June 2023 update: Still Thinking About It the Next Day?

Over the last week, my husband and I cleared and removed old belongings from our crawl space and garage and I made my first trip to Alameda County Hazardous Waste (if you have old paint, electronics, cleaning products, or garden products that need to be properly disposed of, this is a super process), donated a trunk and backseat full of clothing and shoes, and gave a few items to my friend's niece. My purge project is not complete – I am still working through all pantry and freezer items for freshness and re-organization. Somewhere along the way I equated that more is more and began acquiring things almost as rewards for my hard work. After this first round of my 2023 declutter project, I am realizing I need to completely rethink how I buy – less is more, and having only things that I love and having a place for everything is what I now strive for. 

I will use some of the same principles I share with my buyer clients when they are house hunting: when you see something of interest, pay attention to see if you are still thinking about it the next day, and if you are not, that may be a sign that it is not for you.

Recently, I worked with clients who felt that they purchased the wrong house for their needs and lifestyle. While I did not help them buy the house, I had the task of helping them sell it. Here are a few takeaways: 

• Buying the wrong house can be expensive. With approximately 3% closing cost to buy and 7% closing costs to sell, you will have to sell for 10% more than you paid just to break even. If you added that 10% cost to your budget, could that get you a home that is better suited for you? 

• In addition to the closing costs, most sellers are spending between $25K and $75K to make their homes shine and stand out from the competition with painting, landscaping, staging and other cosmetic updates. What if you added that pre-marketing cost to the 10% closing costs? Does that get you into a better property for you?

• When buying, think about the life that you currently live and what your goals are in the next 7-10 years. Do you want to expand your family? If so, is there yard space that is easily accessible, a place to teach your kid how to ride a bike, room for out of town guests and the life you want to live?

• Really hone in on what is most important to you, the location of the house or the house itself. I have never met a client who did not have a budget, and most clients like properties over their budget, so compromise is often the name of the game. When compromising, really take the time to determine what is most important to you. For me personally, I was less concerned with a high WalkScore score, and more concerned about the house itself, the layout, and outdoor spaces. 

Over the last few years the real estate market has accelerated at a very quick pace and is now adjusting… This market could be a great opportunity to buy! Yes, you have to be comfortable paying the current interest rates, however when interest rates decline you can explore your refinance options. 

For sellers, it is hard to time the market, but homes are selling sometimes with multiple offers over the asking price, especially homes that check off a lot of boxes for buyers, offer good indoor/outdoor flow, and updated properties that need minimal work. Even though the market is down, homes are still selling higher than 2021 in Berkeley and higher than 2020 in Oakland. 

Every buyer’s and seller's situation and needs are different, so if you are considering a move, please reach out. I am happy to chat and provide insight without any pressure to buy or sell. I appreciate the opportunity to be your trusted advisor.

Warmly,

May 2023 update: This Market Will Require Patience

1715 Alhambra Lane, Oakland – Open this Sunday!

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Last weekend was Mother's Day and I had a wonderful day with my family. We went to RH Palm Court in San Francisco for brunch – the building is beautiful! If you have a sweet tooth, order the caramelized banana split and then relax and take in stunning views from the rooftop deck after your meal. On the way back to Oakland, after 5 decades of living here, we went to Treasure Island for the first time (well my husband and son had been on the island, but it was the first time for me and our daughter). The weather was glorious and the views were special and I thought to myself, “Why am I not enjoying more local field trips, the East Bay has so much to offer!” I would love to hear about your favorite local adventures, please share!

As I mentioned, the weather on Sunday was sublime and my team definitely noticed a decline in open house traffic. I reached out to my colleagues to see if they experienced the same. I received several responses that their open house traffic was lightly attended. I am noticing that some properties are selling quickly with multiple offers over the asking price: these properties often have been very well maintained and upgraded and have minimal repair recommendations. Other properties are taking a little longer to sell as they are waiting for the right buyer to come along. 

I believe this market will be one that requires patience. Buyers will need patience finding a home that fits their needs and budget. While the market has softened some, the East Bay still commands a premium price to live here. I have noticed that some buyers have concerns about overpaying for a property. This makes it crucial for sellers to price their properties not only according to how their neighborhood is performing, but also according to their property’s condition. (Sellers should keep in mind that buyers do not care what you paid for your home, what you owe, or what you want to net from the sale). Sellers may need to be patient, especially if their homes require repairs.

The good news? There IS a buyer for every property; it will come down to timing and price! 

1715 Alhambra is a light-filled, airy and spacious home in lower Montclair, the sellers loved that there was a rural path to the rear of Thornhill Elementary. This home is available and listed at $1,595,000. Coming soon is a charming bungalow in Redwood Heights on a 7,000+ level lot. Reach out to learn more about either of these opportunities!

Thanks for trusting me with your real estate needs, and enjoy the rest of May!

April 2023 update: Ready for Spring!

Happy April!

As I write this, it is a crisp 55º in the middle of the afternoon and the sun is trying to peek through the clouds. We definitely had a true winter season and I am ready for what spring has in store. Over the last month, I have helped a few clients purchase homes and in one of the cases, the process started 2 years ago. I mention this to say that the mindset for many buyers is there is no urgency to simply buy a house, it has to be the right house. At the same time, I am seeing homeowners stay in their properties longer, so when looking in many of the sought after areas, active inventory is very low. Two examples: 

• In the Redwood Heights neighborhood of Oakland the average homeowner stays in their property 16.71 years. 

• In the Thousand Oaks neighborhood of Berkeley the average length of time is 17.77 years.*
  

Here is data from 6 broad areas in Oakland and Berkeley and how they performed the first quarter of 2023:

I’ve also noticed that non-contingent offers are back, even in the townhouse market. I have called on many pending deals in both Oakland and Berkeley and have learned that the winning offer and often the top tier offers are non-contingent. 

If you write a non-contingent offer, you are: 

• Waiving your inspection contingency: You are making your offer to take on the property condition: relying on the reports and disclosures that the seller provided, accepting all of the information in the natural hazard and preliminary title reports. Your 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, I suggest getting a quote before you write. You have done your due diligence and are comfortable with the neighborhood, schools and have checked crime maps and the Megan's Law Database.

• Waiving your appraisal contingency: You are buying the house at the offer price EVEN if the property appraises for less. This means that if it appraises for less than you offer you need to cover the appraisal shortfall. If you are getting a loan with 20% down, the lender will loan you 80% of the appraised value. So if a property you are in contract on appraises for less than your offer price, you will need to have the cash to cover the delta between the your offer price and appraised value.

• Waiving your loan contingency: You need to have confidence in your ability to secure a loan and close and your offer is not contingent upon securing a loan.

Note that if you write a non-contingent offer and do not close for any reason, your initial deposit is at risk. In our niche market that initial deposit is 3% of the offer price. 

While I have written many non-contingent offers, my clients only do so when they fully understand the risk associated with that type of offer and we have a plan A and plan B in place. This is not to say that buyers are not nervous writing a non-contingent offer, but it is always their choice to do so. Working with a local and veteran mortgage lender can minimize some of the risk, because many of the local mortgage brokers have a preferred panel of appraisers that only work in the specific areas that they are experts in. 

In our marketplace, no agent is powerful enough to change a market, but the value in great agency is always getting honest updates, intel and insight into the market in real time, and feedback with supporting data.  

Here’s to a beautiful spring – go out and enjoy a superbloom!  – and don’t hesitate to reach out with your real estate questions and needs, I’m always here for you.

*Data sourced from Chicago Title Montclair

March 2023 update: You Aren’t Alone!

Happy March, 

If you are feeling out of sorts, are over the rain, tired of reading bad news in the media, and are overwhelmed with trying to eat healthy and take care of yourself, you are not alone! Life can be challenging and it is my goal to not only support my selling and buying clients’ housing goals, but also be there for them on a personal level. While I always work in a very professional manner, buying or selling a home is extremely personal and it is not unusual for clients to have stress and worry. Text and emails are great to expedite messages and updates, however when working with clients, especially in critical times, I will call my clients and really try to hone in on big concerns, explain contracts, be a sounding board and provide insight based upon my nearly 19 year experience. The connections, trust, and rapport that I have with so many of you is priceless and, really, is why I do what I do. Markets will fluctuate and factors that are outside of our control will be thrown at you, but rest assured, I will always be steadfast in putting your best interests above all else. 

This week 1479 Olympus, Berkeley received 4 offers and is pending with all offers over the asking price. While we were creating a custom video for this listing located very close to the Grizzly Peak outlook, my business partner, Nicole and I shot some extra footage and had fun doing an International Women's Day clip – click here to view!

Wishing you a peaceful rest of your March and as always, I am here for you and no question is too small!

Warmly,

February 2023 update: Kick Off the Spring Market

I hope you are enjoying the week of love! Whether the adoration is from a spouse/partner, child or from yourself, may your week be full of affection!

Historically, just after the Superbowl is the kick-off for the Spring market. This is the time that buyers are looking for a surge in inventory to find a place to call home. If you have been reading my monthly e-newsletters you know that the market peaked last Spring and has been adjusting since then. This has made some sellers apprehensive about selling, thinking they will hold out until the market goes up, but the reality is that the market is not dead, there are many buyers who have started or resumed their searches and they are looking for places to plant roots. Overall for single family homes, I am seeing prices hover around the 2020-2021 market which, historically, was very good. This year, many agents are concerned that we are not going to have enough inventory to meet our buyers needs. 

Last month, I brought on 802Woodland.com, a 1920's home in one of San Leandro's most coveted neighborhoods. I worked with the sellers to quickly prepare the property to show its best on a minimal pre-marketing budget and the results were 12 offers. I have followed other listings throughout Oakland and Berkeley and have seen multiple offers over the asking price. This is not to discourage buyers from buying, but it is important to know what is going on in real time. The East Bay has always been a strong real estate market and the most important part of my business has always been transparency and integrity. This means if you call on me to analyze a property to purchase or a property to sell, I will always take a deep dive into the facts and data to provide you with an assessment based upon 18+ years of experience.

Every property is as individual as you are, one size does not fit all, so helping buyers find a home that meets their lifestyle, budget and needs is key and I am hopeful that we will see inventory to meet buyer demand.

If you are thinking about selling, I can help you prepare and position your property and highlight the subtle nuances that others may miss, in order to earn the highest possible price. Bringing it back to Valentine's week, love can be a lot of work, just like house hunting and property selling, but if done well it can be extremely rewarding for both the buyer and seller!

Thank you for trusting me to be your real estate resource for so many years and I wish you lots of love and affection!

January 2023 update: It's a new year!

It's a new year, a time for resetting and setting goals. The other day, I was cleaning my house when a little voice of complaint started to creep into my head and I had to flip the switch as I realized, how lucky am I that I have a house to clean?! I am a big homebody and adore being home and really feel blessed to have a place to call my own. I believe in homeownership, but have always felt strongly that buyers should only buy a home if it makes financial sense, they are drawn to the property, and if they can see themselves in the home for a good amount of time. While no home is perfect, finding a home that is perfect for you should be your priority in this market that is much more balanced than in recent years. 

Here are a few predictions for 2023, it will be fun to look back at this to see how accurate I am! 

• I predict that homes coming on the market this January and February that show well and are priced right will sell quickly and do well, as there is very limited inventory and there are buyers ready to get settled. 

• Over the past 18 years that I have sold real estate, about 1/3 of the homes I have sold have had drainage recommendations. Due to the recent heavy storms, many homeowners are experiencing water intrusion that they have not experienced before and buyers should not be surprised if drainage recommendations are called out in inspection reports. With climate change, homeowners who have drainage recommendations should budget for these repairs to protect their investment.

• While the market is not what it was in 2021 or the first half of 2022, prices will likely hover around values from 2019 or 2020, but home values will likely be very property-specific, and the most sought after areas will be the least affected by the market shift. Buyers will likely not be very eager for homes that have expensive repair recommendations, odd layouts, or other challenges.

• Sellers will likely get more offers with contingencies in place, especially appraisal contingencies. Buyers with loans will likely not want to cover the difference on an appraisal shortfall and I am already seeing more appraisal contingencies on contracts. Click here to read an old blog article I wrote that explains the appraisal contingency.

• While, you may not always be able to write an offer with an inspection contingency and prevail, especially if there are multiple offers, several of my recent buyers have enjoyed having an inspection contingency period, something that was almost unheard of in the previous sellers market. 

• If you purchased a home in 2021 or 2022, you will likely not be able to sell without a loss, unless there is an unusual situation, such as you bought at a fair price and put work into the house that added value. 

• If you are looking to sell, it will be important to have comprehensive inspection reports and all of your disclosures thoroughly filled out for buyers to review. This will give you the best layer of protection, especially if a buyer has an inspection contingency. In our niche market a buyer will typically accept everything that is disclosed up front, all read and reviewed before they place their offer. If you have further inspections that have not been investigated, a buyer in this market will likely not be willing to accept the unknown and will want any further inspection recommendations investigated. Any new discovery will likely create a price negotiation, or in some cases, the buyer could cancel the transaction. No home is perfect, but transparency will be key for today's buyers. 

• If you are a seller and your agent is reviewing comparable sold data with you in an effort to provide you with a home value, you will often see a range of prices. Be realistic and accept that your home may sell within a range. It is not unusual for a seller to focus on one or two high sale priced properties in an area and ignore the average sold price. It’s important to remember that every home is different, as well as maintained and upgraded differently. A great agent will understand the differences and will be honest with you about your home's value. 

• For sellers, I know it is hard to swallow that your home will very likely sell for less than homes that sold in 2021 and the first half of 2022, but prices are still selling strong, as people love living in the East Bay!

Here’s to a great 2023 and don’t hesitate to reach out with any real estate-related questions or needs.

December update: Farewell 2022!

How was 2022 for you? Did you make some goals and see them through? Did you merely survive? It can be hard to reflect on and sum up 4 seasons of life. For me, I have profound gratitude that I have completed 18 years in this real estate industry and have been able to make new friendships and be a trusted advisor to so many different people. I am grateful to have completed a 3rd year with Nicole as my right-hand gal! I am grateful for family and friends. I spent the last 2+ years actively dodging COVID, and did not attend many social events, but ultimately got it after letting my guard down one day at an outdoor concert. The lesson: just do the best I can, and I can't control everything despite my best efforts. You will still see me in masks, often I am the only one in a room full of people, but that is my personality, I am a cautious one. 

In early December, I wrapped up my final transactions of the year and I have spent December slowly working on my to-do lists: replacing smoke detectors in both my house and my dad's home, clearing out emails and organizing photos. (By the way, did you know you should replace your smoke detectors every 7 - 10 years?) It has been nice to have a slightly slower month to regroup and reset. Thank you for trusting me with your biggest purchase in life, thank you for trusting me to help you position and sell your biggest asset in life, and thank you for calling on me for referrals to the best agents across the country. Your on-going support keeps me in business and that is the best gift for this local girl that was born in Berkeley and raised in Oakland. I am looking forward to 2023 and can't wait to receive your calls and emails asking me for real-estate related advice or to help you if a move is right for you! 

Enjoy the rest of this chilly month and eat something delicious,

Favorite Things: No. 7

I always love a favorite things list! Here is my most recent list, which includes my quick go-to vegetarian meal!

Wishing you a joyful December!

November 2022 update: The cost of selling when you go in with the wrong expectations

Hey November!

The other day I received an email from a local Realtor stating that a specific property will be on the market one more week before the seller takes the house off the market. The house has been on the market for almost 3 months. I showed the property and my client did not like it – it was a hard NO and she could not get out of the house fast enough. Not only did she not dig the finishes, the layout or even the smell of the house, but there were challenges that could not be overcome.

The email went on to say that the price was not flexible because the sellers invested $100K into the property in preparation for sale. Selling a home can be expensive. Homes that tend to sell for the highest possible prices are vacant and staged, often freshly painted, have refinished floors, shiny clean windows and more. If you move out, you often have the expense of your existing mortgage PLUS any temporary or interim housing costs. When you move out, you will need to continue to pay for utilities and any basic upkeep such as garden maintenance, etc. Bottom line: there is a cost of business and no homeowner should sell their home unless they feel it is the best decision for them and they understand not only the process, but all of the costs. All of the above is why I am a more conservative agent when it comes to providing homeowners with market valuations. While I would love to look at the highest sold home in the area and say, "your home will get the same," that would be really reckless! I have never seen two homes that have the same light, layout, yard space, upgrades, flow and property maintenance. Never! Remember: buyers do not just look at the highest prices of homes sold in the area, they look at each of the homes sold in the area, compare many factors and then determine an offer priced based upon that data and their budget. The term "buying a listing" refers to when a listing agent states a property can fetch a sale price that is much higher than what the home will sell for so they can secure the listing, then introduce a price reduction later... I have seen agents do this over the years and I just can't do it. I like to sleep at night.

Over a year ago I met with a family who wanted to sell their long-time family home. I provided a valuation and they did not like it. I explained in detail how I came up with my valuation and the homeowners selected another Realtor who placed the house on the market for $300K more than my recommendation. Since then, that property has been on the market for a full year, has gone through 2 different real estate brokerages, and several price reductions. Even worse, they lost an additional 10-20% in value due to the major market decline that occurred over the summer. Even though the house is not staged, there is still a cost. The cost of utilities, insurance and maintenance, don't forget the house is still yours until it is sold. There is also another cost, the longer a home sits on the market, the more a buyer will assume that there is something wrong with it and may avoid looking at the property altogether. These sellers have lost their leverage and are now at the mercy of a buyer coming to the table.

Since my last post, my two active listings have gone pending, both in less than 2 weeks and both within the sale price ranges I initially shared with the sellers. As an agent, I too take on the cost long before a homeowner decides to accept an offer. I typically spend $4K – $5K on each listing, before a property even hits the market making sure the marketing is fresh, creative and top tier. And that does not include the countless hours I invest in pre-marketing investigations, planning and design work. Providing a realistic expectation builds trust and rapport and is why you select a professional to partner with. While we are wrapping up 2022 the market will evolve – last week rates dropped a touch, there are still people that have housing goals for a myriad of reasons, and the market will go on. When you call on me to help you make your move, count on me to put a great deal of thought and heart into each step so we both can take the journey feeling confident in the process and the outcome.

Enjoy your Thanksgiving and eat something delicious!
– Deidre

October 2022 update: Tips for Buyers & Sellers in this Market

This week, I showed a property in Oakland that my clients were very excited about. It had room for them to both work from home, an open floor plan (something they are craving), and the inspection reports and disclosures illustrated that the house was well maintained. They saw it on Sunday, were still thinking about it on Monday and we toured the house together on Tuesday. We spent more than an hour in the property and during this time I looked very critically at the home’s components and asked questions which I tend to do at all of my private showings. This is not done to talk someone in or out of placing an offer on a property, but in an effort to get buyers to think about things that they may not readily notice upon the first few visits (and could potentially bother them later). During this showing, I observed that the driveway was sloped, shallow, and very narrow, and I suggested that before we left that they test the driveway and garage. Unfortunately the car did not fit. Later, they brought their second car over to test and that too did not fit. They sent me a text message and said that after much consideration this was a deal breaker for them. But what a blessing – waiting until an offer is accepted or even worse, after you close escrow, is not the time to find a deal-breaking feature.

Since the market has been shifting there are a few things that I am noticing: while inventory levels are slightly higher, there is a diverse assortment of housing stock, some properties are still selling right away for over the asking price (and for numbers just shy of the spring market), other homes are lingering. The previous market was such that buyers were so eager to get into the market that they would take on more risk and accept high-cost repair items, but now buyers are less willing to take on unknowns, such as further inspection recommendations that have not been investigated or homes in need of an overwhelming amount of repair. What I encourage all of my buyers to do in this or any market, is to only buy something that you have fully investigated and feel really good about. Perhaps the home has the space you need, or is in the neighborhood you desire, whatever it is, only place an offer on a home that you will be excited about if your offer is accepted. With the shift to a more balanced market, this is the time for buyers to really hone in on what is most important to them in a property. Take advantage of this new market and enjoy the slightly slower pace that this time brings.

A tip for sellers: If you are thinking about selling but are discouraged that prices have declined, consider this: while home prices are not what they were this past spring, in Oakland and Berkeley, September’s sales prices are still 5% higher than they were in September 2020 and values have tripled within the last 10 years, up 205%.

 I suggest talking to your tax advisor to learn if a slightly lower sales price will have some benefit such as a reduced capital gains bill. Additionally if you are looking to sell and buy, then perhaps your purchase will be cheaper as well as your future property tax bill, as property taxes are based upon sales price. 

I am excited to have two listings on the market right now, www.4127Norton.com and www.456Stow.com. Both will be open this weekend! 

Thinking about making a move? I would love to partner with you, your friends and family. I’ve been a Realtor now for over 18 years and I love what I do. You get an honest, straight talking professional when you work with me. I pay attention to the details and want only the best for my clients, even if it means passing up a sale. 

As we wrap up October, take a moment to enjoy the change in weather, the colors of the leaves and go enjoy something delicious!

More at 456stow.com

September 2022 update: Be Ready for Opportunities!

Happy September!
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I frequently review sales data and since the market has started to shift, I have noticed a few properties that have sold for less than they would have in the spring, and for prices that many would call "a good deal." I am cautious about using the phrase "a good deal" as that is subjective - there are so many factors that come into play when analyzing a home's value and, always, the true value comes from the purchaser. What I have witnessed over the past 18 years I've been in business is that opportunities are almost always a timing issue, and often presented when the following happens:

• A buyer is prepared financially: has the cash ready to go, or is fully pre-approved

• A buyer understands the market and also understands that we never know where the bottom of the market is, until the market starts to rebound. So they are less concerned with timing the market and more concerned with investing where they want to be.

• A buyer understands that unless one has an unlimited budget, perfection does not exist. Buyers rarely find a 10 out of 10, but if they get 7 out of 10, they are living in a dreamy place.

• A buyer understands that most deals are a compromise between a seller and buyer. An example:

  • Originally when a seller retained an agent to sell their home, based upon sold data from the last 6 months they anticipated a $2.8M sale price on their house. A few months pass as they prepare their home and their agent has updated them on the market shift, so they now have adjusted their expectations to a lower sale price of $2.6M. They list their property at $2.195M to get more attention on the market but are still hoping for top dollar.

  • Then comes along a distraction in the market: a volatile few weeks in the stock market and consumer confidence is down, and you are the only buyer writing an offer. As a buyer you may have doubts, perhaps you start to think something is wrong with the house, instead of the reality that many buyers are nervous and waiting on the sidelines. Perhaps you want to write a lowball offer - I have seen this many times and in most cases those offers are rejected or countered. But if you are reasonable, perhaps you can get the house for $2.4M or $2.5M. I have heard many sellers state that they will not just "give" their house away, but are willing to compromise if a fair offer comes in.

  • Every single buyer and seller's financial and personal goals are different, but as a buyer it is important to keep in mind that many sellers have a personal attachment to their home. Perhaps they have invested a great deal of money and sweat equity into their property over the years. Perhaps it is the place they have raised a family or it was the place during covid that provided refuge during a time of uncertainty. The sellers have the commodity and they have the right to not sell. Just like a stock, if the price is just too low, perhaps they will decide to hold on. When writing an offer, weigh in on a few things: Does this home feel right? Can you afford it? Do you see yourself here for a long period of time? Are you thinking about the house when you are not there?

A great Realtor can work with you as a buyer to understand the difference between a good opportunity and a bad investment. When buying, look for properties that fit your needs for the long term; this sets you up for the highest likelihood of selling with the most appreciation.
As a buyer, do not let fear block you from those good opportunities, and definitely work with an agent who can give you objective insight so you can make the best decision for yourself.

More at www.280-41stSt.com

After two busy weekends, 280 41st Street in Oakland received two offers that were just too low. They were not in line with my expectations, the seller's expectations, and they were low even for this new softened market. Two days later a 3rd offer came in that was viable, and with a little negotiation we are pending!       

NOTHING happens in real estate unless you can bring a buyer and seller together.

– Deidre

August 2022 update: And Just Like That

And just like that school is back in session for many and we are set to start the Fall selling season. Between June and July this year, the median price of homes in Oakland declined 11% in value while Berkeley saw no decline in value and prices remained flat, but the higher-end markets in both Oakland and Berkeley continue to perform well, selling within the same margins as homes did earlier in the spring.

I spoke with a top producing mortgage lender yesterday and she mentioned some of her clients who had taken a pause from their search have reached back out and have initiated an update of their pre-approval. I will be carefully tracking the market to see how things fair, but I predict that homes in great condition, with good light, layout, upgrades and aggressive listing prices will do well. Homes with challenges, especially challenges that one can not cure, may have a tough time.

Last week KTVU news called on me again to provide an update on our real estate market. The last two times I was on air with them I Zoomed comfortably from my own living room, but this time I went into the studio and interviewed with Sal Castaneda. While I was nervous, I really enjoyed the experience! Moreover, I am just thrilled to be a trusted expert in my field.

Thanks everyone for the continued trust and I am taking on new clients, so spread the word!

Check out the full interview and have a wonderful last few weeks of summer.

– Deidre

July 2022 update: In the Thick of Summer

As I write this, we are in the thick of summer which, historically, is a slow selling season with folks out on vacation and taking a break from house hunting. Unlike the spring market that is enhanced by morning dew, birds chirping, and fresh air igniting a feeling of exuberance, summer can be hot and uninspiring to search for one's new home. Generally, spring is the best season to sell in East Bay real estate with fall being the second best time to sell. Then the pandemic changed things up quite a bit! For the last two years our regular seasonality was not very pronounced because many people were timid about traveling due to COVID. This year is different. I am seeing many people I know are out of town via social media, traffic is noticeably thinner, and it seems people might be back to taking traditional summer vacations. There is a decline in open house and private-showing traffic, but how much of that is due to historical seasonality and how much is a result of the shifting economy with its rise in interest rates and change in consumer confidence? Whatever the case may be, I do know that there are still buyers who want to find a place to call a home of their own.

Although buyer activity has been falling, new listings continue to hit the market, creating an imbalance between supply and demand. As a result, key metrics in the East Bay are faltering, driving down median price as well as the amount buyers are willing to pay over the list price, while driving up days on market. For example, looking at active listings by the length of time they have been on the market, 42% of properties have been active for 5 weeks or more; at this time a year ago, only 27% reached this threshold.

However, not all properties are being affected in the same way. Higher-priced properties are generally performing better than lower-priced properties. Those that are "most attractive" – desirable neighborhood, appealing design and "move-in ready" – are often still generating a high level of interest from buyers. Indeed, when looking at properties that sold in Q2 2022, the higher the sale price, the further over asking the property tended to sell.

Buyers, if you are considering a purchase, now may be a good opportunity to buy. Right now there are 309 homes in Oakland that have been on the market for 30 days or longer, and in Berkeley there are 32 properties that have been active for 30+ days. With many people out of town and taking a break from the market, now may be an opportunity to get into a property that you love.

I am looking towards the fall market and I know that buyers will still be buying and sellers will still be selling. But nothing happens unless you can bring the two parties together! Please know as the seasons change, I will be carefully watching and tracking the market so you have market updates in real time.

As always I welcome your questions!

June 2022 update: Changes are happening!

Changes are happening!

What I'm seeing: Since last month, I have noticed that there are fewer buyers in the market which means fewer offers on many homes in the East Bay. What is important to note is that some properties are seeing lower offer prices than just 2-6 weeks ago, but that is not true in every case, so nothing has been predictable. Sometimes a buyer's personal need or motivation may be the reason why a home has sold for a neighborhood-high price which can skew average sales price data. Sellers, when looking at sold data to see what your property may be worth, please do not just look at one or two high sales, consider all of the recent sales in the area. What a home sold for a year ago is rarely considered by a buyer, as they tend to review the last 3 to 6 months worth of data. Planning what a seller may spend in pre-marketing preparations now needs to be decided knowing that you may get less in a sales price than homes in your area received just a month or two ago. Additionally, I am seeing some homes stay on the market longer than before, so a seller needs to plan for longer carrying costs. Also, if you are selling, this does not mean you can do nothing and get a good price - this means that your property's assets and challenges require more consideration before creating a punch list, as buyers will certainly analyze everything before they decide to write or walk away from a property. Bottom line: the market is shifting, recent neighborhood sales are only a snapshot in history and will not necessarily dictate what your home will sell for in the future. For the past few years, buyers have had to adjust their expectations on what their money can buy as they have seen prices actively jump in value while shopping for a property. Now sellers are in a similar position and should start adjusting their expectations. The market will likely be a place of compromise, both buyers and sellers adjusting so they can meet in agreement. Nothing happens unless both a buyer and a seller agree. 

When I started this career in 2004, I knew that I would always lead with putting my clients' needs first, working in the most approachable, creative way, leading with complete honesty, always keeping my values. Since I have been in this business, I have worked in both buyer markets and seller markets. Our local market is unique and our housing stock is very diverse. No matter what the market, price-per-square foot does not give us the winning formula for value; every home is maintained and improved differently, homeowner's personal design choices may not appeal to all buyers, and every buyer has a different set of criteria for a home they are wanting and willing to live in. If you have watched the news lately, you've probably seen that interest rates have further increased, the stock market has declined, and food and gas prices are rising. So a great deal of thought goes into how I navigate and consult with clients. Regardless of the market, if a seller wants to sell, I make sure that selling is the best option for them before we proceed. If you are thinking about selling your home, I will always ask "Why?" This is not to pry, but sometimes holding on to your property is best. For example if you are thinking of moving out of the area, is there a chance that you will want to move back to the East Bay and wish you had this specific property? Can you afford to keep it? Are there modifications/renovations that you can make to your home to make it a better fit for you so you can stay in it?

For buyers, in addition to analyzing the property's condition and sold data in the area, the bigger question is: will this property fit your needs long term? Buying a home should not be for a temporary need; when you buy your house you should consider if this home really suits you. It is my goal for all of my buying clients that once they buy a house, they feel happy that the property was available for them when they were in the market to buy. 

What should you offer? Given the sold data in the area, what is that number that you would not regret if your offer was accepted? Looking back, what maximum amount would you be comfortable paying? When you start thinking in those terms, you may have more clarity on your housing goals. 

No matter what the market, there will be buyers who will want to buy and sellers who will want to sell. Only you can determine what is right for you. I  am here to be a sounding board, and give advice based upon experience and data so you can make the best decision for yourself. 

Whether you are buying, selling or just need expert advice without pressure, I am here for you.

– Deidre

375 Marlow Drive, Oakland – Open June 18 + 19, 2022

May 2022 update: What's going on?

What have I seen over the last 3 weeks in the East Bay market? Buyers had been craving more inventory all year and May delivered with a spike in new listings. This also happened when buyers were bruised with the impact of the latest interest rate increase. Here is a real world scenario: I have clients who were pre-approved in mid March for a home purchase of $1.5M. They want to finance $1.2M. The rate increase made their future payment jump by $1000 per month. I am hearing from agents all over that they have clients feeling the same pain.

Last week, 2 of my listings heard offers and though both were special properties, they received fewer offers than listings that I had earlier in the year as well as the homes that I wrote offers on, but the offers were still well over the asking price with great terms. 

 So far I am not seeing much of an impact in the high-end market, particularly walkable homes in the $3M range (homes that tend to sell in the $3M+ range are often listed in the $2M+ range). I am seeing a higher percentage of cash buyers in this price range and typically their income and assets can absorb the impact of the interest rates.

 Properties that I am seeing on the market longer than the typical 2 weeks are homes that may be unconventional that are waiting for the right buyer. For example, my fully vacant triplex was on the market for over a month last winter. The location was superb, (Rockridge) while a buyer may want to make cosmetic updates, the owners had made meaningful improvements over the years, and the place was cute! So why did it sit? There are fewer buyers who want to be landlords in Oakland and Berkeley due to the increasingly strict rent control and eviction laws, especially with the recent moratorium on evictions due to COVID. I knew the ideal buyer for this particular property was a buyer who wanted to occupy the place. This home sat on the market for 42 days and then a buyer saw the place and wrote an offer the next day for the price my clients wanted closing 21 days later. 

 What does this mean if you want to buy? Buy smart. Investigate the house to make sure you understand the condition, investigate the neighborhood and make sure if you write an offer you will be happy if your offer is accepted. Something I have told my clients for years: see a house and notice if you are thinking about it the next morning. If you are not, that says a lot. I know money is more expensive, but it still may be worth stretching if that means you have a house that fits your needs for a longer period of time. Buying a house is like buying stock, the longer you hold on to a property the higher chances you have for greater appreciation. I advise 7 years+.

For sellers, hearing that there is a chance you may earn a little less in sales price than your neighbor did last month is a tough pill to swallow – I get it! Your house will sell, especially if you showcase your home to appeal to today's buyers. There is an art to analyzing a house and creating the most effective pre-marketing plan. Make your house memorable for buyers.

Whether you are a buyer or seller, I am happy to listen to your goals and provide insight to help you  decide what is best for you!

What the hell is my house worth?

Determining a property's value is very complex as most of us do not live in a planned development in which everything is pretty much “like in kind.” Many homeowners review online real estate websites and see property valuations as a possible value for their own home, but those may not be reliable. Here’s an example:

A few years ago I listed a home located on a highly trafficked street and two houses away from a major freeway. The online valuations suggested the home was worth between $750,000 and 800,000 because some homes within an immediate radius sold in the $800K range. However, what these online tools could not factor in was the property’s condition and needed repairs, or that this home was on a busy street or the close freeway proximity – all items that can greatly affect a property’s value. This listing garnered tons of interest, but in the end only two offers came in and the highest offer was $685,000. When I called all of the agents who showed the home but did not write offers, they all cited the street and freeway noise as concerns. Luckily I had prepared my clients for a realistic selling price based on all factors, but if I were to solely look at price per square foot and not analyze the challenges and assets I would have done them a massive disservice. In general, I find that the majority of homeowners have high expectations when it comes to what they think their home is worth, but sellers never set the price, the buyers do.

The other day I worked on a CMA, which is a “comparable market analysis,” for a homeowner considering selling. When looking at the recent sales in his area, I saw two homes that sold within the same block just 3 months apart: one home sold for $960,000 and the other sold for $1,240,000, and both were the exact same square footage. That is a difference of $262 per square foot. Both homes were vacant and staged but one was in better condition, had higher quality upgrades, designer touches and more mature landscaping. This is a good illustration of buyers responding well to homes with thoughtful improvements.

Here are three considerations for sellers: 

• The price you want to sell your house for does not matter to buyers. And there is no talking a buyer into buying your house, or paying you what you want. Buyers set the sale prices, so before you start preparing your home for the market, consult with your Realtor and look at the sold data. Work with an agent who will take a deep dive into the data, who knows your neighborhood, who will compare and contrast your property with the recently sold homes in the area and tell you what you need to know, not what you want to hear.

• Pricing a home too high may dampen your success. In our marketplace, many buyers stop their search often between 10–40% under their budget as they are keenly aware of all of the multiple offers over the asking price. (FYI, I have been coaching my buyers for years to search at least 20% under their maximum.) Let's say a buyer has a budget of $2,000,000… they may stop their search at $1,600,000. If you put your home on the market at $1,750,000 they may never view, consider or offer on your home. Additionally it is the multiple offers that give sellers leverage as this is a blind bidding process. Another example of this is that many buyer's agents will check in multiple times, asking the listing agent how many other agents may write an offer. A listing agent has to answer honestly as ethics and integrity are crucial. If your home is priced too high often you receive fewer offers.

• The homes that tend to sell at the highest prices have been meticulously prepared: often sellers are paying for painting, floor refinishing, landscaping, new light fixtures, professional staging, etc...  I am seeing many sellers spend between $25,000–$50,000+ to prepare their homes. I know you may be scratching your head, but often when we live in a home we get used to some of the imperfections but buyers are paying a great deal of money to buy in the East Bay and they are not so forgiving. The homes that I see more multiple offer situations on and sell for the highest prices are squeaky clean and are positioned so a buyer can just move right in. This does not mean that a buyer is not taking on repair recommendations, but cosmetically a buyer can move in and feel good about it. Proper home preparation is crucial for buyer appeal. If you have equity in your home and are short on funds, Red Oak now offers our Enhance Program which allows homeowners to use our team of professionals to improve your property for up to $60,000 and pay for it when you close escrow. 

As I  sign off, I  want to thank you for the trust and enjoy your summer!

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.

Favorite Things: No. 6

I am a huge design magazine buff – I even save articles in inspiration binders I've created – and I always look forward to lists of items that a notable person "can't live without" because I often find new (or new-to-me!) products and services.

About three years ago I started collecting items for my own lists: things I'm grateful for, trends in real estate, and not only widely-available products, but items, experiences, and resources only available here in the Bay Area.

What are some of your favorite things?

2019 Year In Review

What a way to start 2020, I was just awarded company wide top producing agent! Here is a quick celebration …

And now, back to business…

As we start a new year and decade I can not help to feel blessed, I have just completed 15 years in business. When I started real estate, it felt very familiar as my mother was an Oakland/East Bay Realtor, however never in my wildest dreams did I envision a career that I have experienced thus far. Thank you for turning my dream of serving clients in a creative and ethical manner into my reality.

As I  gear up for the 2020 Spring selling season, I will share 2018 vs. 2019 data. Below you will see median prices in a few East Bay cities. Median price simply means the middle of where prices land. They do not tell the entire story as every home is different. For example, last week I had clients interested in a home in Oakmore Highlands. The sold data in the immediate area would indicate that the value of this home could be between $1.5 and $1.7 million, however the inspection reports revealed that the front porch was in need of replacement and the cost due to the architectural design was over $75,000. The point is someone could have paid a high price for the home being that there has been very limited quantity of inventory in this neighborhood and perhaps the layout, location and size was more valuable than the needed repairs, but due to our diverse inventory, my experience has proven that price per square foot is rarely the best method to determine a home's value. 

What are my optimistic predictions for this year?  Spring should be business as usual. I have chatted with several of my stagers and they are booking up quickly, this indicates we should have a new supply of inventory in the upcoming months. There are buyers out there that are eager to find quality properties. 

Here are two quick takeaways:

• If you are considering a move and want to sell your home, now is a good time to chat. While Spring should be a healthy selling season, historically our real estate market becomes fickle during the summer. With graduations, vacations, etc.. the market is not always predictable. Also, the market tends to slow during national election seasons. Prices may still increase, but not at the same pace as other years.

• Preparation and attention to details matter. Likely your direct competition will be doing extensive repairs and renovations. As buyers are becoming more discriminating I definitely noticed that they will pay less or pass over properties that they feel need too much work.

Here is a buyer tip:

• It is highly likely that you will like a property that is popular. It always happens. I highly recommend getting pre-approved by a local lender who is known in our niché market. I have seen this help in multiple offer situations when all things are close or equal. Email me for a list of highly regarded local lenders.