December update: Farewell 2022!

How was 2022 for you? Did you make some goals and see them through? Did you merely survive? It can be hard to reflect on and sum up 4 seasons of life. For me, I have profound gratitude that I have completed 18 years in this real estate industry and have been able to make new friendships and be a trusted advisor to so many different people. I am grateful to have completed a 3rd year with Nicole as my right-hand gal! I am grateful for family and friends. I spent the last 2+ years actively dodging COVID, and did not attend many social events, but ultimately got it after letting my guard down one day at an outdoor concert. The lesson: just do the best I can, and I can't control everything despite my best efforts. You will still see me in masks, often I am the only one in a room full of people, but that is my personality, I am a cautious one. 

In early December, I wrapped up my final transactions of the year and I have spent December slowly working on my to-do lists: replacing smoke detectors in both my house and my dad's home, clearing out emails and organizing photos. (By the way, did you know you should replace your smoke detectors every 7 - 10 years?) It has been nice to have a slightly slower month to regroup and reset. Thank you for trusting me with your biggest purchase in life, thank you for trusting me to help you position and sell your biggest asset in life, and thank you for calling on me for referrals to the best agents across the country. Your on-going support keeps me in business and that is the best gift for this local girl that was born in Berkeley and raised in Oakland. I am looking forward to 2023 and can't wait to receive your calls and emails asking me for real-estate related advice or to help you if a move is right for you! 

Enjoy the rest of this chilly month and eat something delicious,

Favorite Things: No. 7

I always love a favorite things list! Here is my most recent list, which includes my quick go-to vegetarian meal!

Wishing you a joyful December!

November 2022 update: The cost of selling when you go in with the wrong expectations

Hey November!

The other day I received an email from a local Realtor stating that a specific property will be on the market one more week before the seller takes the house off the market. The house has been on the market for almost 3 months. I showed the property and my client did not like it – it was a hard NO and she could not get out of the house fast enough. Not only did she not dig the finishes, the layout or even the smell of the house, but there were challenges that could not be overcome.

The email went on to say that the price was not flexible because the sellers invested $100K into the property in preparation for sale. Selling a home can be expensive. Homes that tend to sell for the highest possible prices are vacant and staged, often freshly painted, have refinished floors, shiny clean windows and more. If you move out, you often have the expense of your existing mortgage PLUS any temporary or interim housing costs. When you move out, you will need to continue to pay for utilities and any basic upkeep such as garden maintenance, etc. Bottom line: there is a cost of business and no homeowner should sell their home unless they feel it is the best decision for them and they understand not only the process, but all of the costs. All of the above is why I am a more conservative agent when it comes to providing homeowners with market valuations. While I would love to look at the highest sold home in the area and say, "your home will get the same," that would be really reckless! I have never seen two homes that have the same light, layout, yard space, upgrades, flow and property maintenance. Never! Remember: buyers do not just look at the highest prices of homes sold in the area, they look at each of the homes sold in the area, compare many factors and then determine an offer priced based upon that data and their budget. The term "buying a listing" refers to when a listing agent states a property can fetch a sale price that is much higher than what the home will sell for so they can secure the listing, then introduce a price reduction later... I have seen agents do this over the years and I just can't do it. I like to sleep at night.

Over a year ago I met with a family who wanted to sell their long-time family home. I provided a valuation and they did not like it. I explained in detail how I came up with my valuation and the homeowners selected another Realtor who placed the house on the market for $300K more than my recommendation. Since then, that property has been on the market for a full year, has gone through 2 different real estate brokerages, and several price reductions. Even worse, they lost an additional 10-20% in value due to the major market decline that occurred over the summer. Even though the house is not staged, there is still a cost. The cost of utilities, insurance and maintenance, don't forget the house is still yours until it is sold. There is also another cost, the longer a home sits on the market, the more a buyer will assume that there is something wrong with it and may avoid looking at the property altogether. These sellers have lost their leverage and are now at the mercy of a buyer coming to the table.

Since my last post, my two active listings have gone pending, both in less than 2 weeks and both within the sale price ranges I initially shared with the sellers. As an agent, I too take on the cost long before a homeowner decides to accept an offer. I typically spend $4K – $5K on each listing, before a property even hits the market making sure the marketing is fresh, creative and top tier. And that does not include the countless hours I invest in pre-marketing investigations, planning and design work. Providing a realistic expectation builds trust and rapport and is why you select a professional to partner with. While we are wrapping up 2022 the market will evolve – last week rates dropped a touch, there are still people that have housing goals for a myriad of reasons, and the market will go on. When you call on me to help you make your move, count on me to put a great deal of thought and heart into each step so we both can take the journey feeling confident in the process and the outcome.

Enjoy your Thanksgiving and eat something delicious!
– Deidre

October 2022 update: Tips for Buyers & Sellers in this Market

This week, I showed a property in Oakland that my clients were very excited about. It had room for them to both work from home, an open floor plan (something they are craving), and the inspection reports and disclosures illustrated that the house was well maintained. They saw it on Sunday, were still thinking about it on Monday and we toured the house together on Tuesday. We spent more than an hour in the property and during this time I looked very critically at the home’s components and asked questions which I tend to do at all of my private showings. This is not done to talk someone in or out of placing an offer on a property, but in an effort to get buyers to think about things that they may not readily notice upon the first few visits (and could potentially bother them later). During this showing, I observed that the driveway was sloped, shallow, and very narrow, and I suggested that before we left that they test the driveway and garage. Unfortunately the car did not fit. Later, they brought their second car over to test and that too did not fit. They sent me a text message and said that after much consideration this was a deal breaker for them. But what a blessing – waiting until an offer is accepted or even worse, after you close escrow, is not the time to find a deal-breaking feature.

Since the market has been shifting there are a few things that I am noticing: while inventory levels are slightly higher, there is a diverse assortment of housing stock, some properties are still selling right away for over the asking price (and for numbers just shy of the spring market), other homes are lingering. The previous market was such that buyers were so eager to get into the market that they would take on more risk and accept high-cost repair items, but now buyers are less willing to take on unknowns, such as further inspection recommendations that have not been investigated or homes in need of an overwhelming amount of repair. What I encourage all of my buyers to do in this or any market, is to only buy something that you have fully investigated and feel really good about. Perhaps the home has the space you need, or is in the neighborhood you desire, whatever it is, only place an offer on a home that you will be excited about if your offer is accepted. With the shift to a more balanced market, this is the time for buyers to really hone in on what is most important to them in a property. Take advantage of this new market and enjoy the slightly slower pace that this time brings.

A tip for sellers: If you are thinking about selling but are discouraged that prices have declined, consider this: while home prices are not what they were this past spring, in Oakland and Berkeley, September’s sales prices are still 5% higher than they were in September 2020 and values have tripled within the last 10 years, up 205%.

 I suggest talking to your tax advisor to learn if a slightly lower sales price will have some benefit such as a reduced capital gains bill. Additionally if you are looking to sell and buy, then perhaps your purchase will be cheaper as well as your future property tax bill, as property taxes are based upon sales price. 

I am excited to have two listings on the market right now, www.4127Norton.com and www.456Stow.com. Both will be open this weekend! 

Thinking about making a move? I would love to partner with you, your friends and family. I’ve been a Realtor now for over 18 years and I love what I do. You get an honest, straight talking professional when you work with me. I pay attention to the details and want only the best for my clients, even if it means passing up a sale. 

As we wrap up October, take a moment to enjoy the change in weather, the colors of the leaves and go enjoy something delicious!

More at 456stow.com

September 2022 update: Be Ready for Opportunities!

Happy September!
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I frequently review sales data and since the market has started to shift, I have noticed a few properties that have sold for less than they would have in the spring, and for prices that many would call "a good deal." I am cautious about using the phrase "a good deal" as that is subjective - there are so many factors that come into play when analyzing a home's value and, always, the true value comes from the purchaser. What I have witnessed over the past 18 years I've been in business is that opportunities are almost always a timing issue, and often presented when the following happens:

• A buyer is prepared financially: has the cash ready to go, or is fully pre-approved

• A buyer understands the market and also understands that we never know where the bottom of the market is, until the market starts to rebound. So they are less concerned with timing the market and more concerned with investing where they want to be.

• A buyer understands that unless one has an unlimited budget, perfection does not exist. Buyers rarely find a 10 out of 10, but if they get 7 out of 10, they are living in a dreamy place.

• A buyer understands that most deals are a compromise between a seller and buyer. An example:

  • Originally when a seller retained an agent to sell their home, based upon sold data from the last 6 months they anticipated a $2.8M sale price on their house. A few months pass as they prepare their home and their agent has updated them on the market shift, so they now have adjusted their expectations to a lower sale price of $2.6M. They list their property at $2.195M to get more attention on the market but are still hoping for top dollar.

  • Then comes along a distraction in the market: a volatile few weeks in the stock market and consumer confidence is down, and you are the only buyer writing an offer. As a buyer you may have doubts, perhaps you start to think something is wrong with the house, instead of the reality that many buyers are nervous and waiting on the sidelines. Perhaps you want to write a lowball offer - I have seen this many times and in most cases those offers are rejected or countered. But if you are reasonable, perhaps you can get the house for $2.4M or $2.5M. I have heard many sellers state that they will not just "give" their house away, but are willing to compromise if a fair offer comes in.

  • Every single buyer and seller's financial and personal goals are different, but as a buyer it is important to keep in mind that many sellers have a personal attachment to their home. Perhaps they have invested a great deal of money and sweat equity into their property over the years. Perhaps it is the place they have raised a family or it was the place during covid that provided refuge during a time of uncertainty. The sellers have the commodity and they have the right to not sell. Just like a stock, if the price is just too low, perhaps they will decide to hold on. When writing an offer, weigh in on a few things: Does this home feel right? Can you afford it? Do you see yourself here for a long period of time? Are you thinking about the house when you are not there?

A great Realtor can work with you as a buyer to understand the difference between a good opportunity and a bad investment. When buying, look for properties that fit your needs for the long term; this sets you up for the highest likelihood of selling with the most appreciation.
As a buyer, do not let fear block you from those good opportunities, and definitely work with an agent who can give you objective insight so you can make the best decision for yourself.

More at www.280-41stSt.com

After two busy weekends, 280 41st Street in Oakland received two offers that were just too low. They were not in line with my expectations, the seller's expectations, and they were low even for this new softened market. Two days later a 3rd offer came in that was viable, and with a little negotiation we are pending!       

NOTHING happens in real estate unless you can bring a buyer and seller together.

– Deidre

August 2022 update: And Just Like That

And just like that school is back in session for many and we are set to start the Fall selling season. Between June and July this year, the median price of homes in Oakland declined 11% in value while Berkeley saw no decline in value and prices remained flat, but the higher-end markets in both Oakland and Berkeley continue to perform well, selling within the same margins as homes did earlier in the spring.

I spoke with a top producing mortgage lender yesterday and she mentioned some of her clients who had taken a pause from their search have reached back out and have initiated an update of their pre-approval. I will be carefully tracking the market to see how things fair, but I predict that homes in great condition, with good light, layout, upgrades and aggressive listing prices will do well. Homes with challenges, especially challenges that one can not cure, may have a tough time.

Last week KTVU news called on me again to provide an update on our real estate market. The last two times I was on air with them I Zoomed comfortably from my own living room, but this time I went into the studio and interviewed with Sal Castaneda. While I was nervous, I really enjoyed the experience! Moreover, I am just thrilled to be a trusted expert in my field.

Thanks everyone for the continued trust and I am taking on new clients, so spread the word!

Check out the full interview and have a wonderful last few weeks of summer.

– Deidre

July 2022 update: In the Thick of Summer

As I write this, we are in the thick of summer which, historically, is a slow selling season with folks out on vacation and taking a break from house hunting. Unlike the spring market that is enhanced by morning dew, birds chirping, and fresh air igniting a feeling of exuberance, summer can be hot and uninspiring to search for one's new home. Generally, spring is the best season to sell in East Bay real estate with fall being the second best time to sell. Then the pandemic changed things up quite a bit! For the last two years our regular seasonality was not very pronounced because many people were timid about traveling due to COVID. This year is different. I am seeing many people I know are out of town via social media, traffic is noticeably thinner, and it seems people might be back to taking traditional summer vacations. There is a decline in open house and private-showing traffic, but how much of that is due to historical seasonality and how much is a result of the shifting economy with its rise in interest rates and change in consumer confidence? Whatever the case may be, I do know that there are still buyers who want to find a place to call a home of their own.

Although buyer activity has been falling, new listings continue to hit the market, creating an imbalance between supply and demand. As a result, key metrics in the East Bay are faltering, driving down median price as well as the amount buyers are willing to pay over the list price, while driving up days on market. For example, looking at active listings by the length of time they have been on the market, 42% of properties have been active for 5 weeks or more; at this time a year ago, only 27% reached this threshold.

However, not all properties are being affected in the same way. Higher-priced properties are generally performing better than lower-priced properties. Those that are "most attractive" – desirable neighborhood, appealing design and "move-in ready" – are often still generating a high level of interest from buyers. Indeed, when looking at properties that sold in Q2 2022, the higher the sale price, the further over asking the property tended to sell.

Buyers, if you are considering a purchase, now may be a good opportunity to buy. Right now there are 309 homes in Oakland that have been on the market for 30 days or longer, and in Berkeley there are 32 properties that have been active for 30+ days. With many people out of town and taking a break from the market, now may be an opportunity to get into a property that you love.

I am looking towards the fall market and I know that buyers will still be buying and sellers will still be selling. But nothing happens unless you can bring the two parties together! Please know as the seasons change, I will be carefully watching and tracking the market so you have market updates in real time.

As always I welcome your questions!

June 2022 update: Changes are happening!

Changes are happening!

What I'm seeing: Since last month, I have noticed that there are fewer buyers in the market which means fewer offers on many homes in the East Bay. What is important to note is that some properties are seeing lower offer prices than just 2-6 weeks ago, but that is not true in every case, so nothing has been predictable. Sometimes a buyer's personal need or motivation may be the reason why a home has sold for a neighborhood-high price which can skew average sales price data. Sellers, when looking at sold data to see what your property may be worth, please do not just look at one or two high sales, consider all of the recent sales in the area. What a home sold for a year ago is rarely considered by a buyer, as they tend to review the last 3 to 6 months worth of data. Planning what a seller may spend in pre-marketing preparations now needs to be decided knowing that you may get less in a sales price than homes in your area received just a month or two ago. Additionally, I am seeing some homes stay on the market longer than before, so a seller needs to plan for longer carrying costs. Also, if you are selling, this does not mean you can do nothing and get a good price - this means that your property's assets and challenges require more consideration before creating a punch list, as buyers will certainly analyze everything before they decide to write or walk away from a property. Bottom line: the market is shifting, recent neighborhood sales are only a snapshot in history and will not necessarily dictate what your home will sell for in the future. For the past few years, buyers have had to adjust their expectations on what their money can buy as they have seen prices actively jump in value while shopping for a property. Now sellers are in a similar position and should start adjusting their expectations. The market will likely be a place of compromise, both buyers and sellers adjusting so they can meet in agreement. Nothing happens unless both a buyer and a seller agree. 

When I started this career in 2004, I knew that I would always lead with putting my clients' needs first, working in the most approachable, creative way, leading with complete honesty, always keeping my values. Since I have been in this business, I have worked in both buyer markets and seller markets. Our local market is unique and our housing stock is very diverse. No matter what the market, price-per-square foot does not give us the winning formula for value; every home is maintained and improved differently, homeowner's personal design choices may not appeal to all buyers, and every buyer has a different set of criteria for a home they are wanting and willing to live in. If you have watched the news lately, you've probably seen that interest rates have further increased, the stock market has declined, and food and gas prices are rising. So a great deal of thought goes into how I navigate and consult with clients. Regardless of the market, if a seller wants to sell, I make sure that selling is the best option for them before we proceed. If you are thinking about selling your home, I will always ask "Why?" This is not to pry, but sometimes holding on to your property is best. For example if you are thinking of moving out of the area, is there a chance that you will want to move back to the East Bay and wish you had this specific property? Can you afford to keep it? Are there modifications/renovations that you can make to your home to make it a better fit for you so you can stay in it?

For buyers, in addition to analyzing the property's condition and sold data in the area, the bigger question is: will this property fit your needs long term? Buying a home should not be for a temporary need; when you buy your house you should consider if this home really suits you. It is my goal for all of my buying clients that once they buy a house, they feel happy that the property was available for them when they were in the market to buy. 

What should you offer? Given the sold data in the area, what is that number that you would not regret if your offer was accepted? Looking back, what maximum amount would you be comfortable paying? When you start thinking in those terms, you may have more clarity on your housing goals. 

No matter what the market, there will be buyers who will want to buy and sellers who will want to sell. Only you can determine what is right for you. I  am here to be a sounding board, and give advice based upon experience and data so you can make the best decision for yourself. 

Whether you are buying, selling or just need expert advice without pressure, I am here for you.

– Deidre

375 Marlow Drive, Oakland – Open June 18 + 19, 2022

May 2022 update: What's going on?

What have I seen over the last 3 weeks in the East Bay market? Buyers had been craving more inventory all year and May delivered with a spike in new listings. This also happened when buyers were bruised with the impact of the latest interest rate increase. Here is a real world scenario: I have clients who were pre-approved in mid March for a home purchase of $1.5M. They want to finance $1.2M. The rate increase made their future payment jump by $1000 per month. I am hearing from agents all over that they have clients feeling the same pain.

Last week, 2 of my listings heard offers and though both were special properties, they received fewer offers than listings that I had earlier in the year as well as the homes that I wrote offers on, but the offers were still well over the asking price with great terms. 

 So far I am not seeing much of an impact in the high-end market, particularly walkable homes in the $3M range (homes that tend to sell in the $3M+ range are often listed in the $2M+ range). I am seeing a higher percentage of cash buyers in this price range and typically their income and assets can absorb the impact of the interest rates.

 Properties that I am seeing on the market longer than the typical 2 weeks are homes that may be unconventional that are waiting for the right buyer. For example, my fully vacant triplex was on the market for over a month last winter. The location was superb, (Rockridge) while a buyer may want to make cosmetic updates, the owners had made meaningful improvements over the years, and the place was cute! So why did it sit? There are fewer buyers who want to be landlords in Oakland and Berkeley due to the increasingly strict rent control and eviction laws, especially with the recent moratorium on evictions due to COVID. I knew the ideal buyer for this particular property was a buyer who wanted to occupy the place. This home sat on the market for 42 days and then a buyer saw the place and wrote an offer the next day for the price my clients wanted closing 21 days later. 

 What does this mean if you want to buy? Buy smart. Investigate the house to make sure you understand the condition, investigate the neighborhood and make sure if you write an offer you will be happy if your offer is accepted. Something I have told my clients for years: see a house and notice if you are thinking about it the next morning. If you are not, that says a lot. I know money is more expensive, but it still may be worth stretching if that means you have a house that fits your needs for a longer period of time. Buying a house is like buying stock, the longer you hold on to a property the higher chances you have for greater appreciation. I advise 7 years+.

For sellers, hearing that there is a chance you may earn a little less in sales price than your neighbor did last month is a tough pill to swallow – I get it! Your house will sell, especially if you showcase your home to appeal to today's buyers. There is an art to analyzing a house and creating the most effective pre-marketing plan. Make your house memorable for buyers.

Whether you are a buyer or seller, I am happy to listen to your goals and provide insight to help you  decide what is best for you!