Silicon Valley Real Estate Blog

California’s 2007 Base API scores have been released and, looking at the complete list of Santa Clara 2007 Base API scores, congratulations need to go to Los Altos, Saratoga, Cupertino, and Palo Alto elementary school districts for maintaining district API averages above 900.  While this is par for the course in these districts, to put this achievement in perspective, the overall state API for all grades is 728.

There are two other metrics in the report, statewide rank and similar schools rank, both ratings from 1 to 10.  Each number represents a decile, with 10 being the top 10% of all schools in that category.

This metric compares schools that have similar characteristics, based on ethnicity, socioeconomic status, teacher credentials, and (about a dozen) other factors.  So which number matters more: the state or similar schools rank?

By far, the state number.  Let’s look at some of the Cupertino Union figures for examples. 

The third column is the state ranking and the fourth is for similar schools: Blue Hills is 10/8, Collins is 10/7, and DeVargas is 8/2.  Eisenhower and Muir (not shown) are both 10/2 with API scores of 906 and 894 respectively.

The difference in API between 10/8 and 10/7 is only 10 points, but the difference between a 10/2 and 8/2 is about 60 points.  The reason is because schools that are alike tend to have similar performance.  When you group those schools together and rank them, some turn out to be the best of the group and others the lowest-rated of the group.  

So if a 10/10 school is the best of the best, should parents be worried about a 10/2 school like Eisenhower or Muir elementary?  There is room for improvement, but a 10 means the school is in the top 10% of all schools in California.  At that level, I’d be more focused on what programs, classes and activities a school has to offer than beating other quality schools in standardized tests.

May.23.2008 [ Filed under: Schools, Silicon Valley News ] 2 Comments »

There is a new luxury development that has been getting a lot of attention lately because of its location and close proximity to downtown Mountain View.  Not only is it close to the downtown area, but it is also within walking distance to the Mt. View Caltrain station, has freeway access close-by, and is surrounded by single family homes, parks, the Center for the Performing Arts and City Hall offices.  The Wild Orchid development is located on the corner of Dana Street and Calderon Avenue.

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. 

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May.16.2008 [ Filed under: Mountain View, Silicon Valley News ] Comment Here »

Whether you’re preparing to sell a home or are in contract to purchase a home in Silicon Valley, you likely will be faced with the prospect of hiring professionals to inspect your home. This can run hundreds of dollars, a thousand dollars or more. The potential liability, though, could be much higher than the cost of paying the professionals to inspect your home, so you’ll want to hire very carefully.

What do you need to know when hiring inspectors in Silicon Valley?

There are specialized inspectors for particular elements of residential real estate, such as termite or pest inspectors, chimney inspectors, and others. Most of these are licensed by the state of California, and they are allowed to do repairs on the work they find needing.

But not home (or property) inspectors. There’s no license for doing home inspections in California. Is that good or bad? Part of that package is that they cannot do any repairs on defects they may detect. You can see why it’s good to separate finding problems from being paid to fix them. That’s the plus.  There is another side, though.

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Apr.22.2008 [ Filed under: Silicon Valley News ] Comment Here »

I’m proud and honored to announce that several bloggers are joining the Silicon Valley Real Estate Blog here at 1SiliconValley.com.  You might have noticed that my friend Alex Wang, broker and owner of Rainmaker Properties has been contributing over the past several weeks.  His on-the-ground experience, integrity and dedication to his craft have led him through a successful Silicon Valley real estate career which started in 1999.  His clients speak highly of his service and knowledge.

Sara Greenwood, who works with Alex at Rainmaker Properties, is our new homes specialist.  As a lifelong resident of the Bay Area, she brings perspective to how our beloved area has evolved over the years.  Her intelligence, charm and capability are obvious to anyone who’s had the distinct pleasure of getting to know her.  

Finally, I’d like to welcome my friend Mary Pope-Handy, winner of the prestigious Project Blogger contest, veteran real estate agent (since 1993 — second generation, no less) for Keller Williams, and the co-author of the book "Get the Best Deal When Selling Your Home in Silicon Valley".  She’s not only lifelong resident and an oracle of real estate knowledge, she’s also a fervent and passionate consumer advocate.

Please join me in welcoming this family of real estate experts to my blog.  We welcome your participation, news (non-spam, non-commercial), and inquiries into how we can help you achieve your goals and hope that you will strongly refer and continue to link to this blog as we continue to provide consumer-focused real estate expertise.  Thank you much, and welcome again!

Apr.02.2008 [ Filed under: Silicon Valley News ] Comment Here »

To everyone who attended or organized the event, it was an honor and a pleasure to be a part of the panel speaking in Los Gatos on real estate blogging today.  I sincerely hope you took away tips that will help with your success and I’m happy to follow-up with you. 

Many expressed interest in the e-book.  If you are a real estate agent or attended the event, please email me directly instead of using the email form for sign-up.  And thank you again for being such great hosts.

Jan.16.2008 [ Filed under: Silicon Valley News ] 6 Comments »

I hope you all had a great holiday season and New Years!  Looking back, it seems that 2007 was the year of the mortgage for real estate here in Northern California.  A screenshot from the New York Times mortgage rate chart illustrates how buyers (and sellers) were impacted by the dynamics of the mortgage industry this year.

This chart shows the change in jumbo mortgage interest rates during 2007.  Put in historical context, the jumbo interest rates over the summer didn’t approach the level of rates in, say, 1981, but since 2002, the housing market has benefited from mortgage rates that are historically low.

It wasn’t 2005 or 2006, though.  In May and July, some buyers discovered the home they were interested in just became about 5% more expensive at the same price because of another interest rate bump.  (A $1,000,000 P&I mortgage costs $5,996 per month at 6% and $6,321 at 6.5%.)  All the more reason to better understand how rate locks work.

Some homeowners with adjustable rates found themselves in a similar situation and ended up attempting a short sale.  Many neighborhoods were unaffected, others were peppered with short sales — where the available homes may or may not have real estate signs indicating a sale.

But many of the markets around Silicon Valley didn’t behave like one would expect from reading the news reports.  It’s the sales transaction information that tells the best story.

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Dec.31.2007 [ Filed under: Market Updates, Silicon Valley News ] 2 Comments »

For many of you, it’s been a long wait, but we’re heading into a time of the year that traditionally favors buyers.  On average, it’s like that every year around this time, but with higher interest rates on jumbo loans, owners with homes on the market in several areas are beginning to see the writing on the wall.

To help my clients in their preparation, I’ve updated my Silicon Valley Home Buyers Book to be a step-by-step guide with insider information on every part of the process.  It’s been completely reorganized to walk through what I recommend, from start to finish.

Folks who’ve already signed up for the book will get an email in the morning with a download link, but if you don’t receive it, please feel free to contact me directly.

Sep.03.2007 [ Filed under: Home Buyers, Silicon Valley News ] Comment Here »

The City of Sunnyvale released its 2007 Resident Satisfaction Survey, which highlighted that 93% of respondents felt that Sunnyvale was a good or excellent place to live.  84% thought the same of their neighborhood.  This chart was taken directly from the PDF document which Sunnyvale provides from the National Research Center.

I thought it was interesting that those folks in the 9% difference didn't like where they were living all that much, but still liked Sunnyvale as a whole.  (Usually people who don't like one prefer their neighborhoods over city itself.)

That satisfaction rating puts Sunnyvale in the 81st percentile nationwide.  Not bad.  People didn't think highly of the city as a place to retire (26th percentile) or — shockingly — as a place with access to "affordable quality housing" (24th percentile).  It is the "Heart of Silicon Valley" after all.

But where Sunnyvale excelled in the survey was in "openness and acceptance towards people of diverse backgrounds" (95th percentile), "quality of police services" (93rd percentile), and value for tax money spent (94th percentile).

Aug.25.2007 [ Filed under: Silicon Valley News, Sunnyvale ] Comment Here »

Congratulations, you're in contract.  The sellers have accepted your offer.  You've gained a lot of insight into yourself, looked at homes one-by-one after a thorough MLS search, did background research on your favorites, made a few offers, and negotiated a deal that has protections built-in for you.

This was their first home in Silicon Valley, but on their last one, they had a close call.  One that almost cost them the keys to their house.  Everything was signed and they couldn't help it.  It was such a relief to know where they were going to be living from now on that they wanted their home to be ready from day one.

They were prepared too.  All the comparison shopping had been finished weeks ago and it just so happened there was a special this week.  Too perfect.  They seized their moment knowing it would take about three weeks for delivery.  Their all new furniture would be ready when their house closed escrow.

This story came up because I feel it's important to look out for my clients.  In this case, they didn't need the advice I was about to give — they'd already knew through experience.  

My hope when I tell these stories is that you'll gain the benefit of others' experience without having to go through it personally.  So what happened and what can you do to successfully complete your home purchase?

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Aug.24.2007 [ Filed under: Home Buyers, Silicon Valley News ] 2 Comments »

20830 to 20955.  Whole Foods in Cupertino moves across the street tomorrow to its new, larger location.  Whole Foods corporate calls it "Northern California's flagship store" and the Merc is calling it "California's largest".

People who have been going to the old location at 20830 Stevens Creek Blvd. may have also been greeted by a friendly local student who was handing out flyers redirecting people to Whole Foods in Campbell and Los Altos. 

The new location at 20955 Stevens Creek Blvd. has their "bread breaking" ceremony on August 22 at 8:45am.  Daily hours are normally 8am to 10pm.

Aug.21.2007 [ Filed under: Cupertino, Silicon Valley News ] Comment Here »

Ever wanted to sneak a peek into your Realtor's personal notes for the neighborhood you live in or the one you're considering?  I've opened up a new section that's going to be home to my opinions on various neighborhoods around Silicon Valley: what's good, what's not, their potential and threats to that potential.

Each notes section is also going to have information about recent neighborhood transactions and comparables, plus links to schools and some commuting information.   The first one is up now and I'll continue to add neighborhoods over time. 

[ Go to the Silicon Valley Real Estate Blog's Neighborhood Notes ]

Aug.19.2007 [ Filed under: Silicon Valley News ] Comment Here »

There it was.  The orange house.  The bright orange house.  The newly-painted bright orange house.  The neighbors stood aghast as they watched each stroke cover more of the nondescript color, the one nobody could remember now.  That lost color may as well have been green because they couldn't imagine themselves living next to the Great Pumpkin, much less convincing someone else to pay for the privilege.

This story doesn't happen to come from Silicon Valley's real estate circle but it's an illustration of individual property rights.  Whose, though?  As you can see, the story is different if you're the painter or the onlooker — and because Silicon Valley has such limited space geographically, what one person does with their property often affects many others positively or negatively.

When you purchase a home in a homeowners association (HOA), you get a set of benefits in exchange for your monthly HOA fee.  (See the article The Impact of Homeowners Associations on Purchasing Decisions.)  But you also explicitly agree to play by the set of rules established by the HOA, in the cryptically-named CC&Rs: it's covenants, conditions and restrictions.

For many people, judging an HOA by benefits versus the monthly dues is sufficient.  Others prefer to pay a lower HOA fee for fewer services.  It's a topic deep enough for there to be companies that specialize in evaluating homeowners associations, but with an hour or two of scanning and reading HOA documents, usually included a home's disclosure packet, you can evaluate how well an HOA will work for you.

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Aug.16.2007 [ Filed under: Home Buyers, Silicon Valley News ] 2 Comments »