Value of a real estate agent?

[Rich_by_the_Bay]

We were looking at Los Gatos so go to Redfin at put in zipcode 95070 and see what comes up for less than $1 million with 3 bedrooms.

What are prices like in East Bay? And on out through Davis?

 

[toofrugalformycat]

From personal experience, things you need to check out yourself:
Future road "improvements" planned nearby;
Future airport "improvements" ditto;
Crime statistics;
Buried underground storage tanks;
Road drainage problems;
What taxes will cost you;
etc. Some problems with the construction may be found by a home inspector. Be sure you find a reputable one and pay for it yourself. And take time yourself to get up on the roof, down in the basement, look for leaks, etc. Even if you don't know much about construction, look and ask questions.
A retiree friend bought a nice condo in a building that subsequently burned down. The insurance that the association was paying for was inadequate to rebuild the condo building. She's now renting a cheap apartment to live in. The amount the owners would have to come up with to rebuild is way more than they can afford. So she's just out what she paid for the condo.
But you'll find lots of people that do very well buying a place to live. I just feel moved to warn you that you need to take responsibility before you buy something. Don't just trust what anyone, especially what anyone selling you something, tells you.
I'm contemplating buying again, but I will be much more cautious this time. If a deal falls through while I'm researching it, it just wasn't meant to be.

 

[DangerMouse]

What are prices like in East Bay? And on out through Davis?

Rich, truthfully I have no idea as I am not familiar with the East Bay at all as we live in the South Bay.

However, looking at what is happening in the South Bay, prices are definitely down on what they were in 2006, so I would expect that same effect would have flowed thru to East Bay as I would imagine the same set of economic influences are in play in both regions. If you take a look on Redfin in your desired zipcode, you can click on any property and you can see what they paid for it. I am finding that most people who purchased since 2006 are underwater by $100k or so.

 

[DangerMouse]

$3000 a month is probably a relative steal versus buying. What is property tax in that area? 1%? So $1000 a month on that $1.2 million house. HOA fee? Insurance? 5% interest only mortgage on $1.2 million would be $5000 a month. So the ratio of buy to rent is still roughly 2.5:1-3:1 it sounds like.

Ok finally worked out this double quote thing. The whole situation becomes more complex because you have to factor in the tax advantages of owning versus buying. Obviously because it is a high cost area, salaries are high and as a consequence we pay a lot in taxes. Also because we have not deductions, we pay AMT as well as having our allowable deductions reduced. So that is also a factor in our calculations.

From personal experience, things you need to check out yourself:
Future road "improvements" planned nearby;
Future airport "improvements" ditto;
Crime statistics;
Buried underground storage tanks;
Road drainage problems;
What taxes will cost you;
etc. Some problems with the construction may be found by a home inspector. Be sure you find a reputable one and pay for it yourself. And take time yourself to get up on the roof, down in the basement, look for leaks, etc. Even if you don't know much about construction, look and ask questions.
A retiree friend bought a nice condo in a building that subsequently burned down. The insurance that the association was paying for was inadequate to rebuild the condo building. She's now renting a cheap apartment to live in. The amount the owners would have to come up with to rebuild is way more than they can afford. So she's just out what she paid for the condo.
But you'll find lots of people that do very well buying a place to live. I just feel moved to warn you that you need to take responsibility before you buy something. Don't just trust what anyone, especially what anyone selling you something, tells you.
I'm contemplating buying again, but I will be much more cautious this time. If a deal falls through while I'm researching it, it just wasn't meant to be.

The big thing you have to look for now is with so many properties going into foreclosure, many owners are not paying their HOA fees. As a consequence these groups are running into big financial problems. So this is an area that has to be looked at carefully.

We have noticed that in the area we are looking/living there are not many foreclosures. In San Jose itself there are plenty. In the ritzier areas there are a few short sales but not the fire sales that are available in the lower rent areas.

 

[Brat]

Rich, Walnut Creek is a nice community (relatives live there). Other East Bay communities... I have no clue.

Cupertino, Sunnyvale (previously mentioned) should be on your list.

 

[KB]

Martinez, Santa Clara, Campbell too.

 

[DangerMouse]

We previously lived in Sunnyvale, but didn't think a lot of the area. However, I believe there are some fabulous areas within the suburb and some not so great. It can be the poor relation of the other suburbs.

Cupertino, not a big fan. It seems noisy and crowded with so many shops. Good school districts which make it extremely competitive to buy there.

Santa Clara, doesn't really do it for me. Just another suburb,nothing special.

Campbell, a bit like Sunnyvale, some really nice areas and some very ordinary areas. They have done well with their little downtown strip.

Personally I think the best areas of SV lie outside the 85. Los Altos, absolutely beautiful, wish we could afford it. Mountain View, has changed dramatically the past 10 years, the downtown area has come ahead in leaps and bounds, would consider there as well. Los Gatos and Saratoga, both gorgeous areas with lots of greenery. We are currently living in Saratoga but would prefer to live in Los Gatos. We refer to Saratoga as being the cemetery above the ground, as nothing happens here, and the well heeled locals do everything they can to stop any development happening.

 

[KB]

I was raised in Los Altos and it was a nice place to live back then. I moved away in 1970 and have watched it get more congested since then. My parents sold their home that they built in 1956 and made a HUGE profit off it. I think they paid 35K to have the house and pool built and sole it for close to 2M.

Hope you can find something in the area you like. It's way too congested and expensive for me.

 

[Brat]

The issue for those of us with kids that live in SV is finding a home we can afford in the vicinity. Oh ya, Los Altos is expensive but Mountain View is right next door at a lower price point (smaller homes and lots). Our DD's first home was on Maranta Av in Sunnyvale, an area with very nicely kept single family homes. As I recall they paid about $750,000 for a beautifully maintained and updated split level seven years ago. Other than cost, my issue with homes in the area is that almost all are split level (built in the late 60s, 70s). Stairs can be a problem when you get older.

Were we to move there I would look at condos because they are accessible and because many are convenient to transit. I have a hard time buttoning my lip as DH (who is over 70) takes to those freeways. Gees Louise!!

A buyer in that market really needs to be prepared. Sellers typically list well under comparables with the goal of attracting several offers at a higher price point. Read the RedFin San Francisco blog for a couple threads discussing the offer process. The advantage of a realtor in that market for someone outside the area is steering you to suitable offerings that you might be able to buy. I don't know if RedFin does a good job at that. If RedFin offered consulting by the hour as well as the commission rebate you would be $ ahead.

DD has friends who happily live in Campbell and Willow Glen but I believe that is seriously south of where Rich would like to locate. Anyone have suggestions for the area around Redwood City, Atherton, Woodside?