Trulia & Zillow & You

VERSUS

The real estate consumer is becoming more and more web savvy (otherwise you wouldn't be reading a real estate blog, now would you?), and two of the more popular sites are Trulia.com and Zillow.com. What are they and how can they be of use to you? Or, are they of no use at all?

Both sites collect and analyze real estate information in many different urban metropolitan centers, including the Bay Area. Both sites offer current listings, data on recent sales, and valuations on properties. Trulia tends to have more of an emphasis on current listings and includes a nice interactive Q&A function called "Trulia Voices." And, Zillow seems to have the edge in providing valuation information.

I recently read that 85% of real estate consumer begin their journey with web searches. Are these two sites the best place to start? I think they are a fine place to start in order to get a snapshot of the market, but I highly encourage you to work with a realtor for your transaction.

Both sites have an incomplete inventory of homes for sale, mostly including just those from the chain brokerages and those actively submitted by agents. You are better off using a more complete site like Realtor.com. And, working with a realtor will help you find the gems in the neighborhood or to best market your home.

As for valuations, the sites use algorithms and applications that lack human eye and intellect. The comparables they include are not very realistic, sometimes comparing small 2 bedroom condos to large 2 bedroom single family homes in the same neighborhood. The value of a home is truly determined by the buyer and the seller negotiating in the free market. If the buyer makes an offer and the seller accepts it, then that is the value. If a home is listed too high, especially in this changing market, no one will buy it. And that means the list price is not that house's value.

So, Trulia and Zillow are fine for market pictures and to do basic research--even I look at them sometimes. But for real guidance in the real estate world, rely on a realtor with expertise in your neighborhood. If you need expertise and guidance in Berkeley, Oakland or other East Bay neighborhoods, let me know. I can be reached at 510-547-5970 x57 or MSmartt@jps.net

Fun Time

Alrighty, enough talk about real estate....time to take a break and have some fun this weekend! The East Bay always has so much to do that it can be hard to decide! Here are some of my picks for fun in the East Bay this weekend:



The San Francisco Jewish Film Festival makes its annual trek to Berkeley for a week of screenings at the Berkeley Rep. Highlights include the magical drama AVIVA MY LOVE and the romantic comedy GORGEOUS!




Lyle Lovett and His Large Band take the stage with kd lang at the Sleep Train Pavilion in Concord. What a great combo!



Get some exercise and remember Oakland's historic "work holiday"--a citywide general strike that led to over 100,000 workers walking out on their jobs in 1946--the last general strike in US history. The walk starts in Downtown Oakland at Broadway & Telegraph on Saturday morning at 10:30am.




I'm also going with family on Friday night to see Hairspray. Loved it onstage and can't wait for the movie. You can't stop the beat!



Have a fun weekend...and if you happen to visit some open houses on Sunday and want to make an offer, let me know. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Real Estate 101

Tenants in Common

In the Bay Area, where real estate prices continue to be high and challenging for first time buyers, creative solutions are always appreciated. Holding title to your home in a TIC, or Tenants in Common, is one such solution. So, what is a TIC?

A Tenants in Common arrangement allows a group of people to hold title together in percentage shares with undivided interest. Imagine a 4-unit building owned together by the residents of each unit. And, whereas a single loan had to be arranged for all of the owners in the past, that is changing these days, making TIC ownership easier than ever.

TIC ownership allows Right of Survivorship, which means you can leave the home to your heirs. This might seem logical, but it is the key difference between TICs and Joint Tenancy ownership, in which your share goes to the other joint tenant owners.

While there are many similarities between TICs and Condos, there are also key differences. TIC owners retain the airspace to their units and jointly own the common areas. In a condo, you lose the airspace and the HOA owns the common areas. TICs usually have monthly fees to cover general area maintenance and such, but you will always own your share.

TICs can be tricky, but are becoming more and more common and continue to be a great way to enter the real estate market. If you have questions about them or would like to discuss it further, I am always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Financial Tips

Watch out for that Pre-Pay Penalty!

If you are thinking about selling your home, make sure to check your existing home loan(s) for any pre-payment penalty. They can be quite stiff!

Remember back when you were setting up your mortgage, and perhaps you got a better deal by including a pre-payment clause? The lender gave you a better deal because they thought you might stick around for awhile sending them regular checks. They like checks! Well, if you go away before 3 years or 5 years (depending on your own loan), you could get stung with a hefty penalty costing you thousands of dollars.

Even if you are selling your home close to the date, it could throw a wrench in the process. Say you want to schedule close of escrow for right after the pre-payment cut-off date, but if you submit a loan payoff demand even 24-hours before the the penalty phase ends, you could still owe the fee. So, watch the dates in addition to watching the money.

For more on pre-payment penalties, including a great summary of why they exist, check out Mike Mueller's blog. Or if you have further questions about the little details you have to watch out for when selling your home, let me know. I'm always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Hot Property--311 Oak Street #837

My colleague Perry Riani has just listed a terrific loft at the Sierra building in Jack London Square, and I must say it is one of the best deals in the neighborhood.

This is a huge top-floor loft with nearly 1400 square feet and unbeatable views of Oakland and SF. It isn't technically a penthouse, but you feel like you are on top of the world, and--even better--you aren't paying penthouse prices. At $589,000, it has a great price per square foot--one of the best in the neighborhood.


And, the features are impressive. It is a 1 bedroom/1.5 bath loft unit, but it also has a nice bonus space that could be a nursery or a home office. The hardwood floors and open kitchen floor plan are beautiful, and give this modern industrial design a warm homey feel. A wall of windows lets in the perfect Bay Area sunlight--and they even open. Or you can modulate the mood and temperature with remote-controlled blinds and air conditioning. The building has many great amenities, including a fitness center, pool, 24/7 security, concierege....and a really great deli on the corner!


Take a virtual tour at 311OakStreet.com. And,don't miss the open house this Sunday, because this unit won't last long. If you would like to preview it, I would be happy to give you a tour. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Have a sunny and fun weekend!

Neighborhood Focus--Maxwell Park

Looking at the market these days, I am seeing more and more great deals in the Maxwell Park section of Oakland, which is one of the most on-the-rise sections of this town.

Maxwell Park was created in the 1920s and is generally situated along the western side of the 580 between the Fruitvale/Laurel districts and Mills College. The architecture is a charming mix of period bungalows and single family homes with old world touches. Plus, it is close to BART and has many services and great schools. Just this spring, Oakland Magazine named Maxwell Park as one of the best neighborhoods in town.

What does the market look like in Maxwell Park this week? Pretty interesting. Over 20 properties are listed in this little neighborhood. Here are a few properties that look great:

*5360 Walnut--$444,900--A huge 2 story 4/2.5 that needs just a little sprucing up
*3206 Millsview--$485,000--A beautifully updated 2/1 with 1150 sq. ft.
*4615 Brookdale--$479,000--This 2/1 has great period details, modern updates & fruit trees!
*3214 Wyman--$525,000--This 1929 3/1.5 is the definition of storybook charm!
*2821 Madera--$529,000--A 2/1 with classic curb appeal and impressive updates throughout
*3012 Kingsland--$724,000--A huge 4/3 home with some of the best remodeling work in the neighborhood. If you want to spend a little more, this looks like a great deal!
*And many more...

If you would like to tour these homes or explore the neighborhood some more, I would be happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

Real Estate 101

What is a 1031 Exchange?

You often hear people talk about 1031 exchanges, and might be wondering if this is something you should be thinking about. Or, you might wonder, maybe it is just something for big real estate investors. This is something everyone should consider when selling a home, especially in the fluctuating East Bay real estate market.

Section 1031 of the IRS tax code allows the sellers of a home to defer the capital gains taxes. You do this by re-investing the proceeds into a "like-kind" property. So, if you sell a single family home, you must re-invest in a single family home. Or, trade an apartment building for a similar apartment building.

While there are many facets to this srategy, the key things to remember are: the tax is simply deferred until a later date, the properties must be "like-kind", and the exchange must be identified within 45 days.

The key benefit of a 1031 exchange is that it frees up a substantial amount of money that would have gone to the federal government immediately, allowing you to continue to use and invest it until the tax is due at a later time.

While the basic premise is simple, the tax code can be complicated. If you have questions or would like more information, I would be happy to help. I can always be reached at 510-547-5970 x57 or MSMartt@jps.net.

Financing Tips

Last time on the topic of Financing Tips, I wrote about MMAP--the Monthly Mortgage Assistance Program. Today, I wanted to visit Home Equity Sharing, which Traci Hukill wrote an excellent article about in yesterday's San Francisco Chronicle Magazine.

As we are starting to see, it is becoming a "buyer's market" in many East Bay neighborhoods these days, so people interested in getting into real estate should seriously considering getting their financial ducks in a row in the next few months. One obstacle to this can be the daunting prospect of coming up with the down payment, so home equity sharing is a creative and sound solution to consider.

Home equity sharing is basically finding a private individual investor to cover the down payment in exchange for an equity percentage in the home. The particulars are up to the involved parties, who will need to agree upon the percentage of equity, the time of the agreement and more. Typically, the homeowners pay back the investor in 3-5 years and then refinance on their own.

The easiest way to do this might be to make an agreement with a friend or family member, but there are also matching services out there, such as HomeEquityShare.com, which can connect you with investors.

Of course, like with any financial deal, there could be some risks, so be sure to discuss all the angles with your financial advisor or mortgage broker.

If you would like more information on home equity sharing or would like to further discuss financing options for first-time home buyers, please let me know. I can be reached at 510-547-5970 x57 or MSmartt@jps.net

Hot Property

If you are on the market right now for an affordable condo with stunning views, don't miss the Lake Merritt penthouse condo at 320 Lee Street. Listed by broker Ron Kriss here at Lawton Associates, this is one hot property at just $849,000!

In addition to the panoramic views, the expansive sun-drenched 1,100+ sqft deck makes you feel like you are sitting on top of the world. The creative architecture and walls of glass bring those views into almost every room. There are so many “Wow” spots in this condo – it is truly unique in the marketplace.

The penthouse features 2 spacious bedrooms, 2 full bathrooms, hardwood floors, and high ceilings. There is secure parking, and the penthouse offers additional security from a private elevator stop. There is plenty of storage in the condo, on the deck, and in the parking garage. The 2 Penthouse Condos share a common laundry located right out your front door. This amazing penthouse is located close to everything the city has to offer from beautiful Lake Merritt to the new Whole Foods opening this fall. The Van Buren Towers has always been a desirable address and the building is well maintained.

There is an open house this Sunday, but if you would like a private tour, please call me to make arrangements. Let me know your housing desires, and let's go look at houses! I can be reached at 510-547-5970 x57 or MSMartt@jps.net.

Have a fun weekend!

Good News for East Bay Commuters

While there are so many great things about living in the East Bay, one of the few challenges is dealing with traffic. The good news is that improvements are always being made to try and make life on the road a little bit better.


One new development is the expansion of FasTrak lanes on all Bay Area bridges. My FasTrak tag has made my life so much better....I think I would even pay for the privilege of using it. And, if you get one this summer, FasTrak is offering free tolls. And, you can get even more free tolls if you buy your tag at CostCo or Safeway. Check it all out at the FasTrak website.

Of course, getting a more fuel-efficient car helps. And, with certain cars with high fuel efficiency, you can get a tag that allows you to use the carpool lanes. How about a Prius? Recently, I wrote about a great incentive at the Gate 48 condo development in Temescal, which was built according to the highest "green" standards. For a limited time, you can get a Prius when you buy a brand new condo at Gate 48--and then use the carpool lane, too!


One of the best ways to avoid traffic is to get out of your car and use public transportation. I'm glad to see that AC Transit has started using buses on many of their major lines that use hydrogen fuel cells and have zero emissions. This combined with their new express buses makes public transportation an even better option than ever before.

I could go on and on with these transportation alternatives, and in the future I look forward to writing more about other options, like the amazing "casual carpool" program. If you ever have questions about East Bay life and culture--or want to take advantage of that great Prius deal at Gate 48--just let me know. I'm always happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net.

The Sky's the Limit!

Last week, I wrote about the many great deals out there right now, especially for homes in the $500,000-$600,000 range. But what if you aren't looking for a deal? Perhaps you want to spend as much money as possible.

So, what is the most expensive home in the East Bay? Well, there is currently a 6 bedroom / 5.5 bath home listed for sale in Danville's exclusive Blackhawk neighborhood for $12 million dollars. It even has ponds and waterfalls, plus an office for the caretaker. And, perhaps there is a deal to be had! The monthly HOA dues are only $137. Not bad! But if that is too rich for your blood, there are over a dozen other properties listed in the East Bay in the $5-10 million range.


But the East Bay is no match for down south. The great Bay Area real estate blog Curbed SF points us to the most expensive home in the nation. For only $165 million, you can get the Beverly Hills estate that once belonged to William Randolph Hearst and Marion Davies (JFK and Jackie honeymooned there, too!). The property includes 29 bedrooms in four separate houses, one apartment and one cottage.

Who says the real estate market is wobbly?

The Nitty Gritty

So, What Happens at a Structural Pest Inspection?

One of the most important inspections that can happen during a property sale transaction is the structural pest inspection. Often times, the first question you might hear when selling a home is "How much is the pest?" So, what is going on here?

The structural pest inspection investigates a home for termite damage, dry rot, and other related problems. Sometimes the seller will have this inspection, but not always. If a home you are interested in has not had a structural pest inspection, it is advisable to spend a few hundred dollars on getting one done.

When looking at an inspection report, you will see descriptions of any problems found and an estimate to repair each problem. So, you are looking for the lowest number possible. Section one, which investigates current damage, is the most important section to look at closely. Section two looks at the potential for future damage.

Repair work on a house with significant damage can include anything from tenting a house for fumigation to replacing a deck. And, the costs for extensive repair work can easily escalate into the $10,000-$20,000 range. So, you can see how important this can be. But don't worry too much, as the pest report is often clear or might just require very minor work.


Inspections are not required by the state, but many lenders will require this as part of the appraisal and approval process. For more information, please visit the state's handy structural pest control website. Or, just contact me at 510-547-5970 x57 or MSmartt@jps.net. I'm always happy to help.

Going to Market

Say you are ready to sell your house. It is in good shape, but it might not be the best house on the block. You might find yourself wondering, "How much work do I need to do to make a profit when selling this house?"

For instance, should you install those popular granite countertops and stainless steel kitchen appliances even though your kitchen seems perfectly fine? Or perhaps you should do a major landscaping renovation to give the house amazing curb appeal?

The challenge here is to do just enough to help sell your house, without going overboard. You might spend tens of thousands of dollars on that fancy kitchen or pretty yard, only to then have the buyers re-do it themselves to their own desires. And, will you really get back the money you invested?

I think it is best to be pro-active but prudent in these situations. Remember, your goal as a seller is to sell the house, not completely renovate it for the buyer. Do the necessary cosmetic upgrades to make your home attractive to buyers, but don't go bankrupt trying to have the most desirable home on the market. There are lots of tips and tricks to getting your home ready for market.

If you are ready to list your home for sale and need advice on preparing it for market, please let me know. I'd be happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net

Market Update

Everyone is always talking about real estate, whether the market is booming or in flux. Right now, there is a lot of talk that the real estate market is in trouble...but is it?

Well, there is still a great deal of activity here in Rockridge, Berkeley and the surrounding areas. And, despite the rumors, interest rates are actually pretty stable. In fact, they are just about the same as they were one year ago.

The difference is that the character of the market is changing. Lately, it seems to be becoming more of a buyer's market again. While the expensive properties continue to skyrocket and demand multiple bids over the listing price, I'm pleased to see more and more homes being listed again in the mid-ranges of $500,000 and $600,000 ranges. And, these are very nice homes in great neighborhoods. This is perfect for the first time buyer and young professional group.

But remember, the market does continue to change like any dynamic system. Plus the market varies quite a bit from region to region, even from neighborhood to neighborhood. For more information and a more comprehensive look at the East Bay real estate market, let me know. I can be reached at 510-547-5970 x57 or MSmartt@jps.net

Green in the City

The modern homebuyer can often be conflicted when buying a new home about increasing their "carbon footprint." But, there are many solutions to investing in your personal future, as well as the future of the planet. One solution is to invest in newer buildings built to advanced green standards. Gate 48, a new condo development in Oakland's Temescal district, is one of the best green buildings in the East Bay--and one of the best deals around, period!

Gate 48 is a new 12-unit building developed by Ron Kriss and Lawton Associates...and it is among the first multi-family residential buildings to be certified at the highest level of Green construction by the statewide non-profit organization Build It Green. The building's energy efficiency exceeds California's stringent code requirements, which are by far the most demanding in the nation.

Even better...Gate 48 has incredible buyer incentives to spread the new urban green lifestyle. Buyers can receive up to $25,000 in credits...or a brand new Toyota Prius. And, with already affordable prices ranging from $399,000 to $549,000, this green deal is also one of the best deals in the East Bay.

Tour the Gate 48 project or Click here to read the San Francisco Chronicle article about the building's development.

If you would like to learn more about green options when buying a new home, or would like to consider making an offer on one of these highly-desirable units, please be in touch. I would be happy to help. I can be reached at 510-547-5970 x57 or MSmartt@jps.net

FIREWORKS!

Happy 4th of July Everyone!

While the City of Oakland may have cancelled their fireworks show over Jack London Square this year due to construction, you can still find dozens of great fireworks shows and other holiday event throughout the Bay Area.

Here is the San Francisco Chronicle's list of 4th of July events, so you can find the best one for you and your family and friends.

And what is your favorite place to watch fireworks? Chronicle readers chime in with their thoughts.

The Nitty Gritty

So...What Exactly is a Sewer Lateral???





One major issue in the transfer of single family homes, especially in Oakland and Berkeley, is the status of the sewer lateral. But, what exactly is the sewer lateral? And, why is it so important?


In short, it is the main pipe that connects your home to the municipal sewer system, and it is the homeowner's responsibility to maintain it. One reason it is so important is because leakage from a faulty sewer lateral can become a serious health hazard, affecting the local water supply and the bay.


While the responsibility for the sewer lateral lies with the homeowner, it gets complicated in the transfer of the home from the seller to a new property owner. Sometimes the seller must take care of it, and sometimes the buyer has to deal with, but it can almost always been negotiated as part of the offer.


If you have any questions about this important topic, let me know. I can be reached at 510-547-5970 x57 or MSmartt@jps.net. And, in the meantime, you can check out a very informative FAQ about it from the City of Berkeley.

(Illustration courtesy of the City of Berkeley)

Financing Tips

GET OUT THE MMAP!

One of the biggest hurdles that the average person faces when purchasing a home is how to finance such a large amount of money. Buying something for hundreds of thousands of dollars just seems unfathomable at first to most people. And, it makes the new iPhone look cheap! So, besides standard mortgages (or those dangerous sub-prime loans), what is the home buyer to do?

Well, there are many sound, creative solutions, and one of my favorites is the MMAP program.

MMAP stands for Monthly Mortgage Assistance Program, and it can help reduce your payments from $250 to $1000 per month for up to two years. And, all it requires is a simple agreement between the buyer and the seller.

Basically, the seller agrees to set aside an agreed-upon amount of the purchase price into a trust account (via the MMAP grant program), which is then used to reduce the buyer's monthly mortgage payments anywhere from $250 to $1000 per month for up to 24 months.

Even better, it is reliable and astoundingly simple to arrange. For more information, visit the MMAP website or just ask me. I've had special training to certify me to represent buyers and sellers in the MMAP program.

Have a great weekend!

Property Spotlight

3312 Adeline Street, Oakland
Just $239,000

While there are many large homes on the market, sometimes a smaller, lower-priced residence is the best choice for first time home buyers. Today, let's take a look at a terrific 2 bedroom / 1 bath condo for sale on the Oakland/Emeryville border for just $239,000. This is one of the best deals in town! It is in an intimate newly-remodeled building with a new foundation, roof, electrical and plumbing. The unit features cool granite countertops in the kitchen, sleek floors and off-street parking. Plus, it is SOOOO close to everything that Oakland, Emeryville and Berkeley has to offer ) and it has close access to all the freeways.

If you are interested in getting into the real estate market in a low-priced, low-risk property such as this one, let's talk! I can be reached at 510-547-5970 x57 or MSmartt@jps.net. Oh, and if you have questions about special financing and incentives, let me know and we'll make it happen.

Welcome!

Hello East Bay Residents (& Beyond!)~

My name is Mary Smartt and welcome to my new blog--Smartt Moves with Mary Smartt. This will be an inside look at the always exciting real estate market in the East Bay region of the San Francisco Bay Area. For over 10 years, I have specialized in helping clients sell and purchase homes in Berkeley, Oakland, and all across the East Bay region.

Everything you need to know about buying or selling a home can be found here on my Web site! As an experienced real estate professional in the East Bay community, I am dedicated to providing the finest service available while breaking new ground.Because today's real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. And, with the Bay Area real estate market varying wildly from neighborhood to neighborhood, my experience is essential.

In addition to news and tips about the East Bay real estate market, we'll also take a look at the exciting cultural landscape here in the East Bay.

The East Bay is on one of the best places on earth, and to give back to my community, I also work with terrific non-profit organizations. For instance, I work with the Housing Consortium of the East Bay to help them find affordable, accessible housing for persons with developmental disabilities.

I go the extra mile to understand your goals and help you achieve them. That's why I constantly research the market and property values so your home is priced effectively from day one. My team and I make sure the general public knows your home is for sale by using innovative advertising and marketing techniques to attract potential buyers.

Call or email me today! I can be reached at MSmartt@jps.net or 510-547-5970 x57

Oh, and look what I just sold! This lovely home in Albany at 949 Ordway.