August 2024: Interview on KTVU 2 + Earning the Highest Possible Price

Happy August!

I can not believe summer is coming to an end and the fall market is upon us. Earlier this month I had the honor of talking about the real estate market on KTVU 2 News.

I help my clients earn the highest possible price when they hire me to help them sell their homes, but how is the highest possible price determined?

The reality is that every single property is uniquely its own, from the natural light that flows through the windows to the access to the outdoor spaces, the landscaping to the systems and upgrades. Every property owner has made decisions on the care and maintenance that they have invested into their property, or the lack thereof. During their stewardship, homeowners make decisions such as who performs the work on their properties: licensed contractors, handymen, or does it become a weekend DIY project? Were permits pulled or not, and what type of materials were selected? Keeping this in mind, if you were buying a property, would you spend more for a home with a luxe kitchen - Sub-Zero fridge, custom cabinetry, and French doors opening onto a beautifully landscaped, level backyard? Would you spend more if the roof, foundation and electrical were upgraded? Or how much less would you spend for a home that needs major repairs and updating? If a home has newer high-end windows, versus old aluminum single-pane windows from the 1950's, would that change how you would value a home? In previous markets some of the items above had less of an impact on sales price than they do now. 

Market price is what a buyer is willing to pay at a given time, and right now there are buyers out in the market ready to purchase a place to call home. In today's market a home has to make sense to buyers both emotionally and financially. The interest rates and insurance challenges that I have mentioned in previous months’ enewsletter/blog posts have given buyers pause, so every aspect of a property is analyzed before a buyer will make a decision on whether to make an offer and for what price. 

Selling houses is a form of match-making: it is absolutely about attraction and connection. A buyer can spot a home that has been meticulously cared for, or one that was a bit neglected (intentionally or not), and a buyer will not pursue a home if they are not attracted to it. So when helping sellers my job is to help them groom their home to be as irresistible as possible within their budget, have a definitive voice, and detailed disclosures with the utmost transparency to give a buyer clarity, which are all needed in our marketplace. If a property is a fixer, let's still showcase it in its best light, share the assets and potential, and price it to attract buyers who are craving a project. Think of real estate websites like online dating apps, presentation and first impressions matter!

Starting mid-August through September, we will likely see a surge in inventory as the fall selling season is historically the second strongest selling season of the year. This week, I am bringing on 1225 Ward Street in Berkeley, a home that I had the privilege of helping my clients purchase, witness their transformation of the home and help prepare it for the market. This property feels really good with an enormous amount of natural light, an open kitchen, living and dining rooms. What makes this property extra special is that the owners gutted the house to the studs – it has new electrical and plumbing and approximately half the foundation was replaced! I will be hosting a Saturday open from 2-4 pm and Nicole will be hosting a Sunday open from 2-4 pm.

1225 Ward Street, Berkeley

If you are thinking about selling your property and do not know where to start, don't worry, I have helped hundreds of clients prepare and sell their homes, ranging from the most pristine properties to uninhabitable fixers. I will always lead from the heart with honesty, integrity and the best marketing. I hope you enjoy the last weeks of summer, eat some delicious corn, stone fruit and tomatoes and as always, I am an email or phone call away and no question is too small.

July 2024: Three Important Questions for Buyers

Happy July!

I'm currently working with a buyer who purchased a property last year with a different Realtor, regretted the purchase, sold the house after owning it for less than 9 months, and is now looking for a property that better suits his needs and lifestyle. With so many things in life, you often do not know the value of working with an expert unless things go really well or really poorly. As part of my practice, I always approach each potential property that a client is interested in independently, looking at the natural light, indoor-outdoor flow, the condition of the home and the workmanship of any improvements made - while I am not a property inspector, I have attended thousands of inspections and I know what to look for and when to ask questions. I send my clients the disclosures and reports that the sellers have prepared, and once they are strongly considering an offer, I pour over the disclosures as well so we can have a deep discussion on property condition, the needed repairs, value, and much more. 

There are 3 important questions that I ask buyers as we are fact gathering, and they are considering an offer:

• Will this house fit your needs for the next 7-10 years? In my experience a buyer should aim to hold on to a property long term. With the closing costs associated with buying and selling, a buyer will have to sell for 10% more than they paid to break even. Additionally real estate markets rise and fall and you have the best chances of selling with appreciation, the longer you own a home. I may ask questions - such as will there be any life changes in the upcoming years, and if so, will this home be suitable?

• Do you understand the property condition? The majority of the East Bay's housing stock is derived of older homes and almost every home has repair recommendations or some older systems, even the ones that are meticulously cared for. On average most homes, yes, even the pretty ones, need approximately $35K+ of repairs, plus when you are a homeowner you should anticipate maintenance costs.

• Will you be excited if your offer is accepted? I always ask my clients, if you write an offer and it is accepted, will you be happy, or will you ask yourself, what did I do? Once you buy a house, you own it and it is important that you understand what you purchased, feel great about the property, neighborhood, the needed maintenance and upkeep. Additionally, if a property has challenges, it is important that you are aware of those challenges before you buy, especially if they will affect future resale value. 

There is a great deal of information out there on real estate websites, various blogs, news outlets and more about the real estate market, but often that information encompasses a broad overview, it's not property or neighborhood specific, and the information may be inadequate in order for someone to confidently make such a large purchase. Unfortunately, I have met with buyers, (who I did not help with a purchase) who felt like they did not get all of the information they needed when they purchased a property and later have regrets.  

Going back to my client who I am helping purchase a property who had a bad real estate experience, he is looking at a home in the Rockridge neighborhood of Oakland. The house is a 2-bedroom property and he wants to better understand values so we are reviewing comparable sold data, also known as comps. Since January, there have only been three 2-bedroom homes with garages that have sold within a 1/2 mile radius, and the prices range from $1,160,000 to $1,580,000. So to better help him, I am comparing and contrasting those 3 sales, breaking down the reasons why each property sold for the price it sold, and comparing them to the property in question. I also had charts created from the multiple listing service (MLS) to illustrate how the neighborhood has performed over the last 3 years so my buyer can see not only today's data, but the longer term trends for the area.

Here are 2 of the charts that I sent him.

In any market, especially one as complex as the East Bay, it is very important to work with a Realtor who understands this local market, tours homes regularly, can compare and contrast the comps, and who gives you the insight needed so you can make the best decision for yourself. While I can legally sell a home anywhere in California, I only service areas that I am an expert in and suggest that all buyers work with an area expert. You will feel so much more confident buying a home with support, data, insight and knowledge, knowing that you've made the right choice.

If you, a friend or colleague is considering a purchase in the East Bay, reach out to me. I am here to help without pressure, and I will always tell my clients the information they may not want to hear, but need to!

Have a great second half of your summer!

June 2024: Growing up in Oakland and Property Transformation: Before & After

The sounds and scents of this time of year often remind me of my teenage years. When I hear the birds chirping before the sun rises and smell the late spring air, I remember being in high school, knowing the end of the school year was near, itching for summer break. There is something special about living in the same community you were raised in, where there are constant reminders of memories of those sweet times. Driving down Redwood Road, I remember being in high school when Sparky's Burgers first opened in Lincoln Square – I heard they had the best milkshakes! I recall driving a black 1980s VW rabbit pick-up truck that my parents allowed me to take to school and making a pitstop for a chocolate shake and onion rings. When I am in the Dimond District, I remember the corner of Fruitvale and MacArthur was my transfer spot to take the bus home from Skyline High School, back when Dimond Slice was a McDonald's. I would buy 2 cheeseburgers for 39¢ each and eat them before I got home, as my 100% organic and no-processed food mom would never allow fast food in the house. When walking Lake Merritt, I remember the summer of 1988 going to the Festival at the Lake – a place to see and be seen. Oakland, I love you, you are my forever home. 

As we head into summer, I am grateful to be a part of our community for so many years! Being able to help people purchase and sell little pieces of our beloved East Bay is an honor I will never take for granted. If you own a home and it is time to make a move, I will work with you to help your home show its best within a budget. Here is a link to some of my before and after projects where I helped my clients earn the highest possible price for their homes. Listing preparation management is just one of the many services I provide to all of my seller clients. 

As the real estate market is becoming more complex, please know that I am here to answer your questions, no matter how small. 

Happy summer y'all!

May 2024: Are we entering a balanced real estate market?

Remember that online real estate website feature "Make Me Move"? A seller would claim their home on this site and often name an absurdly high price that they would be willing to sell for. Fast forward and gone are the days when everything and anything sells, and a seller can name their price. While there are buyers out there, they are not buying a property they are not compelled to purchase. It has to feel right and make sense. Sure there are homes with multiple offers selling for well over the asking price, but it is property-specific. These are homes that are all buttoned up, have an amazing layout or view, reside in a highly coveted area, or all of the above. If your house does not have all of the above, if you make it cute, and price it according to your home's condition and the most RECENT comps in the area, it will sell. The reality is that with higher interest rates, inflation, and insurance challenges, buyers are – rightfully so – more discerning. I am encouraging both buyers and sellers to review comparable sold data from, ideally, a 3-month or less timeframe as going back 6 months is often unreliable at this point.

The market is not as soft as buyers would like, and many (not all) sellers are getting less than they would have a few short years ago. What I am seeing is a more balanced market. 

It is important to work with a Realtor that tours a lot of homes so they understand the subtle nuisances that give a property its value. Often price-per-square foot is not the best barometer to value a home, just as online tools often get values wrong – their formulas bundle properties together, instead of examining properties individually. The wrong agent could be pricing a seller’s property poorly, missing the mark to attract the maximum interest or could be suggesting pre-marketing expenses that would not produce a return on investment, and more. If a buyer is working with an agent that doesn’t  know the market, they could be spinning their wheels looking and offering on homes they have no chance in winning due to East Bay pricing strategy, or overpaying for a home that has challenges that are not obvious. 

This, my friends, is a time for opportunity and caution, for both buyers and sellers. I welcome the change and am ready to stay up to date on our market's dynamics. 

Wishing you a happy end of spring! Congratulations to all of the graduates out there! ❤️ 

April 2024: Real Estate Market Update

Happy April,

While I am not a fan of falling back or springing forward, there is something quite magical about the winter-to-spring transition in which it feels like almost overnight deciduous trees, shrubs, and flowers start to explode with leaves and blooms. Waking up to birds chirping is a nice way to greet the day. 

Though the real estate market is still seeing multiple offers, when I pull together comparable sold data for sellers who are considering selling and buyers who are house hunting I am noticing that sale prices can range greatly. Some houses are selling well over the asking price - getting 2-10 offers - while others are lingering on the market and selling for less than the original asking price. I have clients who just got pre-approved for a mortgage and qualify for a $2M purchase and after a 20% downpayment, they will have a $14K per month mortgage. They want to live in the East Bay and are very realistic, but the house and its condition have to make sense and be worth the cost. I mention this to say that a house has to be worth it for a buyer, whether it is a great house, layout, and upgrades, or a stellar location with great potential. Gone are the days in which a seller could do virtually nothing to maintain or upgrade their home and still have buyers respond with bags of cash. Our current market is one in which more preparation, consideration, and thoughtfulness are a required part of the process for both buyers and sellers. Buyers are less likely to wildly pay over what neighboring houses have recently sold for. If you are considering selling, be sure to ask your agent for a list of recently sold homes that are similar in size and see what those homes are selling for. How does your home compare to the recently sold homes? The big question: are you willing to sell your home for a price in that price range? If a house is exceptional, then perhaps that house will sell for more than all of the recently sold homes in its neighborhood, but this market is more balanced and less seller-centric.

Earlier this month KTVU News invited me back on air to weigh in on the real estate market. Click here to view the full segment. Remember when I am talking, I am often talking very broadly so if you have specific questions or want to know what your home is worth, give me a call or send me an email, I am here to help and provide expert advice and insight.

Thanks for calling on me, I love being your Realtor!

P.S.  4546 Toyon will be open this Sunday from 2-4 pm and it is a dreamy mid-century ranch! 

OPEN THIS SUNDAY, 2-4PM!

March 2024: The Value of a Good Buyers Agent

The media is talking a great deal about a recent legal settlement in the real estate industry. Last week the National Association of Realtors entered into a settlement agreement in the Sitzer-Burnett case, agreeing to pay a $418 million fine. This lawsuit will give the seller the right to decline to pay the buyer's agent commission, asking for the buyer to pay for their agent. Sellers in our region will likely continue to pay a total commission – there are many reasons that I support this structure and I will post about this in the near future. 

When reading various articles and the comment sections it has become clear that some consumers do not understand what buyer's agents do for their clients, especially in our niche market. Buyer-broker agreements will become mandatory soon so I thought I would share a few of the many ways I provide my clients with the highest level of agency. Every real estate market is different, but in our East Bay region, buyer agency and competency are crucial due to the complexity of our marketplace, older housing stock, high ticket repairs items, low inventory, and multiple offers. Accountability is an important principle in my practice so I want to be transparent about the process. If you have specific questions do not hesitate to email me, text, or call me.

I am here to be of service!

February 2024: The Spring Market & Buyer Tidbits

Happy February!

This is a long one as I want to share a great deal of information with you. While we are still technically in the middle of winter, the spring market has begun in the inner East Bay! Yep, we start early here! In January, I brought 3280 Guido Street onto the market, and 6 offers were received. The first week of February, I brought 8033 Earl Street to the market and 8 offers were received. I also tracked a few properties that clients had some interest in:

• A house in Albany, (sweet, but you could see and hear the BART tracks and noise) was listed at $1.1M and is pending at $1.4M

• A house in Sequoyah Hills, Oakland was listed at $995,000 and is pending at $1.3M

• A house in the Glenview, Oakland area was listed at $1,095,000 and is pending more than 60% over the asking price

• A house on the Oakmore/Dimond border was listed at $895,000 and is pending more than 50% over the asking price

At the same time, homes that do not show well, are overpriced, or have big challenges that can not be cured, (strong highway noise, next to an apartment building, on a noisy street, or properties that are dark with odd layouts), are not doing as well. Buyers are discerning as they should be, but are willing to pay to land the house they want. 

A few tidbits for buyers: 

In the inner East Bay, keep in mind that most of the homes for sale tend to be priced under value strategically to help generate as much interest as possible. Sellers, understandably, want to get top dollar for their properties, (just as you will, if and when you sell) and data shows that this type of pricing strategy works. Ultimately a buyer will set the value with what they are willing to pay. This is why buyer agency is important. An experienced buyer's agent can help weed out the properties that you can't afford and help you with properties you can. A good buyer's agent can help you understand the disclosure reports, look for pitfalls, and share insights on how various Realtors, houses, and neighborhoods perform. While I hate telling my buyer clients that a property will go over their budget, it would be far worse to write offer after offer with no luck and not understand why. 

One of the houses that I mentioned above was listed for over $200K less than the seller paid for the house 6 years ago and the seller did work on the house to improve it. So the listing price was not only priced lower than its value but well under a price that the sellers could accept without taking a major loss. Many years ago, I had buyers come to me after 6 months of searching for a home in the Glenview neighborhood in Oakland. Their budget was $750K and they felt defeated after losing every house they wrote on with their previous agent. They called me because they felt they needed a new agent who was more attuned to the market and would better help them. During our initial meeting, I shared with them that nothing in Glenview had sold for less than $800K for that past year, market data that had not been shared with them. While it is sometimes hard to hear, the truth is necessary. This takes me to another concept, many first-time buyers are looking for a forever home, I get it. But if you can not afford what you want, and are not willing to look at alternative locations that are more affordable, perhaps you should consider a smaller property that could help you build equity and later move up. There are many alternatives a knowledgeable agent will offer. 

Another consideration, 2023 was a fickle year with low-quality inventory so some of the recently sold homes in the area are not good comparables to use to figure out what to offer. For example, there was a home that sold in the Glenview neighborhood last year. It sold off the market as the seller decided to sell the property to a family friend. The seller's Realtor put the house in the MLS when the deal closed for "comp" purposes, but it was not a good comparison. First of all, if the house sold off-market, we have no idea where the house would have landed price-wise if it were on the open market with competition. We do not know if the seller accepted a reduced price due to a relationship and it turns out that the house needs a great deal of work, including foundation replacement, a new roof, electrical, updating, and more. Additionally, the buyer agreed to empty the remaining belongings and debris as part of the deal and the buyer was a Realtor, so she did not take a commission. I learned this when I had a client interested in buying in Glenview and was looking at sold values that were lower than the neighborhood typically commands and analyzing comparable sold data is what a good buyer's agent does. 

Buyer agreements have been around for years, but I have never used them. I have always had verbal agreements with buyer clients and those have worked great, but recent changes in the industry are making signed agreements necessary. Previously, buyer’s agents were paid by the seller: the seller pays the seller’s agent and the seller’s agent shares their commission with the buyer’s agent, as specified in the MLS per the listing agreement. While this is still a common practice, because of recent litigation and a change in MLS rules, sellers now can decline to pay buyer’s agents. So going forward, the seller will pay the buyer’s agent or the buyer will pay their agent. So far I have not yet seen a seller refuse to pay a buyer's agent a commission. If the seller does not offer sufficient compensation to the buyer’s agent, the Buyer Representation and Broker Agreement, (BRBC) you signed allows for various options:

• If the seller’s agent offers no compensation to buyer’s agents or offers less than what your agent wishes to be paid, in your purchase offer you can ask the seller to pay the amount you would owe your agent and, if the seller agrees, it will be credited to the amount that you owe your buyer’s agent in the BRBC.

• If the seller refuses your request to compensate your agent, and you do not wish to pay your agent’s commission or lack sufficient funds to do so, you can decline to purchase that property.

• In the second scenario it may be possible to negotiate a compromise with the seller to make the transaction work for you.

• In any event, if you request through the purchase agreement that the seller compensate your agent and the seller refuses to pay the amount requested you are not obligated to purchase the property.

• Again, at this time I am not seeing sellers not offer to pay for buyer’s agent commission, but we have to be prepared if things change. 

As always, I am an email and phone call away and I am keeping a close watch on our market!

Warmly,

P.S. Last  month I was recognized by Red Oak as being the top producing agent in the brokerage for 2023. Thank you for your continued trust and support in my business. Also a huge thanks to Nicole who works alongside me. We are here to help! 

January 2024: The 2023 East Bay real estate market review and what might we look forward to?

Happy January! 

I'm pretty excited this January. For the last 4 months I have done some major purging and reorganizing at my home, so I am starting the year off fresh and free of clutter.

The feeling is great, but it was a lot of work, so this year my goal is to stay organized, and only buy what I need or love. This sounds simple, but I am one of those people who will go to the grocery store and peruse each aisle and try something new, so I know restraint will be the word of the year. 

Have a garden? Now is the time to prune back rose bushes and hydrangeas, allowing them to rest, which can stimulate new growth. Pruning has also been known to increase the size of the flowers. I like to spray my shrubs with neem oil, a natural way to reduce pests in your plants. 

Looking for a real estate market update? For the last few years, KTVU2 has invited me on air to give an update and provide insight into our local real estate market. I was honored to provide my 2024 update the first week of January - here's the link to the full segment!

Online registration for Earthquake Brace + Bolt is now open and it will remain open through February 21, 2024. 

• Qualified homes can receive up to $3,000 toward seismic retrofitting

• New this year - there is an additional supplemental grant for income-eligible homeowners that may pay up to 100%

• Here is the LINK where homeowners can go to see if they are qualified

Come visit me this Sunday at 3280 Guido Street in the Redwood Heights neighborhood of Oakland. I will be hosting the first Sunday open from 2-4 pm.

As always, I am only an email or phone call away to provide you with personalized real estate insight and help. Thanks for trusting me with all of your real estate needs!

Here's to a happy, healthy, and fruitful 2024!
Warmly,

December 2023: The New York Times & Home Buyer Representation

I was contacted by the New York Times asking me to weigh in on the recent national NAR court case ruling that intends to change the commission structure for buy side representation for Realtors. Currently the seller pays the listing agent a commission typically somewhere between 5-6% and the listing agent shares a portion of that commission with the buyer's agent and their brokerage. The court case suggests that the seller should not be required to pay for the buyer's Realtor representation, who may have an opposing position during the transaction. I believe there are beneficial reasons for our current commission structure. For many buyers who have saved to afford a home, if the fee structure changes, they may not be able to afford to compensate their representation after paying for their downpayment and closing costs. Currently, lending is not set up in a way where a buyer can finance this fee, so unless there are additional funds available, a buyer can’t afford representation at all. In our niche market with older housing stock, there are many complexities that make two competent advisors necessary, such as insurance challenges, deferred maintenance that may incur extensive recommendations of repair, some, but not all that are revealed in disclosures, as well as various natural hazards and the overall competitiveness of our marketplace. It is a daunting task for a buyer navigating the process alone. One may look at online tools, see the average sales prices and feel that they have a grasp on values and can navigate the buying process alone, however a buyer may purchase the wrong property by not understanding what they are buying, or not being aware of material issues that a veteran Realtor can shed light on. 

A seller should want the buyer for their home to be represented by an experienced Realtor. The worst deal I ever experienced was when a buyer represented themselves. When the buyer got overwhelmed, they stopped responding, they did not return my phone calls or respond to emails, leaving the seller in limbo for days. The seller had to hire a process server to issue a notice to perform which was necessary, but the buyers took it as being aggressive. There was no buyer's agent to buffer, guide and respond. The buyer was not acting in good faith, but there was no broker to call to step in. I could not report their poor behavior to the DRE, because this is not their job and they have no standard of care or ethics to abide by. My seller clients were in tears during most of this escrow and felt that this buyer was holding their property hostage. While this is an extreme case, my concern is that this ruling could result in a chaotic market. One thing that I strive to do in my real estate practice is explain things so my clients have a better understanding of the process, what they are agreeing to, and what they are signing. Click here to read the New York Times article.

If you have questions about the real estate market, or your home specifically do not hesitate to reach out to me. 

Wishing you a wonderful holiday season, sending you wishes for good health, peace and delicious food!

P.S. Don't miss the 8th edition of my favorite things, click here to view.

November 2023: Reflections & Insurance Challenges

If you read my blog and read last month’s post, I mentioned that insurance challenges are a hot topic and they appear to remain challenging for the foreseeable future. In a nutshell, some insurance companies have stopped issuing new policies in the state of California and some companies are now not issuing new policies in high-fire zones as well as if there is knob-and-tube wiring, galvanized steel pipes, and/or a few other older systems. So what does that mean for the sellers? If your property has some of these components a buyer may have a very tough time getting insurance, and if they are able to obtain a policy it could be quite expensive. This means that some potential buyers who love your home may not be able to purchase it due to insurability, which could result in fewer offers and a lower sales price. So as a seller, it is important to identify some of these issues upfront and see what can be done to correct things before they become an issue. This may mean focusing some of the pre-marketing preparations on property systems to ensure insurability and focusing less on cosmetics. While we know a buyer has to be attracted to your property to come and take a look, we also need to ensure that a buyer can actually purchase your property. Now more than ever, expert insight and planning is needed to help you achieve your goals. This is a hot topic and I am staying informed and Red Oak is creating some systems to help!

Last night I was reflecting on some of the homes I have sold over the years: A Queen Anne Victorian that once had a printing business downstairs so there were beautiful vintage double doors installed to accommodate the large printing press. A cool mid-century home that once was a marijuana grow house with an amazing water irrigation system and incredibly amended soil, (fun tidbit: the pest inspector said he found a pound of weed in the crawlspace!). A majestic John Hudson Thomas craftsman home with the most spectacular dining room featuring handsome floor-to-ceiling windows overlooking a Norfolk Pine tree. So many uniquely individual properties that were enhanced by the owners to fit their personality and aesthetics. With the diversity also comes a myriad of property conditions, style preferences, and layouts, making home values anything but cookie cutter. When working with sellers it is my mission to enhance, highlight, and bring heart and creativity to each property so that a potential buyer will feel like they are purchasing something exceptional and one-of-a-kind. While the buyers will ultimately set the selling price, a great listing agent will use their experience on what today's buyers are looking for, stay on top of potential complexities and pitfalls, and make your home its most irresistible self so you can obtain the highest possible price. As my reflection ended, I was overwhelmed with gratitude that I earned your trust and that you have given me the task of showcasing your property and positioning it in its best light. 

As the deciduous tree leaves are flaunting their beauty by turning yellow, orange and red before dropping for the winter, let's embrace this next season and give thanks for all of our blessings. Thank you for your friendship, support, and calling on me for all of your housing goals.

Happy Thanksgiving,

October 2023: The Hot Topic of Home Insurance

Home insurance became a hot topic for me and my clients in the month of September. For several years now, many companies have refused to write new policies for properties in high-fire zones, leaving buyers with very few options that often force them to purchase an expensive California Fair Policy plan. As part of my process, I reach out to a local insurance agent, introduce them to my clients, and obtain an insurance quote prior to them writing their offer. Typically the insurance broker asks both property condition questions and a few about the potential buyer, and then will provide a quote. I have found that many buyers are not aware that high-fire zone locations command a much higher rate for insurance coverage, but it is important to know this upfront before you write an offer. If you waive your inspection contingency, you are also saying that you are waiving any insurability contingency as well. This means you can not back out of a contract without penalty if you do not like the insurance policy or rate attainable for a particular property. 

In one situation, I had clients who wanted to write an offer on a home that was a fixer-upper in Berkeley and turn it into their forever home. They were hoping to do the work immediately and move in after the bulk of the messy work was done. After talking with 2 insurance providers, they found that obtaining an insurance policy for a home that needed a foundation replacement, had an original furnace and knob-and-tube wiring, and would be vacant for a few months while the work was being performed was nearly impossible. This information made my clients uncomfortable with moving forward with their offer.

Did you know insurance claims stay with a house, not the policyholder? I had clients who made an insurance claim within the last 5 years: their refrigerator water line leaked and my clients made a claim to repair some cabinets, replace damaged floors, and replace the fridge. When they put their home on the market and the buyers went to obtain insurance, the new insurance company needed to have written proof that the claim had been completely remediated. This meant that my clients had to find all of the paperwork from that claim. Additionally, the buyers had fewer insurance options and possibly higher rates. 

So here are the key takeaways:

If you are a buyer and you are not willing to pay a premium for insurance, you should eliminate high-fire zone areas as part of your search. If you are a buyer and are interested in a property that has knob-and-tube wiring or very old systems, you may have few insurance resources and the more expensive California Fair Plan policy may be your only option. You can purchase the property with this policy but should budget removing the knob-and-tube or other systems that limit your insurance options, consult with your insurance provider, and then have an insurance inspection so you can apply for a new insurance policy at a lower rate. 

If you are a homeowner and are considering a sale in the near future and you are faced with making an insurance claim, I suggest you obtain bids and see what the actual cost would be to repair the issue without a claim. Add up the costs and subtract your deductible, is it worth it? I realize you are paying hard-earned money every month and are entitled to utilize your insurance policy, but if the cost to make the repairs is low, perhaps the insurance claim can be avoided. If it can't be avoided make sure you keep all of your documentation, especially the part that the issue has been remediated. This is key, the insurance providers for your property’s buyers will need to see the verbiage that the issue has been remediated before they can issue any new policy. 

Another insurance tip for homeowners is to check your policy to see if your insurance policy is up-to-date and accurate. I just called my insurance provider and found that some of the information about my property features in their system was wrong. Additionally, I found that I was underinsured, so I made the corrections and increased my coverage. While I am not happy about paying more in insurance premiums, I do want the peace of mind that I am properly insured.

Buying and owning a home can have some big rewards, but also is a big responsibility with continual maintenance. This includes making sure that you are properly insured, so I thought I’d pass on what I am currently seeing in an effort to best help all of you.

Reach out if I can be of assistance or put you in touch with a local insurance broker. With recent shifts in the home insurance industry, it’s best to be proactive about these things!

Thanks for trusting me with your housing needs and remember no question is too small, I am here to help!

September 2023: Our Complex Market

Happy September! 

In this complex market, we are seeing some homes selling with multiple offers well over the asking price, while other homes are lingering on the market. I created a report of all active single-family homes in the city of Oakland and as I write this, there are 440 properties on the market. Of those active properties, 185 of them have been on the market for more than 30 days and 43 have been on the market for more than 100 days. 

Berkeley is a completely different market with only 68 single-family homes on the market and only 19 have been on the market for more than 30 days. 

If you’re a home buyer considering the purchase of a property that isn’t selling, you may want to consider the following: In my experience, every home is saleable, even the most extreme fixer-upper. The key is the buyer has to see the value as this will be the place that they will be investing their hard-earned money, whether it is to live there as their primary residence or as an investment. It comes down to dollars and cents, a buyer will need to be 100% committed to your property for a transaction to work. 

• Is the issue the price? Are the sellers' expectations out of line with the property's condition or neighborhood?

• Are there layout challenges and functionality issues?

• Are there environmental factors such as heavy freeway noise, towering multi-unit buildings next door, or is the backyard unusable due to steep terrain?

The reality is that unless you are buying into a planned development, each home should be considered autonomous. While comps can be helpful, one simply cannot average the values of sold homes in a specific area and plug in a price valuation for a property. Additionally, if the property has deferred maintenance or other issues of concern, adjustments need to be made.

If you are considering a property that is lingering on the market it is crucial for you to talk with your Realtor about the reasons people are passing this property over, so you can understand what you may be purchasing. Once you understand why others are passing a home over, you have to be absolutely okay with those challenges and also understand that when it comes to resale value, you may have a similar difficulty selling and yield less from the sale than the homes surrounding the property. 

I recently met with a few homeowners who are contemplating selling their properties and requested a property valuation. They have seen websites that provide sales price estimates and assume those are fairly accurate valuations. I have said this many times before and I am saying it again, automated online valuations are most often unreliable. Online estimates simply cannot account for all variables in each unique home. Some of the homeowners that I have met with have acknowledged their property challenges and suggested their own price adjustments. It’s great that they are already attuned and aware that adjustments are needed, but in this market, buyers tend to pass over the challenging properties altogether. So as a homebuyer, if you buy a property that is lingering on the market, you have to take into consideration the home’s resale value. If you are a homeowner and have a property with challenges, you might consider waiting for a more seller-centric market before listing it. If you need to sell now, and correcting any challenges is not an option, my best advice is to make it show its best and not overprice it. If you need insight from a professional do not hesitate to reach out to me.
This Sunday, (9/24/23) I will be hosting my sweet Leona Heights listing, 4610 Stauffer Place from 2 pm - 4 pm. Come by and say hello!

Please know that I am an email or phone call away and no question is too small. I look forward to hearing from you!

Xo,
Deidre

August 2023: Bring on the Fall Market!

It's that time of the year where I am seeing all the first-day-of-school photos in my instagram feed. I love it as there are so many friends and family that I stay in touch with via social media. Of course, social media does not replace real conversations and social gatherings, but with so many friends and family out of state, it would be nearly impossible to stay in touch. 

Typically the start of school is also the start of the fall real estate market. This week I am kicking the season off with two beauties. 4305 Fair Avenue in the Redwood Heights neighborhood and 3208 Birdsall in the Maxwell Park neighborhood. Both properties will be open this Sunday from 2-4 pm. Come visit me and my team member, Nicole! 

You may be curious about what the real estate market is doing. Last week KTVU 2 News had me on air again to provide an update. While the headline is that the market is down 12.2% in Oakland, that is not the full story. Some neighborhoods are up and some are down, the 12.2% is an average, but there is so much more to it. Check out this interview and see what is happening in the market!

Don’t miss this market update!

September 4th will mark the 19th year I have been in business and I am so grateful for your support of my business, your trust in me as your real estate resource and advisor, and your recommendations of me  to your friends, family, neighbors and colleagues means the absolute world to me. Thank you so much!

Here's to a great fall season, and as always I am an email, phone call or text message away if you need anything!

Warmly,

PS – Get to know me plus see some fun real estate reels by following me on IG, @DeidreJ

JUST LISTED! – 3208 Birdsall Avenue • Maxwell Park, Oakland

July 2023: Italy! And garden walls!

We are now in the midst of summer and I took my first out-of-the country trip in many years. I feel so blessed and grateful that I was able to spend 9 days with my girlfriends in Italy! My trip was full of eye candy: historic structures, art from history books, and old cobblestone streets in Rome. I also visited the Amalfi Coast with gorgeous sapphire and turquoise water, cliffs, and coastline villages composed of structures carved in the rocks that appear to have been built centuries ago. The textures and color contrasts were inspirational.

And while it is great to get away, it’s also great to be home! I love being at home and spending a great deal of time keeping it fresh, clean and organized. I want to make my house a place that inspires me, indoors and out. I am constantly working in my garden and the other day I reflected on the space, observing the changes I have made over the nearly 24 years I have lived here. Unless you buy a property that is newly constructed, you will most certainly inherit a home with finishes inside and landscaping outside that you may or may not like. For example, when I purchased my home, the front yard had 2 large Japanese maple trees that I loved, while the backyard had 2 Bay Laurel trees that I am not fond of as they tend to shed leaves year round and produce berries that drop and stain the flagstone underneath. So how do you make an outdoor space your own while working with the existing gardens? Here are some tips from my own trials and errors:

• Live with what you have for at least all 4 seasons, you may be surprised by bulbs and plants that are hidden. You will learn if some of your trees or shrubs are deciduous (losing their leaves in the fall and blooming again in the spring.). 

• It is okay to remove some plants and trees for the greater good. For example, I had pineapple guava and Hachiya Persimmon trees that produced fruit that no one in my family enjoyed, attracted unwanted animals and were in the middle of the yard inhibiting my overall vision.

• Notice how much light each section of your garden gets: what areas get morning light, shade, and full sun, as you will want to make sure you plant plants that will thrive where planted. 

• Save photos of gardens you love as inspiration and really try to hone in on your style. I have vacillated between minimalist modern gardens to lush cottage landscapes. Keep in mind some of your garden styling will be determined by conditions of your yard space, for example, my front yard gets a great deal of shade due to the towering, plump branches full of leaves that the Japanese maples produce, so the border garden in front of my house is composed of ferns that like shade and remain green year round. But to keep it modern, I planted only ferns in that section.

• Privacy. Many people like a private backyard and that may require that you create a garden wall, which you can do by planting tall shrubs to create the retreat you are craving. If you plan on creating a garden wall, find a plant that grows tall such as Pittosporum or Podocarpus, ideally you will plant all the same plant to span the "wall". Make sure you leave enough space in between the plants as they will expand wide as they grow up (look up the plants’ width and height potential on any plant of interest) and make sure the shrub is evergreen so your garden wall is in place year round. If you create a garden wall, keep in mind that this will create some shade and could affect the type of plants that will thrive alongside it. 

• To keep a garden cohesive, try to have multiple plants in repetition, which takes restraint. In previous years, I would go to the nursery with no plan or restraint and would buy what excited me. My yard started to look like a hodgepodge of colors, blooms and foliage. If you can tie in some of the same plants throughout the front and backyard, do so, as that can really be impactful. 

The backyard of a home Deidre sold with an intentional garden wall

Summer is historically a slower selling season, but I am gearing up for the fall which is historically the second strongest selling season of the year. If you are thinking about buying and are frustrated by the lack of inventory, (keep in mind there is less inventory hitting the market), we should start to see more inventory in mid-August and after Labor Day. If you are thinking about selling, even if it is next year, it is never too soon to start planning, so call me so we can talk about the market, your home and make a plan.

Enjoy the rest of this month, and as always I am an email or phone call away and no question is too small.

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!