_{(Shoreline Lake in Mountain View)}

As in the neighboring cities of Palo Alto and Los Altos, the Mountain View housing market in the first quarter of 2010 has rebounded from the previous year.

The characteristics of Mountain View – situated in Silicon Valley and home to tech companies such as Google, Symantec and Intuit; one of the stronger school districts in California; a friendly downtown area next to Caltrain; and a more affordable single-family home and condominium and townhouse market compared to its northern neighbors – means that homebuyers are returning to the area to take advantage of reduced home prices that have occurred since the real estate crisis a few years back.

In the first quarter of 2010, the median sales price for single-family homes in Mountain View was $875,000, a slight decline from $900,000 in 2009. Though the median sales price dipped, the turnaround for this past quarter was that 50 homes sold with an average days on market of 24 days, compared to 41 sold and 62 days in 2009 during the same time period.

Mountain View home sales and the number of days on market have returned to 2008 levels, before the crisis really showed its teeth, but the median sales price this past quarter is still 20 percent lower than in 2008, which was $1.095 million.

The price range of single-family homes sold in Mountain View this past quarter, from $560,000 to $1.575 million, reflects a more affordable market than Los Altos and Palo Alto.

A strong local condominium and townhouse market

There is a larger market for condos and townhomes in Mountain View compared to Palo Alto and Los Altos, which makes it great for first-time buyers right now, especially when considering the depreciated market and government incentives.

A total of 52 condos and townhomes sold in Mountain View this past quarter at a median sales price of $589,000. Most of them had two or three bedrooms and took up an average of 1,327 square feet. To compare, Palo Alto sold 26 for a median price of $725,000 and Los Altos only sold seven for a median price of $780,000. If we were to take out properties that are less than five years old (in order to compare resale values) there was still 50 properties that sold in Mountain View, 15 in Palo Alto that sold for a median price of $672,000, and just two sold in Los Altos.

What sold for $875,000

A 1,859 square foot, four-bedroom and three-bath house was listed for $875,000 and sold for the same price this past quarter. It is a 10-year-old house and sits on a 3,920-square-foot lot in a cul-de-sac on Plum Court.

The exclusiveness to this area is because of the very convenient location to downtown.  It is only a ½ mile walk to the heart of where all the action is; downtown restaurants, unique shops, night clubs, coffee shops, and independent book stores are just a few of the niceties.  And if you get in now to one of these homes you won’t have to fight the parking situation of the ever-so-popular Mountain View Art and Wines Festival, coming September 7-8, 2008.

The builder of Wild Orchid development is Castle Companies, which is a family owned and operated builder in Northern California .  They have been around since 1966 and are recently building communities as far north as Yolo County , Napa Valley , down the East Bay and now into the Peninsula , which brings us to the Wild Orchid community.  The naming of these communities is as unique as each setting where these new developments are being built. 

Details on the Wild Orchid in Mountain View

The Wild Orchid development is nice, in the fact that there are only 2 floor plans to choose from:  Residence 1 which is a large 1844 square foot home with 3 bedroom 3.5 bathrooms and a 2-car garage.  Residence 2 has three elevation plans to choose from and range from 1,787-1,844 square feet; they are 3 bedroom, 2.5 bathrooms with a 2-car garage.  It is a small community of only 39 single family homes.

The detail and craftsmanship in these homes is beautiful.  As we know when we enter any model home, they are all shiny and glistening with new stainless appliances and marble floors, crown molding, stereo systems and beautifully stained hardwood floors.  The price point on these homes starts at $899K standard; however as I entered the model homes I noticed that all that gleam was an “?optional’ feature and will ultimately put a lot of weight on that $899K price tag.

The community is slowly being built in three phases.  The first phase of homes has a move-in date of July-August time frame; phase II will be ready in October, and phase III will be complete December, 2008.  So far, 1/3 of the homes are sold with a few others reserved.  The construction is coming along, but it appears that buyers are purchasing from the location map, sight unseen.  From talking with the sales manager at Wild Orchid, he told me that buyers that are inquiring and purchasing in the community are recently married, no children, young professionals that work in the surrounding area.  They are attracted to having an active lifestyle with the entertainment of night clubs and restaurants and coffee shops near-by.

Wild Orchid’s Location 

The site of these homes may be a little worrisome to buyers as it is located at a busy intersection, and adjacent to Landel School.  Some people don’t like the idea of living near schools because “?undesirable’ people tend to hang out in school parks after hours; however, Landel School is a great family public park, and there is a trailhead at the North corner of the school.  This is great for those that like to walk and hike; it is very popular with mommies that like to stroll with their babies and children. 

If you are interested in this new development and would like to be represented by an area specialist of this community, please contact me.  I have been through the community and the surrounding area, and this is truly a wonderful area to live, especially if you get excited about being close to a downtown area, and like the convenience of shops and restaurants.  Not to mention the convenience of CalTrain, freeways and the security of living amongst single family residences.  I enjoy working with prospective buyers looking at new developments in the Bay Area and I cooperate with many local developers; in addition, I have experience in the new home buying process, as I help to negotiate in the best interest of my client, and to make the home buying process as smooth and effortless as possible.

(c) Sara Greenwood for the Silicon Valley Real Estate Blog, 1SiliconValley.com 

Recommended Reading:

• Creating a Better Standard of Living for Your Family
• Consumer Rights When Purchasing New Homes
• The Beautifully-Staged Home: Nicely Remodeled or Cheaply Flipped
• Download the Silicon Valley Home Buyers Book 

Like many other places in Silicon Valley, like Sunnyvale and Cupertino with their Eichlers and San Mateo with its older homes near downtown, among others, Mountain View has its share of older homes.  Many of these homes come on larger lots that give ambitious owners room for expansion.  One of this month’s Median Homes illustrates that potential.

Mountain View is a unique environment because of the money from one local company in particular and it was a competitive summer season — as you’ll see, though, not every property experienced the same level of interest.

[ Median Home 2007, 2006 | Market Snapshot | How Much Home Can I Get? ]

Median Home 2007 – $1,058,500

This July, the two Median Homes in Mountain View were 1700 Fordham Way and 1303 Cuernavaca Circulo.  Both were desirable homes: Fordham was gone in 6 days and Cuernavaca was gone in 8, each for 100% of asking.  And they went at about the same amount: $1,050,000 and $1,065,000, respectively. But they are very different properties and what’s interesting about these two homes is the trade-off.

Fordham was the older veteran, a 53-year young ranch with a couple minor but unspectacular upgrades done over the past few decades.  At 1280 sqft with 3 bedrooms and 2 baths — but a lot of 7405 sqft and just a mile from Downtown Mountain View (across El Camino) — there was room to grow.

Cuernavaca is 19 years old with its Northern California blend of Spanish and Mediterranean styling: 3 bedrooms, 2.5 bathrooms, but with 2261 in square footage on a 4792 square sqft lot.  And it had a complex with amenities like a pool, spa, tennis courts, and clubhouse which is $190 per month HOA fee covered.  This home was ready for a family to upgrade into.

The former was a project with strong upside potential and an elite school district.  According to the California Department of Education, every school in Los Altos Elementary has a 10 out of 10 statewide rating.  (Huff and Bubb at 10 and 9, respectively, are the strongest schools in Cuernavaca’s Mountain View-Whisman School District.)  With remodeling and additions, Fordham will easily exceed its fellow Median Home in value.

Compared With Last Year – $928,000

Last July, the Median Home was 1953 Sorrento Court at $928,000, off in 13 days at 100% of asking.  This home is a 3 bedroom, 2 bathroom, 1977 square foot, two-story building that was constructed in 1979 as part of a planned unit development.  It was rezoned into a single-family home in 2004 but still carries HOA dues (at the time $300 per month).  The lot size is unknown but less than 4,500 sqft.

By car, this house is one mile southeast from Fordham (but far enough to be in the Mountain View-Whisman School District) and 2.8 miles from Cuernavaca.  Sorrento, in the Miramonte Area of Mountain View, is arguably in a more prestigious part of Mountain View than the latter, in Sylvan Dale.

Market Snapshot – August 29, 2007 

There are 91 active listings, 31 for single-family homes.  Of those, only 4 have had a published reduction.  

(One is a bright yellow house whose reduction might have funded a new set of paint if it didn’t sound so much like the owners needed to unload.  One was a flyer a real estate agent slash owner took on getting a high number: a $393,000 drop might generate some needed attention.)

The Active CDOM for homes in Mountain View right now is 51 but the CDOM for homes closed in July 2007 came in at only 26.  That means in this area, roughly, it takes half as long for desirable properties to sell than the "average" ones.

Sellers are confident because of this disparity, but we’re moving into a slower part of the Silicon Valley market cycle in a period of uncertainty with mortgages.

By the way, the Active DOM is 35 if that gives you an impression of some of the games that go on with that number.

How Much Home Can I Get in Mountain View?

This is an overview of representative properties in Mountain View which closed in July 2007.

	$317,000 – 2025 California St. 1br/1ba; 668 sqft; 42 years old; HOA $300
	$450,000 – 505 Cypress Point Dr. #174 2br/1ba; 843 sqft; 33 years old; HOA $329
	$495,000 – 500 W. Middlefield Rd. #2 2br/2ba; 1136 sqft; 36 years old; HOA $338
	$548,000 – 147 Margo Dr. #4 2br/2ba; 1139 sqft; 11 years old; HOA $250 Gated complex, A/C
	$567,000 – 853 Sierra Vista Av. (lowest cost single-family home) 2br/1ba; 704 sqft on 4792 sqft lot; 54 years old Double pane windows, white picket fence; upgraded kitchen
	$611,000 – 2255 Showers Dr. #342 2br/2ba; 1213 sqft w/ 1306 sqft lot owned; 7 years old; HOA $292 Top floor unit, granite kitchen counters, near train tracks and CalTrain
	$660,000 – 733 Emily Dr. 3br/1ba; 871 sqft on 4791 sqft lot; 53 years old 1 car garage
	$695,500 – 349 Whisman Station Dr. 2br/2.5ba; 1173 sqft; 9 years old; HOA $224 2 master suites, close to train tracks and CalTrain
	$738,000 – 410 Chiquita Av. 2br/1ba; 988 sqft on 5200 sqft lot; 66 years old Walk to downtown
	$751,000 – 131 Pacchetti Way 3br/3.5ba; 1421 sqft; 10 years old; HOA $156 2 car garage, loft as 3rd bedroom
	$810,000 – 1842 Hackett Av. 3br/2ba; 1462 sqft on 5227 sqft lot; 57 years old Completely remodeled; size includes 312 square foot garage
	$923,000 – 2076 Jardin Dr. 4br/2ba; 1548 sqft on 7405 sqft lot; 56 years old Vaulted ceilings, breakfast bar, garden shet, fruit trees
	$933,000 – 10 Towne Ci. 4br/3ba; 2128 sqft; 5 years old; HOA $237 End unit townhome
	$1,067,000 – 1390 Latham St. 4br/3ba; 1699 sqft on 10450 sqft lot; 92 years old Fixer in Downtown Mountain View
	$1,115,000 – 1307 Cuernavaca Circulo 4br/2.5ba; 2493 sqft w/ 4792 sqft lot; 20 years old; HOA $190 Duplex
	$1,250,000 – 305 Woodland Park Ln. 4br/3ba; 2264 sqft on 4356 sqft lot; 19 years old Vaulted ceilings; hardwood, travertine, granite, stainless steel appliances
	$1,405,000 – 1174 Bonita Av. 4br/3ba; 2000 sqft on ~4000 sqft lot; new construction Hardwood; upgraded kitchens and bathrooms; custom design
	$1,850,000 – 1883 Orangetree Ln. (most expensive close in July) 4br/4ba; 3562 sqft on 7928 sqft lot; 27 years old 3 masters; cathedral living room; upgraded kitchen

(c) Steve Leung for the Silicon Valley Real Estate Blog at 1SiliconValley.com

There are four floorplans.  Plan 1 units are listed at 1,223 square feet with 2 bedrooms and 2.5 baths.  This release sees four Plan 1 units at $673,900 to $678,900.  On their February 17 release — I keep track of these things — Plan 1 units ranged from $659,900 to $666,900.  Here's my amateur video of the entryway and downstairs, then the video upstairs:

Plan 2 units are listed at 1,450 square feet with 2 bedrooms and 2.5 baths.  There are two Plan 2 townhomes priced at $711,900 and $715,900.  In February, there were three Plan 2 units, one at $689,000 and two at $699,900.  This is my (relatively dark, sorry!) amateur video of the lower entryway and downstairs, then the video upstairs:

Plan 3 units are listed at 1,564 square feet with 2 bedrooms, 2.5 bathrooms, and a bonus room.  There are two available in this release, priced at $729,000 and $732,900, compared to four in previous releases ($699,900 to $714,900).  Here is my very amateur video of the entryway and downstairs, then the video upstairs:

Plan 4 units are listed at 1,761 square feet with 3 bedrooms and 3.5 bathrooms.  There are two in this release, at $788,900 and $793,900.  There was only one in the February release and it was priced at $768,900.  Here is my amateur video of the entryway and downstairs, then the video upstairs:

Buying a home from directly from the developer is sometimes tricky because they have an army of people doing market research for them. Sometimes their prices aren’t necessarily market competitive either. Did you know that, even with new homes, you can contract a buyers agent (usually at no cost to you) to ensure you’re making the right decision?

The developer won’t look out for you. I will. And, if want wider range choices — for example, if you need a home before their expected end-of-year completion, or don’t like the area — I can offer you those choices (again, usually at no cost to you).

(c) Steve Leung for the Silicon Valley Real Estate Blog at 1SiliconValley.com

Recommended Reading:

• Silicon Valley Real Estate Buyers Guide
• Silicon Valley Housing Market Information
• Not Overpaying When Buying a Home
• How a Win-Win Saved My Client $25,000

Their phone number is 650-625-1850.  Before visiting, you can have a look at our previous write-up, find homes around Bedford Square, or contact me to run a current market analysis of the properties in and around that area.

We’ll take a look at how school rankings and Silicon Valley real estate prices are related, but first let’s look at how to read the information.

Number of Students. In the first column, you’ll find the number of students whose results were included from that school.  It’s pretty close to the total number of students, less any excluded students.  The rules for excluding students are listed in the API Base Documentation Information Guide found on the CDE API page.  Surprisingly, the number of students has little to do with how well the school did in its API scores (almost, see epilogue).

Base API, Statewide Rank, Similar Schools Rank. The Base API score is like an SAT score except it’s from 200 to 1000.  Higher is better.  To make comparing schools easier, the CDE provides a statewide rank from 1 to 10 (ten is best) and a similar schools rank that rates schools (again from 1 to 10, ten being best) that have similar demographics and characteristics.  Apples-to-apples in a way.

Growth Target, API Target. The growth target is the number of points California wants the school to improve in the next year.  That added with the current base API score equals the API target.  The CDE doesn’t set a target for schools above the current statewide performance target of 800.

Silicon Valley School District Scores

I’ve assembled information from the CDE site and the Palo Alto Daily News to provide a table of school district API averages for Silicon Valley and Bay Area elementary and middle schools.

Here are the API values for these Silicon Valley school districts:

Comparing School Districts and Housing Prices

Remember the chart of median Silicon Valley single-family home prices in February 2007 from my article Determining Your Must-Haves When Buying a House?

Combining the chart for Silicon Valley school district rankings with the one for Silicon Valley median single-family real estate prices brings up some surprises.  (I used a simple ratio between how far the API score was above 700 and the median single-family home price.  The resulting number isn’t really that relevant, it’s the visual comparison I was looking for.)

Regarding Schools and Value in Pricing

First, while Cupertino and Foster City housing prices are very similar, there is a vast difference between the performance index of their school districts.  On school rankings, compared to Foster City, Cupertino represents a much better value based on the median sale price of single-family homes.

Second, while Los Altos has the highest API scores, it also had a much higher median price putting it on-par with other elite school districts like Palo Alto and Los Gatos, but well-below Saratoga which had both higher test scores and a lower median home price.

Third, it is possible to cherry-pick good schools in average school districts.  For example,  you can search around Sunnyvale’s Cherry Chase Elementary, which has a base API score of 941, if you’re looking for a good elementary school.  Stay tuned.

(c) Alex H. Wang for the Silicon Valley Real Estate Blog at 1SiliconValley.com

Recommended Reading:

• Determining Your Must-Haves When Buying a House
• Silicon Valley School Information
• Mortgage Rates Are Low Without Exclamation Points
• Why the Perfect House Wasn’t So Perfect

[ed.  This is the CYA: The data in the report is considered accurate but not guaranteed.]

Epilogue

There’s a quirk in the ratings system where only test scores for “statistically significant” groups (read: ethnicities) are counted.  Some schools, none that I can find documentation on, were accused of reclassifying lesser performing students into groups that weren’t statistically significant to prop up their overall test scores.

There is a measure of transparency, though, because if you drill down on the individual schools, it will show which groups were counted, which weren’t, and how many were in each.

You can see the giggling children and the families gathered around a wound-up piece of string as it's whipped through the air by the acrobatics of its airborne companion. 

At least the people who could find parking could.  Me?  I'd forgotten that there's only one way in or out of this parking lot and, since I'd pulled all the way through, I was about to take the hardest driving test I'd had to face since parallel parking as a 15 year-old: reversing 50 yards past families with toddlers hypnotized by the mylar tails of kites gone by.  It turned out to be worth it. 

Say Hello to Our Canine Friends

I started this trip past the Shoreline Amphitheater at the local dog park.  Shoreline is one of my favorite driving ranges but I'd never stopped by the canine carnival outside the main gate before.  Probably because I don't have a dog.

But I do have a serious case of pet envy, so with a little curiosity, I hung a swift right before going into the park proper to see what all the fuss was about.  Parking here was tight this weekend afternoon but it wasn't a skills test.

It's penned off into two sections: one for smaller dogs to jump around and another large enough for the big dogs to run wild.

An Homage to Silicon Valley's Roots 

At one point in time, Silicon Valley was some of the nation's most fertile land.  But what brought the young Henry Rengstorff to Northern California was the gold, or at least the hope of it.  Transportation being what it was at the time, he had to sail around Cape Horn to get here and missed the gold rush by about a year.

Undaunted, he worked as a farmhand and saved long enough to buy land for himself.  Virtuous cycles and fertile land being what they are, he eventually bought more and more until he owned quite a bit of the Bay Area.

The Rengstorff House isn't his legacy, but it is an illustration of the Victorian architecture of the mid-1800s and it's the oldest remaining building in Mountain View.  I could explore architecture like this for hours, but the plaque by the sidewalk that leads to the house has a much better story to tell, and I've linked a snapshot to part of it below.

Fore!  The Shoreline Golf Links

But, I'll tell you a secret, my real reason for this trip was to hit the driving range and it was no coincidence that I made my way into its parking lot after the claustrophobia of the lot before.  I schlepped my bag across the older of the two bridges that allow carts and pedestrians to pass over the gully unscathed and noticed something amiss!

It was Saturday but people were hitting off the synthetic mats instead of grass.  The horror!  There was a more practical matter at hand, though, which was the inimitable ball machine and what change I had in my wallet.  See, a large bucket is $9 on turf and $10 on grass and while I can hear the chorus screaming, "Just get some change you lazy bum!" it's not always that simple.

The ball hut isn't always staffed and weddings sometimes shut down the restaurant on weekends, so having fives and ones is part and parcel of having a good time at the Shoreline range.  The jackrabbit above seemed to be having a good enough time and the natural setting (amidst the backdrop of Google and what's left of SGI) is really a part of the charm.

But luckily for me, four ones and a five later, I'm taking my trusty left-handed 7-iron for a spin.  And 100 balls later I resist the urge to take a few shots from the surprisingly steep practice bunker. 

Splash!  And That's Not My Golf Ball Swimming Either…

A brisk walk towards the water leads a young family playing frisbee under the backdrop of an impending sunset.  There's a patch of shade by the water where I occasionally go to clear my head and reflect, but today is a little too busy for that.  In fact, in what's become a running theme, there's a queue five cars deep for parking spaces in this lot.  

There aren't any windsurfers today but the paddle boats are out in force and there's a couple who's paddled their kayak into the cove with little hope of getting themselves out again.  As they eventually solve the puzzle and start pushing their paddles against the dry land to flip themselves in the right direction, I pass the boat launch and consider a little indulgence at the ice cream cart I spot out of the right corner of my eye.

Being Yourself

At that point, a beige wind streaks past me and as I switch my thoughts from the ice cream sandwich I was reminiscing about, a gentle reminder of Silicon Valley is now in the distance: the 50 year-old powering a scooter.  Good for him.  He was going so fast that I only managed to catch him in this photo on his way back to the marina.

The "Park" in Shoreline Park 

Then, as the sun finally came to rest, I sat on a small hill to watch the people playing, and napping, and biking, and relaxing along the water.  And I thought to myself, people need to see this side of Silicon Valley.

(c) Steve Leung for the Silicon Valley Real Estate Blog at 1SiliconValley.com

Recommended Reading:

• Walking Tour of Downtown Palo Alto
• Any Tour of Menlo Park Starts at Kepler's and Ends in Xanadu
• Top Silicon Valley Driving Ranges
  
• Silicon Valley Shopping Information | Top Silicon Valley Shopping Malls

I thought the top-level townhome was in pristine condition considering they had a Cujo, until I peered into the room and saw a tiny 10-pound pug sitting attentively in front of the television!

There were network connections wired into every room, and this being Silicon Valley, we asked the owner if it was standard CAT-5 or CAT-5e.  The gentleman, in his decidedly French accent, said with a bit of sheepishness, "You know, I'm not sure."  (He was a little redfaced because we'd talked about his job at Cisco.) 

So I asked whether he had a wireless network and his face lit up.  He hopped over to the storage closet in the entryway and eagerly showed off the router, neatly and carefully wired into the connectivity panel.  He didn't check for CAT-5e because he didn't need it.

The network drops were a "nice-to-have" for my client who does a lot with multimedia.  They weren't a dealmaker (and as he discovered not a dealbreaker) but given that this was the first home he'd seen as a potential buyer, he was eager to get some experience looking at houses under his belt so that he could really experience firsthand what his requirements feel like.

In the back of people's minds, most people start off with a list of requirements that I rank order informally using the "MoSCoW" method:

• Must: What they know they want
• Should: What they think they want
• Could: What they don't have strong feelings about
• Won't: What they don't want

For any number of reasons, what people say they want doesn't always line up with what they really want in their minds and hearts. 

A lot of times that's because of the difference between theory and application: being able to actually drive the commute or experience how many flights of stairs there are gives people a clearer picture of "could" vs. "won't".

The tricky part is separating the borderline "must-haves" from the "shoulds."  And with my client in the early stages of his home search, we needed to setup a stable foundation so that we'd learn those differences from every property he would see on the rest of his search.

You Can Learn a Great Deal From a Rant

I sat in the office of another client, across from him and his dustless mahogany desk.  I briefly peered out towards the Silicon Valley hills through the shades of the window behind him before he lifted his brow from thought.  He muttered cautiously, "That's a good question…" and placed his chin on his hand in the universal position for "I don't have an answer for that yet."

He wanted to tell me something but the way his eyes focused into the distance, you could see a little fear, as if to say, "People will think less of me for saying what I'm really thinking."   

I'm not judgmental and I don't remember saying anything at that point, just tilting my head to the side a little.  But what I got back, I never would have expected from this formal and staid lawyer.

"I WANT A HOUSE!" he exclaimed.  "I want a place where the neighbors respect where we live.  If they see trash on the ground, they pick it up because they feel ownership.  I want to live in a place where I don't have to be ashamed to say, 'I live here.'  I want my neighbors and I to be peers and for them not to look at my car and go, 'Who does he think he is?'  I want my wife and kids to feel important.  I want to be able to carry on a meaningful educated conversation with the people living around me.  I WANT A [ed. deleted] HOUSE!"

That joke one of my clients made about me being an iceman must be partially true because with a hint of a smile in my expression, I winked a little and asked in an ironic, almost dry manner, "So, what did you want again?"

Home Search Criteria People Don't Like to Say Out Loud

I wanted to share this conversation because it's critically important when buying a house.  There are things people never say they're looking for during a house search, but actually really need.  This gentleman was brave enough to share some with me:

1/  Prestige.  This is a really sensitive subject.  On the one hand many people want to be regarded and respected.  On the other hand, people fear that by wanting to be regarded and respected, that people will actually think less of them.  But the root cause is that sometimes people judge others based on a mental picture of where they live.  What do you think of when I say New Jersey or Alabama?  Or East Palo Alto?  (I'm from Louisiana: insert stereotype here!)  If prestige is important to you, then that should be included as a criteria in your home search without emotional prejudice.

2/  Owner's Mentality.  I have a personal story here, all this over a simple piece of paper.  I lived in a large apartment complex that was in a good location, was kept in decent condition, and had below market rents so I could save money and buy a house.  I stepped out of the elevator next to the trash chute and noticed a crumpled piece of paper lying there on the ground.  As a renter, my first instinct was, "Oh, the maintenance people will take care of it."  I eventually did throw that paper away but it left me wondering whether I would have thought twice if it were in front of the home I lived in.

3/  Neighborhood Pride.  Have you ever been to a sleepy old manufacturing town whose plant closed long ago?  Where people can't wait to find a way out?  Or a town that's languishing under the weight of its own lack of culture.  The transient nature of people living there is much different than the sense of community an identity engenders. 

4/  Belonging.  Whether it's being close to the culture of your parents or your parent's parents, to feeling like you can relate to your neighbors, that sense of belonging can be very important to your enjoyment of your home.  Sometimes it doesn't even boil down to culture.  If you're single, living in a family community with lots of kids around may not be preferable to being closer to other singles whom you can relate to.  And being a movie junkie with a huge home theater system (read: speakers) in the middle of a complex of semi-retirees might not make you any friends.

5/  Less competitive schools.  Some parents, even though they care about their children's education, don't want to put that much competitive pressure on their kids.  This is one I hear with increasing frequency. 

Common Trade-Offs

After we left the top-floor townhouse owned by the gentleman at Cisco, I told my client that, yes, you can have your dream house, but only if you know what's really important to you.  After all, since homes are so expensive, you don't want to have to pay for amenities and benefits that mean nothing to you.  Why would you spend your hard-earned money on something you don't need or want?

Here in Silicon Valley, people make trade-offs every day when buying real estate but it takes a lot of self-reflection and some experience actually going through the home search process for those priorities to really become clear. 

Single-Family vs. Multi-Family Properties

"Maintaining the lawn just sounds like work.  If I'm going to be doing work, it may as well be for work!" he said.  The land you get on a single-family house is valuable but if it hurts your lifestyle, then what are you paying for? 

According to RE InfoLink, in February 2007, the difference between buying the median townhome or condominium and the median single-family is between $200,000 and $300,000 in both Santa Clara County and San Mateo County. 

My client in this article chose to look for townhouses and condominiums because he can get more square footage inside the home for the same money and minimize the responsibility he has for maintaining the property.  He doesn't have any kids or need room for a swing set, but if he can get a small yard or patio for entertaining, that would be perfect.

Schools

Ever hear the advice, "You should always buy a home where there are good schools?"  There are advantages to this because these are neighborhoods which are (in general) the last ones to decline and the first ones to appreciate, but remember that if the neighborhood has a reputation for good schools, that reputation is already priced into the house. 

My client used the words, "I'm single and this isn't my last house.  Why would I want to pay for a good school district?" 

If you have school-age children, you may save money by buying in a less expensive neighborhood and sending your kids to private schools.  You will get more house for your money if you don't have to pay for the school district's reputation.  And you may get more upside from an ascending school district which is building a great reputation than one that's maintaining its high scores.  When the best kept secret in the area comes out, people will be looking for that good value.

Cupertino and Palo Alto, among other cities in the Bay Area, have prestigious school districts.  How do the median prices for single-family homes compare with other cities around Silicon Valley?  The chart of figures from February 2007 speaks for itself.  What are the best kept secrets in Silicon Valley?  That's a whole 'nother article.

Commute

I had a client say that he enjoyed a reasonable commute time to be able to "switch modes" and another wanted to catch up on reading while on the train.  I'd argue that most people consider commuting a necessary evil based on where they live and work.

Time is money, right?  Well, almost, because no matter where you were born, what your parents have, or what your opportunities are, everyone starts off with 24 hours in a day.

You can measure the value of your time in two ways.  Economists measure the value of time in terms of opportunity cost, the amount of money you can make with your time at its highest and best use.  Most people measure it in exactly the same way except with things they can be doing: activities like spending time with the family, and reading a book, to taking a second honeymoon. 

You'll have to help me determine the value of your second honeymoon, but I can show you the cost of your commute.  Let's say you've live in your home for five years and take the same commute each day.  You earn a conveniently round number $100,000 and work 50 weeks out of the year for 5 days a week.  Here's what your commute costs:

At only half-an-hour each way, the commute costs $62,500 over that period and $125,000 if your commute is an hour (two hours a day) each way! 

There's no value judgment behind these numbers.  Some people want to save money to keep their families fed, happy and well-educated so they will trade more commute time for cash savings.  Others prioritize spending more quality time doing other things and choose to allocate more resources to the problem. 

The beauty is that the choice is up to you and experiencing a house search with an expert is an effective way of truly understanding what you want and what you're willing to trade-off.

(c) Steve Leung for the Silicon Valley Real Estate Blog at 1SiliconValley.com

Recommended Reading:

• The Price of the Home Across the Street and Its Long Shadow
• Why the Perfect House Wasn't So Perfect
• Why You Need Real Estate Agents and Why You Don't Trust Them
• Silicon Valley Real Estate Buyers Guide
• Search MLS for Silicon Valley Homes

Even in the rain that day, it was a noticeably short walk to Verisign headquarters, Symantec (formerly Veritas headquarters), Vernier Networks, and KPMG.  Though driving there from Bedford Square would make even the least green people in California feel guilty, Bedford Square is tucked away so that it doesn't feel like an extension of the office.

The local VTA station and local bus stop pictured above are close as well, right outside the KPMG office, but far enough away where there is no noise impact.  And the Silicon Valley Public Transportation Wizard helps make using it practical.

These Pulte Homes feature four townhome plans ranging from 1,201 to 1,718 square feet with pricing from $659,000 to $768,000 new.  All units include a two-car garage, a GE washer/dryer, air conditioning, dual pane windows, and what Pulte calls Signature Standard Kitchens and Bathrooms.

The Signature Standards kitchen includes stainless steel GE appliances with a gas cooktop, side-by-side refrigerator, dishwasher, and built-in oven microhood.  The countertops in the kitchen are granite slab and they are augmented by maple cabinetry and a Kohler dual-basin stainless steel sink.

The Signature Standards bathrooms (every townhome includes 2.5 baths except for the largest floorplan which has 3.5) include Corian countertops and accents with Moen chrome plumbing faucets.  The powder (half) bathrooms include Kohler pedestal sinks.

Much of the community is still under construction but it will include a pool, spa, and clubhouse.  The neighborhood itself does face 85 but there is a tall set of trees has been planted along the highway to keep road noise from being a factor.  The effect is similar to the concrete noise barriers erected all over Silicon Valley but the natural landscaping keeps the neighborhood looking relatively natural.

It's of note that Bedford Square is "only accepting families who plan on owning and living in the home for at least one year."  In other words, they are not planning to sell to investors.

(c) Steve Leung for the Silicon Valley Real Estate Blog at 1SiliconValley.com

Recommended Reading:

• Metropolitan at Cupertino: Convenient and Contemporary
• Downtown Sunnyvale Revitalization Gets Desperately Needed Kickstart
• Santana Row: Silicon Valley's Urban Oasis
• Bedford Square Model Home Videos and Updated Pricing