Buyer Packet Carty Chock

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Hiep Nguyen (650) 996-3305

Intero Real Estate –Top 1% www.BayAreaRealEstateToday.com

The Silicon Valley HomeBuyer’s Guide

Prepared for: _____Carty Chock_____________

Hiep Nguyen

President’s Circle, Top 1%

BRE: 01441508

496 First Street, Suite 200

Los Altos, CA 94022 (650) 996-3305

[email protected]


mailto:[email protected]


Hiep Nguyen (650) 996-3305


The Silicon Valley Homebuyer’s Guide

Hiep Nguyen

President’s Circle, Top 1%

I. About Me

II. Client Testimonials

III. Tax Reasons to Own a Home

IV. How to Purchase a Home for Below Market Value in Silicon Valley

V. Eleven Costly Mistakes Buyers Make (And How to Avoid Them)

VI. Chronology of a Home Purchase in Silicon Valley

VII. Understanding Real Estate Closing Costs

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10-15

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32-34


Hiep Nguyen (650) 996-3305


My Philosophy

Honesty,

Integrity,

Experience, and

Perseverance are the qualities that I offer to you, my clients. As a consummate professional, my goal is to provide the highest quality of personalized service. Although buying a home is possibly the single largest and most important decision for you, I will arm you with local info, market facts, and necessary guidance to simplify the process and result in an enjoyable and successful experience. This philosophy guides me in my daily activities. As a Bay Area native for the past 20 years, I truly enjoy living and working in this wonderful community and I look forward to helping you find your “dream” home in Silicon Valley.

A Few Achievements

Intero President’s Circle, Top 1% Recognized as a Top Producing Agent is a direct reflection of my clients’ trust and confidence to handle their home and largest financial decision. Development of a Home from Start to Finish Knowledge of a home construction and a vision of a property’s potential are valuable assets to help you find a great, “diamond in the rough” property at a great price. UCLA Undergraduate and Graduate Degrees A home purchase is often the largest single investment most will make. Rest assured that you are with a Realtor who has the knowledge, solution-oriented negotiations, and discipline to get the job done.

Hiep Nguyen DRE: 01441508

496 First Street, Suite 200

Los Altos, CA 94022 (650) 996-3305

[email protected]


mailto:[email protected]


Hiep Nguyen (650) 996-3305


Recent Buyer Testimonials

“Hiep represented us in a multiple offers situation. We really wanted the house and were ready to pay well above market value. Instead of taking the easier path and allowing us to overpay, he actually convinced us to let him negotiate with the listing agent to see if we can win the house for less. Of course, going in we were very nervous at the possibility of losing our dream home. The result….he got the house for us (against multiple offers) and saved us a lot of money, money that we used to do some remodeling improvements!! Hiep, thank you for truly looking out for our best interest; you really do stand out from all the rest. ”

– Harvey & Hao H.

Hiep helped us buy our home in North Los Altos and also helped us sell a house in another town

on the peninsula. We have bought several houses up to that time and he was by far the best

realtor. You can’t do better than Hiep.

There are three things that stand out about Hiep. First, he has an extremely deep knowledge

about the town of Los Altos. Each town is different and within a town each neighborhood has

its own pluses and minuses. We went through about 20 houses in Los Altos and are very happy

with the location of the house we ended up buying. His knowledge is also reflected in his great

sense of a fair price for a particular house. When every $10,000 could make a difference, we

feel that we received excellent advice on how to position our bid.

Second, Hiep is a very effective negotiator. It seems that most realtors try to press the buyer to

bid high and the seller to offer low, and are more interested in getting the deal done than in

trying and negotiating with the other side and helping the other side see the validity and the

strength of their client’s position. On both the buying and the selling, Hiep was absolutely

willing to take a strong offer to the other side and find a way to convince the other side to

accept it. We didn’t feel any effort by Hiep to try to raise our bid beyond what we wanted

when we were buying or lower our offer below what we wanted when we were selling. We got

both deals done at a price where we felt good about.

Third, Hiep can and does handle everything for a seller. There was a great deal to do to put a

house on the market – including, in our case, moderate landscaping, interior/exterior painting,

and staging. Hiep completely took things off of our hands and dealt with everything for us. It

was a real easy process for us. We sold the house within one week of putting it on the market,

and Hiep got the last $5,000 we wanted on the price!

- Jonathan & Soo Z.


Hiep Nguyen (650) 996-3305


“Hiep was diligent and patient in working with us for almost a year based on the parameters we gave him in our search for a new home in Los Altos. Even after escrow closed, he was always available for any service request we had and rendered his help promptly and willingly. He is a true professional that I would endorse to any other home buyer.”

- Ken & Penny K.,

“Our first home purchase couldn’t have been more smooth or effortless for us thanks to Hiep! His patience, expertise, timely advice and sense of humor were the most valuable assets for us throughout our search. Hiep has certain ‘je ne sais quoi’ about him that makes people around him feel comfortable and confident; from the first time we met him, we knew we could trust him to look out for our interests.” – Ryland & Jiyeon D.

“Hiep is one of those people you recommend to all your friends and colleagues. His persistency doesn’t even compare to other agents I’ve met and he’s sincere. I knew early on I could trust my home in his hands, plus help me find the perfect new home. He knows real estate and what works and doesn’t work when variables change. He gets results. And in my case, he far exceeded my expectations.”

“My wife and I were fortunate to work with Hiep on the sale of our property in Los Altos, and then also on the purchase of another property in Los Altos. On the sale, Hiep demonstrated tenacity and professionalism in the preparation and listing of our property. The negotiation phase (which resulted in 4 competing offers during a “buyers market”) resulted in an exceptional final result. On the following purchase, Hiep was able to quickly figure out we were not looking for what most people were looking for, and he adjusted his approach to match our specific goals. Again he made his mark felt during the negotiation stage. I would highly suggest you talk to Hiep for any Real Estate sales, purchase or development activity.” –

- Grant & Heidi M.

“Hiep’s diligence and attention to detail made our recent real estate purchase a breeze! He managed the inspections and resulting action items, answered all of our questions, and followed up on post-close actions promptly. We highly recommend working with Hiep.”

– Yumie & Joe B.


Hiep Nguyen (650) 996-3305


“We worked with Hiep to help us figure out what kind of property to purchase for our first investment property. He was very knowledgeable and worked closely with us to help us target our needs. He also had some very useful financial tools for us to track the overall income generated by the product versus the outflow. We had a great experience with him, and highly recommend him to others.” - Neel & Carrie C.

“We have been interviewing a number of agents and started with one already but did not get the results we desired. We found Hiep and from the beginning felt very comfortable. Buying or selling a home is a very emotional process and usually a big sum of money is involved. Working with the right person or agent is almost as important as buying the house itself. Hiep is very knowledgably about the market in Silicon Valley and follows trends carefully and knows the neighborhoods very well. One of the things we especially appreciated about Hiep was that he never pushed us to make any fast decision. We weighted options and selected an approach which works best for us. So, for us it was important to not only find the “perfect” house but also not to overpay. Hiep knew that the price we had in mind may not work for some of the offers we submitted but did not push us to pay more which many agents would do in this market. Instead he waited patiently with us and always came back with new opportunities and kept us informed about the market. In the end he found us the right place and successfully negotiated a price we felt very comfortable with. Another important aspect for us was that he has a great understanding about interior architecture. We were looking for a house we can remodel instead of buying a brand new house which typically is more expensive. He helped us to find the right people to work with but also had good ideas on how things can get done and in fact what the price would be to calculate with. None other agents were able to provide such services.”

– Uwe & Yulia W.

“I have worked with Hiep at Intero Real Estate Services and have watched him continually exceed expectations in everything he does. He is someone that you always want around with his positive approach to life and business, and it is an honor to work with him…as I know it would be for anyone else that is lucky enough to do so. He is a true professional in every sense of the word, combining expertise with personal concern in every action he takes. Thank you so much Hiep for all your contributions to your clients, to me personally, to Intero, and to the industry!” - John Thompson, Founder, V.P. Intero Real Estate Services


Hiep Nguyen (650) 996-3305


Tax Reasons For Home Ownership

As you begin to consider reasons for owning a home versus renting, you will probably hear about the many tax advantages granted to homeowners. But what are they? The article below discusses the tax advantages of owning a home. These advantages will allow you to maximize your investment. To illustrate this point, the article also discusses the advantage of purchasing a home over investing in stocks. The example clearly shows that purchasing a home is the better choice. As with any tax question, please further consult your accountant.

I. Tax Advantages:

A. $500,000 Capital Gains Exemption

The Tax Reform Act of 1997 provides a capital gains tax exemption on your home. This amounts to $500,000 for married couples and $250,000 for individuals. With the federal long-term capital gains tax rate at 15% and California capital gains taxed as regular income (generally 9.3%), this can mean a tax savings of nearly 25%, or just under $125,000 on a $500,000 gain.

This rule only applies for your principal residence, and not for investment property. For a home to qualify as a principal residence, you must have lived there for at least 2 of the 5 years preceding the sale. Note that this exemption can be exercised once every 2 years.

B. Mortgage Interest Deductions

As you may know, the interest you pay on a home mortgage is deductible from your income before taxes. Given that most homebuyers in Silicon Valley are at least in the 28% federal income tax bracket (which starts for singles at $70,000 and for married couples at $117,000) and the 9.3% state tax bracket (singles at $38,000; married at $78,000), then 37.3% of the interest on your mortgage is indirectly subsidized by the government. Thus, taking away the cost of the subsidized interest, the after-tax cost of borrowing on a 6% mortgage is actually only 3.76%.

Tip: This deduction only applies for mortgages up to one million dollars. For example, only half of the interest paid on a two million dollar mortgage is deductible. Additional interest on a home equity loan up to $100,000 may be deductible if the money is used for the home purchase or home improvement. Thus, if you are purchasing a home for $1,400,000, you may want your down payment to be $300,000, your mortgage to be one million dollars, and your home equity line to be $100,000, making all your interest tax deductible.


Hiep Nguyen (650) 996-3305


II. Financial Advantages

A. Leveraging Your Down Payment

Excluding the recent downturn, housing is generally a very stable investment that either appreciates or stays constant in value. In fact, on a nationwide basis, there has never been a recorded drop in the median home price. In California, where home prices have greater appreciation but more volatility than in the rest of the country, median prices have risen for 31 of the last 40 years. Due to this stability, lenders are willing to loan large amounts of money at very low rates. Generally, buyers today are putting down only 20-30% as a down payment and financing the rest. Consequently, by leveraging one's money, the investment returns are multiplied. For example, if a buyer made a 20% down payment and the home appreciated 8% in the first year, the 8% return is multiplied by 5 due to leverage, so the 20% down payment actually appreciated by 40%.

Tip: Always avoid paying Private Mortgage Insurance (PMI), which is not tax deductible. Thus, if your mortgage is above 80% of the purchase price, take the first loan up to 80% and borrow the remainder as a home equity line, thereby avoiding the lender's requirement for PMI.

B. The Low Cost of Financing a Home

As mentioned above, mortgages are commonly issued at very low interest rates, given the security offered to banks by generally stable or rising home prices. At today's low mortgage rates (approximately 4%-5% for a 5 year fixed loan and 5%-6% for a 30 year fixed loan); coupled with the deductibility of the interest, the after-tax cost of home ownership is generally at the cost of renting a comparable home.

Tip: Buyers in the past have typically been conservative and acquired mortgages for longer than they needed, resulting in paying a higher interest rate. The average person in California moves every 5 to 7 years. Realistically evaluate how long you intend to be in your home, for the interest rate differential between a loan fixed for 5 years versus 30 years is generally one point. Of course, if you realistically expect to be in that home for 20-30 years, you should lock in these great rates for the long term. III. Comparison of an Investment in Stocks Versus Your Home

This example will illustrate that even when we assign a higher rate of return to stocks than your home, the advantages discussed above will result in your home being the better investment. Both investments begin with an initial investment of $200,000. Generally, stocks have more risk, but also more return than real estate. Thus, for this example I will assume a 10% appreciation rate for stocks, which is very generous based on recent returns. For your


Hiep Nguyen (650) 996-3305


home I will assume an appreciation rate of 6%, which is low compared to Silicon Valley’s historical standards. The timeline for both investments is 7 years, typically the length of time people stay in their home. The first $200,000 is used to purchase a stock portfolio, while the second $200,000 is used as a 20% down payment on a million dollar home. The value of the stocks after 7 years is: $200,000 x (1.10)7 = $389,744 Profit = $189,744 Because the $200,000 down payment bought a $1,000,000 home, the value of the home after 7 years is: $1,000,000 x (1.06) 7 = $1,503,630 Profit = $503,630

The difference in appreciation is further compounded by the fact that the $189,744 profit from stocks triggers capital gains tax at a rate of 24.3% (counting both federal and state taxes). Thus, the actual after-tax profit is $143,636. Because the first $500,000 in capital gains are exempt (for primary residences that you own for 2+ years), the after-tax profit of the home is $502,748. The after-tax profit of investing in stocks is $143,636, but the after-tax profit of investing in the home is $502,748.

Thus, even assuming that stocks appreciate at nearly double the rate of local real estate, the benefits of leveraging your money coupled with paying no capital gains on your real estate profits results in real estate providing a profit of over 3.5 times as much as stocks.

Because the costs of owning the home, such as mortgage interest and property taxes, are generally equivalent to the costs of renting, I do not factor these costs in our comparison of stocks to your home.

While the above comparison illustrates why your home makes a great financial investment, there are a multitude of other reasons why you should purchase a home. These include: 1) fixed housing costs, which provide predictability with your mortgage payment versus the constant uncertainty of variable rental rates; 2) you own the home and have freedom to do whatever you want, such as have a dog or paint the rooms any color you choose; 3) you will generally get more space, both indoors and outdoors, with your home versus a rental; 4) there is an indescribable joy and pride of ownership in being a homeowner.

View the great financial advantages of home ownership as your incentive to own and no longer rent; the other great perks are simply the icing on the cake. Disclaimer: While all of the above general principles are considered to be reliable, see your legal or tax consultant to determine how they apply to your specific circumstances.


Hiep Nguyen (650) 996-3305


How to Purchase a Home for Below Market Value in Silicon Valley

All real estate markets have homes that, for one reason or another, sell at lower cost

than comparable homes. Fewer Silicon Valley homes sell for below market value than in other areas; this is due to the intelligence of both buyers and sellers and the easy availability of housing information. However, the circumstances discussed below provide excellent opportunities to get your home at a discount. I will be sure to mention when one of these potential opportunities becomes available. 1. Probate sales

Probate sales present the most frequent occasion for finding a Silicon Valley home that can

be bought for below market value. Probate is a situation in which an estate is being settled and the heirs of the property will get the sales proceeds. Probate sales are excellent deals for the following reasons:

- The heirs want their money quickly. Generally, the heirs do not require that they get

the best price around, for the property proceeds will be tax free to them with no debt to pay off. (Debt is generally paid from other estate assets.) Thus, the proceeds are often seen as a windfall. More importantly, the heirs want their money ASAP, so probate listings are generally priced attractively, negotiations are shorter, and fewer counteroffers are issued.

- Probate listings generally have “the right things wrong with them.” The estate

generally does not pay for the cosmetic improvements that most sellers do, such as painting, new carpets, landscaping and staging. Heirs want to get money out of the property, and the concept of putting money into a home for preparation often seems foreign. Consequently, most probate listings, with worn carpets, peeling paint, and dead plants, will not show well. Since these small cosmetic issues can be addressed quickly and relatively cheaply, the buyer willing to look past them will be rewarded with a great deal. As a general rule, $10,000 spent on painting, carpeting and landscaping will increase market value by $40,000; if these improvements are not done, the buyer can easily do them to add value to the home. Of course, we will want to determine that big-ticket items such as the roof and foundation are in good condition. Probate listings are often vacant, looking drab and sterile in contrast to beautifully staged homes, which again deters some buyers while rewarding those willing to look past these temporary flaws. Do not think of a home with cosmetic issues as a bad home, but as a good deal.


Hiep Nguyen (650) 996-3305


2. “Fixer uppers”

Fixer uppers can often be purchased at a discount, even after factoring in the repair costs. Most buyers in busy Silicon Valley do not want to get involved with home improvement and will pay top dollar for a “turn key” home: that is, a home ready to move into with just the turn of a key. Thus, buyers who are willing to go through the time and expense of minor home improvement will be rewarded. Notice that I said minor improvements, for the best values are properties that have cosmetic issues but no major issues wrong with them. Like probates, the best “fixer uppers” can be quickly and affordably improved by painting, cleaning, carpeting and landscaping the home. I can advise you on which repairs have well over 100% return on investment and direct you to those homes.

Avoid homes that are fundamentally flawed, such as those that have a terrible floor plan or

a cracked foundation. Spending $100,000 or more to replace a foundation will assuredly not add $100,000 of resale value to your home. In contrast, spending $20,000 on interior and exterior paint, new carpeting and landscaping, and new countertops could easily add $60,000 in value to your new home. If you are willing to consider a major renovation, certain situations, such as adding a bathroom to a three bedroom, one bath home, can add a lot of value. Be aware that major remodeling projects always end up taking more time and money than originally planned, which is why I recommend homes in need of minor repair for maximum benefits. 3. The best time to buy a home in Silicon Valley is during the winter holidays or the

summer doldrums

Seasonal trends definitely affect the supply and demand dynamics of the housing market. Buyers do best when purchasing from mid-November to mid-January and late July to August. During the rainy days of November and December, most buyers take a break and focus on upcoming holidays and winter vacations. Dedicated buyers will then find that multiple offers lessen during this period, making motivated sellers very eager to listen to any reasonable offer. Starting in late January, more people again consider purchasing a home. Between February and June, buyers often reach a frenzy of competition, since the beautiful weather makes it easy to shop for a home and parents want to wrap up their new home purchase in plenty of time for the next school term. In July and August, the pendulum swings to favor buyers as many take summer vacations; thus, the number of buyers usually declines more than the number of listings. September through October is the last period that generally favors sellers before the rainy winter holidays approach. Clearly, you cannot let the time of year dictate when you buy your home. However, an awareness of these seasonal trends can help you. If you are reading this on a rainy November day, why aren’t you putting a bid on a home?


Hiep Nguyen (650) 996-3305


3. Foreclosures

Foreclosures are one of the best ways to purchase a real estate bargain in other parts of the country. Unfortunately, foreclosures are not very common in cities like Palo Alto, Los Altos, Menlo Park and Mountain View for several reasons. One reason is that most local homeowners have a lot of equity in their homes and thus can sell for a profit instead of being foreclosed on, unlike other areas with declining or stagnant real estate markets. Another reason is that there are so many real estate investors in Silicon Valley that the few foreclosures available are sought after; thus, they are purchased at or even above their market value. I do look for foreclosures for clients (the best site is foreclosure.com), but because they are so rare, they are not a strong option to consider in Silicon Valley. However, they are worth discussing, since they would be a viable alternative in other parts of the nation. 4. Initially overpriced listings can later become excellent deals

A home attracts the most attention right when it goes on the market. If it is overpriced and does not sell within the first few weeks, it can often sit on the market for months, and future price reductions may go unnoticed. After these homes have lingered on the market, the seller’s motivation has greatly increased, while the agent has stopped advertising the property. These properties can then be bought at bargain prices. This is particularly true if the home is vacant; here the home is costing the owner money each month without providing any benefit. Ideally, I will target homes with motivated sellers who have traded up and need the capital, or who have moved out of area and want to move on.

As an example, a large townhome in downtown Menlo Park was initially put on the market

at $988,000 when it was only worth about $800,000. Over the subsequent months, although there were aggressive price drops of about $100,000 at a time, the market had forgotten about this listing. It eventually sold for $600,000, as the seller was by then in desperate need of the money. I will identify these homes for you, and may even take you by a currently overpriced listing so that we can consider it as it lingers on the market in the future.

Another example occurred when I went to a listing appointment in Portola Valley. I recommended a list price of $1.6 million, but the owner chose to go with another agent, who recommended a list price of $2.2 million. After being on the market for several months, the price was dropped to $1.8 million, but by now the home was stale. Almost five months later, the home sold for $1.6 million. 5. Buyers can profit from an out of area or poor listing agent

Whether the listing agent is effective or not can have a large impact on a property’s selling price. For example, an excellent local listing agent will have prepared the home for sale by having the property painted, landscaped, and staged to look its best to all prospective buyers.


Hiep Nguyen (650) 996-3305


Additionally, advertising heavily and pricing the property at just below market value often generate multiple offers and a top dollar sale. In contrast, an agent unfamiliar with the local marketplace or a poor listing agent presents an opportunity for us to get a home below market.

Out of area agents from San Francisco, San Jose or the East Bay may not know how to effectively market a local home. They will likely not put the home on “broker tour” to show the home to other realtors, and are less inclined to hold open houses. This lack of exposure, usually coupled with a lack of advertising, will mean fewer buyers competing for this home and a lower sales price.

Additionally, a poor listing agent may not utilize a stager to properly prepare the home for market. In staging, a home’s interior is completely redone, clutter is eliminated, and the seller’s furniture is replaced by beautiful, optimally arranged showroom furniture. Through removing the seller’s effects, repainting, and simple landscaping, staging adds relatively cheap improvements that can greatly add to a home’s appeal and final sales price. A recent study of Bay Area homes found that homes that were staged sold for 5% more than those that were not. As well, the staged homes sold in half the time of the non-staged homes. Thus, if a home is cluttered and shows poorly, the opportunity to purchase this home for below market presents itself. 6. A property that is hard to show will sell for less

Some properties are vacant, so realtors can bring their clients by at any time. In contrast, some properties have either sellers or tenants still in residence. This generally requires setting an appointment with at least 24-hour notice before showing the property. Realtors will always show their clients the properties that are easier to show, generally avoiding the work and hassle of coordinating schedules to arrange an appointment. Thus, homes that are hard to show will generally get fewer showings and consequently sell for less. 7. Tailoring the offer to the seller’s needs

In our current “seller’s market,” having an offer that addresses the seller’s desires will allow our offer to be potentially selected over other competing offers. Great negotiating often is not about fighting over a zero sum commodity like price, but finding a way that the buyers can give the sellers something at no cost to the buyers but great benefit to the sellers. In a “buyer’s market” the offer should still be tailored to meet the sellers’ needs, but negotiating can be more aggressive on other components, such as price.


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8. Many similar properties dissipating the buyer’s interest level There are coincidental instances where many similar properties come on the market at the

same time. One popular San Carlos condominium building had many 2-bedroom units but very few 3-bedroom units, making the latter much more coveted and always bid up. Generally the 3-bedroom units in that complex would come on the market once every six months or so. When, by coincidence, 3 of these units came on the market within two weeks of each other, other buyers were satisfied with the first set of condos. My buyers were able to purchase the final unit well below market value because we were the only bidders on that unit.

Holidays can also cause fluctuations in the amount of inventory available. There is no broker

tour during many holiday weeks, such as Labor Day, Memorial Day, President’s Day, etc. Thus, there are generally a lot of properties that go on the market right before and after these holidays, as realtors list their properties when they can. 9. Finding motivated sellers

In a “seller’s market” such as we are now experiencing, the seller’s motivation does not affect the sales price much because multiple offers from eager buyers push the price up to market value. However, when the market starts to cool, buyers will again be in a position to benefit from sellers in desperate need to sell. Several situations can result in a seller needing to sell: for instance, carrying two mortgages after purchasing a new home, or a pending job transfer requiring a quick sale. 10. Transactions fallen through

Occasionally a home will get into contract, and then the buyer will back out for one reason or another. Generally, this is due to the buyer getting cold feet or having trouble getting financing. However, once a property goes off the market and then comes back, that home is often forgotten. Also, both realtors and other buyers question what is wrong with the home. Thus, when a home comes back on the market, it will almost always sell for less the second time that it did the first time.

Of course, there is also the possibility that the buyers backed away due to a fault of the property, such as damaging information found in the inspections. If this is the case, then we will avoid this home. Any time we are considering a home where the transaction fell through, I will be sure to do very thorough due diligence to ensure that there is no flaw of the property that caused the first buyer to back out.


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11. Death in the home

California law requires that sellers disclose if there has been a death in the house in the last 3 years. Some buyers will not consider homes where someone has died inside, even though nearly all of these deaths are due to natural causes, such as old age. Once the 3 years elapse, this is no longer a disclosure or resale issue. Some buyers see bad karma, but so long as the client is comfortable, they can be a great deal!

In conclusion, the vast majority of Silicon Valley homes sell for market value because the local housing market is as close to economically perfect as possible. However, savvy buyers with the help of an excellent agent can occasionally find well-priced homes available.


Hiep Nguyen (650) 996-3305


The Eleven Costly Mistakes Home Buyers Make (And How to Avoid Them)

In Silicon Valley, your home will likely be the largest investment you will ever make. If

bought properly, your home will also be the best investment you can make. Conversely, making a mistake could cost you tens of thousands of dollars or cause you to miss opportunities you may later regret. This article explores the most common mistakes buyers make, and, more importantly, how they can be avoided. 1. Not Seeing the Possibilities

Everyone is impressed by a “turn key” home. Here, all the work is done; you merely need to turn the key and it is ready to move in. Consequently, when a “turn key” home is on the market, is staged, and shows beautifully, then it will surely be sought after, and the winning bidder will pay top dollar.

On the other hand, if a buyer can look beyond minor issues with the home and see its potential, this buyer will not fight a multitude of parties and will likely end up with an excellent value. Examples of what to look past include the following:

Clutter – the removal of clutter is one of the first things a good realtor or stager does to prepare a home for market. Stagers prepare homes for market by removing or rearranging the seller’s furniture to make the home show better. A cluttered room will feel much more claustrophobic than a room that is staged and sparsely furnished. Clutter also identifies the property with the seller or tenant, preventing prospective buyers from visualizing themselves and their belongings there. This is why the “blank slate” that staging provides is so effective. Thus, when you do see clutter, look past your initial reaction that the home is not as attractive or spacious. Look for the possibilities and get excited that you may be able to get a great deal on your home.

Shag Carpet, Dark Paint, and Weeds in the Yard – Good realtors recognize that property preparation and good “curb appeal” have a large effect on a property’s sales price. Thus, the three improvements with the greatest return on investment are generally done before a home goes on the market. These include 1) replacing old and worn carpet, generally with light and bright carpet, and refinishing hardwood floors; 2) painting the interior and exterior a light, neutral color; and 3) landscaping the yard, manicuring the lawn, and adding many flowering plants. These improvements, which can generally be done on a typical home for around $10,000 to $15,000, can increase the property’s value by a multiplier of up to five times the cost.


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Consequently, if these simple and effective improvements were not done, it is usually due to one of the following reasons: a poor realtor, the property being tenant occupied, a probate or foreclosure sale, or a stingy seller who will not pay for these improvements. When this work has not been done, the potential to purchase the home for below market value is very likely. Making these inexpensive improvements before or after you move in will allow you to get instant appreciation. 2. Not Knowing the Quality of the Local Neighborhood and Schools

The old real estate adage says that the three most important qualities in determining the value of a property are “Location! Location! Location!” This is certainly the case in Silicon Valley, where distinct neighborhoods have differing characteristics, such as local schools, parks, and community safety, each of which affect a property’s resale potential.

Because of the great import of knowing the neighborhood, costly errors can occur if a buyer purchases in an area they know nothing about. For example, some may not know that some neighborhoods, such as Lloyden Park and The Avenues, have lesser Redwood City schools and not Menlo Park schools. This greatly affects housing values and appreciation. Schools affect property values more than any other hidden variables. I will try to let you know which cities have excellent schools, such as Palo Alto, Los Altos and Cupertino. Also, there are areas with better schools than you may anticipate, such as areas of Sunnyvale located in the Cupertino School District and areas of Mountain View with Los Altos schools.

Great Schools (www.greatschools.org) shows how schools fared on California’s Academic Performance Index (API), a barometer of the schools’ excellence. API scores range from 0-1000; each school’s goal is to hit 800. Based on the latest API scores, a score above 875 generally puts an elementary school in the top 10% of schools, a score above 825 puts a middle school in the top 10%, and a score of above 790 puts a high school in the top 10%. In poor school districts scores can be below 500, whereas in excellent school districts you will see scores consistently above 850, and often above 900.

Note that the premium paid for great public schools may not be worth it to you if you do not have children who will attend these schools. For example, there is a beautiful area of Redwood City west of El Camino that is called Mt. Carmel. Mt. Carmel has much of the charm of North Palo Alto, but prices are much lower, in large part because of the poor public schools in Redwood City. If you do not anticipate having your children use the schools, the discounted premium for this neighborhood may be large enough to make up for the lower future resale value. It is essential that you have information on the schools, although the choices you make will depend on the variables most important to you.

I will be sure to provide you with information and insight on all the neighborhoods you are considering. Beyond the evident architectural beauty of an area, I will impart what is not


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obvious, such as whether the neighborhood is in a flood zone (generally those areas close to the Bay, such as homes east of Middlefield Avenue), whether the area is safe, and my view on which neighborhoods have the greatest appreciation potential. 3. Being in a Rush to Buy Your Home

Given the large stakes and life choices involved in purchasing your home, I feel it is of the utmost importance not to rush, so you can fully understand and feel comfortable at each step of the home buying process. This will greatly lessen the possibility of buyer’s remorse.

Those who are in a hurry to buy their home may overpay because they are not familiar with the local marketplace and have not viewed enough homes to sufficiently hone their housing criteria. Those who are job transferees from out of the area, or who have just sold their homes and must quickly purchase a new home, are most likely to be in a rush and make costly mistakes.

These people should consider the option of renting for a short period, as they familiarize themselves with the local market conditions, neighborhoods, and schools, to avoid overpaying. Unfortunately, some clients rush to purchase because of their realtors. Some realtors, looking for a quick commission check, will push their clients forward when they do not fully know the marketplace and are not yet truly ready to purchase a home. In contrast, my goal is to educate clients on all aspects of the home purchase before they seriously consider putting an offer in on a home.

The first few times I am with a client, I initially focus on showing neighborhoods and their various attributes, such as schools and parks, and only show a few representative homes. I prefer that clients not consider putting in an offer until we have been out together at least several times. Additionally, I want to make sure clients are knowledgeable and comfortable with the purchase contract, since this document will contain the terms of their largest purchase.

It is important to me that you take your time at each step, so you feel comfortable with the entire home buying process. In rare instances, clients have found the “perfect home” very early in our search. I believe this home is worth considering as long as you feel that you have done enough prospecting, and as long as you feel the potential for losing this home would bother you more than purchasing it without having seen a large number of other homes.

4. Not Utilizing a Buyer’s Agent

Many people prefer to begin their house hunting without initially using a realtor. Thus, when by chance or through Internet searching they find a home of serious interest, they begin


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conversing with the listing agent at the open house. However, the listing agent is being directly paid by the seller and will not truly represent your interests. Worse yet, the listing agent’s two main motivations are first to sell the property quickly, which usually limits discussing its negatives, and secondly to sell the property for as much as possible, maximizing their double commission.

At all times, the listing agent represents the seller, or is at best a “dual agent,” theoretically representing both you and the seller. Based on my background in law, I feel it is unethical and an inherent conflict of interest to represent both the buyer and seller in the same transaction. Since the agent also represents the seller, when the buyer asks whether the home is fairly priced, the agent cannot state anything that would be adverse to the seller’s interests, even if the home were overpriced.

Conflicts can also occur throughout the transaction, even after the buyer and seller are in contract. For example, if issues come up, such as more termite damage being found than anticipated, the dual agent obviously cannot effectively negotiate between both sides to determine how much credit the buyer should receive for this additional damage. In contrast, a buyer’s agent represents the buyer’s interests at all times. I am always trying to get clients their future home for the lowest price and best terms possible. Some of the many advantages of working with an agent who represents you are that you receive impartial advice that the seller will never know of, have access to objective information, and can identify the risks and benefits of the different properties under consideration.

Since price is one of the most important items, let me illustrate the benefits of using a buyer’s agent. I will only direct you to properties that I feel are well priced; these listings may be from any real estate company. If you are interested in a property, I will provide you with a comparative market analysis that illustrates what other comparable properties have sold for. Based on this, we will draft an offer that you feel represents a fair price. I will then negotiate on your behalf to get you the best deal possible.

At all times and all stages of the home searching and buying process, I am working on your behalf and with your best interests in mind. I will only recommend that you proceed with an offer if I would feel comfortable spending the same amount of my own money for the property. I hope my excellent work will earn your trust, making you happy to refer friends and colleagues to me in the future.

First and foremost, I am a buyer’s agent, and I revel in finding excellent deals and the

best possible homes for my clients.

5. Focusing too Heavily on the List Price

The list price is not a very effective means of judging a home’s worth in Silicon Valley.


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Often a home is purposely underpriced to attract a large amount of multiple offers. It will then sell for well above its list price. Homes in Palo Alto and surrounding cities frequently sell for 10-15% or more above their list price, with sales price exceeding the list price by over 20% in rare instances. Do not feel that you will necessarily be overpaying for a property if you have to bid $50,000 over list price to be the winning bidder, for if the list price is arbitrary, it should not be a strong factor in your calculations.

Conversely, if a home is overpriced, there is no reason to give credence to the unmotivated seller’s dream price. In fact, initially overpriced homes can potentially become great deals as the frustrated seller eventually becomes more motivated over time.

The best barometer of a home’s value is what other comparable properties have recently sold for. Thus, I will prepare a Comparative Market Analysis (CMA), which provides a breakdown of the sales price of recently sold comparable properties and the asking prices of current listings. These properties will be comparable in location, square footage, and amenities. I will make adjustments for the differences in the properties examined and the property you are considering. For instance, if the property we are considering is on a busy corner, it should sell for less than a home just a few doors further from the intersection. For condos and town homes, the best indicators of value are other recent sales in the same complex.

Additionally, I will provide you with a general statistical overview of the marketplace and the sales price to list price ratio for the properties you are considering. For example, at present, the sales price to list price ratio for homes in Palo Alto is 101%; on average, homes are selling for 1% above their list price. In a seller’s market, this ratio is generally above 100%, as sales prices generally exceed list prices. The quantitative data provided by the CMA plus my updates on the level of interest from other parties will allow me to provide you with an estimate of the home’s likely sale price.

Another crucial variable in determining the property’s likely sales price is the number of

days on the market. If a property has been on the market for just one week and multiple offers are likely, it will almost surely sell for above its list price. In contrast, a property sitting on the market for two months will likely have an owner and agent happy to hear any reasonable offer.

After you feel comfortable with learning about the market dynamics and have a general sense of what properties in a neighborhood sell for, the CMA and my analysis should provide you with a relatively clear picture of what you would like to offer.

Clearly, the final decision of how much to offer is solely up to you. Whatever your choice, I will present our offer in the strongest terms possible. The important part is that you feel knowledgeable about the likely value of the property you are potentially purchasing.


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6. Not Carefully Reviewing the Disclosure Packet

The Latin phrase “caveat emptor,” or buyer beware, used to be applied to the housing industry. Now in California, which protects homebuyers more than any other state, the expression should now be “seller beware,” because sellers face a large liability if they fail to disclose facts that materially affect the value of the property. Sellers are legally required to fill out the three page, “Transfer Disclosure Statement” and the nine page, “Seller’s Supplemental Checklist” that address virtually all the major issues and potential problems that come with owning a home (improvements done without permits, whether insurance claims have been made, safety issues, etc.). Of course, the sellers only need to report all that they are aware of and cannot be expected to anticipate all future problems.

Additionally, professional property and pest inspectors are also used to provide the

homebuyer with an examination of the home. Inspectors detail any existing problems, such as termites or a roof in need of replacement, as well as issues that could lead to potential future problems, such as wood pellets that could attract termites or missing grout that allows water penetration. One qualifier: even the nicest of homes has some flaws. While buyers have a tendency to think a home is falling apart upon reading their first set of inspections, know that there are always some minor issues that need to be addressed with any property. The key is avoiding major expenses.

In addition to the seller’s disclosures and the inspection reports, a very important set of documents for those looking at condos or townhomes are the Homeowners Association documents. These include valuable information, such as whether special assessments or litigation are planned, the size of the reserves, and the governing rules of the complex.

While the disclosures are voluminous, the importance of their contents dictates that you should review them carefully. Do not solely rely upon my review and opinion of them. 7. Not Putting In a Strong First Offer in a Multiple Offer Situation

As mentioned, the majority of homes sold in Palo Alto and surrounding cities sell with multiple offers and for above list price during a seller’s market, such as the market we are currently experiencing. In a multiple offer situation, it is important that your first offer is strong; like life itself, there may not be a second chance.

Many buyers fallaciously believe the first offer is the beginning of negotiations, so there should be a lot of room to increase the purchase price when countered. This is true in a buyer’s market, when you are the sole buyer vying for the property. However, in a multiple offer situation, the listing agent will only consider the best offers. Many times, because it is presumed that buyers put in their best offer initially, the listing agent and sellers will just take the best offer without issuing any counteroffers. Other times, the listing agent and seller will


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counter only the two best offers, politely thanking the others but no longer allowing them to be active bidders.

While it may make sense to leave a little room to slightly raise the purchase price if

countered, the first offer you present should be close to your reservation price for the property. This will be determined in large part by finding out what comparable properties sold for. I am always trying to negotiate to get my clients the best deal possible. However, one must also be aware of market conditions to place a competitive bid.

I will describe the sellers to you and discuss how their character may impact their negotiation styles. For example, an elderly couple is less likely to counter and will take the best offer, while a venture capitalist seller likely wants to wheel and deal. 8. Not Tailoring Your Offer to Meet the Seller’s Needs

Whether in a buyer’s or seller’s market, you will be rewarded by finding out the seller’s goals and meeting them to some degree. In a buyer’s market, addressing the seller’s needs will allow you to purchase the home for a lesser amount. In a seller’s market, where multiple offers are the norm, this will make our offer stand out over the multitude of other offers. Additionally, our accommodation is indicative of a smooth escrow, and will also make our offer attractive to the seller’s agent. The key is my communication with the seller’s agent, which will determine what you can provide of great value to the seller at little or no cost to you. Some terms generally involve zero-sum negotiations: for instance, the seller wants the highest price possible, and we want the lowest price possible. However, some of the seller’s other desires may not come at any expense to you. These should be included if doing so will make the offer more attractive or help lessen the sales price.

One of the most important and variable terms is the close of escrow. The close of escrow is of great import if the seller has already purchased another home or still needs time to find their home. For example, if the seller is already in contract to purchase a home on a set day and needs the funds from the sale of his old house to close on the new house, then any offer that can promise this quick close on time will surely win over one that cannot.

In a more common example, the seller may want to first sell his home and then search for a new home with the proceeds safely in hand. In that instance, the seller will want a “rent back,” in which the seller stays on in the home for a short period, typically one or two months, while looking for a new home. In this circumstance, the seller will pay the buyers, who now own the property, rent.


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I always find out if buyers have flexible living situations (such as a month-to-month lease or living with friends or family) so they can tailor the escrow period to meet the seller’s preference. When this occurs, I have won offers for clients in multiple offer situations. Though others were coming in above our price, our offer was most attractive since we could give the seller the freedom to choose their ideal close of escrow date.

Conversely, if the seller has already moved out of the home, the seller then wants a short escrow period to reduce their carrying costs of the vacant home. Additionally, the shorter the escrow, the more secure the contract; long escrows can potentially allow unexpected pitfalls to derail the closing. I will always consult with your loan officer to determine how quickly they can comfortably close. My record loan closing is just four days, but in the lending environment, three weeks is a very quick close.

Taking the property in “As Is” condition has a cost to the buyer that varies by condition of the property. Thus, I recommend this step if it does not involve much cost to my clients (such as there being no Section I pest work needed), but counsel against this step if doing so involves great expense (such as the discovery of over $10,000 worth of pest and water damage in the pest inspection).

Contingencies, which protect the buyer but allow for a way out of the contract, make

the offer less appealing to the seller. Whether or not I advise that contingencies should be included depends on the condition of the home as found in the inspections, as well as financing issues involving the buyer and the property. Clearly, if no inspections have been performed, I feel a property inspection is necessary. On the other hand, if well-regarded inspectors performed thorough inspections and found nothing of import, then perhaps you will feel that no property contingency or further inspection is needed.

While during a seller’s market most winning bids do not have financial or property inspections, you should feel comfortable with your purchase. If this requires a contingency, we should include one. While the final choice is yours, I will provide my thoughts on whether contingencies are needed, depending on property condition and your financial situation. 9. Not Being Pre-Approved

Getting pre-approved by a local lender or mortgage broker is one of the first things you should do for many reasons. Knowing the available loan amount will aid in determining how much you intend to spend on your home and thus which neighborhoods we should be considering. Additionally, in Silicon Valley, a pre-approval letter is a prerequisite to serious consideration of an offer. While on rare occasion a buyer who is not pre-approved may have an offer accepted, the uncertainty the seller feels assuredly translates into a higher sales price.


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Begin the pre-approval process early. If any issues come up, such as your credit score

being lowered due to inaccurate reporting, it takes time to resolve them. Some lenders, particularly Stanford University, can take a long time to issue pre-approval letters; clients of mine who were Stanford professors lost out on their “dream home” because the pre-approval letter was not issued in time for the offer date. The loan officers I consistently use offer my clients better service and rates than anyone else I have found, and can issue pre-approval letters relatively quickly. If desired, I can provide you with these references. 10. Getting a 30-Year Mortgage and Moving in a Few Years

Until relatively recently, homebuyers almost always chose fixed mortgages of 15 or 30 years. Buyers viewed the long-term safety and stability of these mortgages as worth their higher interest rates. Thankfully, with the advent of numerous new loan programs, such as Adjustable Rate Mortgages (ARMs), interest-only mortgages, and mortgages that are not fixed for any period, buyers are now more aware of the multitude of choices, and more commonly choose a mortgage that best fits their life plan.

Buyers in California move, on average, every 6 to 8 years. This time is even less for my typical clients: young professionals without a family or with small children. Examine your intended life choices to determine your future plans, then pick a mortgage that matches that timeline. For example, if you are a young couple planning on having children sometime soon, but buy your first home in an area with poor schools, you will probably move when your children near school age. Consequently, a 5-year ARM may be your best mortgage option.

Conversely, if you are buying your dream home and you plan on being there for the indefinite future, then a 30-year loan may be your best option. 11. Buying the Best Home in the Neighborhood

We have already discussed two principal items that affect a property’s value: location, and use of comparative market analysis in determining list and the sales price. Consequently, it is evident that neighboring home values largely determine the value of a property.

Thus, those who buy the nicest home on the block will find limited appreciation when it is time to resell, because the lower values of surrounding homes will bring down their property values. This also applies to condominiums and town homes, for most agents will limit the comparative market analysis to recent sales within the complex. So if a condo has $100,000 in upgrades that other units in the complex do not, that unit will still probably sell for just a little above the price of the other units.


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However, if a neighborhood is rapidly gentrifying, such as The Willows in Menlo Park or downtown Mountain View, buying an above average home will not likely dampen appreciation potential, for the improving condition of the neighborhood will bring surrounding homes up to a comparable value by the time you consider selling.

Conversely, picking a great neighborhood and buying one of the lesser homes is a way to ensure rapid appreciation. While I recommend choosing location over upgrades, this is a personal choice I leave to my clients.


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Chronology of Purchasing a Home in Silicon Valley

Because a home is your largest and generally best investment, it is important that you purchase it properly, comfortably proceeding through each of the following steps with forethought. Some clients can do all of this in one month, whereas others can take nearly a year. Take the time you feel is appropriate, for it is essential to me that you are happy with your home and do not feel any buyer’s remorse. 1. Getting to Know the Neighborhoods and the Marketplace

Clients generally have an initial idea of what cities and neighborhoods most appeal to them. However, my goal is to examine your criteria to show you not only the neighborhoods you are already considering, but also the areas I feel are a good match for you. The first few times we go out together, I will try to give you an overview of these areas and will show you a few representative homes. More importantly, I will discuss the local schools, the parks, and the appreciation potential of each area.

I recommend that clients not consider purchasing a home until they are familiar with the neighborhoods and have seen enough properties to truly recognize an excellent fit.

At our first meeting, I will discuss the current marketplace and whether we are in a seller’s or buyer’s market. I will also provide statistics showing how many properties are on the market, the current list price to sales price ratio in various cities, and an analysis of market trends. These statistics are important, for they determine whether the seller or buyer is in control, consequently affecting negotiation strategy. Currently, we are in a seller’s market, with many homes receiving multiple offers and selling above list price. 2. Getting Pre-Approved

Getting pre-approved by a local lender or mortgage broker is one of the first things you should do for many reasons. Knowing the available loan amount will aid in determining how much you intend to spend on your home and which neighborhoods we should consider. Additionally, in Silicon Valley a pre-approval letter is a prerequisite to serious consideration of our offer.

Begin the pre-approval process immediately after meeting with me. If any issues come up, such as inaccuracies making your credit score lower than expected, resolution will take time. I can recommend several excellent lenders and mortgage brokers. As with all the recommendations I provide, I do not benefit in any way from your use of these service


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providers. Instead, I recommend them because of the consistently excellent service and rates they give my clients. 3. Finding a Home and Reviewing Disclosures

After you learn more about the neighborhoods you like and I learn more about your housing preferences, we will likely soon find a home you may want to purchase. Before taking that step, we will carefully review the disclosures that the seller and listing agent provide.

Disclosures contain many important items, most notably the property and pest inspections, the seller’s disclosures, and the title report. The property report will be the inspector’s opinion on the home’s plumbing, electrical systems, foundation, roof, and overall condition. This report will list all the issues the inspector finds. I will provide you with my thoughts on the issues found and let you know what issues are the most costly, such as foundation and roof issues, and what items can be repaired cheaply. The property inspector does not provide cost estimates. Generally, the items found in the property inspections are not addressed by the seller, but are your responsibility to repair.

The pest report will look for pest damage, most likely caused by termites, as well as any water damage that may be found in the home. Unlike the property report, the pest report will usually list the costs required to take care of these issues. The pest report describes damage as either a Section I issue or a Section II issue. Section I items are problems that are currently wrong with the home, such as active termite infestation or dry wall damage, in which water has rotted away the wood underneath the flooring or walls. Section II items are issues that could lead to pest or water damage in the future, such as wood debris that will attract termites, or missing grout or caulking that could allow water to penetrate the layer below. Generally, the seller is responsible for Section I items and the buyer is responsible for Section II items. However, if you take the property in “As-Is” condition, you become responsible for addressing the Section I items. In a seller’s market such as we are currently experiencing, most homes are taken “As-Is.”

Both the property and pest inspector make objective findings and will find the same items regardless of who hired them. Large liability concerns and ethical issues are the strongest reasons for the inspector’s honesty. The seller’s disclosures contain answers to questions such as whether any remodeling has been done, and, if so, whether the remodeling was done with permits. California is very protective of homebuyers, and requires sellers to disclose all the known material problems a property may have.

The title report is issued by a company such as First American Title, and insures that the seller can convey clear title without any liens preventing a smooth conveyance. All liens that may be on the property, such as unpaid property taxes, are listed in the title report. Problems with conveying title are rare.


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If you are considering a townhome or condominium, it is likely that the Homeowners Association (HOA) documents will be included in the disclosures or be quickly forthcoming. Important issues include the size of the financial reserves, whether any litigation or special assessments are looming, and whether there are plans to heavily increase HOA dues. Unlike the interest on your mortgage, HOA dues are not tax deductible.

We will both review the disclosures on our own, then later meet to discuss any concerns either of us may have with the information contained therein. We will analyze the condition of the home, as evidenced by the inspections and disclosures, together. Then we can decide whether we want further inspections and if a property contingency is warranted. Clearly, the condition of the property as evidenced in the inspections will affect your view of the property’s value. Only after you feel comfortable with the information in the disclosures should you consider making an offer.

Be aware that all properties, even brand new construction, will have several small items to address. On reading your first set of inspections, you may feel as if the property is falling apart, because the inspections generally only list what is wrong with the home and not what is functioning well. If desired, I can provide sample inspection reports to give you an idea of what is typically uncovered in these reports and get you used to their findings ahead of time.

4. Making an Offer

If you still want to proceed after reviewing the disclosures, we will then draft an offer. I will speak to the listing agent ahead of time to ascertain the seller’s desires and see if we can offer any items of great value to the seller with little cost to you. An example would be if the seller needs a rent back; that is, after the property has closed, they continue to live there for a short period, such as two months, while they find their next home. If you are happy in your current living situation and this rent back can result in getting the home for a discount, then this is clearly something to consider. I will let you know the seller’s desires, and we will balance them with your goals; from there we will draft the contract. Regarding what price to offer, I will provide you with a comparable market analysis, which will show what recent comparable properties have sold for and what the indicate as to the market value of this property. Additionally, I will update you on the interest level of other parties and whether it appears likely to be a multiple offer situation.

Due to the finite supply of homes in Silicon Valley, more often than not we will be in multiple offer situations, so you may have to make more than one offer to get your home. Note that in Palo Alto and surrounding cities you should not give much import to the list price. It is common to list a property below market value, thereby attracting greater attention and resulting in multiple offers. Occasionally, a home can sell for more than 15% above its list price. Conversely, if a property is overpriced and has been sitting on the market for a while, its list price has now become a dream price, and we can negotiate down. I will provide you with


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substantial feedback on a property’s worth, but the final determination of what to offer must always be your decision, since you will be the one making the mortgage payments.

Know that I always consider my client’s decision and purchase as if it were my own. I will never encourage you to proceed if I personally would not buy the home at the same price, and I will definitely never let you overpay for a property. Once an offer is made it can either be accepted, rejected, or countered. A counteroffer accepts all the terms of the contract except the terms that are mentioned. For instance, a counteroffer may increase the purchase price or shorten the escrow period. A counteroffer can be made either to just one party or to multiple parties. If there is just one counteroffer out to us, and we accept the counteroffer, then we are in a binding contract. If there are multiple counteroffers, which may all have the same or slightly different terms, the counteroffer must be not only accepted by the buyer but also re-accepted by the seller, ensuring that the seller sells the home to only one party. Should the seller counter our offer, we can also accept, reject, or counter their counteroffer. 5. The Escrow Period

Once the parties have come to a contractual agreement, then we enter the escrow period. An escrow company is a neutral third party that acts as an intermediary between the buyer and seller. In northern California, title companies handle both the title and escrow duties of the same transaction. The most important job of the escrow company is to properly take the buyer’s money in exchange for the seller’s property. An average escrow period is 30 days, with the vast majority ranging from 15-45 days. If contingencies were in your contract, such as a property contingency, then we would have inspectors view the home during this contingency period so you could determine if you want to proceed with the purchase. If you back out of a contract for a reason related to a contingency during the contingency period, then you are entitled to a full return of your “good faith” deposit (3% of purchase price). However, often any additional findings will lead to negotiations in which we can ask the seller to credit for any newfound problems. Usually an agreement can still be reached if the seller accepts our demands.

If our findings uncover a major issue, such as a very bad foundation, then we will likely

want to back out without seeking a credit, as this involves a lot of risk. If you have a loan, as most homebuyers do, then an appraiser would appraise your home. Also, I would work with your loan officer to ensure that the loan proceeds come in on time and with little hassle. Lenders require homeowners insurance on any single-family home purchase. I can assist you in finding a policy through an excellent insurance broker, such as Candice Normoyle with State Farm Insurance, who can be reached at (650) 561 - 4832. An insurance broker can examine many policies and choose the one with the best price and terms for your situation. You should also contact your auto insurance company, for good discounts are often available if you have both your auto and homeowners policy with the same company. Know certain facts about the property, such as the age and size of the home, which are important to the insurance company.


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Note that no lenders except Stanford University require earthquake insurance. While the vast majority of my clients do not seek earthquake insurance, I can arrange quotes if desired.

Your loan officer can provide an estimate of closing costs once we are in contract. If this is not provided, please let me know or contact the loan officer directly. The title company will provide us with the final costs right before signoff, indicating the exact amount of money required of you at the closing.

We will sign off the loan and title documents at the title company a few days before closing. Signoff cannot be scheduled until the loan documents are prepared, so I will contact you to schedule a convenient appointment. This generally takes a little over one hour: the time is shorter if there are no loan documents, and longer if there are additional loans, such as a home equity loan. Note that both your down payment and the lender’s funds need to be deposited and cleared one day before the close of escrow to ensure a timely closing. These funds should be wired in or paid with a cashier’s check (personal checks are not accepted). Please bring a California driver’s license or ID to the signoff. At the signoff, you choose how you would like to hold title to your property. Generally, married couples hold title as community property with right of survivorship and those who are single hold title as a sole person.

Right before closing, most buyers chose to exercise their right to a “walkthrough,” where we view the property to ensure that it is in same general condition as when purchased.

Call ahead to ensure that the lights come on in your brand new home. It is also advisable to put the utilities in your name as of the day of closing. Important phone numbers for Palo Alto, Los Altos, Menlo Park and Mountain View are below, and I can get you the numbers for other cities.

Palo Alto Sanitation 650-493-4894 Palo Alto Utilities 650-329-2161 Pacific Gas & Electric 800-743-5000 Pacific Bell 800-310-2355 Mountain View Garbage 650-903-6317 Mountain View Water 650-903-6317 Menlo Park Water Maintenance, Water 650-330-6780 BFI San Mateo, Menlo Park Sanitation 650-637-1411 California Water Services, Los Altos 650-917-0152 Los Altos Garbage Company, Sanitation 650-961-8040

The day of closing is actually a little anti-climatic, since the signoff and walkthrough are done and your down payment and the lender’s funds are deposited a day earlier. On the day of closing, all that happens is that the escrow company transfers your funds to the seller and records the deed in your name with the county. Once we are on record with the county, I can


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provide you with the keys and other information, such as appliance manuals, which are usually left with the property. While you are the owner of record when escrow closes, generally you will not receive official notification from the county for up to 3 months afterward.

After this, enjoy your new home. We will stay in close contact so that I can further assist you, perhaps providing you with recommendations for a gardener, plumber, etc. I will follow up with you to ensure that you are enjoying your new home. Please contact me at any time and for any reason at (650) 996-3305 or [email protected].


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Understanding Real Estate Closing Costs

Since buyers are often uninformed regarding the extent and source of real estate closing costs, these costs often take them by surprise. Generally, closing costs are around or under 1/2 of a percent of the total purchase price, excluding any points the buyer may be paying on their loan. Thus, on a million dollar purchase price, expect to pay approximately $5,000 in closing costs if you did not pay for points on your loan. This article examines the typical closing costs a buyer is expected to pay. It will first discuss which closing costs vary and then which closing costs are generally fixed. I. Variable Closing Costs

A. City Transfer Taxes

Transfer taxes, which can be a large factor in closing costs, vary depending on property location. Three cities in Santa Clara County have city transfer taxes – Palo Alto, Mountain View and San Jose. The transfer tax, set at $3,300 per million in all three cities, is evenly split by the buyer and seller. Thus, if buyers purchase a million dollar home in one of these cities, they will owe $1,650 in city transfer tax. In San Mateo County, the only city with a transfer tax is San Mateo. Here the transfer tax rate is set at $5,000 per million, and is also split evenly. All counties have an additional transfer tax of $1,100 per million, but this is entirely paid by the seller.

B. Title Insurance and Escrow Fees

Before the allure of avoiding city transfer tax has you redirecting your home search to San Mateo County, realize that buyers pay more title insurance in San Mateo County than in Santa Clara County. The difference is that in Santa Clara County the seller normally pays for the buyer’s title insurance and the buyer only pays for the lender’s title insurance. Conversely, in San Mateo County, the buyer must pay for both the buyer’s and the lender’s title insurance policy. For a million dollar purchase in Santa Clara County, title fees will be approximately $970, whereas in San Mateo County, title fees will be approximately $3,700. These fees do not vary much among title companies because the rates are regulated by the state of California. Of course, the savings you get in Santa Clara County will balance out later, when you are a seller and must pay for the buyer’s title insurance policy.


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C. Points on Your Loan

The variables with the greatest effect on the magnitude of your closing costs are points on your loan. A point, or 1% of your loan (for example $10,000 on a $1,000,000 loan), is used to buy down your interest rate. For example, a 30-year fixed mortgage may be set at 5.75% with no point, at 5.5% with one point, or at 5.25% with two points. Points are viewed by the government as prepaid interest; consequently, like mortgage interest, they are deductible from state and federal income tax.

Points are deductible in the year they were purchased. Thus, if you paid a point for your loan, the full amount of that point is deductible from your taxes during that same tax year. Note that while points are tax-deductible for purchases, the deductibility of the points is spread out over the life of the loan for refinances. See your tax advisor for more details. Whether points are a good value for you depends on the time it takes for you to recoup their cost in interest savings and the length of time you stay in the home. For example, if one point brings your rate down 1/4 of a percent, then it takes four years to recover the costs (if we ignore potential future savings due to inflation, keeping the math simple). With a four-year recovery period, this would be a wise investment if you will stay in the home for 30 years, but a poor one if you sell or refinance in two years. I would love to assist in analyzing whether points are a good buy or not, if you would like.

The interest you pay on your mortgage is tax deductible on both federal and

state taxes. This includes some interest for your first month of ownership; you will pre-pay this at the closing. Your lender will send you a yearly total of the amount of deductible interest at the end of each year.

D. Other Lender Fees

The closing costs associated with a mortgage can vary by a great deal. When choosing a loan, you should scrutinize these as heavily as the mortgage rate. Some lenders will have many “junk fees,” such as an underwriting fee, a review fee, etc. I recommend lenders who have low closing costs: when you hear their rate, you know there are no hidden surprises. Other fees, such as an appraisal fee, generally range from $400-$450 for a million dollar purchase. Overall, fees from a lender should not exceed $1,500 on a million dollar loan, excluding any fees you pay for points.

E. Property Taxes

Property tax is prorated: the seller pays the property tax while in possession of the property, including time in escrow, and the buyer pays the property tax once the


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property is transferred. Whether property tax is a debit and increases your closing costs or is a credit and reduces your closing costs depends on what time of year you buy your home and whether the seller has paid upcoming property tax.

II. Non-Variable Closing Costs

Certain closing costs do not vary depending on the property location or the chosen lender, although these costs can change depending on the circumstances mentioned below.

A. Homeowners Insurance

A typical homeowner’s policy will be about $1000, more with a very low

deductible and less with a higher deductible. Generally, your best rates will come from the same company that provides your auto insurance, for insurance companies provide savings when insuring multiple assets. You generally pay for your first year insurance policy in escrow, but can pay the insurance company directly if desired. I will provide homeowners insurance quotes once we are in escrow.

B. Homeowners Association Dues (HOA dues)

HOA dues, which are only paid for condos and town homes, generally run between $250-$500 per month. You pay in advance for your first one or two months of HOA dues in escrow.

C. Recording, Notary, Wiring and Document Preparation Fees

These various fees from the title company generally total about $300.

To summarize, closing costs for your purchase in Santa Clara County should be about

1/2 % of your purchase price, or $5,000 on a million dollar purchase, excluding lenders’ points. These fees will be slightly higher if your home is in San Mateo County, where buyers pay more in title fees, outweighing the savings in city transfer taxes. Lenders’ points can quickly increase this amount, but they are an option to consider if you want to increase your tax deductions for that year.

Note that as your buyer’s agent I will always try to get you the best deal possible, both during and after the close of escrow. This applies not only to the home, but also to service providers, such as lenders, contractors, and others.

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Below is a look at the past 30 years of San Francisco Bay Area real estate boom and bust cycles.

Financial‐market cycles have been around for hundreds of years, all the way back to the Dutch tulip

mania of the 1600’s. While future cycles will vary in their details, the causes, effects and trend lines

are often quite similar. Looking at cycles gives us more context to how the market works over time

and where it may be going.


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A small region of its own, the Bay Area still has distinct areas with their own attractions and cultures.

The sub‐regions of the Bay Area are described several ways, which may give the first time visitor the

impression that the Bay Area is bigger than it really is. In fact, the unique geography of the Bay Area

makes it relatively easy to get a sense of where you are.

Regions of the Bay Area

San Francisco

The de facto center from which directions to various

regions in the Bay Area are made.

North Bay

Lies across the Golden Gate Bridge from San

Francisco and includes Marin, southern Sonoma,

southern Napa, and Solano Counties.

East Bay

Lies across the bay from San Francisco, and includes

Contra Costa and Alameda Counties.

Peninsula

Stretches south down from San Francisco across San

Mateo County and into the northern parts of Santa

Clara County.

South Bay

South of the Peninsula and the East Bay, includes

most of Santa Clara County, and is anchored by the

most populous city in the Bay Area, San Jose.

Hereʹs a handy rule of thumb: the telephone area code 415

generally means San Francisco (although it includes a few

nearer parts of the North Bay like Marin); 650 is the

Peninsula, 510 and 925 is for the East Bay, 707 for the North

Bay or Wine Country and 408 and 669 are for the South Bay

or the Santa Clara Valley.

Note that the boundary between Peninsula and South Bay

is not formal; some locals, and some other sites/guides may

place some of the northern Santa Clara County cities

categorized here as ʺPeninsulaʺ as South Bay ‐ for example,

the local Craigslist does so for Mountain View.

Commute Alternatives:

Bay Area Rapid Transit (BART) is an extensive

regional metro system that connects San

Francisco to the East Bay and Contra Costa

County, as well as parts of the Peninsula, the

eastern half of Silicon Valley, and the San

Francisco and Oakland airports.

Caltrain is a commuter train system running

along the Peninsula between San Francisco,

San Jose and Gilroy. Ticket prices vary by the

distance between stations, but usually run

around $3‐$6 one way. Trains run about once

every half hour, on average, once an hour late

evenings and weekends, with several more

trains running during commute hours.


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Santa Clara County is a county located at the southern end of the San Francisco

Bay Area in the state of California. As of 2010 it had a population of 1,781,642. The

county seat is San Jose. The highly urbanized Santa Clara Valley within Santa

Clara County is also known as Silicon Valley. Santa Clara is the most populous

county in the Bay Area region, and one of the most affluent counties in the United

States.

Area: • Total 1,304.01 sq mi (3,377.4 km2)

• Land 1,290.69 sq mi (3,342.9 km2)

• Water 13.325 sq mi (34.51 km2)

Santa Clara County was one of the original counties of California, formed in 1850 at the time of

statehood. The original inhabitants included the Ohlone, residing on Coyote Creek and Calaveras

Creek. Part of the countyʹs territory was given to Alameda County in 1853. Once promoted as the

ʺValley of the Heartʹs Delightʺ, after two centuries of an agricultural economy started by the Spanish

missionaries, the focus has shifted to technology. This trend is not new. Hewlett Packard was

founded in 1939, and IBM selected San Jose as its West Coast headquarters in 1943. Varian Associates,

Fairchild Semiconductor, and other early innovators, were located in the county by the late 1940s and

1950s. The U.S. Navy had a large presence in the area and began giving large contracts to Silicon

Valley electronics companies. The term ʺSilicon Valleyʺ was coined in 1971. The trend accelerated in

the 1980s and 1990s, as agriculture has been nearly eliminated from the northern part of the county.

There are 15 incorporated cities and towns in the county:

1. San Jose, which includes all or

portions of the former

cities/communities of:

Alum Rock,

Cambrian Park,

Willow Glen,

East San Jose, and

Alviso

2. Campbell

3. Cupertino

4. Gilroy

5. Los Altos

6. Los Altos Hills

7. Los Gatos

8. Milpitas

9. Monte Sereno

10. Morgan Hill

11. Mountain View

12. Palo Alto

13. Santa Clara

14. Saratoga

15. Sunnyvale

The average sales price in Santa Clara County has increased from

$689,975 in Jan 2004 to $1,030,896 in Dec 2013. There were 1562

new listings in Jan 2004 and only 296 new listings in Dec 2013.

This is limited new inventory is driving up housing prices with an

increase in average sales price of 24.9% from Jan 2013 to Dec 2013.

Multiple offers are generally increasing sales prices by an average

of 102.5% over their list price. Price per square foot has increased

from $384 in Jan 2004 to $537 in Dec 2013.


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San Mateo County (SAN mə‐TAY‐oh; Spanish for ʺSaint Matthewʺ) covers most of

the San Francisco Peninsula just south of San Francisco, and north of Santa Clara

County. San Francisco International Airport is located at the northern end of the

county, and Silicon Valley begins at the southern end. As of 2010 the population

was 718,451. The county seat is Redwood City. It is ethnically diverse, and

affluent.

Area • Total 741.01 sq mi (1,919.2 km2)

• Land 449.07 sq mi (1,163.1 km2)

• Water 291.95 sq mi (756.1 km2)

San Mateo County was formed in 1856 after San Francisco County, one of stateʹs 18 original counties

was split apart. Until 1856, San Franciscoʹs city limits extended west to Divisadero Street and Castro

Street, and south to 20th Street. In response to the lawlessness and vigilantism that escalated rapidly

between 1855 and 1856, the California government decided to divide the county. A straight line was

then drawn across the tip of the San Francisco Peninsula just north of San Bruno Mountain.

Everything south of the line became the new San Mateo County while everything north of the line

became the new consolidated City and County of San Francisco, to date the only consolidated city‐

county in California. San Mateo County then annexed part of northern Santa Cruz County in 1868.

There are 20 incorporated cities and towns in San Mateo County:

1. Atherton

2. Belmont

3. Brisbane

4. Burlingame

5. Colma

6. Daly City

7. East Palo Alto

8. Foster City

9. Half Moon Bay

10. Hillsborough

11. Menlo Park

12. Millbrae

13. Pacifica

14. Portola Valley

15. Redwood City

16. San Bruno

17. San Carlos

18. San Mateo

19. South San Francisco

20. Woodside

The average sales price in San Mateo County has increased

from $852,057 in Jan 2004 to $1,030,896 in Dec 2013. There

were 547 new listings in Jan 2004 and only 128 new listings in

Dec 2013. This is limited new inventory is driving up housing

prices with an increase in average sales price of 56.5% from

Jan 2013 to Dec 2013. Multiple offers are generally increasing

sales prices by an average of 102.5% over their list price. Price

per square foot has increased from $471 in Jan 2004 to $645 in

Dec 2013.

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Intero Real Estate - Top 1% www.BayAreaRealEstateToday.com

Los Altos is a city at the southern end of

the San Francisco Peninsula, in the San

Francisco Bay Area. The city is in Santa

Clara County, California, United States.

Los Altos means "the heights" or "foothill"

in Spanish. The population was 28,976

according to the 2010 census. Most of the city's growth

occurred between 1950 and 1980. Originally an

agricultural town with many summer cottages and apricot

orchards, Los Altos is now an affluent bedroom

community. Los Altos has several distinctive features.

Geography: According to the United States Census Bureau, the city has a total area of 6.487 square miles (16.80

km2). All of it is land. Commercial zones are strictly limited to the downtown area and small shopping and

office parks lining Foothill Expressway and El Camino Real.

History: The area was originally called Banks and Braes. Paul Shoup, an executive of the Southern Pacific

Railroad, and his colleagues formed the Altos Land Company in 1906 and started the development of Los

Altos. The company acquired 140 acres of land from Sarah Winchester. In 1908, Southern Pacific Railroad

began running steam train service through Los Altos (April 19, 1908) with five trains per day. Two freight cars

served as train depot. Also, the first commercial building, Eschenbruecher’s Hardware, was built in

downtown. In 1913, the craftsman-style Los Altos train station was built at 288 First Street. By 1949, many

residents were dissatisfied with the zoning policy of Santa Clara county. Also, there was a constant threat of

being annexed by neighboring Palo Alto and Mountain View, so they decided to incorporate. Los Altos

became the eleventh city in Santa Clara County on December 1, 1952. Train service stopped its operation in

January, 1964, and the train track became Foothill Expressway. In 1976, Steve Jobs and Steve Wozniak, along

with others including Ronald Wayne, built the first 50 Apple I's in Jobs's garage in Los Altos. The Los Altos

History Museum explores the rich history of local people and how the use of the land over time has

transformed the agricultural paradise once known as the "Valley of Heart's Delight" into the technology hub

that is today's Silicon Valley. Opened in spring of 2001 the Los Altos History Museum occupies an 8,200-

square-foot (760 m2) building – built entirely with private donations; ownership went to the town in 2002. The

Museum features a changing exhibits gallery as well as the permanent exhibit, "Crown of the Peninsula".

Business: Los Altos strives to maintain a semi-rural atmosphere and there are almost no industrial sites within

the city limits. The top employers in Los Altos are Los Altos School District, Los Altos High School, Whole

Foods Market, Coldwell Banker, Covenant Care, Intero Real Estate, City of Los Altos, Adobe Animal Hospital,

and David and Lucile Packard Foundation.

Population: The 2010 United States Census reported that Los Altos had a

population of 28,976. There are 10,745 households and 8,303 families

residing in in the city. The population was spread out with 7,560 people

(26.1%) under the age of 18, 1,006 people (3.5%) aged 18 to 24, 5,273 people

(18.2%) aged 25 to 44, 9,353 people (32.3%) aged 45 to 64, and 5,784 people

(20.0%) who were 65 years of age or older. For every 100 females there

were 93.1 males. Median Income: $154,821. Education: 77.4% have

Bachelor’s Degree or higher.


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Real Estate: There were 11,204 housing units in Los Altos. 90% of the

properties in Los Altos are single family homes (SFH). The majority of these

homes in Los Altos were built between

1940 and 1959 during a time when

Moffett field was attracting the

aerospace industry to the area. Most

SFH in Los Altos are on the larger size (>1800 sqft). 86% of these SFH are

owner occupied. In an effort to maintain its rural feel the minimum lot

size in Los Altos is quarter acre.

In 4Q2013 the average sales price of Los

Altos SFH was $1,758,402. The average

sales price has increased approximately

9.9% over a year ago. A spike in prices

occurred in April this year caused by

limited housing inventory. There were

only 10 new listings in Dec 2012 in a

month where 27 listings were sold. The

chart at the right shows the monthly

average number of homes sold and the

average sales price from Jan 2013 through

December 2013.

The average price per square foot in December

2013 was $1,018. This is a 39.5% increase from

January 2010. Since most homes in Los Altos are

typically over 1800 square feet, a typical

minimum home price you can expect is around

$2 millon. For most of 2013, homes sold for an

average of 103.5% to 109.3% over their asking

price. This is largely due to the low inventory of

homes on the market in Los Altos. Our current

reduction in home inventory is very similar to

the numbers that we saw in early 2013 before a

steep run up in prices of 18.6% between March

and April 2003. This limited inventory has increased

the number of multiple offers on a home and reduced

the length of time a listing is on the market in Los

Altos. Typical turn times for most of the year ranged

between 2-3 weeks whereas in the beginning of the

housing recover Los Altos homes were on the market

closer to 2-3 months. This is typically longer than other

surrounding cities due to the higher priced homes and

unique rural atmosphere.

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Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov

2010 2011 2012 2013

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Change in Price per Square Foot over the last 4 years Los Altos

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Los Altos - Average Sales to List Price for Single Family Homes

Number of New Listings

Average Sale Price to List Price Ratio

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2009 2010 2011 2012 2013

Num

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omes

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age

Sale

s Pr

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Los Altos - Average Sales Price for Single Family HomesNumber of Homes SoldAverage Sales PriceLinear (Average Sales Price)


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In December 2013 there were only 11 active

listings of homes on the market. The lowest

priced home was listed at $1,650,000 and

the highest price home was listed at

$4,995,000. Many Los Altos homes with

their spectacular city lights views have been

known to sell for well over $10 million. The

size range of the current homes on the

market range from 1900 sq ft to

approximately 6450 square feet.

Newer construction in Los Altos are

typically larger homes and are priced in the

$3-10 M price range.

Shopping & Dining: You will find over 140 unique restaurants,

boutiques, and salons with friendly service, one of a kind gifts, and

convenient free parking in downtown Los Altos shopping district.

Items found in the downtown include high style fashions, shoes,

fine linens, china and kitchenware, furniture, unique children's

toys, music and books, children's clothing, jewelry, cosmetics,

photography, stationery and cards, flowers and gifts.

Located just off Foothill Expressway at Fremont and Miramonte

Avenues, Loyola Corners offers a variety of retail stores,

restaurants, service businesses and professional offices. Many of

the businesses cater to children, and family activities, making this

an especially family friendly and convenient neighborhood

location.

Public Transit: The Santa Clara Valley Transportation Authority (VTA) operates an extensive network of bus

and light rail transportation, connecting Los Altos with destinations across Santa Clara Valley and beyond.

And within Los Altos, bus routes run the full length of San Antonio Road, El Monte Road, and El Camino Real.

Additionally, CalTrain runs up and down the Peninsula, between San Francisco and San Jose.

Caltrain: Baby Bullet, Limited and Local commuter trains between San Francisco and San Jose/Gilroy stop at

the Mountain View and San Antonio Stations; Local and Limited trains stop at the California Avenue station in

Palo Alto

Utilities: The City of Los Altos utilities are provided by externally owned services. Pacific Gas and Electric

supplies gas and electric services for Los Altos. Cal Water Service Company supplies water and Mission Trails

Waste System does regularly scheduled garbage pick-up for the community. Once every 6 months, at no

charge, residents of single-family homes can schedule the collection of up to 4 cubic yards of garbage and 3

large items. For no additional charge, Mission Trail offers curbside pickup for household batteries, cell phones

& PDAs, used motor oil & filters, cooking oil, and water-based (latex) paint.

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2008 2009 2010 2011 2012 2013

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Los Altos Days on Market


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Los Altos students are served by two school districts. The Los Altos Elementary School District for

grades K-8th and the Mountain View – Los Altos Union High School District for grades 9th-12th. The

map below shows the assigned school attendance boundaries outlined in Red. Please note that these

attendance boundaries can change and some streets are split unevenly along a border so check with

the Los Altos School district to confirm school attendance.

All of the Los Altos

elementary schools

have consistent API

scores in the mid-to-

high 900’s. Covington

and Oak Ave are

typically ranked at the

top of the list of

elementary schools

for the city of Los

Altos and Los Altos

High typically ranks

as the top high school.

Sch

oo

l Typ

e

School District Nu

mb

er

of

Sco

res

20

13

AP

I

20

12

AP

I

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AP

I

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10

AP

IE Almond Elementary Los Altos Elementary 357 955 954 966 962

E Covington Elementary Los Altos Elementary 334 975 981 983 980

E Gardner Bullis Elementary Los Altos Elementary 210 947 958 964 988

E Loyola Elementary Los Altos Elementary 427 954 965 964 963

E Oak Avenue Elementary Los Altos Elementary 351 987 983 983 980

E Santa Rita Elementary Los Altos Elementary 368 941 956 957 964

E Springer Elementary Los Altos Elementary 375 955 961 946 954

M Ardis G. Egan Junior High Los Altos Elementary 530 976 979 978 968

M Georgina P. Blach Junior High Los Altos Elementary 473 958 968 971 964

H Los Altos High MV-LA Union High School 1195 895 889 875 857

H Mountain View High MV-LA Union High School 1282 861 865 861 861

Schools Serving Los Altos Students


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Los Altos Neighborhoods:

Central Los Altos: The

neighborhood is made up

of two triangles bordering

at Springer Road and

lodged between North and

South Los Altos. All three

of these areas run along

Foothill Expressway and

spread north of it. Central

Los Altos is known for its

larger lot size, friendly

atmosphere, and an annual

cookie exchange.

2013 Homes Sold: 76

2013 Avg DOM: 18

2013 Price Range: $1.25-3.5M

2013 Avg Sale Price: $2.21M

2013 $/f2: $844

2013 F2: 2597

Lot size: 5400sf-3/4acre

Country Club: Nestled

against the rolling hills of

Rancho San Antonio Open

Space Preserve the

neighborhood known as

Country Club stands apart

from, and between, the

towns of Los Altos and Los Altos Hills. The neighborhood is built on unincorporated Santa Clara County land

and has not been annexed to the city of Los Altos. The majority of the home sites are on 1-acre parcels and

maintain a rural, "woodsy" feel, with horse trails running nearby and not much change since the construction

of the first pre-war cottages and 1940s homes that make up Country Club.

2013 Homes Sold: 30

2013 Avg DOM: 30

2013 Price Range: $1.28-3.18M


2013 $/f2: $782

2013 F2: 2806

Lot size: 6540sf-1¼ acre

Loyola Corners: Like much of the downtown, it harkens back to a time before Foothill Expressway was even

built, when Loyola Corners was a key train station down the Peninsula. Framing the neighborhood from the

south, a cluster of small shops and restaurants remains where the station used to be. The rest of the

neighborhood is mostly residential. Originally Loyola Corners was all summer homes for families who would

come down from San Francisco. There is a sign at the corner of Fremont and Dolores avenues that reads


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"Welcome to Loyola Corners". The winding residential streets of Loyola Corners still resemble the country

roads that ran through its orchards when it was developed. The streets bend under low-hanging trees and

dead-end in various cul-de-sacs, so few cars pass through.

2013 Homes Sold: 3

2013 Avg DOM: 30

2013 Price Range: $1.13-1.89M


2013 $/f2: $839

2013 F2: 1920

Lot size: 5000sf-8730sf

North Los Altos: Within this area, bordered by North El Monte Avenue, El Camino Real and Foothill

Expressway, people can find a large library, community center, a performing arts center for children, a

downtown filled with restaurants and shops, great public schools, and more. Almost everyone in the area lives

within easy walking distance of these attractions. The North Los Altos residents have an absolutely fantastic

experience at the public schools where the kids are enriched by going to high school that was really diverse …

and provides great opportunities. While the neighbors have changed over time, families still organize a block

party at least once a year.

2013 Homes Sold: 115

2013 Avg DOM: 21

2013 Price Range: $700K-5.0M


2013 $/f2: $912

2013 F2: 2441


Old Los Altos: Just Across the street from Downtown Los Altos and behind Foothill Expressway lies Old Los

Altos. Shoup Park and Redwood Grove, a nature preserve, blend seamlessly into the landscape on University

Avenue where children and nature lovers alike enjoy the ambiance. The neighborhood is a tight-knit

community with strong traditions. It is a small community that has a really strong community feeling within

the big Silicon Valley, San Francisco madness. Every Labor Day, neighbors block off the street and have a

massive Labor Day party with food and activities that all the children and parents attend. The adults also do a

progressive dinner every year where they move from one house to the next eating food and enjoying each

other's company.

2013 Homes Sold: 16

2013 Avg DOM: 39

2013 Price Range: $1.5-4.6M


2013 $/f2: $993

2013 F2: 2928

Lot size: 2350sf-2 2/3acres

Rancho: Rancho fits a throwback description, its broad residential streets framed by a creek on Springer Road

and anchored by the Rancho Shopping Center. It’s a quiet safe neighborhood that really hasn’t changed all the

much from its origin in the early 50’s. On the corner where Springer meets Covington, a wooden sign with

yellow, painted letters reads "Welcome to Rancho, Los Altos." The shopping center has been around since the

early 1950s when Christian Wilder developed the area. It still serves as the neighborhood hub with bakeries,


Hiep Nguyen (650) 996-3305


grocery stores and the very popular Brian's Restaurant often full of

local patrons. The shopping center has also started hosting a farmers

market on Saturday mornings in front of the Andronico's market from

9 am to 1 pm.

2013 Homes Sold: 3

2013 Avg DOM: 6

2013 Price Range: $1.33-3.48M


2013 $/f2: $1,021

2013 F2: 2026

Lot size: 8300sf-3/4cre

South Los Altos: South Los Altos can be described as “a little more affordable” than the northern part of Los

Altos. Parts of the neighborhood lack sidewalks and maintain a more rural feeling compared to North Los

Altos and the downtown area. Some of the homes are built in the modern, two-story, Mediterranean look,

while many are modeled after the classic ranch-style homes. The district has nice parks and an excellent school

system. Children in South Los Altos attend either Mountain View-Los Altos Union High School District or the

Cupertino Union School District, depending on their address. Both district's public schools are highly rated,

but the dual district attendance doesn't lend itself to neighborhood cohesiveness.

2013 Homes Sold: 65

2013 Avg DOM: 15

2013 Price Range: $1.02-2.93M


2013 $/f2: $800

2013 F2: 2265


Woodland Acres/The Highlands: Between Beechwood Lane and Permanente Creek, Woodland Acres was

home to orchards, oaks and laurel trees, despite a railroad track running parallel to where Foothill Expressway

now stands. To the west of Woodland Acres, still between the strip of land wedged between Foothill

Expressway and Highway 280, stand The Highlands. A small town feel thrives thanks to the Woodland Vista

Swim & Racquet Club, a nonprofit, private club founded on an empty lot of land in 1958. It is exclusive to the

area's 83 members, and provides a great space for neighbors to connect over sport. This neighborhood was

built in the 1950s, so there is every era of construction with a blend of styles, no cookie-cutter houses in this

neighborhood.

2013 Homes Sold: 29

2013 Avg DOM: 18

2013 Price Range: $1.54-3.5M


2013 $/f2: $799

2013 F2: 2578


www.BayAreaRealEstateToday.com Los Altos Real Estate

Hiep Nguyen (650) 996-3305


Active Listings

11662 PAR AVE

MLS Num: 81340173 Status: Active City: Los Altos County: SANTA CLARA COUNTY Zip: 94024

Beds: 4 Baths (F/P): 3/5 SqFt: 2667 Lot Size: 0.130 acres Year Built: --

List Date: 11/6/2013 Org. List Price: $2,298,000 List Price: $2,298,000 Sold Date: -- Sold Price: --

Public Remarks Home by LEED Certified Inhabiture Inc. with flexible options for your lifestyle--office, media, exercise, studio,

accessory building--in an excellent Country Club location with tree-top view and access to top-rated Los Altos schools,

tech centers. Act Now to maximize finish selections. Approx completion Jan. 2014. Price good for limited time only.

11650 PAR AVE


Beds: 4 Baths (F/P): 3/5 SqFt: 3070 Lot Size: 0.149 acres Year Built: --



accessory building--in an excellent Country Club location with tree-top view and access to top-rated Los Altos schools,

tech centers. Act now to maximize finish selections. Approx completion Jan 2014. Price good for limited time. only.

11656 PAR AVE


Beds: 5 Baths (F/P): 4+ SqFt: 3780 Lot Size: 0.178 acres Year Built: --



accessory building--in an excellent Country Club location with tree-top view and access to top-rated Los Altos schools, tech centers. Act now to maximize finish selections. Approx. completion Jan 2014. Price good for limited time only.

5721 ARBORETUM DR


Beds: 5 Baths (F/P): 4+ SqFt: 4700 Lot Size: 0.500 acres Year Built: 1955


Public Remarks Executive Silicon Valley Living. This luxury gated home was built in 2000; kitchen expanded and remodeled in 2010;

1700 sq ft deck built in 2012. Situated on a rare, serenely wooded .501 acre lot in prestigious Woodland Acres, this

custom home was built to take full advantage of the surrounding natural beauty, and graciously incorporate views of

picturesque gardens and nearby hills.

771 UNIVERSITY AVE




Public Remarks The elegance of this superlative home is evident at first look.So well-designed and built with premium

materials.Fabulous flr plan.Elegant formal din rm.Beautiful kitchen-greatroom on main living level.Outstanding second

family room w/wet bar,fifth bedroom/bath,media room & wine cellar on lower level.Lush landscaping and patio areas. Great for indoor and outdoor entertaining.

780 DIXON WAY


Beds: 6+ Baths (F/P): 4+ SqFt: 6452 Lot Size: 0.333 acres Year Built: --


Public Remarks New construction to be completed Nov. 2013. Prime N. Los Altos cul-de-sac on landscaped ~1/3 Acre. Dramatic

Country French home with modern flair: 6 Bd, 5 Ba, 2 half-baths, grand entry foyer, epicurean kitchen, handsome

library, cinema-quality movie theatre, formal dining room, Family & rec rooms, health spa with sauna & steam rooms,

hardwood floors, 3-car garage Buyer may select some finishes.


Hiep Nguyen (650) 996-3305


Pending Listings

1512 COUNTRY CLUB DR

MLS Num: 81324662 Status: Pending City: Los Altos County: SANTA CLARA COUNTY Zip: 94024

Beds: 3 Baths (F/P): 3 SqFt: 2988 Lot Size: 1.023 acres Year Built: 1964

List Date: 7/9/2013 Org. List Price: $4,200,000 List Price: $4,200,000 Contract Date: 8/1/2013 Expected Close: 3/30/2014 Sold Price: --

Public Remarks Elegantly appointed home overlooks the signature 10th hole of the Los Altos Golf & Country Club with picturesque

views across 4 fairways & a backdrop of the Western hills. Perfectly arranged one-level floor plan with views from

almost every room opening through sliding glass doors to a terrace that spans the rear of the home. Remodeled 9

years ago by current owners w/updated kitchen open to FR.

1705 ORR CT


Beds: 5 Baths (F/P): 3/5 SqFt: 2994 Lot Size: 0.300 acres Year Built: 1991


Public Remarks Stunning & gorgeous 5 bed/3.5 bath contemporary ranch-style home in great location! Features include a spacious &

newly remodeled kitchen with lovely tile back splash, a cozy loft that couples as a bedroom/office space, high

ceilings & beautiful landscaping. (Montclaire Elementary, Cupertino Middle & Homestead High)

331 GALLI CT




Recently Sold Listing Statistics

October 1, 2013 to December 22, 2013

Average Days on Market: 56

Average List Price: $2,662,047

Average Sale Price: $2,652,545

Average Price Change: -3.07 %

Average Square Feet: 3454

Price per Square Foot: $768


Hiep Nguyen (650) 996-3305


Recently Sold Listings

371 WAREC WAY

MLS Num: 81334494

Status: Sold

City: Los Altos

County: SANTA CLARA COUNTY Zip: 94022

Beds: 4

Baths (F/P): 3/5

SqFt: 3300

Lot Size: 0.316 acres

Year Built: 1957

List Date: 9/16/2013

Org. List Price: $2,995,000

List Price: $2,995,000

Contract Date: 12/7/2013 Sold Date: 12/17/2013

Sold Price: $2,835,000

Public Remarks This fantastic single story home on a cul-de-sac, conveniently located in North Los Altos, two blocks from down town,

has been beautifully expanded and remodeled. The big open floor plan and tall ceilings make for a great feeling home. Custom cabinetry and quality finishes throughout. The large back yard is an entertainer's delight with a gourmet

outdoor kitchen entertainment area, fire pit

1224 RUSSELL AVE

MLS Num: 81305205

Status: Sold City: Los Altos

County: SANTA CLARA COUNTY

Zip: 94024

Beds: 4

Baths (F/P): 3/5

SqFt: 2753


Year Built: --


Org. List Price: $2,995,000 List Price: $2,995,000

Contract Date: 12/17/2013

Sold Date: 12/17/2013


Public Remarks New Construction due 4 completion Q4, 2013! Great opportunity to come pick your finishes & work w/ developer to

produce your dream home! 2 options: 2800 sq. ft single level 4/3.5 with incredible finishes for $2,995,000 or second

option of almost 4,400 sq. ft (1,600 sq. ft versatile basement) that has every room you need for $3,395,000.

137 DEL MONTE AVE

MLS Num: 81339414 Status: Sold

City: Los Altos


Zip: 94022

Beds: 5

Baths (F/P): 4+

SqFt: 2608

Lot Size: 0.175 acres Year Built: 1986

List Date: 10/29/2013 Org. List Price: $2,198,000



Sold Date: 11/27/2013


Public Remarks Luxuriously remodeled Mediterranean home. No expense spared. Virtually brand new home. Upgrades include Sh

William Paint in & out, handscraped hardwood floors kitchen and bath remodeled with Versace tiles and imported

Turkish stones cherry cabinets and molding & granite countertops throughout. Dual-zone central heat & AC.

1016 LEONELLO AVE

MLS Num: 81317473

Status: Sold

City: Los Altos


Zip: 94024

Beds: 5

Baths (F/P): 4+

SqFt: 3125 Lot Size: 0.236 acres

Year Built: 1946





Sold Date: 11/27/2013


Public Remarks EXQUISITE LOS ALTOS FAMILY HOME* COMPLETELY REMODELED* NEW DUAL PANED WINDOWS IN 2010*

DITINGUISHED SCHOOLS:LOYOLA/BLACH/MTVIEW HS* FIVE BEDROOMS & 4 BATHROOMS*OFFICE/5TH BED*BONUS

ROOM* HARDWOOD FLOORS* ALL NEW INTERIOR PAINT* MANICURED LANDSCAPING* INCREDIBLE CORNER LOT*

11625 PAR AVE

MLS Num: 81336937

Status: Sold

City: Los Altos


Zip: 94024

Beds: 4

Baths (F/P): 2/5 SqFt: 3413


Year Built: 1975





Sold Date: 11/25/2013


Public Remarks Lovely, spacious 4BD, 2.5BA home at end of a cul-de-sac. Nantucket shingle exterior w/front covered porch. 3400+/-sf

on a 9600+/-lot which includes a free form pebbletech finish pool and spa, outside BBQ area. Large office off L/R has

own entrance and could be converted to a bedroom. Upgraded kitchen and baths with granite countertops, cherry

cabinetry. Leased solar panels. A/C upstairs.

1718 FREMONT AVE

MLS Num: 81336460

Status: Sold

City: Los Altos


Beds: 4

Baths (F/P): 3/5

SqFt: 3292


Year Built: 1928






Public Remarks This 3,292 sq. ft. home sits on an impressive 12,390 sq. ft. lot adorned with a lemon tree, tangerine tree, two cherry

trees, and a 100-year old orange tree. The Mediterranean 4 bed and 3.5 bath house plan echos the relaxed, outdoor lifestyle with soaring ceilings and large windows, which bathe the open and airy living spaces with natural light.


Hiep Nguyen (650) 996-3305


Recently Sold Listings (cont)

1942 CHURTON AVE

MLS Num: 81337826

Status: Sold

City: Los Altos


Zip: 94024

Beds: 5

Baths (F/P): 3/5

SqFt: 3496 Lot Size: 0.230 acres

Year Built: 2013

List Date: 10/15/2013




Sold Date: 11/13/2013


Public Remarks Prestigious new home embodies chic & elegant living in desirable S. Los Altos. Exceptionally tall ceilings enhance

the overall sense of space, while a soft neutral color palette and wood floors add timeless appeal. The chefs kitchen

has a center island, butlers pantry with sink & wine cooler, & stainless steel appliances. Second bedroom suite &

beautiful rear patio for entertaining!

275 LOS ALTOS CT

MLS Num: 81336192

Status: Sold

City: Los Altos


Zip: 94022

Beds: 6+ Baths (F/P): 4+

SqFt: 5200


Year Built: 1999





Sold Date: 11/13/2013


Public Remarks For comps purposes, sale price $2.827M(-3% reduc)! Bright custom home in downtown LA on a Cul-de-Sac location,

Approx. 5200 sq.ft of living space with full Basement,7 bedrooms & 4.5 baths. This Steel-Framed custom home

looks and feels nearly new,fire and earthquake resistance specs.Sun filled with even 3 Walk-outs to privacy patio

downstairs,Viking kit apps,Limestone throughout.

265 MOUNT HAMILTON AVE

MLS Num: 81332727

Status: Sold

City: Los Altos


Beds: 5

Baths (F/P): 3/5

SqFt: 3437


Year Built: 1959

List Date: 9/5/2013





Public Remarks Big lovely home near downtown Los Altos. 2 story home, nicely updated. 2 Bedrooms up, 3 Bedrooms down, incl.

master suite. Spacious Living Room with fireplace, formal Dining Room, eat-in Kitchen, Family Room with fireplace, Great Room upstairs (could be guest bedroom, den, and/or home office). 2 car Garage, plus circular driveway, and

potential RV parking area. Beautifully landscaped.

351 LUNADA CT

MLS Num: 81338693

Status: Sold City: Los Altos


Zip: 94022

Beds: 4

Baths (F/P): 2/5

SqFt: 2300


Year Built: 1962

List Date: 10/22/2013

Org. List Price: $2,149,000 List Price: $2,149,000


Sold Date: 11/6/2013


Public Remarks Spacious single-level home situated on cul-de-sac lot in deirable North Los Altos. 4BR/2.5BA, approximately 2,300

SF with separate family room, kitchen with breakfast nook, large living room/dining room with hardwood floors, 2

fireplaces and large private back yard with lush lawn area and expansive patio. Outstanding Los Altos schools!

1380 HOLLY AVE

MLS Num: 81336360

Status: Sold

City: Los Altos


Beds: 5

Baths (F/P): 4+

SqFt: 4559


Year Built: 2009






Public Remarks This luxurious home boasts 4,559 sq. ft. (per county) on an impressive 12,075 sq. ft. lot (per county). This lavish

home's floor plan includes: 5 large beds, 5.5 bath, a 2-car garage, a beautiful guest suite, a tastefully designed kitchen, sleek hardwood floors, an outdoor pool and hot tub, a spacious backyard patio, and ample space for high-

energy and playful people of all ages.

www.BayAreaRealEstateToday.com Palo Alto

Hiep Nguyen (650) 996-3305


Palo Alto Palo Alto (pɑːloʊˈɑːltoʊ;

Spanish: palo: "tree" and alto: "tall";

meaning: "tall tree") is a California

charter city located in the northwest

corner of Santa Clara County, in the

San Francisco Bay Area of California. The city shares

its borders with East Palo Alto, Mountain View, Los

Altos, Los Altos Hills, Stanford, Portola Valley, and

Menlo Park. It is named after a redwood tree called

El Palo Alto. Palo Alto is one of the most expensive

cities in the United States and its residents are among

the most educated in the country.

Geography: According to the United States Census Bureau, the city has a total area of 25.787 square miles

(66.787 km2). 23.884 sq mi of this area is land and 1.903 sq mi is water. The elevation is 30 feet above sea level.

History: Palo Alto's earliest recorded history is dates from 1769, when Gaspar de Portolà noted an Ohlone

settlement. This remains an area of known Indian mounds. A plaque is erected at Middlefield Road and

Embarcadero Road to commemorate this area. The city got its name from the tall landmark Redwood tree, El

Palo Alto, which still grows on the east bank of San Francisquito Creek across from Menlo Park. Many of the

Spanish names in the Palo Alto area represent the local heritage, descriptive terms and former residents. Pena

Court, Miranda Avenue, which was essentially Foothill Expwy, was the married name of Juana Briones and

the name occurs in other Courts and Avenues in Palo Alto to Mountain.

The township of Mayfield was formed in 1855 by a French financier, Peter Coutts, in what is now southern

Palo Alto. Leland Stanford started buying land in the area in 1876 for a horse farm. In 1886, Stanford came to

Mayfield, interested in founding his university there. Jane and Leland Stanford dedicated the new university

to his son who died of typhoid fever at age 15 in 1884. He had a train stop created near his school on

Mayfield's downtown Lincoln Street (now named California Avenue). However, he had one condition:

alcohol had to be banned from the town. Known for its 13 rowdy saloons, Mayfield rejected his requests for

reform. This led Stanford to form Palo Alto as a Temperance Town in 1894 with the help of his friend Timothy

Hopkins of the Southern Pacific Railroad who bought 740 acres (3.0 km2) of private land in 1887 for the new

town site. Stanford set up his university, Stanford University, and a train stop (on University Avenue) by his

new town. With Stanford's support, saloon days faded and Palo Alto grew to the size of Mayfield. On July 2,

1925, Palo Alto voters approved the annexation of Mayfield and the two communities were officially

consolidated on July 6, 1925. This saga explains why Palo Alto has two downtown areas: one along University

Avenue and one along California Avenue.

Business: The city includes portions of Stanford University and is headquarters to a number of Silicon Valley

high-technology companies including Hewlett-Packard (HP), VMware, Tesla Motors, PARC, and Palantir

Technologies. It has served as an incubator to several other high-technology companies such as Apple Inc.,

Google, Facebook, Logitech, Intuit, Sun Microsystems, Pinterest, and PayPal. Palo Alto was also the homes for

many pharmaceutical & biotech companies including ALZA, Syntex, DNAX, Affymax, Affymatrix, & Symyx.


Hiep Nguyen (650) 996-3305


Population: As of the 2010 census, the city had a total population of

64,403 residents. The population was spread out with 15,079 people

(23.4%) under the age of 18, 3,141 people (4.9%) aged 18 to 24, 17,159

people (26.6%) aged 25 to 44, 18,018 people (28.0%) aged 45 to 64,

and 11,006 people (17.1%) who were 65 years of age or older. For

every 100 females there were 95.7 males. Median Income: $90,377.

Education: 79% have Bachelor’s Degree or higher.

Males: 32,448 (48.9%)

Females: 33,915 (51.1%)

Median resident age: 41.9 years

California median age: 45.6 years

Real Estate: 78.5% of the homes in Palo Alto are single family homes

(SFH) and roughly 15% are townhomes and condos. The majority of these

homes were built between 1940 and 1959 when the San Francisco Bay

Area was going through its initial housing boom due to expansion of the

aerospace industry around Moffett Field

in Mountain View. There is a pretty even

split of homes sizes between 1000 to

3600 square feet, although about 7% of

the homes in Palo Alto are less than 1000 square feet. There is a rich mix of

home styles in Palo Alto from Spanish Colonial to more mid- century

modern Eichler style homes. About 57% of homes in Palo Alto are owner

occupied.

In 4Q2013 the average

sales price of a Palo Alto

SFH was $2,109,767. The

average sales price has

increased approximately

25.1% over a year ago.

This is largely due to the

limited inventory of

homes for sale and the

high demand for homes

that started in late 2012.

The chart at the right

shows the monthly

average sales price for

SFH from Jan 2013

through December 2013.


Hiep Nguyen (650) 996-3305


0

10

20

30

40

50

60

70

90%

95%

100%

105%

110%

115%

120%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2013

Nu

mb

er

of

Ne

w L

isti

ngs

Ave

rage

Sa

le t

o L

ist

Pri

ce

Palo Alto - Average Sales Price to List Price for Single Family Homes

Number New Listings

Average Sale Price to List Price Ratio

The average price per square foot of

Palo Alto homes in Dec 2013 is

$1,191. This is a 56.3% increase from

January just three years ago. About

7% of Palo Alto homes are under

1000 sq ft and 5.5% are over 3600 sq

ft. This results in a wide variety of

sales price from just under $1

million to over $10 million in any

one month. When the number of

homes sold is low this wide swing

in sales prices can make the average

sales price jump up and down

considerably. Months with more

home sales are more likely to be a

good representation of average

home values.

For most of 2013 homes in Palo

Alto sold for an average 108.1%-

113.3% over their list price. This

is largely due to the high

demand and low inventory of

homes in Silicon Valley. As you

can see in the chart at the right

between 20 and 60 homes came

on the market in any one month

in Palo Alto over the last year. A

typical Palo Alto listing spends

less than two weeks on the

market. A home often goes on

the market on Monday, the

listing agent holds an Open

House during the weekend and then

offers are submitted and reviewed in

the middle of the next week.

In December 2013 there were only 8

active SFH listings which range in price

from $975,000 to $23M and range in

size from 1028 sq ft to 12,825 sq ft. This

wide range in price is pretty typical of

Palo Alto homes. Prices in Palo Alto are

projected to increase about 7.8% in

2014. 0

10

20

30

40

50

60

70

80

Jan

Apr

Jul

Oct

Jan

Apr

Jul

Oct

Jan

Apr

Jul

Oct

Jan

Apr

Jul

Oct

Jan

Apr

Jul

Oct

Jan

Apr

Jul

Oct

2008 2009 2010 2011 2012 2013

Num

ber o

f Day

to S

ell

Palo Alto Day On Market

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Jan

Mar

May Ju

l

Sep

Nov Ja

n

Mar

May Ju

l

Sep

Nov Ja

n

Mar

May Ju

l

Sep

Nov Ja

n

Mar

May Ju

l

Sep

Nov

2010 2011 2012 2013

Change in Price per Square Foot over Last 3 YearsPalo Alto


Hiep Nguyen (650) 996-3305


Shopping & Dining: In addition to the world-renowned

Stanford Shopping Center, Palo Alto features a vibrant

downtown shopping district, a quieter but popular shopping

and restaurant district centered around California Avenue

just south of the Stanford campus, and Town & Country

Village, a specialty center on El Camino Real across from

Stanford Stadium. Visitors will find cafes and a wide variety

of restaurants in all four shopping areas.

Both downtown Palo Alto and the California Avenue

business districts hold popular Farmers Markets.

Downtown's market is on Saturday mornings between mid-

May and mid-December from 8 a.m. to noon and is held in the parking lot behind the post office at Hamilton

Avenue and Gilman Street. The market on California Avenue closes down several blocks and is held on

Sunday mornings year-round between 9 a.m. and 1 p.m

Public Transit: Not every destination is served by transit every day of the week. However, many trips can be

made by transit, bicycle, walking or carpooling. Palo Alto fully supports and encourages using alternatives to

the single occupant vehicle for trips that can be reasonably made by another mode.

VTA: Lines 22, 35, 88 and Express Lines 101, 102, 104, 501 and 503

Samtrans: Lines 280, 281, 297, 397

Palo Alto Shuttle Service: The City of Palo Alto's Shuttle is free and open to everyone. All shuttles are

wheelchair accessible. Bus stops are marked with a "Palo Alto Shuttle" sign, a sticker on a regular VTA bus

stop sign, or a “Shuttle” decal on a stop sign pole in residential areas.

Caltrain: Baby Bullet, Limited and Local commuter trains between San Francisco and San Jose/Gilroy stop at

the Palo Alto Station; Local and Limited trains stop at the California Avenue station

Dumbarton Express: DB and DB1 express buses from Union City BART to Downtown Palo Alto and Stanford

Research Park

Stanford University Marguerite Shuttle: Lines A and B, Downtown Express operate between the Stanford

campus and Palo Alto Caltrain station and Downtown Palo Alto; Line A also serves the California Avenue

Caltrain station.

Paratransit: Palo Alto residents who need door-to-door transportation are eligible to apply to VTA Paratransit

Services operated by Outreach, Inc. For information call 408-436-2865

Utilities: City of Palo Alto Utilities (CPAU) is the only city-owned utility in California that operates its own

utilities including electric, fiber optic, natural gas, water and wastewater services. They have been providing

quality services to the citizens and businesses of Palo Alto since 1896. The City has adopted a Renewable

Portfolio Standard (RPS) requiring that 33% of the City’s retail electric sales be supplied by eligible renewable

energy resources by 2015, providing that goal can be reached without causing rates to rise by more than a half

a cent per kilowatt-hour (kWh). The City continues to ramp up its purchases of renewable energy (and,

through efficiency measures, ratchet down its total consumption), so that in 2012 about 21% of the City’s

electricity sales were supplied by renewable power. As shown below, contracts are in place for projects that

are expected to provide renewable supplies for about 35% of total sales by 2015.


Hiep Nguyen (650) 996-3305


Schools: Palo Alto students are served by the Palo Alto Unified School District for grades K-12th. The

map below shows the assigned school attendance boundaries outlined in Red. Please note that these

attendance boundaries can change and some streets are split unevenly along a border so check with

the Palo Alto School district to confirm school attendance.

Most of Palo Alto

elementary schools have

API scores in the 900’s.

Herbert Hoover and

Duveneck are typically

ranked at the top of the

list of elementary

schools for the city of

Palo Alto and Gunn is

typically ranked the

highest high school for

the city.

Scho

ol T

ype

School District Num

ber o

f

Scor

es

2013

API

2012

API

2011

API

2010

API

E Addison Elementary Palo Alto Unified 313 948 948 956 945

E Barron Park Elementary Palo Alto Unified 236 871 879 870 861

E Duveneck Elementary Palo Alto Unified 341 956 974 973 977

E El Carmelo Elementary Palo Alto Unified 269 944 960 947 948

E Escondido Elementary Palo Alto Unified 363 928 936 909 905

E Fairmeadow Elementary Palo Alto Unified 307 954 953 950 935

E Herbert Hoover Elementary Palo Alto Unified 278 987 995 995 984

E Juana Briones Elementary Palo Alto Unified 273 941 945 940 941

E Lucille M. Nixon Elementary Palo Alto Unified 290 955 955 966 952

E Ohlone Elementary Palo Alto Unified 381 946 920 909 916

E Palo Verde Elementary Palo Alto Unified 272 962 960 967 955

E Walter Hays Elementary Palo Alto Unified 366 934 931 917 934

M David Starr Jordan Middle Palo Alto Unified 998 934 947 934 938

M Jane Lathrop Stanford Middle Palo Alto Unified 970 943 939 927 931

M Terman Middle Palo Alto Unified 639 968 960 957 940

H Henry M. Gunn High Palo Alto Unified 1294 917 920 909 918

H Palo Alto High Palo Alto Unified 1320 905 906 900 897

Schools Serving Palo Alto Students


Hiep Nguyen (650) 996-3305


Palo Alto Neighborhoods:

Barron Park: The days of

summer ice-cream socials

held to welcome new

neighbors have gone by

the wayside -- unless you

live in the community of

Barron Park. Unlike most

Silicon Valley

neighborhoods, eclectic,

Barron Park hastens back

to the era of a simpler

time, where family and

community were rooted in

the hearts and minds of its

residents. Barron Park's

history dates back to 1925

when it was laid out as a

62-lot Santa Clara County

subdivision by Colonel

Sebastian Jones, along El

Camino Real, La Selva

Drive and Barron Avenue.

2013 Homes Sold: 41

2013 Avg DOM: 12

2013 Price Range: $1.07-3.65M


2013 $/f2: $1,027

2013 F2: 2132

2013 Lot size: 3000sf-1/3acre

College Terrace: Long

known as a place that's

good for young families,

including those of grad students at nearby Stanford. It's near a public elementary school and several

child care centers and parks. Dog-walkers and strollers are common sights on the streets lined with

houses of all styles and sizes. Once known for being the home of Facebook founder, the associated

parade of employees and catering trucks the quiet to the neighborhood has been restored in Jan

2013. But there's still a core of active neighbors who have formed two book groups and a sewing

club. They've started an on-line neighborhood via the website nextdoor.com. It's a custom site only

accessible by people who live in the neighborhood and provides a forum for advice on local


Hiep Nguyen (650) 996-3305


professionals and exchange or loan of items like garden supplies. If someone can't find their cat, they

post to nextdoor.com.

2013 Homes Sold: 41

2013 Avg DOM: 12

2013 Price Range: $1.05-2.63M


2013 $/f2: $1,094

2013 F2: 1731


Professorville: Named for the Stanford professors who originally congregated there in the 1890s,

Professorville is known for its 100-year-old late Victorian homes, arching oak trees and proximity to

downtown. As Palo Alto's oldest residential neighborhood, the area even boasts national recognition

as an official Historic District. Professorville features a variety of turn-of-the-century architectural

styles including Colonial Revival, Queen Anne, Craftsman Bungalows and Wood Shingle. The

neighborhood enjoys residential seclusion while sitting close to Town & Country Village, University

Avenue and several public schools.

2013 Homes Sold: 5

2013 Avg DOM: 40



2013 $/f2: $1,225

2013 F2: 3436


Old Palo Alto: Old Palo Alto, which stretches from Alma Street to Middlefield Road and between

Embarcadero Road and the Oregon Expressway, is one of the city's wealthiest and most desirable,

popular with such local celebrities such as former footballer Steve Young. And despite the "old"

name, city historian Steve Staiger said it isn't the oldest neighborhood in town, with its first homes

not built until after the turn of the 20th century. Gamble Garden, a 2.5-acre public oasis featuring

diverse demonstration and formal gardens, educational programs and grand historic buildings, lies

at the heart of the Old Palo Alto neighborhood. A crown jewel of the city, the garden, residents say,

is representative of the things they love about their neighborhood as a whole: beautiful architecture,

lush, well-tended greenery and a friendly atmosphere. "It's historic, walkable and bikeable" said

Nadia Naik, founder of the Old Palo Alto Neighborhood Association.

2013 Homes Sold: 56

2013 Avg DOM: 25

2013 Price Range: $595K-10M


2013 $/f2: $1,323

2013 F2: 2711



Hiep Nguyen (650) 996-3305


Crescent Park: The wide streets of Crescent Park are lined by tall, stately trees that spread their

knobby branches and many leaves to shade the sidewalks. Runners and families wander through the

green expanses of Eleanor Pardee Park and out into a neighborhood that boasts 1,800 individually

designed homes, ranging from Craftsman to Bungalows to Colonials. Crescent Park is bordered by

San Francisquito Creek and the abundant wildlife that can be found there. But beyond the creekside

location and easy access to University Avenue restaurants, residents enjoy a sense of community

through their neighborhood association. Through daily emails, they ask for - and receive -

recommendations about anything from taking in a dress to finding a good financial advisor.

2013 Homes Sold: 33

2013 Avg DOM: 21

2013 Price Range: $859K-6.6M


2013 $/f2: $1,166

2013 F2: 2688


Palo Alto Hills: Life in Palo Alto can be fast-paced, and it can be difficult to find open space, wildlife

or nature. But, take a drive up to the Palo Alto Hills, and you can find all of that and then some. The

nature and open space is what has prompted many other residents to move their families to the

neighborhood. Palo Alto Hills is located above Interstate 280 and consists of long, windy roads that

lead up to its 78 households. The neighborhood is quiet and diverse with long trails perfect for

biking, jogging or hiking. Despite the quiet and seclusion, there is a sense of community: An annual

Christmastime get-together is organized by the Palo Alto Hills Neighborhood Association (PAHNA)

to bring the neighbors closer together.

2013 Homes Sold: 3

2013 Avg DOM: 464

2013 Price Range: $2.85-6.29M


2013 $/f2: $714

2013 F2: 6326

Lot size: 1acre - 1 1/3 acre

Midtown: A focus on residential life is the key to the culture of Midtown which is vibrant, hip and

filled with up-an-coming younger residents. The Midtown Residents Association, formed in 1994,

has focused on preserving the neighborhood feel that sets the area apart. In addition to successfully

asking the city council to keep the shopping district strictly commercial, members hold monthly

meetings and block parties and threw their 15th annual ice cream social in September.

2013 Homes Sold: 57

2013 Avg DOM: 9



2013 $/f2: $1,128

2013 F2: 1790


www.BayAreaRealEstateToday.comPaloAltoRealEstate

Hiep Nguyen (650) 996‐3305

Intero Real Estate – Top 1% www.BayAreaRealEstateToday.com

Active Listings

2916 RAMONA ST

MLS Num: 81343312 Status: Active City: Palo Alto County: SANTA CLARA COUNTY Zip: 94306



Public Remarks RE-TOUCH/ENHANCE LIKE NEW and BEAUTIFUL* MOST PRIME/ SPOT OF PRIME MIDTOWN* SAFE QUIET CUL-DE-SAC* WALKING DISTANCE TO OLD PA/CA ST SHOPPING* FUNCTIONALLY WELL DESIGN FLOOR PLAN* SIZABLE ROOMS* AIRY/ BRIT/AMENITY/TECH WIRE* RICH IN DETAILS* MATURE TREE,WELL LANDSCAPED YARDS LIKE PARK* GOUMENT KTCHEN HIGH CEILINGS* 2 CAR ATT GARAGE IN SQ FT CAN BE 4 GAME/GYM* LOTS NEW HOUSES AROUND* PRETTY HWFLR

470 RUTHVEN AVE




Public Remarks This one-of-a-kind Home is custom made and newly built. NEVER BEEN LIVED IN. It is elegant, spacious, clean, great location, all of the amenities. Simply bring your bags and move in!!!

424 HOMER AVE




Public Remarks beautiful home near downtown. Current use is duplex a) 3 bed/ 2 bath & b) 2 bed/ 1 bath. Possibly convert to 5 bed/ 3 bath single family home. Approx 2200 sq ft total. Plus bonus basement area includes laundry room/ bonus rooms / extra storage. Hardwood floors. skylight. Family kitchen opens to private back yard with deck. Near downtown. Great location. Great home. Wonderful opportunities.

215 LOWELL AVE


Beds: 6+ Baths (F/P): 4+ SqFt: 12825 Lot Size: 0.860 acres Year Built: 1916


Public Remarks The Lowell House is an endearing tribute to Old Palo Alto?s legacy. At 37,500sf, it is one of the largest parcels in the City. Over 12,000sf of living space encompasses 7 bedrooms and 5.5 baths in the main house, plus detached office, and guesthouse, and cannot be duplicated by today?s standards. The private and secluded location features rolling lawns, sport court, pool, and spa. One of a kind.

996 LAUREL GLEN DR




Public Remarks Newly constructed (2007), Neo-Classical estate next to the prestigious Palo Alto Hills golf course. Great for entertainment, featuring 8 bdrms and 8.5 bthrms, gourmet kitchen with custom wood cabinets and an island. Full basement with a media room, gym, wine cellar, library and nanny quarters. Majestic pool, with a hot tub and cabana.


Hiep Nguyen (650) 996‐3305


Pending Listings

610 CHIMALUS DR

MLS Num: 81342459 Status: Pending City: Palo Alto County: SANTA CLARA COUNTY Zip: 94306



Public Remarks This warm & stylish home is classic California with its tiled roofline, divided light windows & mature trees. This updated 1998 home has an open floorplan without dividing walls to the main living areas. Chef's kitchen with granite tile counters & all new stainless appliances. One main-level bedroom & bath, plus three upstairs bedrooms. Additional detached non-permitted ~170 SF studio or office.

1448 HAMILTON AVE




Public Remarks Crescent Park is known for its shaded, tree lined streets, closely knit neighborhood and proximity to downtown Palo Alto, Duveneck, Jordan and Palo Alto High School, Unique in this neighborhood, this home was remodeled and expanded in 2008 to its current 5 bedrooms, 4 bathrooms with plentiful skylights and an open floorplan for modern living. A bonus room off the garage makes a great home office.

853 FIELDING DR




Public Remarks Stunning custom designed home built in 2008 is superbly set on a quiet tree-lined street in a sought after neighborhood near Midtown shopping/dining.Fabulous open concept floor plan ideal for everyday living & indoor/outdoor entertaining.Chef's kitchen adjoins casual breakfast area & opens to family room w/soaring vaulted ceilings.Spectacular backyard setting w/extensive covered porches & patios.

Recently Sold Listing Statistics

Average Days on Market: 16

Average List Price: $3,031,809

Average Sale Price: $3,156,224

Average Price Change: 3.28 %

Average Square Feet: 2936

Price per Square Foot: $1,078


Hiep Nguyen (650) 996‐3305


Recently Sold Listings

958 ADDISON AVE

MLS Num: 81343293 Status: Sold City: Palo Alto County: SANTA CLARA COUNTY Zip: 94301

Beds: 6+ Baths (F/P): 3/5 SqFt: 3582 Lot Size: 0.445 acres Year Built: 1963

List Date: 12/17/2013 Org. List Price: $3,700,000 List Price: $3,700,000 Contract Date: 12/18/2013 Sold Date: 12/20/2013 Sold Price: $3,700,000

Public Remarks Spacious 6 bedroom, two-story home on an oversized flag lot in the Community Center district.

1900 BIRCH ST




Public Remarks 4 bed, 3 bath home in Palo Alto w/ large backyard. Beautiful master suite w/ two walk-in closets, balcony, and spacious bathroom. Kitchen connected to dining room & family room with backyard access. Downstairs room next to kitchen with connected bathroom. Living room & dining room feat. bay windows. Excellent Palo Alto schools.

385 PARKSIDE DR




Public Remarks Absolutely gorgeous! Featured in Sunset Magazine, this stunning Eichler has been expanded and completely renovated to bring out the very finest in contemporary living. Loads of natural light, large open "great room," spacious, serene master suite and seamless indoor/outdoor integration. Wonderful floor plan, beautiful landscaping and situated int he heart of desirable Greenmeadown Community

2137 BOWDOIN ST




Public Remarks 6 bed, 4 bath home in Palo Alto w/ beautiful kitchen w/ carrara marble counter tops, stainless steel appliances, and backyard access. Master bedroom on ground floor near two other rooms. Lower level guest quarters. Large upstairs terrace & original fireplace with custom stonework. CAT6 wiring throughout house originally designed for Stanford Computer Scientist. Excellent Palo Alto schools.

335 SEALE AVE




Public Remarks Special opportunity to purchase a turn-key home on a large lot in Palo Alto's most sought after neighborhood. Built in 2006, home has four bedrooms, each with its own bath. Open floor plan enjoys an abundance of natural light and features an adjoining kitchen/family room with french doors to the backyard. A finished basement for additional sf.

723 MAYFIELD AVE




Public Remarks First time on market! This very distinctive, mid-century modern home has four bedrooms and 2.5 baths,plus a den/office, and a large family room. It is located on a large, level 17,000+ sq. ft. lot in a close-in campus location. Beautiful hardwood floors, new paint, new landscaping. Available only to eligible Stanford faculty and staff.


Hiep Nguyen (650) 996‐3305


Recently Sold Listings (cont)

1024 CATHCART WAY




Public Remarks Available Qualified Stanford Faculty/Staff ONLY. California Spanish Ranch. One of the largest homes in the neighborhood 5bd/3.5BA with separate office. Updated home is entered thru a private courtyard with seating, Expansive LR vaulted ceiling, kitchen with granite counters, hardwood cabinetry. Separate FR, a large sun-room,

677 DRISCOLL CT




Public Remarks Recently built on a well located cul-de-sac, spacious home offers rich details including high ceilings, a secluded courtyard, & peaceful balconies. Living areas are anchored by the maple & granite-finished chefs kitchen opening to the family room, & a nearby outdoor kitchen under a covered patio. Detached studio w/ full bath.

460 EL CAPITAN PL




Public Remarks Wow! Smashing remodeled & expanded 2389sq ft Eichler on a huge 9940sq ft lot! Quiet cul-de-sac in coveted Greenmeadow. Custom designed award winning kitchen, sep FR & DR. Abundant light, openess & privacy. Prof landscaped flagstone patio. Gorgeous new master bath, expansive sunny yard offers space galore

2296 BRYANT ST




Public Remarks Convenience & comfort in outstanding Old Palo Alto! Attractive courtyard welcomes you to this well cared for home featuring hardwood floors, newer windows, & updated kitchen & baths. 2 master suites, 1 on main level. Popular location on city's "Bicycle Blvd." Near Palo Alto's renowned public schools, & just blocks to California Ave. shops.

3377 ROSS RD




Public Remarks Elegant & spacious new Mediterranean, a beautiful blend of classic and contemporary. Soaring high ceilings, modern wall fireplace, superbly equipped gourmet kitchen, exquisitely designed interior lighting, brazilian walnut hardwood floors, 2 en-suite BRs, sheltered 400+sf courtyard, house wide media wiring. Great, convenient loc, close to schools,

2303 COWPER ST




Public Remarks AMAZING NEW PRICE! Elegant new custom residence located in prestigious Old Palo Alto. Expertly designed with many custom designer details, gourmet chef's kitchen, abundant light, oil rubbed French Oak floors & decorator features on all 3 levels. 5 bedrooms + 4+ baths. Floor plan is ideal for family living with open kitchen-family room

Buyer Packet Carty Chock

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Transcript of Buyer Packet Carty Chock