The Merc says that the council plans to hold hearings to get town input on how to use the land. Soccer fields (non regulation sized) are planned. No doubt the skatepark issue will resurface.
Mary's personal note: It always surprises me when a large purchase like this (or the decision to build a new library) comes without consultation of the Los Gatos residents/voters. Of course, our elected officials are supposed to make decisions on many things for us. I am not sure that I'm too comfortable with a multi-million dollar decision being made without input, though, or when input is only sought after the fact for how to use something purchased - not whether to make the purchase. Many will certainly be happy about the land, and it's agreed that we need more soccer fields.
The highly appreciated Los Gatos Historic Homes Tour will be returning on November 7 - 8, 2009, 10am to 4pm each day. Seven beautiful Los Gatos homes will be on display, with docents at each home to point out special aspects of the home.
Not only are the homes lovely to see, but it's a fabulous way to get a taste of the history of Los Gatos. I highly recommend this event, particularly to folks new to the town!
Tickets are $35 per person. Learn more at www.MuseumsOfLosGatos.org. Proceeds go to support the towns two museums (one a history museum, the other an art museum).
Would you like to volunteer to help put it on? You can do that and enjoy a free pass to the homes on tour.
Two weeks ago, I sold a home to a first time homebuyer in the Santa Teresa area. The property is close to the Santa Teresa Foothills and she asked me, "Do I have to worry about wildlife coming down from the hills?" I explained that she needed to be aware of it, but not worry about it per se. In Los Gatos, as in the Santa Teresa area, when you're by the hills there's an increased chance that you might encounter some of the wildlife. We discussed rattlesnakes, coyotes, mountain lions, bobcats, racoons, possum, and of course spiders.
A few days later, during the home inspection, we got to see a black widow spider up close. You can see the photo that my home inspector, Duane Serrano, took by visiting my Valley of Hearts Delight blog by clicking on the link above.
This morning, back in Belwood of Los Gatos, I saw a "first" for our home: a hawk landed on our back fence. We have seen deer, racoons and possum in the Belwood area, and a lot of birds of course, but never seen a hawk in my own backyard!
Jim & I once lived adjacent to Neary's Lagoon in Santa Cruz (a bird sanctuary), so we have the Audubon Society Field Guide to North American Birds. I had a look and it appears that this visitor is a Sharp-Shinned Hawk. They like to be in or near forested areas - in our case, that would mean Belgatos Park and the Sierra Azule range in Los Gatos. (Photo taken with my regular Canon camera, but through our living room window and at quite a distance, so the pic is not as clear as I'd have liked. But you get the idea.)
Living near the foothills in Silicon Valley, we do see wildlife come down to residential areas from time to time. Usually it's something like this, or finding a possum in your fruit tree: not scary in the least, just kind of amazing. Sometimes, though, it's a mountain lion or something more scary. In all cases, keep your eyes open - and your camera nearby.
Let's take a look at the real estate market for Los Gatos condos and townhomes from a very high vantage point: a two year overview. (Graphs created by me using Clarus Market Metrics, a subscription of my board and MLS.)
For the "really big picture", let's start with the "Supply & Demand by Month", going from August 2007 to August 2009. Green represents demand, and red represents supply.
As you can see, there's a big gap between available homes and how many are sought & purchased - so clearly this is a strong buyer's market.
Now let's turn to the absorption rate, or months supply of inventory. Below is the chart for all of "area 16", which is Los Gatos/Monte Sereno (with a few homes in San Jose or Campbell along the border included - but by and large, it's Los Gatos).
The condo and townhome market has improved tremendously since the doom and gloom of last Decemeber (then nearly 22 months, today less than 5).
As I've mentioned in other posts, the market can vary a lot depending on zip code, price point, and school district. This particular tool, the Clarus Market Metrics, does not use schools as a variable, unfortunately. But we can see what happens just with price point by breaking it down to home under and over $500,000.
Immediately below: absorption rate for Los Gatos homes priced UNDER $500,000 (condos & TH):
and next, months of inventory (absorption rate) of homes priced between $500,000 and $1,000,000:
Interestingly, the "sweet spot" of the Los Gatos condominium and townhome market is not in the least expensive condos and townhouses, but those between $500k and $1 mil. (I should add that there are some condominiums and townhouses priced over a million, but not a lot and the data gets squirrelly due to the low numbers so I am not using them in this post).
This is curious because the lowest priced homes are usually the "hottest", but not here. Why? I only have theories, but my thinking is this:
the lowest priced condos are mostly either senior condos (along Alberto Way, the Los Gatos Commons) or very small units
if seniors are hoping to downsize to move to a smaller place, they are probably electing to wait so that their home values "recover" some
some people will elect to purchase a single family home in San Jose for $500,000, but perhaps others are buying a more expensive condo or townhouse to enjoy the benefit of the schools - so this would not be super tiny (more than 1 bedroom) since they are purchases for the schools
I may do more digging in the future to see what's causing this trend, but this is my hunch. I welcome any comments from my readers on what they see happening with the condo market here in Los Gatos.
Most homes are neither fully original nor fully remodeled. Most homes are "somewhat updated" or "somewhat remodeled". To get them into shape to pass inspections (there's not really a pas-fail grade, it's more "items of concern", health and safety issues, or serious structural issues, and big cost items), most homes will require some work. And this is often a surprise to homeowners. Sellers don't usually know that they have termites, for instance. They often don't realize that the electrical system they've been living with isn't entirely safe. They won't know until and unless they get the home professionally inspected.
Silicon Valley real estate buyers strongly prefer a remodeled home that is not in need of any repairs. If a kitchen is 15 - 20 years of age or older, most home buyers will think it needs to be remodeled. Water heaters last about 10 years - so if yours is 9.5 years, they'll want (expect) it to be replaced, too.
Treating pests, correcting issues with electrical, roof, updating countertops, appliances etc. can often run 1 - 3% of the purchase price. This is really in the range of normal.
Then the only question is this: who will pay that 1 - 3% to get the home into ideal condition?
When the sellers do the repairs, updating (and staging), often they recoup far more than that amount because buyers feel confident knowing that there are no major issues or concerns. When the buyers pay for the improvements to the home after closing, often they get a better deal on the house. It's a risk - return ratio. Buyers will pay more when they feel sure that the home is in good shape (and it looks better too). They pay mcuh less when there's the unknown of "how much will it cost to fix it?" and when they have to live through doing the work.
Let's look at a couple of hypothetical examples using a million dollar property for the sake of easy numbers.
(1) A Los Gatos house has been updated and remodeled for the most part, but it needs about $20,000 worth of repairs (that were previously unknown to the seller), between a roof tuneup, pest work (Section 1 work on the termite & pest report), a couple of electrical issues, replacing some appliances that currently function but are really not at all close to new, etc. It could also use some fresh paint, carpet, and a little work on the landscaping to show at its best. Altogether, it's about $30,000 worth of repairs, updating, and "freshening up" to sell.
In this hypothetical case, one seller will do the repairs and updating and one won't.
The seller who doesn't do the work expects that the home can sell for $970,000 since it should be worth about 1 million if the work's done. The seller's thinking goes like this, "I've been living here and it's just fine. I might pick out a paint or carpet color that the buyer wouldn't like." Or "I'm not going to stage the home, or inspect it. What if it doesn't sell? I'm going to sell As Is, but only if I get my price." That home might eventually sell in the low 9's, if it sells. Maybe at $920,000 to $940,000.
The seller who does the work and prices it aggressively (a little on the low side, under a million and maybe as low as $975k) gets multiple offers, driving the price up over one million dollars. Depending on the number of offers, it might sell at $1,020,000. That would be a pretty good return for $30,000.
(2) Now let's consider the 100% original home vs the fully remodeled one.
If a fully fixed up home sells for $1,000,000 and the same floorplan in the same neighborhood is clean but original and it would take about $100,000 to bring it up to the level of the remodeled home (it needs a new kitchen, new baths, new furnace, water heater, pipes, etc.), a buyer will NOT pay $900,000 for it. No, the buyer will want an additional discount for the unknown, for having to arrange the work, for having to live with the construction etc. That home will probably sell for more like $850,000, perhaps $830,000. You may not think it's a "fixer upper", but the buyers will. It's what most of us would call a "cosmetic fixer". The home's not falling down, but it needs a lot of work.
If you're the seller, you may not have the time, energy and money to do the remodeling - but realize that you can't sell for what it is worth per se. You will have to discount it more because of the risk and hassle.
Buyers, sellers often don't think they should have to take as big of a discount as you want. Sellers won't part with that "could be a million dollars" home in the 700s. But the good news is this: if you do the work, you should, in most cases, have great instant equity. You won't have as much competition. (In both examples, of course, assuming that prices are flat or better, not declining.)
Also factor in the real estate market conditions:
When the market is flat such that prices are either not changing or appreciating, it is usually better for sellers, if they want to net more money, to do the repairs and staging. Homeowners, even if you have periodically updated your home and you think it's in perfect shape, please understand that there will probably be repairs and improvements to make in order to maximize your return on the home sale. Mentally budget up to 3% of your home's value, though most likely if you haven't deferred work, it should be closer to 1 - 1.5%.
Often sellers don't want to do the work, and in many cases they don't have either the energy or finances to do it. However, when they do have the work done, it is usually greatly to their benefit. I once had a Santa Clara listing and the seller agreed to do $7000 worth of minor staging and repairs and that brought a sales price of $20,000 more - about three times the "investment" returned just a couple of months later.
If the market is depreciating and prices are falling, it is often better to get the home on the market quickly since the time spent on improvements will often cause a loss that is greater than the value of making the imrovements would bring.
If you are interested in improving your net from a home sale or in paying less for a property, please contact me and we can discuss your plans and strategy. If you are thinking of becoming a Los Gatos, Saratoga or San Jose area home seller, please also see Get the Best Deal When Selling Your Home in Silicon Valley, my book. If we meet, I'll be happy to give you a copy of it with my compliments.
The Alta Vista neighborhood, which sits along the border of Los Gatos and the Cambrian Park district of San Jose, is very highly sought after and valued for many, many reasons. Real estate prices vary depending upon the precise location within the neighborhood as well as the size and condition of the home.
Why is this area so popular? Most of the streets close to Alta Vista School are beautifully tree-lined, and from virtually everywhere in the neighborhood, you are close to Blossom Hill (that’s the name of the hill, not just the name of the road!). Homes are well kept, streets are wide enough, and except when there’s a school function, there really aren’t too many cars on the street. It is very scenic, pleasant and uncrowded feeling. Although you’re in the city or town, you feel close to the country there.
To view map of Alta Vista boundaries, see slideshow, and read about neighborhood benefits and conditions, please continue reading at my Valley of Hearts Delight blog,
Recently I started a business page on Facebook for Los Gatos Real Estate & Homes. Inside there are a few easy-to-navigate tabs with realty market data, a quick way to search for listed homes, photos of Los Gatos and links to information about buying & selling homes as well as living in Los Gatos.
A blog about Los Gatos real estate, homes, houses, condos, townhomes, housing market, neightborhoods, history, events, businesses, parks, schools, photos, issues, and lifestyle.
Mary Pope-Handy
Realtor, CRS, ABR, SRES, E-PRO
Luxor Real Estate Group
Mailing Address for Mary: PO Box 440 Los Gatos, CA 95031-0440
877 397-5391 (office/toll-free)
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Most homes are neither fully original nor fully remodeled. Most homes are "somewhat updated" or "somewhat remodeled". To get them into shape to pass inspections (there's not really a pas-fail grade, it's more "items of concern", health and safety issues, or serious structural issues, and big cost items), most homes will require some work. And this is often a surprise to homeowners. Sellers don't usually know that they have termites, for instance. They often don't realize that the electrical system they've been living with isn't entirely safe. They won't know until and unless they get the home professionally inspected.
When the sellers do the repairs, updating (and staging), often they recoup far more than that amount because buyers feel confident knowing that there are no major issues or concerns. When the buyers pay for the improvements to the home after closing, often they get a better deal on the house. It's a risk - return ratio. Buyers will pay more when they feel sure that the home is in good shape (and it looks better too). They pay mcuh less when there's the unknown of "how much will it cost to fix it?" and when they have to live through doing the work.
If you are interested in improving your net from a home sale or in paying less for a property, please contact me and we can discuss your plans and strategy. If you are thinking of becoming a Los Gatos, Saratoga or San Jose area home seller, please also see .JPG)
The Alta Vista neighborhood, which sits along the border of Los Gatos and the Cambrian Park district of San Jose, is very highly sought after and valued for many, many reasons. Real estate prices vary depending upon the precise location within the neighborhood as well as the size and condition of the home.
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