Summer 2021

Your Real Estate Expert for Berkeley and Beyond

  • Deep Market Knowledge
  • Analytical, Strategic, Creative
  • Honest, Adept, Direct

“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

Marilyn Garcia, PhD Broker Associate, Realtor® CA DRE LICENSE #01355514

The Grubb Company 1656 Shattuck Avenue Berkeley, CA 94709

Direct: (510) 390-5406

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 [...]

By |December 17th, 2021|Berkeley, General Interest, Listing Preparation, Resources, Sellers|

THE OUTLOOK: North Berkeley & Berkeley Hills, Summer 2021 wrap-up

I have been getting lots of questions lately about the state of the market, with people mentioning news articles that cite slowing.  Our local market was not quite as crazy over the summer as it was over the spring, and that seems to be continuing into the fall. However, the spring was sooooooo crazy, that even with a little cooling, the market is still very solid. **** BERKELEY HILLS There were 96 active listings in the hills for the summer 2021 season (June through August), and 66 properties closed escrow.  These numbers are up from the spring, which is not [...]

RESOURCEFUL

RESOURCEFUL     I try to recycle as much as possible, but I pretty frequently find myself staring at something trying to figure out what to do with it. I recently downloaded the “Resourceful” app to my phone, and I really like it! [If a phone app is not your thing, you can get the same information online at ResourcefulApp.com.] On Resourceful, you can look at various products, and see recycling information that is specific to Berkeley, and also ideas for more sustainable alternatives. Resourceful also has a useful general guide to recycling in Berkeley.  Here are a few tidbits about [...]

By |September 30th, 2021|Berkeley, General Interest, Maintenance, Resources|

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 [...]

By |September 30th, 2021|Berkeley, General Interest, Remodeling and Repairs|

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 the questionnaire forms are specifically required by the state or federal government, and the others are like a guided walk down memory lane, making sure sellers think about and pass along information within many different relevant categories.

In completing these forms, it’s not uncommon for a seller to worry that they’re over-disclosing – telling the buyer too much – and that they’re going to hurt their sale.  My general rule of thumb for disclosures is this: If you wonder if you should include something in the disclosures, the answer is always yes. Why? Because if it’s an item that the buyer cares about, then it’s a material fact, and you are required to disclose it. If the buyer doesn’t care, then it’s not hurting anything to have it there.

Carefully completed disclosures are important not just because of the legal requirement, but also because they set the tone for the transaction, and establish a baseline level of trust between the parties. If the seller has lived in the property for many years, but discloses next to nothing, buyers don’t feel confident that they’re getting an accurate picture of the property, which makes them worry about unknown problems. They may also think the seller is not playing fair, which affects their impression of the whole property, and their behavior in the transaction, including their willingness to be flexible when procedural things come up during escrow (and procedural and other issues often do come up!).

Disclosure forms include questions that ask you to describe all work and improvements you’ve done on the house, plus repairs needed now and those done in the past, plus ongoing maintenance. Putting together all of this information can be challenging, especially if you’ve owned the home for many years.  Including a lot of detail, though, especially about more recent improvements and repairs, gives the buyer the sense that the property has been well-maintained and improved over time.

Even if you’re not thinking of selling anytime soon, it will make your life much easier when the time comes if you start a list (or a spreadsheet, or a file) now, and update it when you have a new improvement or repair. For each item, record three things: what was done, who did it, and when. For recurring maintenance items, there’s no need to keep track of every time the tree trimmer or gutter cleaner came; just keep a list of what those maintenance items are. If you start doing this now, you’ll be way ahead of the game when you do decide it’s time to sell!

 

THE OUTLOOK: North Berkeley & Berkeley Hills, Summer 2021 wrap-up

I have been getting lots of questions lately about the state of the market, with people mentioning news articles that cite slowing.  Our local market was not quite as crazy over the summer as it was over the spring, and that seems to be continuing into the fall. However, the spring was sooooooo crazy, that even with a little cooling, the market is still very solid.

****

BERKELEY HILLS

There were 96 active listings in the hills for the summer 2021 season (June through August), and 66 properties closed escrow.  These numbers are up from the spring, which is not surprising — a big upward surge in prices generally inspires some sellers who were on the fence to list their properties. Properties sold on average after only 14 days on the market, which is quite fast.

The median sold price from June through August in the hills was $1,600,000.  This is down a bit from the spring, but up 11% from last summer.  A whopping 86% of the sales were for more than list price, which goes along with the low number of days on the market — most properties sold as soon as offers were accepted, with multiple offers.  The average successful overbid was 20% over list price, and 10 of the sold properties went for 40 to 60% over list price.

The average sold price per square foot was $886 over the summer, which, like the median sold price, is down slightly from the spring, but still up 14% from last summer.  As always, there was a big range. On the low side, three properties sold in the $400s per square foot (these were all large homes; the smallest was over 3600 square feet).  17 properties sold between $1000 and $1150 per square foot, and only two sold for more than $1150 per square foot. The highest sold price per square foot was $1562, for a property on San Luis. That property had many features that correspond with high price per square foot in our market: it’s a small (1184 square feet), architect-designed mid-century property, in the lower hills, on a larger lot, with panoramic views.

****

NORTH BERKELEY

There were 41 active listings in North Berkeley for summer 2021, and 34 properties closed escrow.  These numbers are up from the spring, and there were also a relatively high number of condos and townhouses on the market over the summer. Properties in North Berkeley sold on average in 20 days on the market.

The median sold price from June through August was $1,582,500 in North Berkeley.  This is up slightly (0.2%, or $2,500) from the spring, and up 20% from last summer.  71% of the sales were for more than list price, on average 29% above list price for those that went over.  Six of the sales were for 40% or more above list price, up to a high of 67% over list.

The average sold price per square foot was $943 over the summer, which is down slightly from the spring, but still up 6% from last summer.  There was a big range here too (similar to  the hills). One large home (over 4000 square feet) sold for $418 per square foot, at the low end.  14 of the sold properties went for over $1000 per square foot, and of those, two went over $1500 per square foot.  One was a 3-bedroom house on Virginia, which sold for $1505 per square foot, and the other was my two-bedroom listing at 1726 Francisco, which sold for $1586 per square foot.

****

So far this fall, we’re still seeing good buyer interest, with multiple offers on many properties— not as many offers per property as in the spring, but still enough to get great results for sellers. For buyers, it’s still a quite challenging market.

RESOURCEFUL

RESOURCEFUL    

I try to recycle as much as possible, but I pretty frequently find myself staring at something trying to figure out what to do with it. I recently downloaded the “Resourceful” app to my phone, and I really like it! [If a phone app is not your thing, you can get the same information online at ResourcefulApp.com.]

On Resourceful, you can look at various products, and see recycling information that is specific to Berkeley, and also ideas for more sustainable alternatives. Resourceful also has a useful general guide to recycling in Berkeley.  Here are a few tidbits about Berkeley recycling  I picked up from the app:

(1) You should not put things smaller than your fist (approximately) in the recycling bin, because they can’t be sorted.  However, caps to plastic bottles, if attached to the bottle, are okay.

(2) Compostable plastic (labeled #7, PLA, or compostable) needs to go into the compost bin, rather than the plastic recycling bin.  If it gets mixed into the regular bin, it can contaminate the batch.

(3) Anything that consists of mixed material (like a disposable razor that’s plastic and metal) is not recyclable.

(4) Paper towels with food on them can go in the compost, but a paper towel with Windex or other non-compostable cleaning product on it has to go in the trash.

By |September 30th, 2021|Categories: Berkeley, General Interest, Maintenance, Resources|Tags: , , , , , |

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 much return on the project, because your “new” kitchen will be pretty outdated by then.  (Of course, there is value in the enjoyment you’ll get from having a great kitchen or a luxurious bath in the intervening years, so you might still want to do the project!)

Here are three things, though, that are unlikely to go out of style: (1) an additional bathroom, (2) more usable space, and (3) a great yard.  The first of these is straightforward: another bathroom (especially if there is no bathroom on one level, or no bathroom attached to the primary bedroom, or only one bathroom overall) adds value.

Adding usable space can mean an expensive addition to your home, but it can also mean improving a basement, garage or attic, adding an ADU, or even adding a detached shed.  Did you know that you don’t need a permit to add a single-story shed of up to 120 square feet (although you are supposed to have a permit if you add plumbing or electricity).  Adding a nice shed is a relatively cost-effective way of gaining a little

more space to spread out, or adding a workspace, something many people are looking for these days. If you go with a nicer shed, incorporate it well into the yard, and maintain it over time, the next owner will appreciate it too (and pay more for the property).

A great yard, with nice plantings and spaces to play and hang out, also adds a lot of value.  If you are (or you have) a great gardener, then well-chosen plantings that mature over time can make a garden feel special. If you’re not a great gardener, and you don’t think new plantings will last and look great in the long term, you can still improve your yard (and the value of your property) with space planning and some hardscape design. The goal is to fully utilize the yard space you have. Can you use the side yard to create a play area, or add storage or a place to tuck away trash and recycling cans to make more space elsewhere? Can you create a flat area on a sloped space, with nice stairs to it, to add a pleasant hang-out space? Can you add planting beds in a sunny spot, for herbs or tomatoes or something else?

I recently helped some lovely but extremely busy clients, who were not big gardeners, sell a property where the previous owners had done substantial landscaping on the property.  Some of the plantings in the yard were not in great shape, but the layout and a few big plants were still there.  We brought in a gardener, who cleaned everything up and added new plants, and the yard was magical again.  These sellers had also added a shed/office in back, and the combination of the gorgeous yard and the little bit of additional space led to a fantastic sale price for the property.

If there’s a good chance you might sell in the next 10 years, then remodeling a kitchen or bath will have a higher return. Keep in mind this general rule though: the longer the time until you’ll want to sell, the more important it is to choose more classic finishes, rather than what’s bold and trendy right now.

Your Real Estate Expert for Berkeley and Beyond

  • Deep Market Knowledge
  • Analytical, Strategic, Creative
  • Honest, Adept, Direct

“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

Marilyn Garcia, PhD Broker Associate, Realtor® CA DRE LICENSE #01355514

The Grubb Company 1656 Shattuck Avenue Berkeley, CA 94709

Direct: (510) 390-5406

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