Archive for the ‘General’ Category

Palo Alto is Hot!!! and Pebble Beach is Not!!! A Property Update City by City June 1 to 21 2011

Currently it’s still a buyers market in many areas around  the South Bay and Peninsula.  All the doom and gloom that the media keeps telling  you, helps to keep it that way.   Homes are still selling believe it or not.  Even places that I thought would never sell, are selling.   Interest rates are staying pretty consistent and are extremely low.  There are a lot of decent homes on the market, but the ones that are priced right and look good,  sell quickly.
We are still seeing the Cupertino  and Palo Alto areas doing extremely well, typically at or above list price.  The bottom of our list is the Pebble Beach / Carmel areas, which still, are having  a hard time rebounding.  This could make that area possibly a great buy for someone looking for a second or retirement  home.  Homes in Los Gatos and Monte Sereno month to date, have on average sold within 3% of the original asking price.   That number is important to remember in helping  you gauge how the market is doing. I feel that 3% is within the range of a normal market place.  Campbell is also doing well due to it being a great place to live.  Many parts of Campbell actually have very schools which many people are starting to realize.  Plus you get a lot more house for money compared to the other cities on my list.
Feel free to contact me with any real estate questions you may have?

Click the image below to view  the  city by city sales update.


Which County(s) have Opted-in Proposition 90 and Which Have Not

I have had many people asking for more information about California Proposition 90.  The number one question I’ve been asked is “Which County has Opted-in Propostion 90?”  Attached to this blog is a list of those that have and have not opted-in.  Since things change often, it is always best to contact the county you want to move to and to see whether or not they have Opted-in for Proposition 90 prior to making any offers.  As always feel free to contact me directly or by email.

Click here for a list of Counties that have Opted-in Proposition 90

What is Proposition 90 and Why Should I be Happy Today?

California voters approved two propositions in the past, Proposition 60 and Proposition 90.  Why should I be happy today, especially if your nearing 55 or older.   This week, through the combined efforts of homeowners and your local realtors the County Board of Supervisors in Santa Clara County approved “the opting in of Proposition 90.

What are Propositions 60 and 90?

Proposition 60 allows counties to opt in or out on allowing their homeowners age 55 or older to keep their property tax base with them when they sell and buy a new place within the county.  This is great for our seniors because not only is selling the home they have lived in and raised their family in  a emotional experience but quite often the  property taxes they are currently paying could actually go up drastically when they buy a new house.

Example:  Home owner John Smith (who is 55) sells his home he has owned for over 20 years.  When he bought the home he might of payed $400,000 and property taxes may be currently $6,000 per year.  He sells the house for $1.5 million and buys a townhouse for $1 million within the same county.

Prior to Proposition 60, Smith’s  property tax would of gone up to about $12,000 per year, a 100% increase. Not to good if you are on a fixed income.  With Pro 60 (with certain restrictions) he can carry his tax base with him, allowing him to pay his previous property tax of  $6,000 per year,  not the $12,000 it should of been.  Great deal, huh.

Propostion 90 is similar to 60 except it refers to moving to another county and keeping your old tax base.

The challenge is it also allows the County to determine whether or not they want to opt-in (particpate) or opt-out of this program.  In these challeging finacial times counties are looking at ways to increase the taxes.  Santa Clara Board of Supervisors  seriously looked at opting out of this program.  That would not have been a good thing for real estate owners.  It would have put another nail in the coffin for real estate.  An overwhellming number of Realtors and homeowner contacted their Superviors and voiced their disapproval on Santa Clara opting out of Prop 90.  They heard us and agree to stay in the program.  This is great news for now.

If you have any questions about Props  60 or 90 and their tax implications I would suggest you speak with your tax consultant or CPA.  I would also be happy to talk to you about selling your home and utilizing Props 60 or 90.  Email me with any questions you might have.

Click here for a list of Counties that have Opted-in Proposition 90

mblaauw@marcblaauw.com

Realtor with Realty World-Frangadakis Corp.

DRE#01873996

(Please note, the above is a simplified view of the two propositions.  Please contact you tax advisor or CPA prior to selling and or buying a home especially if you are over 55 and want to utilize the proposition’s tax benefits.)

Hey Marc, How’s the Real Estate Market?

People are constantly asking me “Marc, how’s the real estate market?”  I could give a standard  optimistic view “market has never been better” or pessimitic view “The housing market is crashing.”   Reality is probably neither extreme, but somewhere in the middle.   Plus what is the market?  Is it homes over $2 million, under $500,000, is it Los Gatos or Cupertino.  Are we talking about single family homes, townhouse, condos or bare land.  Are we talking today, yeterday, last week, last month or what.

As you can see, it is difficult to answer that question unless its given with specifics.  The market is, has been and always will be dynamic.   I wish I could fortell the future.  But , I’d would be on the other end of the transaction, as a buyer or seller, instead of the agent if I had that knowledge.   What I can give to you are the facts and then try to help you interpet them.  Starting today, I will on a regular basis be updating the factual market place for all my clients.  Todays first report will be covering only one section of the market, but a critical section.  What has sold in the last xxxx time period and at what percentage of original list did it sell for?

The attached report will cover the following areas: Cupertino, Los Gatos, Monte Sereno, Saratoga from June 05 through 5:00 pm on June 10.  Later in the future I will be adding west San Jose, Almaden, Pebble Beach/Monterey area and Los Altos.  If someone wants a more specific area and or time frame, then whats given, please email your request.

On this report, I would recommend for you to focus on the area, then the column Sold$Org$ following up with DOM.  The Sold$Org$ shows in a quick snapshot for what percentage of original list (not the current list price) price for a give time period, each of these homes sold for.

Why is the percentage so important?   It in a quick snapshot helps both buyer and seller see what the current trend is in the market.  Example :  If the percentage is 105% of original list you may want to that the market is warming up.  If it is 85% of original price, that would make me feel just the opposite; that it is possibly cooling down.  Reminder though, don’t look at just one sale or one time period, but start looking at the averages of many instead and more importantly by area.   The average days on market will help also.  Remember don’t use these reports solely as your guideline in making a decision on whether to  buy or sell.  Use it as one tool of many others.

As always, feel free to call or email me with your specific request or needs, whether looking to buy, sell or just curious about something happening in the real estate market or how I personally view  the reports.  I wish you all the best in your real estate investments.

Click to enlarge Sold Price Analysis for Los Gatos, Monte Sereno, Saratoga & Cupertino

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I Can Not Believe What You Can Get for Under $400,000 in Pebble Beach!!!!

Often I hear from friends and family that only the rich can buy a home in Pebble Beach. That was correct a few years ago, but today, purchasing that dream home or second home in one of the most prestigious and well known properties in the world can be done by the average guy.

I know that some may find that hard to believe but it is true. Recently I just placed one of my clients in a vacation home in Pebble Beach with some of the most beautiful views of the the Monterey coastline you have ever seen. And for under $400,000.

If you are interested in hearing more about properties in this wonderful area just drop me a email (mblaauw@marcblaauw.com) or call me (408) 836-7790