Monthly Archives: February 2013

Palo Alto Tour Friday – February 22, 2013

Palo Alto Tour Friday Feb. 22nd 2013

Like MP Tour on Tuesday, this week was light on inventory,
lots of kids off school and families out of town taking advantage of this, I
would assume. Only 9 properties on our District Tour sheet, and I saw an off
MLS that was open today too.

221 Bryant. Old original PA home, built early 1900’s with
the advantage of having been thoroughly updated like new! So it has all of the
wonderful features like bay windows and wide door casements and hardwood
floors, with all the modern perks like granite counters and recessed lighting.
There is even a wine cave. 4 bedrooms, 3 bathroom two-story home with 3800 sq.
ft. on a 5760 sq. ft. lot, typical for this neighborhood. And outdoor area is
increased by the creation of a large deck on the upper floor. Parking very
tight in this neighborhood. The plus is the close walk to everything! $3,190,000.

1350 Harker is a sunny traditional New England Colonial
style family home on a great street.  Built
in 2001, the floor plan is open, airy and fluid. All of the bedrooms are on the
1st floor, which, while many families with small children will
appreciate, it is always a beneficial to have a bedroom on the ground floor for
visitors. Open Kitchen/family room lines the backside of the house with large
French doors opening out to the patio and generous, sunny back yard. (8000sq ft.
lot) This home is turnkey perfect and should sell very quickly. $3,095,000.

I noticed there is a coming soon sign on a house a couple of
doors away on Harker, something to look out for.

736 Homer is an opportunity to buy a 2 bedroom 1 bathroom
home a stones throw from downtown PA. It is on a super-cute cul-de-sac and is a
cute (small) 660 sq. ft., which is painted and staged and spruced up for sale,
with nice new stainless appliances in the kitchen, but older tile and
countertops and cabinetry. This is a good alternative to condo living. Listed
for $859,000. See attached photo

1530 University Ave, don’t be put off by the street address,
the house is recessed from the street, on a flag lot, and surprisingly quiet
(check for yourself, these things are always subjective). It is a single level
(4bedroom 2.5bathrooms) nicely upgraded ranch style home, long and quite
narrow, with lots of established trees on the 15,950 sq. ft. property.
$2,750.000.

1830 Newell. Nicely recessed from Embarcadero in Leyland
Manor. This is a ranch style home that has been upgraded (coffered ceiling in
L/R and granite counters and new cabinets in the kitchen) and possibly even
expanded to create more square footage. Master suite opens onto the back yard. 4
beds 2.5 baths for $2,395,000. There is a one car attached garage. (Not on MLS)

2065 Alma Street. Property is impacted by traffic noise.
This is also a great advertisement for why we, as Realtors, recommend prepping
and staging (and preferably vacating) prior to putting on the market. It will
be a tough sell (in my opinion) for buyers to see beyond all of the personal
belongings and the tired looking cosmetics of the place. $998.000 – call it a
Million, 1386sq feet with 3beds, 2 baths on a 5000sq. ft. lot. Original
condition. In need of TLC (lots of it). (Or a bulldozing).

420 Cambridge Ave #3. Now this is a fun Townhome/Condo. It
is contemporary urban living at its best. Very stylish. Lots of great storage
space in the kitchen if you like to cook, you will appreciate this. The unit is
right at the back – way off of the street, and very bright. But this one is not
for the vertically challenged. By the time you get to the Master suite, you
have gone up 4 flights of stairs. I liked the astro-turf  touch on the balcony off of the Master. Fall
out of bed and you are right there, on top of all of the fun that the downtown
area of California Ave has to offer! 3/2.5 for $1,498,000.

3500 South Court in Midtown PA is a new construction with
everything that today’s buyers are looking for, with an Italianesque feel. 5
beds and 3.5 baths in a 2400sq ft. space. Room sizes felt tight.  1 car attached garage. But it is new and many
buyers will pay a premium for this. Lot size is 6000sq ft. fairly typical for
the neighborhood. Some lovely features are the sun exposure and the open feel
from the kitchen/family room out to the back yard. $2,598,000.

3851 Corina Way is a contemporary home, flat roof, slab
foundation, very stylishly finished and decorated these homes are enjoying
great popularity at the moment. Nice glass wall out to back yard. Corner lot,
so side of the house is on Ross. This is a 3 bedroom 2 bathroom home totally
upgraded and turnkey priced at $1,398,000.

In Menlo Park:

940 College Ave in Allied Arts. This is a two-story home
with 4 bedroom 3 bathroom (plus an office) in 2936sq ft. on a 7800sq ft. lot.
It was added onto a few years ago, so has all of the great feeling of a newer
home, with good floor plan and upgraded finishes. Three of the bedrooms are
upstairs and the fourth is on the ground floor. A very traditional home this
will appeal to many. $2,795,000.

Palo Alto Tour Recap, February 22, 2013

This week proved to be another slow week for inventory in Palo Alto.  There were 7 new homes on the market this week, and one off-market property that became available this week.  The clear and obvious choice for best of tour this week was 1350 Harker Avenue, listed by Miles McCormick of Keller Williams.  This 2,904 square foot house sits upon an 8,000 square foot lot in Palo Alto’s Community Center neighborhood.  Although I would call the first floor a touch disjointed, the upstairs layout and backyard were well planned.  One other downside to the home is that there is only a one-car garage.  However, with some minor upgrading such as smoothing out the textured walls, replacing carpet and changing paint colors, this house would be extraordinary.  Listed at $3,095,000.

There were 6 other properties on tour today, so let’s go over them: 

221 Bryant Street – Located in the Downtown North section of Palo Alto, this 3,800 square foot home has some rather interesting upgrades throughout.  Some of the finishing touches might want to be reviewed.  As for the upstairs, the layout is a mix of classic features in the hallways and living room (some of the windows appear to be original), and a modern look in areas such as the bathrooms and kitchen.  Paired with a 5,760 square foot lot, the price on this home feels big to me at $3,190,000.

736 Homer Avenue – If you are a buyer with a budget under $1,000,000 and are looking for a starter home, this may be an option.  This Crescent Park home is an interesting property.  It has a very small lot at 2,300 square feet, and the home is smaller at 660 square feet.  With that said, the spaces are laid out well, and the street is surprisingly quiet for being located within a block of Middlefield.  Listed for $859,000.

1530 University Avenue – Located in the back of a flag lot, this home is a single level, private residence in Crescent Park.  As with all flag lots, finding the usable square footage of the lot can be tricky, as a good portion of the lot is allocated to the driveway.  This particular home boasts a 2,400 square foot home on a 15,950 square foot lot.  The home itself has a neat front yard and well-portioned master bedroom.  A long hallway, which runs through the house, feels narrow.  Listed for $2,750,000.

420 Cambridge Avenue, #3 – Modern living near California Avenue in College Terrace.  This newer condo development is an interesting property with lots of levels.  The spaces on this property have a modern feel, but the three stories could be difficult for a lot of buyers.  Personally, I feel there is more value for a similar price with 432 Webster Street, which toured last week.  However, for someone looking for a turnkey, modern feeling condo, this could be a fun match.  Listed for $1,498,000.

3500 South Court – This brand new home is located in the southern section of Midtown, near the Fairmeadow Neighborhood and the “circles”.  The 2,400 square foot home has some nice spaces and is well laid out.  The kitchen especially is worth mentioning and has a clean and open feel to it.  However, keep in mind that the property only has a one-car garage.  Also, expect to pay a premium for new construction.  Listed for $2,598,000.

3851 Corina Way – This Eichler style home (it was built by a different builder, Brown & Kaufman) is located in the Adobe Meadows neighborhood near Don Jesus Ramos Park.  The 1,421 square foot home has a newly remodeled kitchen, floors, and bathrooms.  The floor plan feels similar to an Eichler, as does the look.  As with all Eichler style homes, special attention should be paid to the mechanical systems and foundation.  The yard itself has potential.  Given the large lot (7,300 square feet), proximity to the park, and decent remodeling, I believe the home to be priced well at $1,398,000.

Off Market 

Leland Manor – A younger home with a 4-bedroom configuration and gourmet kitchen.  The home nice finishes and a comfortable floor plan.  Given that the lot on this home is not anything extraordinarily large, I think the off-market buyer will be paying a premium for this home.  Listed between $2,000,000 and $2,500,000.  Call me for exact pricing.

Menlo Park Tour Recap, February 19, 2013

Broker Tour Tuesday Feb 19th 2013

Very small tour this week (and wet). Only 12 properties listed (plus a couple that missed the list). Let’s hope that this is because sellers and their agents are holding back due to so many schools being out for the week and many buyers on vacation, and let’s hope for a deluge of more new properties coming onto the market soon – as we fast approach Spring.

Of those I saw:

405 9th Ave (which missed the list) is a great price listed at $699. 3 bedrooms and 2 baths, while the house is pretty original and a typical simple cottage style (no souped up amenities like walk-in closets, en-suite bathrooms or vaulted ceilings, but the kitchen is updated with granite and it is way cute and very comfortable looking. Don’t let the fact that it is actually on Middlefield Rd put you off (hence the list price I assume). Well fenced off, it is surprising. Well worth going in to check it out before dismissing. Fair Oaks Neighborhood of MP so not the better MP elementary schools, but great value and easy access to everything.

500 8th Ave. Recent build in 2007. It has the 2 stories, and the kitchen/GreatRoom with vaulted ceilings…everything you would expect from a newer home. Good corner location just over 8000sq ft. Décor a little bland, finishes not desperately exciting, but lots of house (3030sq ft 4beds 3.5baths) in friendly Fair Oaks Neighborhood. Careful not to frighten the reptiles. It will be interesting to see if it sells for the list price $1,590,000. 

36 Melanie Lane, Atherton, just off of Stockbride (West of Alemeda), this property is way private, nestled into the lot. A fairly typical Atherton Acre, the house is very traditional with pretty good flow. Lots of gold hardware can easily be changed out. Feels like good value listed at just under $5mill. It should fly off the shelf. 4680sq ft of house with 5 bedrooms and 4 bathrooms, it has the configuration that will appeal to many of todays buyers. Master and most bedrooms on same floor, with a guest room on the ground. Nice bonus rooms near the garage for working out and working. 

266 Woodside Drive, Woodside. Backs onto the Menlo Country Club – great location, just off of Fernside in Redwood City, somewhat of a hidden quiet oasis and feels like it would be right at home in West Atherton (only about a mile away). Does not have any road noise from 280 which is another bonus.  With 49,222sq ft lot and 3380 sq ft house. It is a very typical 50′s style single level rancher which has been very tastefully upgraded. Lots of bang for buck at just under $4mill.

305 Lindenbrook Court – heralded as an ‘Estate’ with 7 acres, with lots of grand ideas as to how you could create more on this property – but you will never get away from the road noise of nearby 280, which  you can see from the property (which is why it is priced at $3.6,mill and this may be too high a price). The house itself is lovely, traditional brick, and once you are in it, the road noise  is not apparent. Like Melanie, lots of gold hardware and 80′s tile in the bathrooms. What you would expect from a house built in the 80′s. The back yard is quite tight (the property line is marked by black cyclone fencing – very apparent from all rooms facing the back) most of the land is at the front. 

3985 Woodside Road. While on a busy road, the house itself is well set back from the street so you do not really notice it. It is on a large 130680 sq ft lot and the house is a ranch style that has been carefully and very specifically remodeled to the seller’s needs, taste and lifestyle. Questionable flow. The master suite is on one side of the house while the three other bedrooms are on the other. Perhaps a great layout for those with older kids, or no kids. Buyers need to look beyond the bedrooms current uses as office and media room. Highlight is the Vaulted large family room/kitchen which overlooks patio/pool area on one side and large lawn area on the other. This property has a horse paddock and stables too I think. Check with list agent….I am not a horse person. This is listed at $5.6million.

451 Portola Road. PV. It’s a Flip! At $5.6 million, reduced from $6.5million, this is a beautiful and fanciful house. With it’s stone veneer and magnificent turret, this house is like a fantasy, fairy tale – a real conversation piece with lots of history (it used to be the gate house for the original Lauriston Estate) so it is steeped in history. I saw it a couple of years ago when it was for sale and it was much darker and smaller and very chopped up feeling. The sellers have totally overhauled it to ‘Flip’, opening it up to give is so much of a better flow. Wonderful design features like integrated color in the wall plaster, hand combed light hardwood flooring, opened up kitchen/dining room and living space. Lovely eclectic mix of old fashion french frou-frou with super contemporary finishes it really was a treat to experience. Once inside the house, there is no feeling (or sound intrusion) from the main Portola Road where it is situated so it is surprisingly unaffected. But at the end of the day, it is on Portola Road and this may be a deterrent to buyers with $5-$6million to spend. 49179 sq ft lot and 3 separate buildings on the property.

You have to check out the separate guest cottage and the amazing detached workshop which could be used in all sorts of wonderful ways. And what fine home does not have it’s own Bocce Ball Court and Swimming Pool? Check it out. It is a treat. Design highlight of my Touring.

1044 Los Trancos Road PV. It’s a cabin in the woods. Rustic to the extreme. (and I am a huge fan of rustic) Any buyer needs to be prepared for a lot of work (or a total re-build). Flooring feels uneven. I wasn’t sure which of the rooms was the bedroom. It did have a strong smell of gas on entering. A long ago outdoor deck was walled in to create more ‘indoor’ living space. The house is built on stilts and while I have seen others similar to this in the neighborhood, this one certainly needs major TLC (as well as Beaucoup Bucks) to get right (if at all do-able?). On the up-side, love the feeling of being away from it all – while so very near to everything (about 10 min drive to 280) and the price is only $659,000 but that must be based on land because the house itself, while it could be cute, even scared me a little.

351 Leland is a wonderful house, in a great neighborhood, just behind Oak Knoll School in West Menlo. It has 3 bedrooms and 2 bathrooms, with a pretty good open flow  plan from Kitchen, living and dining rooms. The attached 2 car garage has good storage space. The lot feels larger than it’s 5,650sq feet with large french doors that open to the yard, really bringing the yard space in – and the house carries off the over-size furniture and darkish wall color, somehow defying logic and making it feel spacious and cozy, (even if that sounds like a dichotomy). It worked for me. I think it will sell very quickly with multiple interest.

I did a drive-by a new listing on Vine Street, (it was not open) priced at just under $1.1mill, it looks like it is occupied and being sold without ‘make-up’ shall we say. Great location. It may be a great opportunity too but it looks in fairly original condition so buyers can expect a project, to do lots of clean up and up-grading if not start from scratch.

A Realtor Buys a House – A New Dad’s Journey Through Hell – Part 1

My wife and I have been wanting to move to Portola Valley or
Woodside for a couple of years (OK, 20 for me, she is a more recent convert),
and looking with varying degrees of seriousness. During that period, I have
mentioned our interest to several clients as I was helping them buy or sell
their homes in the area, and my comment was often met with a mix of suspicion
and fear that I would somehow buy up all the “good” homes, leaving them with
the dregs.

I thought that it might make for entertaining reading to
actually document how we went about this process and share our experience. It’s
probably remarkably similar to yours, especially if you are a client of mine.
If you aren’t, you should be. Shame on you…..

In the interests of full disclosure and transparency, I’m
approaching this like the television program HouseHunters. We have already
found our house in Woodside and are in escrow. We move in May.

Thanks for reading and stay tuned…….

A Realtor Buys a House, Part 2 – Laying the Groundwork

Econ 101 Palo Alto style – Another View of Low Inventory

Yesterday on Palo Alto Patch, Michael Talis posted some data highlighting the lack of inventory of homes for sale so far this year. This isn’t really earthshattering news to anyone who has been looking for or making an offer on a house in Palo Alto lately, but he does put some numbers behind the refrain ‘There is NOTHING for sale right now’ and prayers of new listings coming after the Superbowl.  Here is a link to the post: http://paloalto.patch.com/blog_posts/january-2013-palo-alto-housing-drought-continues

While we are clearly in a Seller’s Market the numbers are a bit off from the ones in this article. The MLS, which is the database of homes for sale, estimates that up to 30% of the homes in Palo Alto sold this year were sold without being posted on the MLS. This is usually referred to as “Off-Market” which is really a misnomer, because the house was for sale, exposed to the market and sold, just not through a particular channel. It’s kind of like selling your used car to your neighbor without putting it on CraigsList or putting an ad in the Palo Alto Weekly.

As a home buyer, these two trends of low inventory combined with pent up buyer demand and an increasing number of homes being sold without posting to the MLS create two situations to be aware or beware of.

1) Econ 101 Palo Alto Style – As we were taught in Econ 101, in the face of scarce resources (homes for sale) and high demand, market forces will drive prices upward to equilibrium, in this case pricing a lot of folks out through a combination of absolute prices and terms (cash, no loan, no contingencies, free rent back to the sellers, throw in a dog or kid, vacation in Hawaii, do your laundry, please, please, please let me buy your house!!!!, etc.). 

2) Market knowledge – I can’t tell you how many folks I met last year at open houses and otherwise who had the strategy of looking at houses on Redfin.com (very cool phone app for trolling the MLS) or Trulia.com, then looking at the houses at open houses and not utilizing a local agent. They thought they had perfect information and would love to tell me what the house sold for last time and how many $/square foot the neighborhood sold for and a bunch of other data. Guess what – they are still looking for a house, only seeing 70% of the market (the non-MLS stuff doesn’t show up on Redfin), wasting a bunch of their time and getting frustrated while the market appreciated 24% last year. 

24% – That means an entry level three bedroom, one bath house in South Palo Alto that sold for $1,000,000 in January 2012, is now going to cost you $1,240,000. I don’t care how many shares of LinkedInGoogleFacebookAppleWhatever you have, $240,000 is a lot of money. You can get a really nice, low mileage Ferrari 430 for that!

If you have read this far, here is the punch line – the Palo Alto market, and by extension almost everywhere within a 10 mile radius, is ON FIRE in 2013. There are few homes and way too many buyers with way too many resources fighting over way too few homes. We don’t see anything that will change this dynamic for at least a year, potentially until 2015 or 2016. After the correction then, prices will still be 20%-40% higher than they are today, so if you are playing in this market play to win.

Arm yourself with the data and the local knowledge that you only get from a real estate professional who knows the market you are looking in. Here is a great place to find one: http://dreyfusproperties.com/realtors. Discuss your goals, why you want to buy a house and set realistic expectations, including expecting to pay a premium. Take a deep breath. Drink – A LOT.

Good luck!

Where Do I Go?

Where Do I Go?

The popular topic in the local real estate community is the
ongoing lack of inventory of homes for sale. According to our local MLS, the
number of homes for sale in our local market (Palo Alto, Menlo Park, Atherton,
Portola Valley, Woodside) is down 40% – 60% versus this time a year ago,
depending on the price point and neighborhood. Since our are generally has
fewer homes for sale relative to the number of homes and buyers, this inventory
decrease translates to it feeling like there is NOTHING for sale, and multiple
offers on the few homes available are the norm, not the exception.

Adding to this, with the phenomenon of overseas buyers and
recent liquidity events and stock run ups for local companies, we are seeing
more wealth and resources available to purchase homes than ever before. This is
like adding gasoline to the proverbial fire, and driving prices upward at
impressive rates. Check out these charts, showing changes in median home prices
(half of the houses sold for more, half for less) in our communities over the
past year. Palo Alto up 20% 2011 to 2012, Menlo Park 11%, Woodside down 10%
(I’ll come back to that), and Portola Valley up 13%.

That’s better than the NYSE which is up 12.9% over the same
period, and you get a place to keep your stuff too.

So let’s assume you have been sitting in your house in North
Palo Alto for the last few years while your kids finish High School, watching
houses around you sell in a week at prices you can’t believe. You come home,
realize you don’t need a four bedroom house and the property taxes and say to
yourself “Self, let’s cash out!” (Actual clients’ example here). Your next step
would be to call me and say ‘Chris, what is my house worth?’. I’d give you a
range (say $3M – $3.2M) and you would say ‘wow, that’s like $500,000 – $700,000
more than I paid for it in 2006’ or something like that. Then you would ask me
the hard question:

Where do I go?

So you sell your house in Palo Alto and pocket a $500,000
net gain after selling costs, plus your original equity and you are going to
downsize to a three bedroom house. The kids are in college so schools don’t
matter much but you don’t want to move to Napa. Your new budget is $2M so your
property taxes will be lower and your mortgage is something you can pay off
before retirement.

Woodside:

OK, I’m biased as I am currently buying a home in Woodside.
Why? Read my other blog article “A Realtor Buys a House”. For our
fictional couple here, it’s close enough to all the fun stuff you did in Palo
Alto, the market isn’t as tilted in favor of sellers (prices down 10% last
year), and you get some land or a view depending on where you are in town. If
you have little ones, Woodside Elementary School is fantastic. Woodside Bakery
and Buck’s are experiences in and of themselves. Bring your horse.

Ladera
Ranch:

Ladera is really unincorporated San Mateo County, but it is
a closely knit community border Portola Valley with off-street walking paths
leading down to the shopping center and a community center with pool and tennis
courts, so it combines the best of rural and suburban living. Many of the homes
have views and the neighborhood feeds into the excellent Los Lomitas schools.
Convenient to 280 and open space preserves.

Portola
Valley:

Extra space and views of the Bay or open space are hallmarks
of Portola Valley. The small town vibe and peaceful feeling make it an escape
from the madness that defines most of Silicon Valley. Generally, there are more
bikes than cars and the open spaces define the views and feeling. If you feel
like Woodside is getting too uppity and flashy (the locals say too Palo Alto),
then PV is the place.

Emerald
Hills:

Views on a budget. Roy Cloud Elementary is excellent and the
market and prices make for a great downsizing option. You are car dependent,
and the narrow, winding roads will have you trading the Suburban for a Vespa.
If you like Tuscan hill towns, Emerald Hills may be just your thing.

Redwood City:

Redwood City is the largest city on the Peninsula and where
I think the biggest potential for appreciation is. Prices are relatively low
compared to the surrounding cities, and Redwood City has invested heavily in  an urban renewal of its downtown that is
drawing more business to restaurants, The Fox Theatre and the Cineplex. As we
have seen in Mountain View over the past 20 years, an attractive, bustling
downtown leads to gentrification which leads to rising property values. Redwood
City, especially neighborhoods like Mount Carmel, is my appreciation pick for
the next decade.

Home sweet second home

I get this question a lot from friends and clients who own homes in and around Palo Alto. Does it make sense to buy a second home? My short answer is, sure, I think it makes a lot of sense.

Now I can hear a good friend of mine giving me the “I can take a vacation anywhere I want and stay anywhere I want for less than the cost of paying for and maintaining another house AND don’t get me started about the hassle” speech (he recently bought a second home). Which is largely true. But that thought string fails to address a couple of larger considerations about the value of a second home outside of its immediate weekend use and some very good reasons to make that purchase now.
First and most fundamentally, the financial climate is in your favor, and it won’t be forever. Interest rates are low, rents are high and real estate in many vacation resort areas is relatively reasonable, at least when you compare it to local real estate prices.

The second factor: The baby boomers are coming, and they’re coming in droves. These 76 million Americans born between 1945 and 1964 control over 80 percent of personal financial assets and more than half of all consumer spending, and they’re heading into retirement en masse. I have nothing against baby boomers, being on the tail end of this boom myself (and I mean VERY tail end, of course), but if you’re considering investing in a second home, the time is now or possibly never. The longer you wait, the more likely it is you’ll be duking it out with an ever-growing number of newly retired baby boomers. It’s a game of whoever gets there first as market pressures become increasingly intense in the more competitive real-estate markets.

Which are those? There is a big trend for retired folks to want to buy a small place in-town. If you envision yourself downsizing your current home and living in a pied-a-terre in the city, be it San Francisco, Manhattan even downtown Palo Alto, now would be a good time to consider nailing down that place. If you don’t plan to use it for a few years and need the income, consider making it a rental property, or, if you can afford to, use it as an urban escape.

A final and very important factor to consider is that your second home might become your primary residence, or at a minimum, your extended family’s home base, so you might want to envision it that way. The more likely it is to become your home, the more important it is that you feel great about the house its layout, location and community. 

Let me give you an example that’s very close to home, because it’s mine. My wife and I love the idea of downsizing to a small place in San Francisco when we retire so we can experience a more urban lifestyle (see baby boomers above). We also want our kids and their kids down the line to feel like they have a home, a place they feel connected to, and where multiple generations can congregate. Enter the second home in Tahoe. 

The fact is that families tend to get spread out over time and the high cost of living in our area probably increases the odds of our children living elsewhere. We need to lure them back somehow, even just for vacations and holidays. Unless you’re in the group of folks who plan to stay in your family home after your retirement (or one of the lucky few who can help your kids buy one), you might want to consider establishing a home base somewhere else, be it in the mountains, at the lake or near the beach, that’s attractive to the entire family. The sooner you make it a part of your traditions, the more it will feel like home sweet home down the line, even if it’s home sweet second home right now.

I’ve seen a lot of my friends and clients go through the emotional experience of selling the family home, the place where steps were taken and bikes ridden for the first time, where beloved dogs have come and gone, where hundreds of family meals were shared and sibling squabbles resolved. Believe me, it can be heart wrenching!

Having that other home base where your family has created memories and shared life experiences makes it a whole lot easier to say goodbye when it comes time, knowing you all have a sense of place in this second home as well. And you won’t get a lot of complaints from the kids that they have to ski the bumps or ride the waves on Christmas day either! 

Column published in Palo Alto Weekly Real Estate Matters, Feb 14 - http://www.paloaltoonline.com/news/show_story.php?id=28609

Palo Alto Tour Recap, February 15, 2013

This week could be best summed up as a contractor’s dream tour.  Of the 13 homes which hit the market this week, nearly half needed considerable remodeling or to be torn down completely.  As an aside, there were two off-market properties which were also on tour in Palo Alto.  Their general information is listed at the end of this blog post. Contact me for more details.

My pick for best of tour this week may seem a bit strange.  My vote goes to 1806 Mark Twain Street, listed by Christina Chu of Christina Chu, Broker.  The location of this home is by no means optimal, but the layout on the first floor, along with pricing below $2M for a 2,564 square foot home gives potential buyers the opportunity to move into a large, well built home for under $2.5M.

Here is a quick recap of the other homes this week:

315 Homer Avenue, #101: It’s hard to go wrong with the Weatherly Complex in general, and this unit is no exception.  The complex, which was built in 2004, has remained one of the more popular luxury complexes in Palo Alto.  This unit is located on the front corner of the building, so expect some street noise from Homer.  The kitchen layout is generous, but the master bedroom feels slightly narrow, and the second bedroom feels smaller than what you would expect.  Priced at $1,375,000 with monthly dues of $750.

432 Webster Street: This is an interesting complex, tucked away off Lytton Avenue.  With the Webster House as your neighbor across the street, you will not have to worry about loud parties across the street.  This particular unit has a very segmented floor plan.  The kitchen is tucked away, and could benefit from having a wall removed, thus making it more spacious and open.  Of the four bedrooms, one is truly an office, and one of the remaining bedrooms is tiny.  The kitchen and bathrooms have been remodeled nicely, but some of the basic details have been overlooked.  On the second floor, keep an eye out for a stapled Cable running across the top corner of the walls.  Listed at $1,325,000.

1046 Harker Avenue:  Wonderful location with nice interior touches.  The kitchen in this home has a very comfortable feel to it, and the Mediterranean tones add a warm feel to the home.  The main drawback of this home is the narrow lot.  The narrow lot makes the front of the home feel narrow.  The yard is limited to a side yard, and the upstairs layout could be improved.  Some finishes on the home could be updated, but otherwise the home is in good shape.  Listed for $2,795,000.

906 Addison Avenue: Lot value listing.  The home itself could be saved, but would require extensive remodeling.  A buyer is better served to purchase this home and build new. The pricing on this home is on par with what we’ve seen lots selling for in the area.  From a lot perspective, this is a nice piece of land at 8,833 square feet.  Listed for $2,095,000.

1190 Hamilton Avenue: This home has been on for a while, and is being toured for a second time.  Personally, I love the first floor of this home.  I also enjoy the second floor. I just wish the architectural styles were the same.  The second floor is very modern, and the first floor has a classic feel.  The second floor has some issues with usable space, as the ceilings are lower and vaulted.  Given the number of usable bedrooms and interior square footage of the home, the price feels big.  Listed fo $2,695,000.

224 Churchill: The main perks of this home are its large interior size and large lot.  The home, which boasts 3,198 square feet of living space, is in need of serious updating.  A buyer would likely keep a similar footprint for the home (the backyard feels impressive), but will want to update the interior.  This will be an interesting home to watch.  Listed for $4,395,000.

2065 Alma Street: A possible starter home with a 5,000 square foot lot in the Old Palo Alto neighborhood.  The home is located on one of Palo Alto’s busiest streets, and needs to be heavily remodeled or built new.  Listed for $998,000.

447 Fernando Avenue:  Another contractor’s special, this home is listed for lot value.  With that said, I think the home could actually be salvaged with a savvy homeowner.  The home is located in the Ventura neighborhood, which is one of Palo Alto’s more modest areas.  Listed for $928,000.

837 Clara Drive: This 4 bedroom home has a little bit of everything.  Built in 2011, this home offers open spaces, an appealing set of folding doors which open up to the home’s backyard, and elegant touches.  Expect to pay a premium for the layout and newer construction.  Listed for $2,798,000.

331 Creekside Drive: This home is located in the Greenmeadow neighborhood, an area with a high concentration of Eichler homes.  This Eichler has is one of the nicer floorplans, but the home would benefit with some remodeling and possibly opening up the kitchen.  The backyard has a nice feel.  Listed for $1,535,000.

850 Mesa Avenue: This home, which is technically in Palo Alto Hills, offers a larger lots at the expense of street noise from both Charleston and Foothill Expressway.  The home itself is in need of a remodel and some updating, as there has been very little remodeling done to the home since its construction in 1955.  Listed for $1,998,000.

OFF MARKET

Community Center: An unassuming but well-remodeled Eichler home on a premier street.  More than 2,300 square feet of living space, on a lot that is over 9,000 square feet.  Listed for $2,799,000.

Crescent Park: Another fantastic street with a dated home in the Crescent Park neighborhood.  This home features more than 3,000 square feet of living space on a lot that is over 7,000 square feet.  Listed for $3,695,000.

The Power of Staging, on a Budget – Part One

Selling a home is like going on a first date:  You always check out your competition
in advance, clean your house in case you bring somebody home, and hide all of
your baggage because who needs to see that? 

Listing your home for sale isn’t much different, though many owners tend to forget
the basics, which is why we will review them here.

One Chance at a First Impression

Every time a potential buyer walks into your house you want to it show its best, though
many common mistakes are enough to keep buyers from returning.  The basics of
staging are: keep it clean, keep it simple, and keep it neutral.

Clean, Clean, Clean

The first thing you notice when you walk into a home is its cleanliness, which not only
includes clutter and dust/dirt, but also smells.  Hiring a house cleaner to come in and
do a thorough cleaning is a terrific idea as they will generally see (and clean) many
of the areas you might overlook because you have lived with it for the past number
of months/years.  A reputable cleaner will also be sure they do an outstanding job
so that you will refer them to your friends.

Be careful, however, to not go too far in the other direction!  Many people will have their
home cleaned and then install air fresheners in every room, which can have the
opposite effect.  Buyers may stop to comment on the fresheners or may think that you
are trying to cover up another odor – either way, you want their attention on your home,
not on the smells!

De-Clutter

This is the favorite buzz word for many Realtors, and for good reason.  The more “stuff”
you have on display, the less the buyers will be looking at the home.  Many agents will
advise sellers to start packing for the move – that will get you excited for your next home
which also gets your home in great condition for selling!  Again, you never want to
distract buyers from the actual purchase – if they are looking at your ski trip photos on
the mantle, they won’t be seeing the beautiful mantle and fireplace… guaranteed.

Paint – the Biggest Impact for the Least Money

Neutral colors are what any stager will recommend, and that does NOT mean white! 
White is a terrific color to make things look clean and simple, but very often also makes a
home look cold and sterile – the last thing you want buyers thinking.  Neutral, warm colors
are the best way to go, and you should be consistent with that color palette throughout the
home.  Think beige, slate, or sage (or a combination of those).  You’ll notice that any new or
professionally staged homes will stick with beiges and any related colors because that
appeals best to most buyers, is least distracting, and is the warmest without being
overpowering.

Work with What You Already Have

It sometimes is not necessary to buy new furniture to help with your staging.  Very often
you may need to purchase a few small items to complete the room, but usually your own
furniture will suffice.  One thing you may need to do is rearrange the way it is set up to
make the space more appealing to potential buyers. For example, “framing” a seating area
by creating an intimate conversation area will demonstrate how the room can be used
for entertaining guests.

Lighting

Opening blinds, cleaning windows, and turning on lights will all have a huge impact on a
buyer’s impression of your home.  If you have dark, heavy curtains and very few lights,
buyers will see a cave-like environment that is not very inviting.  Dirty windows will have
the same effect, keeping out light, and then the buyer may also start wondering what other
simple maintenance you have neglected.  Keep lighting fixtures clean and simple, and
replace old, burned-out bulbs to give the impression of a light, bright, well-maintained space.

Case Study

The pictures below show two nearly identical living rooms of two neighboring condominiums
in the same building.  The picture on the top shows what the condo looks like without
staging – dark, dreary, cave-like.  The picture on the bottom shows what the home looks like
with new paint, proper lighting, open blinds, and with a few pieces of staging furniture.  All
things equal, which condo would you buy?



Your Effort = Your Return

Staging a home for sale can range from simple fixes to more expensive alterations. 
Regardless of how much money you spend on preparation, the simplicity of your staging
and cleanliness of your home will have the biggest impact on getting a buyer to write an
offer.  Remember, you usually only get one shot at making a first impression, so give it
your best!