Your Real Estate Expert for Berkeley and Beyond
“Marilyn is exceptional. Her knowledge base, enthusiasm for her job, professional ethics, organization, sensitivity to our aesthetic requirements, loyalty and gentle perseverance set her apart.”
-- Bill and Carol Seidel
Marilyn Garcia, PhD
Broker Associate, Realtor®
DRE# 02014153
District Homes
1758 Solano Ave.
Berkeley, CA 94707
Direct:
(510) 390-5406
REAL ESTATE ANSWERS: Should I replace my gas water heater, or switch to a heat pump version?
I need a new water heater. Should I replace my gas unit, or switch to a heat pump water heater? If you are looking for the simplest, lowest cost replacement today, sticking with gas is still a viable option (for now!). But there are a number of reasons to seriously consider the heat pump option. Gas appliances burn fuel inside the home, and in the process produce nitrogen oxides (NOx). These are linked to respiratory irritation and asthma, and they also contribute to smog. That smog connection is why the Bay Area Air Quality Management District, or BAAQMD, has adopted [...]
REAL ESTATE ANSWERS: When does it make sense to refinance your mortgage?
When does it make sense to refinance your mortgage? With forecasters saying that interest rates may trend downward in 2026 and 2027, you might be wondering if it’s time to consider refinancing your home loan. So when does it actually make sense to refinance? If you have a home loan with an interest rate around 3 percent, you will likely want to hold on to it unless you are planning to move, going through a divorce, or facing another life event that requires refinancing. Short of a major economic disruption, it is unlikely that rates will return to that level [...]
REAL ESTATE ANSWERS: Is Berkeley checking how we sort our waste and recycling?
Is Berkeley checking how we sort our waste and recycling? Yes, the City has been checking a subset of our curbside refuse and recycling bins for correct sorting lately. If they find items in the wrong bin, they leave a note with tips to help you sort correctly. Because I spend a fair amount of time trying to figure out which bin various items go in (or which Ridwell bag to use), I periodically go online and check the sorting rules, and thought I’d share some interesting and clarifying tips I found. The question that has come up most often [...]
REAL ESTATE ANSWERS: What changes are coming to Berkeley’s BESO program, and how will they affect home sellers?
What changes are coming to Berkeley’s BESO program, and how will they affect home sellers? Coming soon to a real estate sale near you: changes to Berkeley’s Building Emissions Saving Ordinance (BESO) that will significantly increase the requirements when a single-family home or detached condo is sold. The purpose of the ordinance (from the code itself) is “to reduce energy use, water consumption, and greenhouse gas emissions in existing buildings.” Currently, BESO requires a seller to complete an Energy Report identifying energy and water efficiency opportunities, which must be filed with the City. The total cost is typically under $500. [...]
REAL ESTATE ANSWERS: What is wire fraud in real estate, and is it a big deal?
What is wire fraud in real estate, and is it a big deal? There are countless scams out there designed to steal your money, and one major example is wire fraud in real estate. It happens when scammers learn that a real estate transaction is in progress and send fake emails that look legitimate — often posing as the buyer’s agent, escrow officer, or lender. These fake emails typically tell the buyer that it’s time to send closing funds to escrow, and they include wiring instructions that, if followed, send the buyer’s money straight into the scammer’s account. And yes [...]
REAL ESTATE ANSWERS: What causes window condensation, and what can you do about it?
What causes window condensation, and what can you do about it? In the winter, the difference between outdoor and indoor temperatures often causes condensation to form on windows. This moisture can drip down to the window frame or sill, leading to surface deterioration and creating a favorable environment for mold to grow. Mold growth can also go unnoticed behind blinds and curtains, making it important to address condensation issues quickly. When warm, moist air accumulates inside your home, condensation is more of an issue. Kitchens and bathrooms are often the biggest sources of moisture, which is why good ventilation in [...]
REAL ESTATE ANSWERS: How has the practice of real estate changed recently?
How has the practice of real estate changed recently? I mentioned in a previous newsletter that there were changes coming in the real estate world, and they’ve arrived. As a result of a settlement by the National Association of Realtors®, there are a couple key things we are doing differently these days. The first is that sellers are no longer committing to pay the buyer’s agent in advance, as part of the listing agreement, and there is no commission offer to a buyer’s agent in the MLS. In the newly revised forms, reflecting the new procedures, the listing agreement only [...]
REAL ESTATE ANSWERS: Where can one get more information on the current homeowners insurance crisis in California?
Where can one get more information on the current homeowners insurance crisis in California? The current insurance situation comes up a lot in my profession, since virtually every real estate transaction results in a new homeowners insurance policy. All buyers who are getting a bank loan must get homeowners insurance (it’s required by lenders), and of course all but the most extreme risk-loving cash buyers will want coverage as well. We fairly regularly get presentations and other insurance information at office meetings. When I heard that Susan Wengraf, Vice Mayor of Berkeley and Councilmember for District 6, was hosting a [...]
REAL ESTATE ANSWERS: What’s changing in the real estate world?
What’s changing in the real estate world? There was a big lawsuit filed in Missouri in 2019, that focused on the way buyers’ agents are paid. A settlement agreement was reached last month, and it has been all over the news recently. What’s it all about? Sellers have long negotiated a total commission with their agents, and that commission has been shared between the listing (seller’s) agent and the agent representing the buyer of the property. This is all spelled out clearly in the listing agreement we use in California – it has a field for the total commission to [...]
REAL ESTATE ANSWERS: What counts as a bedroom in real estate, and do more bedrooms add value?
What counts as a bedroom in real estate, and do more bedrooms add value? A bedroom in general is just a room where people sleep. For a room to count as a bedroom for real estate purposes, there are several requirements: (1) FLOOR SIZE. According to the standards used by appraisers, a habitable room must have a floor of at least 70 square feet in area and be at least 7 feet in any direction. So a 7’x10’ room is okay, but a 6’x12’ space, even though it’s 72 square feet, wouldn’t be counted as a room (or a bedroom) [...]
REAL ESTATE ANSWERS: How do actions by “the Fed” affect interest rates on home loans?
How do actions by “the Fed” affect interest rates on home loans? The Federal Reserve System (“the Fed”) uses monetary policy to keep the U.S. inflation rate low, and keep the economy operating at full employment. These are competing goals, so their work is a major balancing act. The Fed’s primary policy tool is changes in the federal funds rate, which is the rate at which commercial banks loan extra reserve funds overnight to each other (so it’s a very short-term interest rate). The Fed raises rates to combat inflation, and reduces them if they are trying to fight high [...]
REAL ESTATE ANSWERS: What’s going on in the home insurance market, and how does it affect current homeowners?
What’s going on in the home insurance market, and how does it affect current homeowners? In late May, State Farm, which is the largest issuer of homeowners’ policies in California, announced that it would not sell any new home insurance policies in California. In addition, Farmer's Insurance just announced that they will limit the number of new policies they sell here. Allstate also stopped issuing new policies in California last fall, so this is a significant trend. Why are these big insurers pulling away from California at this time? Major wildfires in recent years have resulted in surges in claims, [...]
REAL ESTATE ANSWERS: What is (or was!) the California “Dream For All” program?
What is (or was!) the California “Dream For All” program? There have been many programs over the years aimed at helping first-time buyers get into the expensive California housing market, but they have mostly been so restrictive that few people were able to use them. The less-restrictive “Dream For All” program from the California Housing Finance Agency is targeted to low and moderate income first-time buyers. It provides funds for down payment and closing costs through a shared appreciation loan of up to 20% of the purchase price. Here’s an example of how it can work. A qualifying buyer uses [...]
REAL ESTATE ANSWERS: What design trends are you seeing now for kitchens?
What design trends are you seeing now for kitchens? Here are ten trends for kitchen design I have been seeing in publications and in our local market: Stark all-white kitchens are becoming less popular. People are looking for more warmth, which can come from materials or color. Unpainted wood cabinetry is increasingly popular; the grain and color of the wood add warmth and a natural element to the overall design. If cabinets are painted, we’re seeing less gray and less white, and more shades of blue, green, saffron, and ivory. The use of open shelving for storage is trending downward, [...]
REAL ESTATE ANSWERS: How has the negotiating environment changed as the market has shifted?
How has the negotiating environment changed as the market has shifted? When the real estate market is at its strongest, there is not a vast amount of negotiation between buyers and sellers. Buyers make strong offers in competition, often waiving the inspection contingency, and many sellers choose to accept the best offer, rather than negotiate and risk de-stabilizing the transaction. When the market is more balanced, there are fewer offers on properties, and buyers may not feel that they have to make their best offer at the start. An accepted offer might also have an inspection contingency, so there may [...]
REAL ESTATE ANSWERS: How much difference do higher interest rates make for home sales in our area?
How much difference do higher interest rates make for home sales in our area? Over the spring, the Federal Reserve announced a plan for multiple interest rate hikes this year to try to get inflation under control, and we’ve seen three rate increases already this year. As I write this, interest rates on home loans are approaching 6%, up from about 3% at the start of the year. Interest rates are at their highest level in 10 years, and there may be additional increases to come. Increasing rates make a lot of difference in the purchasing power of individual buyers. [...]
REAL ESTATE ANSWERS: Why are most sellers in our area no longer accepting “love letters” from buyers?
Why are most sellers in our area no longer accepting “love letters” from buyers? In our market, where buying a home is a super-competitive process, it used to be the case that buyers would include a “love letter” with their offer in hopes that it would influence the seller in their favor. The letter would tell the seller about the buyers, their qualifications, and why this property would be the perfect home for them. It also often included a photo of the buyers. The idea was that, because many (even most) sellers have some emotional attachment to the property they’re [...]
REAL ESTATE ANSWERS: Should I be careful not to over-disclose when I’m selling my home?
Should I be careful not to over-disclose when I’m selling my home? Completing seller disclosure forms in California can be a daunting task. A seller is legally obligated to disclose all known material information about the property to the buyer, and can be sued for hiding defects or problems. A material fact is any piece of information that would affect the buyer’s decision to purchase the property. To meet this obligation, sellers complete a series of detailed questionnaires about the current condition of the property, ongoing maintenance, past repairs and upgrades, and a whole array of other topics. Some of [...]
REAL ESTATE ANSWERS: What kinds of projects can add lasting value to my home?
What kinds of projects can add lasting value to my home? Suppose you want to do some work on your home, and you want to choose a project that will add value, not just today, but into the future when you might sell your property. We all know that kitchens and baths sell houses, so remodeling either of those is an obvious possibility. However, if you have a long time horizon, there's a problem with that choice: remodeling is very style-dependent. If you remodel your kitchen now, but don’t sell your home for 15-20 years, you’re not going to get [...]
REAL ESTATE ANSWERS: What is the right pricing strategy for my home?
What is the right pricing strategy for my home? In Berkeley and in the surrounding areas, it has long been the case that many properties are listed below what they’ll likely sell for. I’ll call this “low pricing.” Low pricing is a strategy intended to attract the attention of a wide range of buyers and to generate multiple offers. Most properties around here follow this strategy, but it’s not the only possibility. “Transparent” pricing is a newer term for the classic pricing strategy followed in most other areas. It refers to choosing a list price that is at a value [...]
REAL ESTATE ANSWERS: What is home fire hardening, and do I need to do it?
What is home fire hardening, and do I need to do it? “We’ve learned from recent fires. Hardening your home and keeping the 5 feet closest to your house clear of flammable materials (including patio furniture and décor) greatly improves its chance of surviving a fire.” CALIFORNIA FIRE SAFE COUNCIL Fire hardening is making changes to an existing home to make it more resistant to wildfire. According to the Fire Safe Council, your home can catch fire in 3 main ways: from ember storms, where small pieces of burning material are blown in front of a fire (embers can apparently [...]
REAL ESTATE ANSWERS: How are property tax assessment transfer rules changing due to Prop. 19?
How are property tax assessment transfer rules changing due to Proposition 19? If you are one of the many people in California who at some point considered moving but decided not to because your property taxes would increase sharply, you could be in luck now. Proposition 19, which passed in the last election and goes into effect April 1, 2021, allows a homeowner who is 55 or older, severely disabled, or whose home was substantially damaged by wildfire or natural disaster to transfer their property tax assessment to a new replacement home with fewer restrictions than is currently the case. [...]
REAL ESTATE ANSWERS: Why (and how) do so many local sellers spend so much money getting their homes ready for sale?
Why (and how) do so many local sellers spend so much money getting their homes ready for sale? Sellers in our area routinely spend tens of thousands of dollars on work and staging in preparation for putting their home on the market. (The amount obviously depends on the size and condition of the home, but $50,000 is pretty common these days). Why spend so much, when there are so many buyers out there? The first part of the answer is that yes, there are lots of buyers, but there are also other homes for sale, so it’s important that your [...]
REAL ESTATE ANSWERS: Why should you pull a permit for work done on your home?
Why should you consider pulling a permit for work done on your home? The #1 reason you should get a permit if you’re having work done on your home that requires it is the obvious one: it’s required by law, and you can have problems with the City if they discover you don’t have a permit, either as the work is being done, or after the fact. That said, it’s definitely the case that many homes in our area have work that was done without permits. Homeowners choose to skip permits for a variety of reasons, including the cost of [...]
REAL ESTATE ANSWERS: I’m considering selling my home next year. What should I start doing now to get ready?
I’m considering selling my home next year. What should I start doing now to get ready? It’s a well-known fact that right now is not the optimal time to sell a home in our area. It is, however, the right time to start getting things in place if you’re thinking of selling next year, so that you’re ready for the very busy selling season. Here are the first things to do to get ready. (1) Think about where you’ll be when your home is on the market. Do you already have your next home set? Are you renting or buying [...]
REAL ESTATE ANSWERS: Why do list prices sometimes increase after a property has been on market for a while?
Why do list prices sometimes increase after a property has been on the market for a while? In most parts of the country, properties come on the market, and if they don’t sell after a period of time, motivated sellers will reduce the list price to attract buyers. Around here, if a property is not getting the interest the seller hoped for, sometimes the seller will reduce the list price, but other times the list price will increase. What’s going on? The answer lies in the strategy that was followed in choosing the original list price. In other areas, the [...]
REAL ESTATE ANSWERS: How have the massive fires in recent years affected homeowner’s insurance locally?
How have the massive fires in recent years affected homeowner’s insurance locally? I spoke with Ruth Stroup with Farmers Insurance, who is always a great source of information about the insurance world, and asked her what changes she’s seen as a result of the tragic fires we’ve had in California over the last few years. Ruth said that the huge claims in back-to-back years from the fires have affected insurance companies’ ability to get reinsurance. (Reinsurance pays a share of the claims in the case of massive losses like with the fires, and is a critical component of the insurance [...]
REAL ESTATE ANSWERS: How old is the housing stock in Berkeley?
Many times over the years, when counseling new buyer clients, I have pointed out that the majority of the homes in Berkeley are older, built in the early part of the 1900s. I know this anecdotally, and from looking at so many homes over the years, but I had not seen any actual figures. I thought it would be interesting to look at the data, so I went to my handy public records database and looked at records for the single family homes in Berkeley. A couple things to keep in mind: (1) I only looked at structures that are [...]
REAL ESTATE ANSWERS: What’s changing as a result of the Berkeley measures on the 2018 ballot?
There were 2 local measures on the November 2018 ballot that were approved by voters that will impact local real estate going forward. The first was Measure P, which passed with 72% of voters saying yes. Measure P increases the Berkeley city transfer tax on property sales at prices over $1.5M, from 1.5% of the sale price, to 2.5%. Property sales at prices of $1.5M or less will still be taxed at the old rate of 1.5%. The measure says that the funds raised are intended to be used for “general municipal purposes such as navigation centers, mental health support, [...]
REAL ESTATE ANSWERS: Why are there so many wild turkeys around these days?
This is not exactly a real estate question, but it is something I have been really wondering about myself! When I was growing up, I don’t remember ever encountering a wild turkey. Now it seems they’re everywhere, not just in the Bay Area, but in other parts of the country as well. A quick google search turns up articles about the abundance of wild turkeys in Massachusetts, Alabama, Chicago, Tennessee, Ohio, and lots of other places. Just a few days ago, I sat in my car at a stoplight and watched a gang of turkeys cross Marin Avenue at the [...]
REAL ESTATE ANSWERS: What can I do to make a dark room brighter?
Some people love a cozy, darker space, but for others (and for getting top dollar in a sale), bright, airy spaces are optimal. How can you get this look in an existing home? The obvious answer is with remodeling—adding windows or skylights to let in more natural light. There are many ways to brighten a room, though, that don’t involve calling a contractor and spending lots of money. Here are some suggestions: Start by making the most of the windows you have. If it’s been a while since the windows were washed (note to self…), having them cleaned can make [...]