Work, School, Schedules, Projects…. Life in Silicon Valley is fast paced and a little crazy at times. Adding a house move to the mix can be intimidating but it doesn’t have to be. We’re lifestyle designers, we help busy people reconnect with their families, engage in their community and achieve their financial goals by investing [...]
New Listing at 1132 Capri Drive, Campbell
Stunning Executive Townhome ~ 1132 Capri Drive ~ Priced at $449,000 This open plan loft-style townhome has been updated throughout and is flooded with natural light. The large living and dining area provides the central focus for the home with beautiful feature windows, soaring cathedral ceilings, and a cozy fireplace. Adjacent is the beautifully remodeled kitchen [...]
Read the full article →U.S. home prices rise in October by most in 6 years
The end of the summer buying season shows a traditional slowdown in the market but doesn’t detract from the fact that U.S. home prices have risen in October by the most in 6 years. Record low mortgage rates, rising rents and renewed confidence boosted demand in the once battered housing market. At the same time, the [...]
Read the full article →How’s the housing market? Is your company hiring?
Real estate agents are often asked where we think the housing market is headed by people we meet. By way of response I often reply with a question “How’s your company doing? Are you hiring? Here in Silicon Valley we definitely see a direct correlation between the hiring patterns of local companies and the [...]
Read the full article →Los Gatos schools score top marks in the API results
Los Gatos schools have come out ahead again, with most schools and districts gaining ground from 2010′s already stellar performance. Scores are based on testing administered to students in grades K-12 in the previous academic year. The excellent API results add yet another reason to the lengthy list that makes Los Gatos such a desirable [...]
Read the full article →It’s Deja Vu all over again
I feel like I should be watching reruns of Lost – Season 1 and listening to Boulevard of Broken Dreams on my playlist (except I didn’t have a playlist back then). It’s like 2005 all over again, with buyers bidding 10 and even 20 percent over asking, zero contingencies and multi-million dollar cash offers all [...]
Read the full article →Locking in Peace of Mind
With historically low loan rates starting to inch up borrowers should consider rate lock agreements in their home purchase and refinance activities. Locking in an interest rate freezes the terms of the loan while it’s being processed; particularly important if an increase in rates would impact your ability to qualify and/or pay for the loan. [...]
Read the full article →Wednesday is real estate broker tour day in Los Gatos, Saratoga, Campbell and Cambrian. Every week we get to see newly listed homes big and small, new and old, quirky and elegant. Inevitably I see something that makes me stop, ponder and exclaim ”Now that’s a clever idea” or “Oh, this will sell the house!”
Today’s moment came at the new listing at 160 Robin Way , tucked in behind the Marchmont/Englewood neighborhood between Kennedy and Shannon. This nicely updated ranch home with a modern twist held a couple of surprises.
From a visual perspective the rich brick red commercial doors and windows were a daring choice but it works and they add a modernized Japanese shoji feel. The bi-sliding doors are a functional plus. Now why didn’t I think of that?
The real “eureka!” moment came when I walked into what should have been a small master bathroom. Rather than doing a major addition to add space to this small area, the owners added only a walk-in shower stall addition with glass brick, adding both space and light at minimal cost. This could work in any home in need of a slightly bigger bathroom without overly impacting the yard space or encroaching on setbacks.
If you want to see this home for yourself, give me a call, I’d be happy to take another look 
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Real Estate prices are down, interest rates are at record lows, you’ve found your perfect Silicon Valley Dream Home but you still have 1 hurdle to cross; Financing
Don’t sit on the sidelines assuming you can’t buy because you can’t get a loan. Here are 5 things the lenders are looking for in order to approve that home loan.
1. The Down Payment. While 20% down is preferable, don’t count yourself out if you don’t have it. You can still finance up 95% conventionally and up to 96.5% through FHA loans. There will be additional cost associated in the form of mortgage insurance but this may still end up being financially better than continuing to rent or stay in your current home.
2. Job History. Banks want to know that you have the ability to remain in the home and make the payments. Job History will be vetted carefully looking for career changes and earnings continuity. Short periods of unemployment shouldn’t affect you too negatively.
3. Debt. Banks want to know that you can comfortably afford to pay ALL your debts, not just your mortgage. Debt to income ratios vary but typically your total monthly debt should not exceed 41% of your income.
4. Credit Score. FICO scores range from 300 to 850. Lenders typically look for 640 and above with higher scores lowering the costs. FHA will consider borrowers with lower scores.
5. Paperwork. Gone are the days of the no doc loan frenzy. Lenders want to see paperwork to support your income and assets. That means paystubs, tax returns, account statements etc.
Talk to a reputable lender to find out what is available to you. Contact us for a referral.
Based on an original column by Candice Choi.
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FineHomeMoves - Intero Los Gatos
Los Gatos continues to be a great place to buy a home if schools factor into your decision.
The API scores awarded based on statewide tests administered in 2010 were exemplary across the board.
Los Gatos API scores help home values
Los Gatos buyers say the schools and the small town community are key factors in their decision to buy here.
Los Gatos is host to several school districts with the majority of the town being served by Los Gatos Union School District and Los Gatos – Saratoga Union High School District.
To the east of the town you can find some great neighborhoods that fall within the Union School District and Campbell Union High School District. To the north at the Campbell and Saratoga borders, homes are served by Campbell Union and Campbell Union High School Districts. Heading south on 17 you will find the small districts of Lakeside and Loma Prieta serving the Mountain communities with children moving on to the Los Gatos – Saratoga District for High School
For 2010 scores refer to the list of all the 2010 API scores for schools serving Los Gatos addresses.
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Schools serving Los Gatos addresses are listed below with their 2011 API score.
Los Gatos Union School District
- Blossom Hill Elementary School – 953
- Daves Avenue Elementary School – 918
- Louise Van Meter Elementary School – 938
- Lexington Elementary School – 906
- Raymond J Fisher Middle School – 927
Union School District
- Alta Vista Elementary School – 944
- Carlton Elementary School – 948
- Union Middle School – 917
Campbell Union School District
- Marshall Lane Elementary School – 953
- Rolling Hills Middle – 909
Lakeside Joint School District
- Lakeside Elementary School – 968
Loma Prieta School District
- Loma Prieta Elementary School – 931
- C.T. English Middle School – 928
Los Gatos – Saratoga Joint High School District
- Los Gatos High – 883
Campbell Union High School District
- Leigh High School – 822
- Westmont High School – 788
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A statewide requirement to have carbon monoxide detectors installed in all California homes goes into effect July 1.
The Carbon Monoxide Poisoning Prevention Act (Senate Bill 183) is a two part law that states the detectors must be installed on or before July 1, 2011, in single-family dwelling units.
The law goes on to state that single family homes with fossil-fuel burning appliances and/or an attached garage MUST have the detectors installed prior to sale. The Transfer Disclosure Statement used in real estate transactions has been updated to state the presence or absence of the detectors.
All other dwelling units, such as apartments or multi-family dwellings, have until July 1, 2013, to comply.
How easy is it to comply with the law? As easy as popping down to your local Home Improvement Store and buying an inexpensive plug-in unit for less than the cost of a night out at the movies.
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Recently listed as the 6th most expensive place to buy property in the USA you can imagine that Los Gatos has plenty of luxury properties to offer those looking for that little bit more.
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On broker tour yesterday I visited a beautiful home newly listed by a friend of mine on El Gato in Los Gatos. Although a modest 2 bedroom home, the owner had spared no expense in remodeling (right down to the $4000 kitchen sink!). This home and it’s 1 bedroom rental unit in back are the epitome of move-in readiness. I asked him how traffic had been and had he seen any interest yet. He proudly showed me the avalanche of realtor cards he had gathered that morning alone, only 1 hour into tour. He then told me he was already talking with a buyer about a potential all-cash offer. That’s not all, his previous listing (a Willow Glen home in the $1 million+ range) had also sold to an all-cash buyer.
One of my own recent transactions was also all-cash, though a more modest Campbell town home. We’re not alone, this is the story I’m hearing up and down the peninsula, with multiple offers and large cash injections being far from unusual.
This morning I found an article from Bloomberg in my intray reporting on exactly this trend in Silicon Valley and attributing it to the recent boom of IPOs creating cash rich buyers. What’s more one analyst reports this is only the beginning for us.
Take a read and let me know what you think.
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FineHomeMoves - Intero Los Gatos
If you’re planning to buy a home in Silicon Valley this year you need to be aware of changes afoot in the loan business. As of October 1, 2011, high balance conforming loan limits in the Bay Area are set to be reduced from $729,500 to $650,500 for a single family dwelling for both conventional and FHA mortgages. That’s a reduction in borrowing power of $79,500. The loan limit reduction is taking place across the country and will impact all “high balance exception” counties in California, including Santa Clara, San Mateo and Santa Cruz.
Currently, someone buying a home priced at $900,000 in Santa Clara County can put 20% down and not have to take out a jumbo/non-conforming mortgage. After September 30, 2011, the same home buyer will need to have 28% down payment (an additional $79,500) in order to avoid a jumbo loan scenario with higher interest rates. A home buyer not wanting to put more than 20% down with a loan amount of the new limit of $650,500 will be able to purchase a home priced around $814,000.
With FHA financing, a home buyer in the Bay Area can currently buy a home priced at $756,000 with a 3.5% down payment. After September 30, 2011, the same FHA home buyer with 3.5% to put down will be able to buy a home priced at $674,000, a significant reduction in buying power.
Come October, homes in the $814,000 to $900,000 price range may find it harder to sell as previously qualified buyers can no longer afford the home. It will be interesting to see how that affects prices in that specific segment.
If you’re considering buying or refinancing and plan to make use of non-conforming loan limits don’t wait until August when the banks will already be inundated with the pre-deadline rush. They may even have cut-off dates much earlier than August in order to avoid having non-conforming loans on their books past the deadline.
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You’ve found a house, it has the right schools and it’s in your established budget. Now comes the hard part. How much should you offer?
Ask yourself the following 5 questions and you’ll find you’re in a strong position when it comes to writing a compelling and fair offer.
1. What will the market support? First and foremost you need to understand the home’s “fair market value”. i.e. What have typical home buyers paid for a home like this in the recent past. Enlist the help of an experienced agent with current local knowledge (someone who’s currently active in the local market) to gather information on recent comparable sales (comps). Don’t rely on Zillow’s zestimate for accuracy. Even Zillow acknowledges this is simply a “starting point” and encourages users to supplement this information with a Realtor’s market analysis or an appraisal.
The best comps are similar properties sold within the last 3 months. Sometimes it might be difficult to find recent comps, in which case your agent’s experience and knowledge of the market and similar areas will be invaluable. Ask the listing agent what comps they used to set the price. The seller and their agent have already been through this exercise, you can benefit from their market research.
2. What can you afford to offer? Although the house is in your budget and your mortgage has been pre-approved at a sufficient level, the house may require repairs, have a costly HOA or be located in a less desirable school district resulting in you sending your kids to private school. This obviously adds to the monthly cost of you living there. Your offer price needs to take into account what you can afford on a monthly basis. Adjust it accordingly.
3. Do you have competition? Sometimes it’s as simple as having your agent ask the listing agent if there are any other offers on the table. Obviously another offer means you’ll need to be competitive in order to win. Although this may be a buyers market overall, there are still pockets of competition around resulting in multiple offers for well-priced homes. Don’t fall into the trap of assuming that all sellers are desperate sellers.
Your agent can generate stats showing the average number of days on market for properties, inventory levels overall, average list price vs sales price etc. This will help to give you a general view of the market activity in the area.
4. How motivated are they? What’s the seller’s situation? How long have they been on the market? Have they had any price reductions? Do they need to move or can they wait? A motivated seller will be more likely to negotiate an offer than someone who’s testing the market.
5. How motivated are you? If this is the home of your dreams you may be prepared to make an offer on the higher end of the home’s fair market value range.
At the end of the day you may never reach agreement on price for a particular home, but if you’ve followed these guidelines you can feel good about walking away having given it your best shot.
Based on an original column by Tara-Nicholle Nelson
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Spurred by a recent blog from Altos Research suggesting that top end homes are on the market longer but take fewer price reductions I decided to see if this holds true in the Los Gatos market.
Percentage Price Decreased - Los Gatos
Median Days on Market - Los Gatos
As you can see, home prices tell you a lot about the market and in this particular case it would seem Los Gatos is following the same pattern with top tier (top 25%) homes staying on the market longer and taking fewer price reductions than the lower 3 tiers. Price points for the 4 tiers are shown below.
Median Price per quartile - Los Gatos
Interestingly in looking at the same data for the whole of San Jose the opposite would appear to be true with top tiers selling faster and dropping in price more than the lower tiers. However in looking at individual zipcodes within San Jose it would seem that this is more a symptom of the wide variety of market areas in San Jose than a true reflection of the behavior of price tiers within specific markets.
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