What the Media is Not Telling You

It is a buyers market, right?  Foreclosures and short sales are on the rise,  so buyers get out and buy properties at rock bottom prices!  Well I will definitely not dispute the data that the news provides, but I will say in the Oakland and Berkeley area, I am seeing things that the news is not covering.

1.  There is a lack of quality inventory!  I believe sellers are afraid of this market and are choosing to stay put.

Homes in select areas such as, Berkeley, El Cerrito, Albany, Alameda,  North Oakland, Temescal, Rockridge, Crocker Highlands, Haddan and China Hill,  Sheffield Village, Oakmore, Dimond and various other districts of Oakland and are experiencing multiple offers due to the lack of inventory. These homes are often selling over the asking price. (If they are in good condition and are priced right.)

2.  The sweet spot price range is between $300,000 and $700,000 (This is the price range that the bulk of today's buyers are in.)

3.  Buyers are getting frustrated by the lack of quality inventory.

4.  Buyers have to feel that they are buying something of value.  So it is important for sellers to show off their homes properly, fresh paint, refinished floors and no clutter!

5. Buyers like homes that are move-in ready, but have room for their family to grow or areas that can be enhanced and improved.

6.   Original details are key, buyers like homes that show off their history.  Often homes that are completely gutted leaving no memories of its past get overlooked or are not buyer's first choice.

7.  FHA loans, loans that require a very small down payment of approximately, 5% down, accounted for about 30% of the transactions in the Oakland and Berkeley area last year, (this is an approximate after to speaking with two reputable mortgage lenders and speaking with my general manager about Red Oak's production.)  This is a good loan, if managed by a competent mortgage provider, but consumers should know there are many people out in this market place that have enough money to place 20% or more down on a home.  I am finding with many of my clients that family members are willing to loan or gift down payment money, as they feel real estate is a good investment and they want to help their children find a place to call home.

When you are ready to buy or sell a home, ask a real estate expert what is going on in your neighborhood.  Often the national and statewide statistics differ from what is happening locally.  If you are a homeowner and you are on the fence wondering if you should sell your home, perhaps now is the time to sell.   As always free to email or call me.  - Deidre  (deidre@redoakrealty.com.)

Rockridge Affordable? Yep!

Last week I voted 401 Avon my favorite house from Broker's Tour.  With a much smaller house in Temescal selling for over $700,000, this house is priced right.  401 Avon is a huge 2 bedroom, 2 bathroom at 1694 square feet, (according to the MLS) has great upgrades and light.  Henry Mather Green and Charles Sumner Greene were influential of the craftsman era. (Mather and Green combined arts and crafts with inspiration from China and Japan.)  Giving a nod to its Japanese influence, the seller of this property added shoji screens. This property is listed with Leonard Carrillo of Red Oak Realty.

The Joy of Entertaining...

Over the past two months, I have been preparing this beautiful cottage for the marketplace. I think this is the perfect place to have the ultimate dinner party.  Every house has a story to tell and the cottage at 3915 Laguna lets the imagination take flight. For me, the discovery of the history of a home is a labor of love and is as important as the home itself. Christina and Richard transformed their Dimond Cottage into a masterpiece and it is an honor to represent them in the sale of their first home. Each home I market has a story to tell. Please call me when you are ready to tell the story of your house. Click here to view the Laguna Cottage.

3915 Laguna

love this view!

This view comes FREE with the purchase of 1 Kelton Court #5B. I love 1 Kelton Court! 1 Kelton Court is on a cul de sac a few blocks away from Piedmont Avenue in Oakland.  This is the perfect building for folks who want to be close to everything and yet live in a quiet building. (One of my clients purchased a unit in this building last year.) 1 Kelton Court #5B is currently listed with of Linda Elkin of Red Oak Realty.

coming soon and dreamy!

The floors are being shined and the final details are underway!  2624 School Street is coming soon to the Oakland real estate marketplace!  I love this photograph of this vintage bungalow with the clouds billowing above. The earth has been turned over and fresh sod is coming.  Check 2624 School Street in Oakland online, www.TheSchoolBungalow.com

Rotten Rot

When you are buying an older house it is common for a property to have $10,000 - $20,000 worth of needed repairs.  If a seller has owned their home for many years often there is newly found damage that is discovered during an inspection.  In many cases it is not that the seller intentionally neglected their property, they just didn't know the damage was existed.  Inspections by quality professionals are key as you need to know exactly what you are buying.  Pictured below is rot in the wood framing of a home in the Oakland Hills.  I represented the buyers of this house and I was able to negotiate dry rot and termite damage repairs before escrow closed.  (The sellers paid the cost of the repairs.)  Before my clients moved in the wood was removed, new wood was installed and the appropriate exterior was installed to code.

Real Estate Update in Oakland and Berkeley

Berkeley:

• Sold properties Median Price $726k down from $762k in Nov 2008
• Sold units 43 up from 25 in Nov 2008
• Current for sale properties Median price $699k same in Nov 2008
• Units for sale 131 down from 159 in Nov 2008
• Months supply of inventory at 1.7 down from 3.3 in Nov 2008
• Days on Market at 65 up from 37 in Nov 2008

Oakland:

• Sold properties Median Price $254k up from $200k in Nov 2008
• Sold units 220 same from 219 in Nov 2008
• Current for sale properties Median price $235k from $188k in Nov 2008
• Units for sale 870 down from 1934 in Nov 2008
• Months supply of inventory at 1.8 down from 6.2 in Nov 2008
• Days on Market at 39 down from 61 in Nov 2008
• Median price in Nov 2007 was $400k

The Real Estate 411 in Oakland and Berkeley

The two charts, provided by Altos show this week in real estate in Oakland and Berkeley.  This is an overview so it includes homes in excellent and in poor conditions, (and every  neighborhood).  To get a better sense of the market, email me.  Some properties are still flying off of the market due to high demand and the lack of quality inventory.  - Deidre

New Listing in Montclair

Can I plug my newest listing?  www.1895Manzanita.com This house is perfect for the buyer who wants SPACE, 3409 square feet of space.  There is also Golden Gate, Bay Bridge and South Bay views from almost every room.  The rooms do say, "I was built in the 1970's"  but the lay-out is supreme.  Some TLC is needed, but this house is totally move-in ready!  Oh, did I tell you the price? $699,000!

Thanks for reading!  - Deidre

1895 Manzanita

The Importance of a Structural Engineer

When buying a home in the Oakland - Berkeley area you need to understand that our properties are sought after as many home buyers like that fact that that the majority of our homes are older with tons of charm.  When buying a house it is important to thoroughly inspect it before you complete the purchase.   It is not uncommon for homes to lie within earthquake fault zones or liquefaction areas, (liquefaction is  when the soil beneath a property is loose-sandy soil.)  Many homes have settled and have adjusted to the soil conditions that they are located on.  On occasion I can tell a property will need a structural engineer inspection as the home shows signs such a sloping, cracking or the way the house is positioned on a hill.  Other times it is less obvious and the  home inspector will recommend an engineers report.  When an engineer is needed, I am always fascinated by the findings of Dan Szumski.  Dan is incredibly knowledgeable and really knows are area, often he knows obscure facts about a location.  On one inspection at a Montclair property and told us that an old tunnel to Canyon was underground.  Another time he told me that a fault line ran under a street, (and after a natural hazard report was order, he was correct!)

The thought of an engineer inspection can scare some, but usually a good engineer will give real solutions for any deficiencies that he or she finds.  A few weeks back Dan told my client how he could do some of the seismic retrofit by himself and he even recommended using tools for the tool lending library in Oakland.  Inspectors are realistic about older homes and will advise when something should be repaired ASAP, or when it can be done over time.  If you have questions about a home you have already purchased you can always have an inspector come out and exam the areas that concern you.  Knowledge is key!

Foreclosures Within the USA

Often people ask me if I am still in real estate.  The media will paint a picture of doom and gloom.  I am not negating the problems, and yes people are struggling.  I think it will that sometime before the economy recovers, but this chart shows how resilient the Bay Area is.

Coming Soon to Redwood Heights! Mid-Century Home in the Oakland Hills

In 9 days my newest listing 3253 Jordan Road will hit the Oakland real estate market!  To preview this home before it hits the market go to, www.3253Jordan.com.  Below is the custom property brochure that was just created for especially for this property. (This brochure will be scored and folded into a small booklet.)

*The attached brochure was created for Deidre Joyner, all rights reserved, by Jenn Kelly

Fab Rockridge Redo!

350 Forest Street in the Rockridge district of Oakland was my favorite house on Broker's Tour last week.  This glorious craftsman, has the detailed you want in a vintage home, box-beam ceilings in the dinging room, built-in's and pillars, silky smooth hardwood floors, wood windows, but it has a modern edge with upgrades galore, including scrumptious kitchen and bathroom remodels.  This house is listed with my friend and colleague Stefanie Parrott for $989,000.  Oh, did I mention that you can sell your car if you buy this pad?  You are a block away from Rockridge BART as well as a block away from Market Hall on College Avenue.

Oakland-Berkeley Real Estate at a Glance

At Red Oak Realty, the real estate brokerage I hang my license, most of our agents were busy this summer!  At almost every weekly meeting  we would discuss the market and talk about the multiple offers that were taking place.  Red Oak has about 80 full-time Realtors and does a great deal of the Bay Area production.  A few weeks back my office opened 89 escrows within one week!  Last week, Red Oak Realtors were both the winning offer and the back-up offer for two properties for sale in Oakland.  I love working at an active office, the energy keeps me competitive and I am able to hear many tales of the East Bay real estate underworld. Attached is a chart of the Oakland-Berkeley market from mid-summer, (July 2009 in select zip codes)   To obtain current real estate data from a select neighborhood, email me, deidre@redoakrealty.com.

Preparing Your Oakland House For Sale

Currently I am preparing one of my  Oakland listings for the market.  Here is a snapshot of what I need to do to position this home to receive the most interest.

• If a seller can afford it, it is best to performinspectionsahead of time. By discovering all of the serviceable and non-serviceable areas of a property, a seller has an option to fix a problem or disclose it to a buyer prior to a buyer writing an offer.  Many sellers want to sell a house, "as-is".  How can a buyer, buy a house "as-is" if they do not know the true condition?  (Sorry sellers, true condition does not mean what you experienced while you lived in your house, rather what a licensed professional determined after careful examination.)  Currently, I suggest a home inspection if possible, a termite inspection, (a termite inspector searches for damage from wood destroying bugs, water damage, fungus and mold.), I highly recommend a sewer lateral inspection, (a homeowner is responsible for their sewer line until it reaches the city main.  Having your sewer in compliance is a city ordinance, (your sewer must be in working order to close escrow) in Berkeley, Alameda, El Cerrito, Richmond, Albany, but not Oakland.  However, many Oakland Realtors suggest that a buyer obtain a sewer lateral inspection.)

When buyers discover needed repairs, deficiencies or other problems during an inspection period of an escrow, they tend to ask for a credit for the needed work, ask for a price reduction or they will simply walk away from the transaction.  By showcasing a home and disclosing all of the material facts up front, (and asking all buyers to sign off on the inspection reports prior to writing an offer) you set yourself up for a smoother transaction.  When representing a seller, I still encourage a buyer to perform their own inspections, so they can be comfortable in their purchase, but I know that the likelihood of new discovery is slim.  I just represented a buyer for a home in the Oakland Hills, I had my buyers hire a sewer professional to examine the sewer line and found that the sewer was constructed of terra-cotta that had many open joints, was full of roots, and needed  $7700 worth of repairs.  Since this was newly discovered information, I negotiated a full credit from the sellers.

• Staging can make your house look like a designer showcase, the stager that I recommend is Bonnie Pearson , she does amazing work that really showcases houses.  In today's economy it is difficult for many sellers to afford a professional stager so I work with clients, their belongings, add what I can, and am still able to have successful results!  Check out my latest listing, 60Edgemont.com.  This property is set to close next week with 7 offers and my seller and I staged it together!
• Elbow grease makes a difference!  Whether you do it yourself or hire a professional, clean walls, fresh paint, scrubbed bathrooms and clean windows aid in the sell of your home.  In today's market, buyers need a house to make them feel good.  When a house is clean, a buyer will stay in the house longer, and this is what a seller wants.
• Price! Yes, the dreaded conversation!  I know your house is special and I will showcase it as the best house in the neighborhood, but you have to price a house to bring in buyers.  Buyers have access to Zillow.com, Redfin, Trulia, and many other real estate websites.  Buyers know exactly what houses are selling for, (there is no fooling a buyer or their agent) and they know when a house is priced too high.  It is a National Association of Realtor statistic:

If you under price a house by 5%, 80% of qualified buyers will show up to your house to consider buying it.

If you over price a house by 5%, 30% of qualified buyers will show up to consider buying it. If you over price, you loose 50% of interest!

Every property is different, every client is different, gone is the day where all sellers can afford to move out of their properties, hire help to scour and primp a home.  It is important to strategize with a real estate professional who will guide you through the selling process within your budget.

Oakland and Berkeley Area Homes by Region and Price

The blue areas on the map above = 3 bedroom, 2 bathroom homes priced above $800,000.

The dark brown area on the map above = 3 bedroom, 2 bathroom homes priced between $500,000 and $800,000.

Thelight brown area on the map above = 3 bedroom, 2 bathroom homes priced at $500,000 and below.

This chart applies to home prices in today's market.  There will always be exceptions.  The other day, I looked up all of the active, 3 bedroom/2 bathroom homes in 94602 zip code. (homes that range between $500K and $800K)  There was one home listed in the high $400,000's.  This home is a bank owned property and needs some work.  There were 3 homes priced over $800,000, but there have been on the market for over 2 months.  (a sign that they are over priced.)

Oakland and Berkeley Real Estate at a Glance

Berkeley:

                                  2009                 2008

Active Listings             138                    188
Under Contract            47                      35
Closed Sales                 38                      60
Average Sales Price   $828,624      $835,000


Oakland:
Active Listings             1052                   2286
Under Contract            363                     226
Closed Sales                  280                    201
Average Sales Price   $335,000        $492,000

Keep in mind the Oakland stats include all areas of Oakland.  To understand a specific neighborhood, I can do a custom report for you.  deidre@redoakrealty.com

Historic Warehouse For Sale in West Oakland

Location: Oakland, CA Once stables for Wells Fargo Bank, then a Cigar Factory, this 2 story masonry warehouse w/wood floors is currently divided into nonconforming spaces that have been used as artist studios for the last 30 years. Retrofit to minimum voluntary standards in 1994; 1 gas & electric meter for entire bldg, easement for 5 off street parking spaces in adjacent lot. Probate/requires court confirmation, needs work.

The Old Rossi Cigar Warehouse

This 12000 square foot commercial building has 2 floors, 5 parking spaces and is listing with Sara @ Red Oak Realty for $799,000.  This gorgeous  brick structure was purchased a few years back for over a $1million by a recording artist, who had dreams of building a sound studio, teaching children music, as well as living in this space.  Unfortunately, the previous owner passed away prematurely of cancer.  What can you make of her big dream?

Redwood Heights Home Just Got A Cool Price Reduction

This sunny 1940's home on Reinhardt Street in Oakland just got a $30,000 price reduction, making Redwood Heights affordable to first time buyers.  (I love the vaulted ceilings in this living room!)    I work with the listing agent, Leif and will be holding it open for him this Sunday.  Being a Redwood Heights resident, I know the inside scoop for this neighborhood.  Email me if you have questions.  - Deidre