Each month home buyers and sellers ask me if verbal agreements are binding when it comes to real estate transactions.  As decent people acting in good faith, it's common for buyers and sellers to fill in minor details with statements that the other party will consider part of the contract.  A seller may say "garden tools that are in the shed on the day I put the property up for sale will be left in the shed when I vacate the property."  Should the buyer rely on this statement if they believe they are paying for those tools? In the State of California, all real estate sales transactions must be documented in writing per a law known as the "Statute of Frauds," aka California Civil Code §1624 .  Verbal agreements, handshakes, fake coughs, toe tapping, winks and nods are not enforceable.  W... 08/22/2010

This past weekend I was on the Big Island of Hawaii with my son for the 2010 Pokemon Trading Card Game World Championships.  Congrats to the winners in each age bracket, who won a $10,000 scholarship and lots of other great stuff!  We had a great time at the Hilton Waikoloa Village. As is common on a Saturday, I received calls about my listings and directed the callers to my web site for the info they sought (which is where they got my phone number... hmmmm...).  But on this Saturday, I received a call from a pleasant young lady who said she was at the gate waiting for the doorman to come out with the keys to the condo she had rented for a few days.  Huh? Background:  I manage 7 rental condos in a gated complex across the street from the wharf in downtown Santa Cruz, CA.  One condo is a... 08/17/2010

Who is Selling in Palo Alto This Week? Active listings:  95 Pending Sales:  50 Our ratios are pretty good again with less than 2 homes for sale for every pending sale.  I decided to do another post on who is selling. I did this once last year and thought it was pretty interesting. Here is this week’s breakdown: Owner occupied:  32 Bank owned: 1 Short sale: 0 Tenant occupied: 9 Probate: 0 Vacant: 29 New: 16 Lot value: 3 Stanford affiliates only: 3 In foreclosure but not there yet and not a short sale: 1 This is just a generalization and each situation is different, but generally owners with vacant properties (especially trust and probate sellers) are more flexible on price than owner occupied sellers, who often do not have to move if they do not get an acceptable offer.  Homes with tena... 08/09/2010

Last year I predicted that Palo Alto will see more short sales in the future. Well, the future is now so what is happening?  There are currently 2  short sales on the market,  5 in escrow,  and 6 closed in the last year.  This isn't a huge number, but certainly more than we saw in the early part of the century.  There's a lot of chatter in the media about how the government is giving banks and homeowners incentives for short sales, and how banks save money by allowing short sales, but does that help the typical Palo Alto underwater seller? The short answer is no.  There is not a lot of help for owners with jumbo mortgages. The long answer is maybe not.   Here is what I have learned in the last year. It may not be the whole picture, as this world of what happens at the banks, hedge funds... 07/30/2010

  Many distressed homeowners have found that if they are unable to make mortgage payments they are frequently not foreclosed on for many many many months.  It appears as if many banks are trying to release foreclosures in a way that will not further depress prices and want to keep these delinquent homeowners in a home so that it is not vacant for long periods of time, which further devalues their investment.   However, this does not seem to be the case for Palo Alto.  While Palo Alto has had very few foreclosures come to the market, the ones that have are not in the delinquent phase for long.  If a homeowner misses 3 payments the banks can record a notice of default.  In Ca. they must give the homeowner 90 days to cure the default or they can set a date for the trustee sale, where the b... 07/29/2010

   Sorry for the recent silence on my blog. Summer is busy!  Lately I've been interested in tracking market changes by looking at my old market update posts and comparing them to current trends. Here's the latest in what I hope to be a semi-regular occurrence... the One Year Later market update. Let me know if these compare/contrast updates are as interesting for you as they are for me. My Market Update for 7/26/10 Here's today's snapshot of the Palo Alto single family home market:  121 Active listings 33  Pending sales What does this mean? The inventory of active listings decreased by 1 and pending sales decreased by 3.  This is virtually unchanged from last week when there was a huge decrease in pending sales. The fact that pending has stayed stable is a good sign. The over 2 million ... 07/27/2010

Buyers, you can work with a broker to buy a property without paying any commission at closing.  Do I have your attention?  Read on... Ok, I admit that anyone who hires someone to do a job should pay them.  I'm often heard saying "this is the real estate business, not real estate friends."  Everyone who does a job expects to be paid.  Most agents and brokers have bills to pay and their only source of income is commissions, so they appreciate a check when transactions close. But there are some brokers who have the flexibility to accept alternate forms of payment for either all or part of their commission.  What they might accept is limited only by your imagination and by your broker's willingness to accept the deal.  Here are some examples of things your broker might accept in lieu of a c... 07/19/2010

There are many activities in Palo Alto and the surrounding communities to fill your leisure time. Here is a list of museums to visit and explore the culture and history of the Palo Alto area. Palo Alto Junior Museum and Zoo 1451 Middlefield Road, Palo Alto - Children and their families will enjoy the hands-on interactive exhibits and the mini-zoo houses raccoons, bobcats, ferrets, tortoises, geese and lots of snakes. Admission is Free - a $3 donation per person is appreciated. Computer History Museum 1401 N Shoreline Dr., Mountain View - At the Computer History Museum you can see and experience one of the world's largest collections of computing artifacts. The exhibits allow you to explore the computer revolution and its impact on the human experience. Admission is Free - donations are ... 07/12/2010

Palo Alto Median For Sale and Median Homes Sold - June 2010 In June 2010, the Palo Alto real estate market continued its trend in a positive direction. The Median price of homes for sale in Palo Alto was up 2% over one year ago to $1,599,000. The median price of all single family homes sold also showed in increase over the previous year, up 4% from $1,400,000 to $1,461,000. Palo Alto Real Estate Supply and Demand - June 2010 While the supply of homes for sale in Palo Alto is down 28% as compared to June 2009, the number of homes on the market has steadily increased for the past 6 months showing confidence in the real estate market. Demand for homes was down 16% in June when compared to last June, possible due to having less inventory from which to choose. Midtown Palo Alto Homes for Sa... 07/12/2010

Avon Breast Cancer Walk is now over! It was quite an experience.   Here are my highlights.    1. Raised $1839 for breast cancer research and treatment for those in need        2.The walk on Sat started at Fort Funston and the opening ceremony was very touching.  I learned that every three minutes a someone is diagnosed with breast cancer. Not great news.        3. There were 3800 walkers registered for this event and as of Sat they had raised 5 ½ million dollars.        4. I walked over the Golden Gate Bridge twice without vomiting (I am afraid of heights).               5. My favorite team was one called Save Second Base.  I also liked Hookers for Hooters and Dudes for Boobs.                 6. The markers were off. My Garman which is uses a GPS for measuring said I walked 27.75 miles... 07/11/2010

  There was a fire in Palo Alto's Hoover Park yesterday.  The play structure in the back of the park next to the skateboard rink was set on fire and one of the redwoods next to it was charred.  As of this morning the Palo Alto police said it was arson. The structure has been taped off, but a chain link fence will go up soon to make sure no one is hurt. It is not known who the arsonist is but my guess is that some kids playing with post 4th of July fireworks may have done it, or maybe a cigarette. The representative from the Palo Alto parks department said they would probably have to get donations to replace the structure, which is not an inexpensive thing to do.  I will keep you posted. Marcy Moyer Keller Williams Realty www.marcymoyer.com marcy@marcymoyer.com Follow me, Marcyagent, on ... 07/08/2010

With the expiration of the federal tax credit, the housing market is facing a key inflexion point as we head into the summer vacation season. The government stimulus has certainly helped spur a rebound in the real estate market, but the recovery is fragile and observers are watching closely to see if the market can grow without the support of government aid. Several key economic announcements out this week could bolster the nascent recovery. On Thursday, mortgage finance giant Freddie Mac announced that U.S. mortgage rates have fallen to a record low. Rates for 30-year fixed loans declined this week to 4.69 percent from 4.75 percent. The previous record was 4.71 percent, set in the week that ended Dec. 3. The average 15-year rate was 4.13 percent. While the overall level of real estate ... 07/08/2010

Buyers, sellers, investors, welcome back to another installment of Real Estate Jargon, aka, simple explanations of real estate terms not normally found in nature.  As a departure from terms used in real estate transactions or property management, I'm responding to a question I've received a couple times regarding "rug joints" and "sawdust joints." All men know that anything they need to learn about being a man they can learn from watching "The Godfather."  Women - if you want to understand men, watch this movie.  Mario Puzzo, the late author who wrote the book, said that the story isn't about the Mafia, it's about the relationship between a father and his sons.  But I digress... In "The Godfather, Part II," one of the Mafia chiefs talks about how their casino hotels in Cuba are bigger a... 07/07/2010

Buyers, sellers, investors, welcome back to another installment of Real Estate Jargon, aka, simple explanations of real estate terms not normally found in nature.  Today we're looking at "condotel."  Condotel is a hybrid term that is applied to properties that are part hotel and part condo.  You may have seen condotels offered for sale, but it's good to know about the complexities of condotel ownership before considering a purchase. Condotels are typically suites hotels that allow individual ownership of each unit.  They are frequently located in resort areas that attract vacation renters, but may be a seasonal home for the owner.  Some are located downtown in large cities, where they can be used for vacation rentals or temporary corporate housing.  They are often high-rise buildings (f... 07/07/2010

    There was an article in this morning’s Mercury News about a grand jury investigation into Santa Clara County’s school districts and what to do about soaring deficits while keeping the level of education from suffering. The recommendation was to combine feeder elementary districts with the high schools that they feed into.     So, for example, they recommend combining the Whisman/Mountain View and Los Altos elementary districts with Los Altos and Mountain View High Schools.  They also recommend the same for Saratoga and Los Gatos.  On the surface, while one can argue the merits of one big district vs smaller districts, both from an educational and financial stand point, these combinations do not stand out to me as having a huge change in what parents perceive as quality vs non qualit... 07/05/2010

      Every Fourth of July Palo Alto celebrates our nation’s independence with a chili cook off in Mitchell Park. It’s an all day affair, and a smoking hot one too (whomp whomp) thanks to the chilies, the sunshine, and the inevitable crowds eager to sample first-rate chili recipes whipped up by 20 teams.   The teams compete in three categories: open, vegetarian, and corporate. Competition is stiff, and the winners receive cash rewards ($400 for 1st place,  $200 for 2nd, a plaque for 3rd) and more importantly, hefty bragging rights.   Last year the Palo Alto firefighters took home the People’s Choice Award and also won first place in the corporate division, beating out local favorites like Whole Foods and The Rose & Crown Pub.   The turnout is always good (attendance is estimated at betw... 07/04/2010

As the July 4th weekend approaches, we should take a few minutes to consider the unique way in which our country was founded.  Thirteen colonies united in the name of freedom for all, a unique thing in a world dominated by kings, emperors, and dictatorial governments at that time in world history. Many of us remember the words of the preamble to the Declaration of Independence: "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness." But the words that touch me the most are those that explain just how much our founding fathers were willing to sacrifice in the name of those rights: "And for the support of this Declaration, with a firm... 07/01/2010

Active Listings: 110 Pending Sales: 49 There has been a jump in inventory this week ahead of the fourth of July holiday. Since there will not be a lot of new listings this week due to the holiday some of this inventory may be sold off, or maybe not. I will keep my eye on it. I thought the neighborhood breakdown was interesting so I am going to do it again.  So here is the neighborhood breakdown: Downtown:  5 Active  2 Pending                                      one less pending Professorville:  3 Active  2 Pending                                 exactly the same Community Center:  6 Active  3 Pending                       more listings Crescent Park:  5 Active   4 Pending                               one more pending Green Gables:  9 Active  8 Pending                                o... 06/30/2010

Home buyers are often asked by their agent to look past the current condition of a property and consider its potential.  New carpet, some paint, a little landscaping.  The highest potential value of many properties is often hidden beneath poor decorating choices, worn out furnishings, a poorly maintained structure, and lawns covered with weeds.  Rather than passing on a home that needs help to realize its full potential, buyers may consider a strategy that turns the condition of the property into negotiating leverage. A similar approach can be used by investors acquiring rental property.  The seller will often set a sale price (which we, as buyers, will never offer...) based upon the condition and profitability of the property as it presently exists.  Should we, as investors, plan on ac... 06/30/2010

Buyers, sellers, investors, welcome back to another installment of Real Estate Jargon, aka, simple explanations of real estate terms not normally found in nature.  Today we're going to look at two types of leases that are of interest to anyone who is either a tenant or a landlord, or may be either of those in the future. While leases can take an unlimited number of different forms, there are two primary types of leases used with residential properties:  "month-to-month" or "standard."  The names may be different from state to state, but the general concepts of how they work are the same.  Here are general descriptions and the advantages of each for tenants and landlords. Month-to-Month Lease A month-to-month lease means just what it says - a contract that automatically rolls over from o... 06/29/2010