estate. Homes that are highly coveted, quickly sell for close to or above their asking price while homes that languish on the market for awhile, tend to get discounted over time. (If you are looking for the "deal," hone in on those properties that have been largely ignored. Those sellers are likely to be the most flexible as time goes on.) With dramatic changes in the marketplace over the last few years, buyers are quickly becoming much better versed in the concept of offering less than list. Indeed, buyers expect to negotiate on price!

Sellers, on the other hand, are still a bit slow to embrace this Brave New World and tend to object to a realignment of value. Unlike a few years ago, buyers are requesting time to fully inspect their purchase before removing ALL of their contingencies. While a buyer's initial offer price should, ideally, factor in any known defects, sometimes a buyer's inspection will disclose new discovery previously unavailable or perhaps, unknown which may give a buyer PAUSE before moving ahead.

When that happens, it may be reasonable to expect some push back from the buyers with respect to the costs associated with new discovery. Expect buyers to seek "to perfect" the deal. This can come in the form of credits to the buyer for the work required or a reevaluation of the purchase price altogether. Either way, it isn't personal - it's business. With some quantifiable discussion, you're very likely to find a middle ground that achieves the goal for both parties.

Whether negotiating with a flea market vendor, a colleague, an agent, a client (or a spouse) I find that the best transactions come with well-intentioned and reasonable give and take. When both sides have left the negotiation table having given and having gained what's truly important to them, you're much more likely to have a happy ending - even if something unexpected should come up after the close of escrow!

When it's a win-win for everyone involved, you can look forward to a happy and successful transaction!

(The Alamdea Flea Market takes place on the first Sunday of every month at the old naval base in Alameda. Start time: sun up!)

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 www.JulieGardner.com for more information as well.

The Piedmont Perspective - It's ALL About Perception! September 25, 2009

What's New?

I was out in the garden yesterday evening mulching the beds, pruning bushes and generally, just decompressing from the day. The air had cooled a bit and the pine needles were landing all around me - a sure sign that change is in the air. It's getting darker earlier, the kids are back at school and the celebrations are definitely more seasonal. We're a year beyond the worse financial setback in decades and things are slowly beginning to improve.

The legacy of the recession is a common sense approach and a return to middle class values by and large. Let's not forget that purchasing a home is typically driven by family values, but strong emotions are part and parcel of almost every home purchase as well. The desire to secure a "deal" combined with the need for "home" and all that title entails, has created a yin and yang of sorts for the majority of home buyers with whom I work each day.

From cautious pessimism, to cautious optimism, buyers are definitely more plentiful than they've been in quite some time and it's palpable. It's also tangible! Several recent sales have had multiple offers as a result of increased interest, coupled with incredibly attractive interest rates and some homes have received offers well above their asking price!

I'm not sure what creates this emotional "tipping point" for buyers but I am sure that "perception" has a great deal to do with it and that "perception" often has to do with what the mainstream media tells us to believe.

So how does one judge "real value" when it's subject to seasonal changes and media hype? That's a good question.

I'm often asked, "How much is this house really worth?" and the short answer is "What is it worth to you?" I am happy to provide clarity in the form of nearby comparable sales, market patterns and specific interest on a given property, but at the end of the day, I can't tell you a home's intrinsic or emotional value - only you can decide that.

I can predict a home's probable selling price, based on facts, figures and experience, but I can't tell you with certainty where it will ultimately trade. It's divination on a professional level, but as always, the market determines "market value"- not the agents, nor the sellers.

Sometimes a home is so special that a buyer fearlessly jumps in with full abandon. He/she comes to the table bearing "the gift" - an offer so powerful that it clearly leaves the rest behind and often, makes little sense (or cents) to the rest of us from an economic perspective.

In that case, there's little to be done with respect to your common sense approach. Purchases based on "emotional value" will always trump those based on "market statistics." In short, value is relative and you'll have to discover your own truth with respect to value and perception.

Here's a quick and favorite story of mine about "perception." Many years ago when my husband Cliff was at law school, he and his good friend and law school classmate Greg we're nervously anticipating their final grades on an important test. (Before the advent of computers, scores were posted on the door by social security number and a student's grade was based entirely on the semester final.)

Scanning the test scores, my studious husband shook his head in disappointment while his more carefree law school buddy breathed a sigh of relief and gave a hearty cheer. "What'd you get?" my husband asked Greg. "I got an 83," was his happy reply. What'd you get?" "I got an 83," responded Cliff with an ironic laugh.

Perception! (BTW, an 83 was the top 10% of their class.)

We each carry our own truths; our own perceptions about life and where value lies. Is there a baby in your future? Are the kids off to college? Are you changing jobs? Changing lifestyles? What's your own personal truth?

What do YOU value most? Find it and let the rest fall where it may. It's your home. It's your life. You decide.

I'll be here and ready to help when you do!

P.S. - You can always reach me right away by emailing me at jgardner@grubbco.com or calling me at (510) 326-0840. I look forward to hearing from you!

Feel free to visit my website at JulieGardner.com for more information as well. DRE License #01431765

The Piedmont Perspective, Volume 110 - Positioning, Power & Pace! - September 16, 2009

What's New?

At the risk of giving myself away, I've been glued to the U.S. Tennis Open over the last week, enjoying the return of Kim Clijsters to the woman's circuit, and the mounting epic battle between tennis great, Roger Federer and future great Juan martin del Potro.

There's something incredibly mesmerizing about the Grand Slams and watching the tennis ball go back and forth, back and forth, back and forth - until an opening develops and the ball is SMACKED for a clear winner. Tennis is a game that goes far beyond the physical as toned minds match up against one another and well-honed strategy comes heavily into play. The truth is that every player in the top 100 has tremendous ground strokes, but it's the mental game that separates the top ten from the rest of the pack and firmly establishes the marquee players!

The same can be said for Real Estate. There often seems to be a simple illusion that anyone can obtain a Broker's license, hang a shingle and manage a profitable real estate business, but in every community, there are a few key players that seem to enjoy the lion's share of the business - as has always been true for The GRUBB Co.

Understanding a community's needs, building trust, defining market value and developing creative marketing strategies has often separated The GRUBB Co. from the rest of the pack. For more than forty years, The GRUBB Co. has enjoyed a dominate market presence here in the East Bay! www.grubbco.com

Watch enough tennis and you'll see how a great player quickly establishes positioning, power and pace as the game unfolds, while the challenger defensively tries to keep up and second guess the stronger opponent. Should the momentum shift, the best players in the world learn to adapt and adjust which is why the top players tend to stay at the top and why The GRUBB Co. is the most recognized boutique agency in Piedmont, Berkeley and the Oakland Hills! (We've earned it one house at a time.)

So watch as The GRUBB Co. continues to grow, expand its Internet presence, design creative advertising, and retain and broaden its market appeal! As a company, we're constantly learning, developing and adjusting to your needs and the market demands.

And so am I . . . every cross court shot, half volley, lob or service ace makes me a better player and a more astute Realtor as well. In home sales, every deal is a new challenge and each successful outcome requires careful strategy and market timing (positioning, power and pace!) and like any top performer - lots and lots of tenacity and hard work!

It's an interesting time to be in real estate in general, to be affiliated with The GRUBB Co. specifically, and to be working with all of you as a whole. Like any great player, I'm constantly striving to improve my game and I look forward to assisting you (and your friends) with all your real estate needs now and in the future.

But first do you mind if I finish the men's final? Roger Federer just took the first set 6-3 and Del Potro is ahead in the second set tie-breaker. Exciting stuff!

Feel free to visit my website at JulieGardner.com for more information as well or contact me directly at jgardner@grubbco.com or at (510)339-0400/264. DRE#:01431765

The Piedmont Perspective, Vol 109 - Take Me Out to the Ball Game! september 3, 2009

What's New?

I am about to make you all a little jealous so I'll apologize up front for gloating. Last Friday, good friends of mine gave me four premier tickets and a parking pass to the San Francisco Giant's Baseball game. They were field level seats about five rows back at the first base line with a perfect and intimate view of the action. (These types of gifts make it hard to go back to general seating once you've been spoiled!)

Even better, San Francisco was experiencing record breaking temperatures that made for an incredibly balmy evening at the park - the kind that begs for a plate of nachos and an ice cold drink (I wore shorts and sandals)! And it didn't hurt that the Giants won the game against the Colorado Rockies in brisk fashion. (Two hours and twenty-three minutes - that's my kind of ballgame.)

During the seventh inning, the Giant's mascot, Lou Seal (Luigi Francisco Seal) joined the party. Having danced a couple of seasons as Bugs Bunny for Great America (it's true!) I get as excited as a kid when I see a fun-loving mascot doing his thing and Lou's among the best in my humble opinion. He was leading us all in a crowd pleasing rendition of "Take Me Out to the Ball Game," but failed to notice my waving arms and enthusiastic singing as he rewarded fans with free bags of Cracker Jacks. Hmmm?!? With all due respect to Tim Lincecum and his fantastic pitching, keep your foul balls, what's a gal gotta do to get a FREE box of Cracker Jacks? I LOVE that mammal. Couldn't he tell? Didn't I deserve some love back?

No sooner had that thought popped into my mind when the spectator to my right turned to me and said, "We're taking off soon and I packed extra snacks. Would you like some?" and handed me an unopened box of Cracker Jacks (I kid you not)! "The only condition is that if there's a tattoo inside, you have to wear it." Done!

Now how's that for asking the universe to deliver? So without sounding too space age - I am a strong believer in the concept that we have a way of creating our own reality. This isn't a touchy, feely kind of philosophy - it's the understanding that we unconsciously move toward out dominate thought or to put it in other words - ask and ye shall receive!

So why not ask for the house of your dreams and I am betting you'll begin to find it - even if the house isn't perfect (remember perfection doesn't exist). All kinds of opportunities will begin to present themselves and instead of finding objections, you'll begin to see the possibilities!
See what a warm summer evening and a simple box of Cracker Jacks can do? (Although my husband says I set my sights too low and should have asked for a winning lottery ticket instead.) And thanks to the San Francisco Giants, their mascot, Lou Seal, and the unexpected but welcome generosity of my friends for a spectacular evening!

The Piedmont perspective, Vol 107, Fascinating Rhythm - August 28, 2009

What's New?

The truly fascinating thing about Blogs, e-newsletters, Twitter and the like, is the intimacy of the medium. Each week, I can count on several immediate responses from my loyal subscribers, but once in awhile, I get a rare response from someone completely anonymous to me that comes from the BIG BLOGOSHPERE out there (the final frontier?).

After recently publishing the two pieces about my favorite "Buyer and Seller Myths," I received a thoughtful reply from one such reader who wondered if I would have the "courage" to print her favorite "real estate myths" and offered up the terrific suggestions below.

Yes Josie, I do have the courage (I find it helps to be a bit fearless in real estate) and thanks for your valuable input. The welcome give and take from readers like you is what keeps The Perspective relevant and I hope that an open and honest debate make for "fascinating rhythm" (I'm all a-quiver). Per your suggestion, I will offer my responses in turn (and in blue).

Myth #1 - "Housing is a great investment, it always goes up!" (Nobody says this anymore, but until two years ago, it was practically an article of faith among Realtors).

Unfortunately it's true - real estate doesn't always go UP, as the past few years have reminded us. Like any market, home values fluctuate and are subject to economic pressures - even here in the beautiful Bay Area. But I believe we make a mistake when we think of our homes as an "investment" only. For most buyers, homes represent more than a balance sheet. They are largely an emotional purchase; a fulfillment of the American Dream (as American as apple pie) and a tangible representation of our achievements. We want and often need, to own our own little piece of the pie. Even if there is no guarantee that the pie will appreciate - it shouldn't keep us from appreciating the pie!

Myth # 2 - "Buy this house even though you don't like it all that much. You can always trade up!" (With the exorbitant transaction costs of buying and selling, plus the pain and emotional toll of moving, this is usually terrible advice.)

I would agree. Transaction costs are significant (they typically amount to as much as 8% of your selling price and include items such as transfer taxes, inspections, painting and staging and commissions) and packing up and moving is certainly no picnic either. You should LOVE your home or it should have the potential to meet your growing needs. Homes aren't meant to be traded like baseball cards. If you aren't planning on staying in your home for a minimum of five -ten years, the rental market may in fact, suit your basic housing requirements better.

Myth #3 - "The market is starting to heat up!" (For buyers, this never seems to change.)

OK, call me an optimist, but I do believe the market is heating up. Based on the heavy (and I do mean HEAVY) recent activity at Sunday Opens, the incredibly attractive and artificially low interest rates, and the more affordable housing stock currently available, pending sales are UP in the month of August and expected to grow in September as well. Barring any unforeseen circumstances, I believe we can realistically predict a healthy and robust market through Thanksgiving with a seasonal decline through the holidays and then a significant bump come next Spring. Savvy buyers are cognizant that this window of opportunity may be limited. Sellers should take heed as well!

Myth # 4 - "There was another offer that was the same price as yours. The seller wants another round of bids." (Really? The EXACT same price? How was this house on the market for four months with no sale, and as soon as I bid, another bid appears at the EXACT same price?)

The EXACT same price? Maybe not. So close, they are virtually indistinguishable? That's a very likely scenario and here's why. Buyers tend to be conservative until someone else makes the first move. Like the gawky teenager who suddenly becomes incredibly attractive when your best friend start expressing interest ("Jessie's Girl") homes that sit for awhile tend to lose their appeal, until another interested buyer steps forward to "claim" the house.

Buyers often need their choices validated by another interested party before they are willing to commit. Once a move is made, any sharp listing agent will immediately contact those prospective buyers on the fence and leverage the first offer. (Don't get upset, that's part of our fiscal duties and why smart sellers hire aggressive agents to begin with!) That's why you may suddenly have more than one buyer on a house that has sat virtually untouched for months.

And the identical offers? They are just a byproduct of time and market testing. (There's a learning curve that works to an agent's advantage the longer a house sits on the market.)

Myth # 5 - "It's no big deal to ... [add another bathroom, add a new floor above, build new stairs to an unfinished basement, replace a garage]. (Um, actually, it is damn expensive, and sometimes impossible!)

Upgrades, remodels and renovations can be a BIG deal. Make sure you read ALL of the disclosures provided and secure your contractual right to inspect the property. Ascertain up front the projected costs of any repairs or changes you are likely to make in the near future and then do the math! Inspections can and often do include engineers, contractors, home inspectors, roofers, arborists, geologists, etc, to help you pencil out these necessary (or unnecessary) expenses - as the case may be. This is especially true for "fixer" properties that may prove more expensive than anticipated. Are you better off buying the less expensive home and adding these upgrades to the cost of the price or are you better served paying the adjusted amount now and getting a house that comes closer to your current needs? Only you can make that decision, but decide with as much information as available in hand!

So there you have it. Thank you Josie for putting into words what so many of our buyers have been silently wondering. I'll look forward to hearing what others of you have to say.

"Fascinating rythm -
You've got me on the go!
Fascinating Rhythm,
I'm all a-quiver. "


Feel free to visit my website at JulieGardner.com or email me at jgarnder@grubbco.com for more information as well.