4 buyers, 4 appraisals: real time real estate market intel with a focus on the appraisal contingency

The real estate market continues at a busy pace, with seasonality virtually thrown out the window as COVID has prevented most folks from traveling like they had in previous years. What I currently see are buyers that are hungry to win – they are willing to pay more than what the last home sold for in the immediate area in order to secure the winning offer. In December I was able to get four sets of buyers into contract: 

• Buyer #1
  There were 15 offers, the listing was in San Leandro, and my client was short of the highest offer by $5K. At first this property appraised $46K under the offer price. I worked with the buyer's lender to rebut the low appraisal and it was adjusted up by $45K, which made the difference between offer price and appraisal value $1K. In this case my client paid 20% down plus an additional $1K to make the deal work for her loan.

• Buyer #2
  In a North Oakland transaction, my clients wrote an offer and it was not accepted. The seller accepted an offer much higher than my clients’ offer. Three weeks later I received a phone call that the accepted offer was about to cancel their contract for personal reasons, (breaching their contract, meaning they had no way to cancel without risking their initial deposit) and after a little negotiation with my clients and the seller, we got into contract for $50K less than the original accepted offer. In this case the appraisal came back $70K short. I reviewed the appraisal, found some discrepancies and worked with the buyers’ lender to rebut the value. The appraiser said he was not willing to alter the appraisal report. In this case my clients started working with their lender to come up with a plan B. Still strongly believing that the appraiser got it wrong, I reached out to the listing agent and asked if the appraisal report from the previously accepted offer (that had canceled) was available to us. She was able to provide me with that appraisal report that provided a value of $50K greater than we were in contract at, and at a value of $130,000 more than the appraisal we were fighting. We challenged the appraisal one last time and prevailed.

• Buyer #3
  My client really fell in love with a property in the Oakland Hills. Because he had already been outbid a few times on other properties, he decided to write a pre-emptive offer, which is typically an aggressive offer that commands a seller's attention. It tells them, “work with me because here is a stellar offer, well over the asking price and completely (usually) contingency-free,” meaning: my offer is not contingent upon the property condition, what it appraised at, or a buyer's ability to obtain a loan. In this case my client did not care about the appraisal and I informed him that there was no sold data to support the offer price he wanted to place. In fact I talked him into offering $25K less than he originally wanted to offer. This home did not appraise, there was no data that I could use to fight the appraised value, and my client purchased the home he loves.

• Buyer #4
  The fourth deal was a fixer upper in the Dimond neighborhood of Oakland. My clients were fortunate and in a very rare scenario, finding themselves in early December 2020 wanting a home that showed poorly and due to a lengthy time on the market, they were the only offer at the time. In this situation my clients were able to get their offer accepted and retain both an inspection and appraisal contingency. The property appraised and there were no issues with the appraised value.

What I continue to see on the deals that I am tracking – which amounts to hundreds of transactions a year – is that many buyers have funds available to them over their 20% down payment. They are waiving their appraisal contingency simply because they want the house, regardless of what the appraisal states. I am also seeing buyers who are willing to take the risk, waiving their appraisal contingency with a plan B in place if the appraisal comes in short. Plan B is often a parent or family member willing to help out, or buyers tapping into retirement savings. Click here to read an article I wrote explaining how appraisal contingencies work.

I  want to lift the curtain to unveil a bit of the behind-the-scenes view of a few recent transactions from the buyer side. When you are looking at online real estate websites you will see the photos, the listing price and sold price, but you are not seeing the terms/contingencies of the winning offers. You may hear that most winning offers in our niche market are written completely non-contingent, which means, if a buyer were to write an offer and waive all of their contingencies and not close escrow, they could lose their deposit money which is typically 3% of the offer price.

• They are waiving their inspection contingency – a buyer is making their offer to take on the property condition: relying on the reports and disclosures that the seller provided, taking on all of the information in the natural hazard report and preliminary title report. Their offer is not contingent upon insurability, the reason this is important to note is some areas in very high-risk fire zones have high insurance rates. The buyer has also done their due diligence and is comfortable with the neighborhood, schools and has checked crime maps and the Megan's Law Database.

• They are waiving their appraisal contingency – meaning they are buying the house at their offer price EVEN if the property appraises for less.

• They are waiving their loan contingency – meaning they have confidence in their ability to secure a loan and close and their offer is not contingent upon securing a loan.

No agent is powerful enough to make a seller accept an offer for less money or with weaker terms than a stronger offer on the table, but a good agent is providing their clients with real-time market information so they can be the savviest of buyers.

Penthouse Lifestyle, Neighborhood Vibe

Impressive penthouse-living without the dues. This single family home has a marvelous floor plan that is open and generous – entertain on the main floor, retreat to the bedrooms on the second floor. The natural light is abundant and your eyes will dance to the shadows the sun casts throughout. Newer modern west-facing deck with full sun and prized views. The grandiose upstairs has a dreamy master suite with a walk-in closet and a custom window that flaunts the awe-inspiring Bay, San Francisco, Downtown Oakland and Bay Bridge views.

When I took this listing in April of 2017, this well-loved home was in need of updating. The kitchen was worn and all original from 1974, the floors downstairs were original entry tile and old carpet, the master bathroom had seen better days, and the deck was deteriorated and not safe, just to name a few immediate tasks. This home meant the world to the Wang Family so they wanted to present this property in it's best light.

The first task as their Realtor was to determine the property's condition. Before any of my clients invest in cosmetic updates, I always advise them to get current inspections from highly regarded professionals. I would hate for clients to invest money into their homes when there could be significant structural or system repairs needed that could devalue the property.

After inspections are performed, I review the findings with my clients and determine what repairs will yield the best return on their investment. Once my list is prepared, I help my clients obtain bids for said repairs/improvements and work with my clients to create an action plan.

In this case, I envisioned taking this 1970s home and making it sexy, yet comfortable. One of the biggest assets of this home is the panoramic views of Oakland, the Bay, San Francisco and the Golden Gate and Bay Bridges. The deck was in hazardous condition, so engineer Monte Stott was hired by my clients to design the rebuild. After calling six contractors to rebuild the deck, my clients were able to secure a contractor to remove one pier-and-post deck off the living room and remove one cantilevered deck off the master bedroom. The deck off the living room was upgraded with a stainless steel cable with Redwood railing, and the upstairs deck was removed altogether and replaced with a custom 110-inch picture window. The old carpets that had seen decades of life were removed and solid Red Oak floors were installed downstairs.  With the exception of the original tile entry and the tile in the powder room, the entire downstairs was transformed to natural finish floors giving the large space a cohesive feeling.

A few likely original 1970s brass track lights remain in the house, but the majority of the interior light fixtures were replaced with groovy West Elm fixtures. Some of the dying juniper shrubs were removed and a few drought-tolerant plants were added to the front yard, such as variegated Phormium. The inside and outside of the property were painted with Benjamin Moore paint, with the exception of Kelly Moore paint on the interior ceilings. 5 1/2-inch solid wood baseboard with no edge detail was added to add a pop to the clean design. The original 1970s geometric railings and the old Harvest Gold double oven give a nod to the decade it was built.

WHEN A GOOD BUY IS NOT A GOOD BUY

Recently I was hired to sell a home. Two years ago it was on the market but it did not sell. At the time the listing agent recommended $45k+ in marketing preparation which the sellers did. From what I understand, an offer came in but it was $200k-$300k less than what the listing agent said the house was worth, so the offer was rejected. The owners decided to rent the property out and, fast forward 2 years, they now want to sell again. As I viewed the lovely home and shared my honest opinion, the owners stated that they got a good deal on the property.  I looked up the listing from their purchase and noticed it was on the market for more than two months in a strong seller's market.  So my question was, what is a "good deal"?  

Is getting a home at listing price when all other homes are selling well over the asking price a good deal? Maybe. You have to  compare apples to apples.  Perhaps the homes selling for more in the same neighborhood are in better condition, have generous rooms, have great indoor/outdoor space, and the property that is a "good deal" does not.

Let's say a home fits your budget and is cute, however, the surrounding area has challenges. It's important to think about future resale. If you decide to sell in the future and are in an outskirt neighborhood, and perhaps a softer market, your adorable home may get passed over due to someone opting for a better location. Another example is buying on a high-traffic street. It is highly likely that buyers will opt for a side-street or quiet street if given the choice.

Many of my buyer clients say to me "are you trying to talk me out of buying this home".  I do not try to talk anyone in or out of buying a home. I want to point out the assets and challenges of any potential property of interest so you can be a savvy buyer.  The wrong time to hear about a property's flaws is after you have purchased a property and are later trying to sell it.  

Here are a few buyer tips:

• Do not buy with fear as a driver. Meaning, don't be in the mindset of "if I do not get a house now I will never be able to own a home in my lifetime".
• Location. Do not get caught up on staging and the superficial appeal; many items can be fixed, including foundation. However, you cannot move a home's location nor alter flaws you can't change, i.e., no off-street parking, extraordinarily small rooms, an apartment building adjacent to a home or being on an earthquake fault line.
• Are you settling? Ask yourself the tough questions. Really hone in on why you want a particular house.
• Sacrifice. Live with granny's kitchen and awful carpeting if that means you get a home in a desirable area, do not get caught up on the "new updated kitchen".
• If a house has been on the market for a long period of time ask yourself "why?"

Buyers are Craving Quality Inventory

Last week I reviewed offers with three sellers on properties. Each was in a different Oakland neighborhood. The properties are now in escrow, two with accepted offers at more than 20% over the asking price. The third property also did well, but is selling at just 5% above the listed price. Each property received the same treatment: careful pricing to generate maximum interest, meticulous preparation, professional photography, and custom web sites that tracked and verified similar levels of consumer interest. Why did two homes go so high while the third did well, but not as well? The fact is buyers are craving quality inventory. They will pay high prices, but they carefully analyze the suitability and appeal of the home they are buying. Here are some features that add value:

1. Natural light
2. Flow to the outdoor spaces; people love kitchens with French doors out to the backyard
3. Parking and access from the car to the house
4. Real hardwood floors and original details

Here are some factors that do not add value:

1. What you want to yield from your sale
2. What you paid for the home
3. What your neighbor's house sold for a few months prior
4. Newer finishes that are dated; buyers will not pay extra for something new if they don't love it

And then there are location details that typically reduce buyer interest: a busy street, a corner lot, or close to a freeway and its noise. Those external issues affect value and need to be considered when pricing your property and setting your expectations for results.

My job is to get your home sold for the highest price that the market will bring. That begins with helping you benefit from my experience so that you can see your home from the market viewpoint. With this understanding we can work together through any sale confident that, in the end, we attained the best result possible for that house, at that time, in those market conditions..

If you are considering selling your home, let's talk!

November 2013 Market Update

As we head into Thanksgiving week, we are seeing fewer new listings on the market. Having 3 homes go pending over the last two weeks this is my summary of the market:

1. Homes in prime neighborhoods with good light and layout that are priced competitively are still going pending with multiple offers, often over the asking price.
2. I do not recommend shopping for homes at or above your budget ceiling.
3. Remember list price does not necessarily equate to the ultimate sold price, I have seen properties receive offers over the asking price that the seller declines. The seller has the right to decline any offer and I have seen sellers hold out for a specific price. Asking price can mean the starting price of an "auction", it can be too high or it can be just right. It is best to work with your agent to get a better sense of value.
4. I am still seeing "move-in" ready properties needing approximately $25,000 of repairs that the buyers are taking on.
5. Your lenders role is huge!  With many cash offers still in play, to compete your lender needs to have a solid reputation of closing deals with a hyper-local appraisal management company behind them.  This marketplace is still competitive.

To better understand this market as you are actively shopping in it, here is your homework:

Make a list of homes that you loved, (not like, but really felt a strong adoration for). Track the list price and sold price and  find out if there were major repairs needed or flaws with the property.  This way you can really understand the market.  Unless your budget is limitless, you will have to compromise on room count, neighborhood, upgrades or repairs. (Your agent can help you with this) Happy Shopping!

How Graphs Can Help Buyers

Often times people know what they want, but have no idea what it costs. I would love to live in Upper Rockridge for $600,000, but I know that is not feasible. A client came to me looking to buy a home in three specific neighborhoods - Rockridge, Claremont and Crocker Highlands.

He came to me with no real knowledge of the market or what these neighborhoods typically sell for. So as a way to help familiarize him with the market and the prices that these neighborhoods typically command, I had these graphs made for him. After he reviewed them, he was able to determine if these neighborhoods would in fact fit in his budget.

Below are some samples of the graphs I prepared for him: (Elmwood, Crocker Highlands, Claremont 1st quarter 2008 - April  2011)

Buying A Home In Oakland? Buying A Home In Berkeley?

This photo is from the California Online Archives. Oak trees at Mosswood Park in Oakland When you buy a home you buy a piece of the street and a part of the city.

Growing up and still living in Oakland, I often run into people I know. I can see the distress on folks faces as they ask me how business is. You can't avoid all of media coverage regarding the declining real estate market. One would think that the entire real estate market has collapsed. Oddly enough my pressure-free, no nonsense approach to real estate has paid off and 2008 was a great year for my clients and I. Last month Red Oak Realty awarded me a Managers Award for 2008. So let's just look at real estate in Oakland and Berkeley. Since January 1st 2009, 326 residential properties have sold! (The first 47 days of this year) Compare this to 345 properties sold between the same time period in 2004 390 properties sold between the same time period in 2005 361 properties sold between the same time period in 2006 332 properties sold between the same time period in 2007 Only 186 properties sold between the same time period in 2008 - the start of one of our worst real estate years. To make this short, buyers are back. In Berkeley the average home price for properties that sold since January 2009 are as followed: average list price was $624,990 and the average sold price was $612,637. Sellers are getting 98% of their asking price on average. In Oakland as a whole, the average home price for properties that have sold since January 2009 are as followed: the average list price was $ 79,464 and the average sold price was $84,599.When I searched for homes in select neighborhoods of Oakland, Rockridge, Redwood Heights, Montclair, Grand Lake, Glenview, Lincoln Heights and Upper Rockridge the numbers went up drastically. The average list price was $601,102 and the average sold price was $582,941, seller are getting 97 percent of their asking price. (these statistics include condos and homes of all sizes.) So what does this all mean? Well with 743 homes currently pending, (in contract to close escrow) in Oakland and 51 homes currently pending in Berkeley, buyers are feeling like now is a great time to buy a home in Oakland and Berkeley. There are experts that say the market will drop another 8-10% in the next year as unemployment increases and more mortgage interest rates adjust, but if you are trying to "time" the real estate market perfectly, you could miss the bottom and find yourself in a market that has increased in value. Berkeley median home price actually increase by 2% for the fourth quarter in 2008.

Consider this:

• It looks like Congress will increase the first time home buyers credit to $8,000 from $7,500. What more, this credit will not have to be paid back!
• As stocks seem more and more volatile and the health of major companies are uncertain, real estate historically proves to be a sound investment for long term wealth.
• With the Bay Areas ideal weather, are very close commute to San Francisco and UC Berkeley in our backyard, the Bay Area will always be highly desired.
• If you are now in a position to buy a home, buy the absolute best location you can afford. Work with a reputable local Realtor who is in touch with the Oakland and Berkeley neighborhoods and understands the subtle nuances that can make a difference in future resell value.

Transfer Tax Change For Alameda, Ca.

Effective December 12th, 2008 the city of Alameda increased their point of sale city transfer tax from $5.40 per $1000 of purchase price to $12.00 per thousand. There are two transfer taxes involved in buying a selling a home; county transfer tax is a generally paid by the seller when a house is sold. The county of Alameda charges $1.10 per $1000 of purchase price, so if a house is $500,000 the transfer tax will be $550. City transfer tax varies city to city, this tax is generally split 50/50 between the buyer and seller. So if you purchase a house in Alameda for $500,000 both the buyer and seller will pay, $3000 each as part of their closing cost.

Is a 4.5% Mortgage Interest Rate on the Horizon?

I surround myself with highly regarded professionals who support my clients and myself. This allows me to focus on one core thing; helping people obtain their real estate goals. Yesterday my client Jim called me and wanted to know more about the possible mortgage cut to a 4.5% mortgage interest rate. The following a fantastic email from Vince Wirthman of 1st Western Mortgage in Berkeley you can contact him at 510-527-2840.

If you have questions regarding home values or Oakland-Berkeley real estate, click the email button on the side of this blog, (deidrejoyner@gmail.com) or call me at 510.693.4253

Alright, everybody take a breath and let’s talk about what REALLY is going on.

Business television and newspapers are abuzz this morning with talk of "four and a half percent mortgage rates". The talk stems from a leaked story that the U.S. Treasury MAY intervene in the mortgage market, IN AN ATTEMPT to lower rates by AS MUCH AS a full percentage point below their current levels. Wow. That’s pretty specific.

As cited by the more responsible journalists however, the story is 100% speculation. Naturally, that doesn't stop the press from covering it. And, of course, it creates a wild frenzy of excitement in the real estate and mortgage industry and for homeowners. My message to Realtors and homebuyers in escrow or house-hunting and to homeowners who are refinancing is simple, and I state this with the full knowledge that at first glance some will think this self-serving – do not make the mistake of thinking that this hub-bub about 4.50% rates is a done deal. Do not stop your transactions or house-hunting based on something that may just as easily not happen. Talk this over in detail with your Realtor and mortgage professional and determine, for YOUR specific situation, what is the best course of action. As is the case with all things speculative, it's important to remember to look at the facts and not be swept up by the media-sponsored frenzy. So what are the facts? Here’s what we know:

1. The Fed and the Treasury do not set mortgage rates – Mortgage-Backed Securities traders do, based on simple supply and demand. Look at the chart below. This is today’s chart of the price of mortgage-backed securities. Notice that nothing significant has happened today (last green bar to the right). Right now, the price of mortgage-backed securities is up only 12 basis points. Price going up means rates improving. 12 basis points is nothing, and won’t even get a lender’s attention. Note also that on Tuesday, Nov. 25th (tall green bar 6 bars to the left of today), when the Fed announced their plan to purchase $500 Bn of mortgage-backed securities, prices immediately shot up 156 basis points. That move gave us an immediate improvement in mortgage interest rates of .50%. and that was before the Fed spent even $1 on any mortgage-backed securities. That is because the market is forward-looking and prices-in known factors immediately. Today’s speculative rumor has given us nothing, so obviously traders and mortgage bond investors do not believe it. Mortgage rates have actually worsened in the last 3 days.

2. Treasury or Fed intervention doesn't guarantee low rates indefinitely. The fact that mortgage rates are up by a quarter-percent since last week proves it.

3. Zero details about the plan have been confirmed. Everything you've heard about 4.5 percent rates is a guess at this point.

In order to ground my conclusions for this email, I sought out everything I could find about this story and have included some excerpts below for your review. Note that the language in these reports is purposely vague and quite weak. Maybe this rumor ends up being partially true, maybe it doesn’t. There are many reasons why it could happen, and there are many reasons why it wouldn’t. If something does happen, rates COULD go lower SOMETIME in the future. If nothing happens, rates could be higher by the time we know nothing is happening. We will just have to see how things develop from here.

“The Treasury’s consideration of additional efforts to breathe life into the housing market was first reported on The Wall Street Journal’s Web site. People familiar with the Treasury’s plans said that Treasury officials had met with top executives at Fannie and Freddie last week but that neither had been notified that any steps were taken toward putting such a plan into effect. By one account, the new program would be available only to home buyers, not to people who simply want to refinance their existing loan at a lower rate.” via NYTimes.com

Mortgage News Daily - The Journal reported that the government would encourage banks to issue new mortgage loans at lower rates by offering to purchase securities backed by the loans at a price equivalent to the 4.5 percent rate, funding the program by issuing Treasury debt at 3 percent. The Treasury Department plan is only in the talking stage and may not be ready until after President Bush leaves office on January 20 at which point it would be necessary for President-elect Obama to sign off on it.

CNN Money - Lobbyists are pushing the Treasury Department to consider a plan to purchase mortgage-backed securities in the hopes of driving mortgage rates to as low as 4.5%, an industry source said. Spokeswomen from Treasury and the Federal Housing Finance Agency, which oversees Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), declined to comment.

"It is clearly designed to bring buyers into the marketplace and soak the inventory of unsold homes," said Greg McBride, senior financial analyst at Bankrate.com. But others questioned whether rates would remain low and, even if they did, only a narrow slice of credit-worthy borrowers would benefit. Rates are already inching up, hitting 5.75% on Wednesday, said Keith Gumbinger, vice president of HSH Associates. Several government attempts to lower mortgage rates this year have failed to have a lasting effect.

Finally, super-low rates could keep private investors out of the mortgage-backed securities market, forcing the government to remain the primary buyer of such investments, Gumbinger said. "I can't imagine there will be a significantly active marketplace of people who want to buy at these low rates," he said. (That would not be an acceptable long-term situation, and the Treasury knows that.)

Thomas Vanderwell had this to say on his blog “Straight Talk About Mortgages:

“So far, the market has shown that they would rather earn less (frankly close to zero) and invest in US Treasuries than they would invest in mortgage backed securities. Given the history of Fannie and Freddie recently (how many billions did they lose in the 3rd quarter?) I’m not sure anyone can blame them. Can you?

So if investors are avoiding Mortgage backed securities like the plague, and there are trillion of dollars of them out there, will the interaction by the Fed make a difference? And if no difference is made, how will we get 4.5% mortgage rates? And if we do not get these 4.5% mortgage rates that homeowners will now expect, how in the world are we going to sell homes to people waiting for cheap mortgages?

Tips for buying a home in Oakland or Berkeley

Photos from my evening open house/ art gala at 3318 Jordan Road

Here are a few easy tips for buying a home regardless of the market. Visit a perspective home several times in the day and in the night. Remember you are not just buying a home, you are buying a piece of the neighborhood, you should be comfortable with the package. Definitely keep in mind price and comparable homes and what they sold for, but most importantly listen to your voice. After you view a home, are you thinking about it when you go to bed? How about when you wake up? Can you imagine yourself sitting on your coach relaxing? Remember, you will have to make adjustments to your wish list and you most likely won't get everything on your list, so be realistic. When you feel like the house is right and you decide to write an offer, I will do everything that I can to negotiate strongly on your behalf, so be prepared, when I call you and say, "we got it!'.

Yesterday I hosted an evening open house/ art gala with refreshments at my listing on Jordan Road in Oakland. My goal was to connect with the community, give home buyers an additional evening open house to view the property, as well as give them an opportunity to meet the neighbors and better learn the community. I was thrilled to have a steady flow of neighbors, friends and perspective home buyers. Thanks for your interest and support!

What Does "As-Is" Really Mean?

So you are selling your first home in the Temescal area of Oakland. You informed your Realtor that you want to sell your home "as-is"; you declare that you do not want to credit the buyer on needed repairs that could be discovered during the inspection period. You feel that you and your Realtor have priced your home fairly, and you have strong convictions that no home is perfect. You purchased your home in a strong sellers market and you agreed to the flaws, as you are realistic about home ownership.

So, here is the short of it. You can promote your property as an "as-is" sale. This might not be advisable, as the perception to buyers is, "as-is" equals, "fixer".

It would be wiser to find out all of the major flaws first, disclose them and price your house accordingly. When a buyer asks about the great price, your Realtor would respond by stating, "The roof will need replacement soon, and the seller took that in to account in regards to price."

If you decide to sell your home "as-is" both the seller's and buyer's Realtors will still suggest inspections. It is highly encouraged that any buyer fully inspect their future home. A home purchase is the biggest investment that we will ever make. So you telling your buyer don't ask for a credit if there are newly discovered problems is giving your buyer the following choices: walk away from the transaction or accept the house with all of its problems. In real estate everything is negotiable until all of the contingencies have been removed. (Call me if you have questions about contingencies.)

What you as a seller should want in this market is a negotiation. Wouldn't it be better to share some of the expense, than lose the buyer altogether? Remember, this is a real estate market that favors buyers and real estate finance can be difficult.

Sellers keep in mind, if you are in contract with a buyer and they cancel for any reason,  you will need to disclose their inspection reports to any new buyer if your house goes back on the market. When houses go back on the market after they have been pending, buyers do not give them as much attention, as they do new listings.

Remember real estate is a negotiation. There is no buying frenzy right now. When selling your home, work with a Realtor who will be honest with you, even when it is uncomfortable.

Is losing a transaction over a few thousand dollars of credit to a buyer worth it?  or did you not really want to sell your home?

Moving to Oakland? Don't Forget the Closing Costs.

So, you are ready to buy a home. What will it actually cost in terms of out of pocket expenses. In addition to your down payment, there are closing cost. The approximate cost is 3% of the purchase price of your new home. Here are some of the fees:

Title Insurance - (This insures that you are receiving the property free and clear of liens, except your new mortgage)

Prorated Property Taxes - (You will make sure the property taxes are current, however you are paying the taxes at the sellers tax rate. Within 6-12 months you will receive a Supplemental Tax Bill which is the difference between the sellers property bill and your property taxes. Property taxes are based on the purchase price of your home.)

Any lender fees - Often these fees are minimal

City transfer tax - the city wants their money

The following is a list of the cities in Alameda County and their transfer tax. (Emeryville has No city transfer tax!!!) Typically this tax is divided equally between the buyer and seller, for example if the city transfer tax is $15 per $1000 dollars of purchase price and the purchase price is $500,000 then the buyer and seller will each pay, $3750 in transfer cost as part of their closing cost.

Transfer Tax in Alameda County Cities:

City of Alameda: $12.00 per thousand

City of Albany: $11.50 per thousand

City of Berkeley: $15.00 per thousand

City of Hayward: $4.50 per thousand

City of Oakland: $15.00 per thousand

City of Piedmont: $13.00 per thousand

City of San Leandro: $6.00 per thousand

County transfer tax is $1.10 per thousand and this is generally paid by the seller.

If you are confused at all, call me at 510.693.4253 or email me at deidrejoyner@comcast.net

Tools for House Hunting

So you want to buy a home in the Oakland/Berkeley area and you live in San Francisco. You have been to the Lake Merritt area of Oakland and the Grand Lake Theatre, but you are really not acclimated with this area. You can call or email me and I am happy to set up an appointment to show around. (I love giving guided tours of the cities I love!) But for some of you who are independent, you would rather start the house hunting process solo. Try gooplemaps! This website is great for directions and maps and it has great features such as street views, traffic views, satellite views and more.

My son Miles and I just played around with it. We typed in streets we knew and clicked on the traffic view tab, (Currently only select streets have traffic views) we were fascinated by recognizable images and the 360 degree views.