Vital Signs

In a sign that some Bay Area residents still aren’t comfortable shelling out the big bucks, sales of homes priced at $1 million or more fell by 27% in the region last year, outpacing the 24% decline in such sales statewide, according to MDA DataQuick. The Bay Area saw 7,261 sales of million-dollar-plus homes in 2009, down from 10,006 in 2008 and 18,926 in 2005. Santa Clara County saw the most, with 2,378 sales of such homes, while Solano County had the fewest, with 20. Reluctant buyers and a tight mortgage market contributed to the decline, DataQuick said. Meanwhile, Bay Area home sales at all price levels rose 16% last year from 2008, while sales statewide climbed 17%. One in 25 California home sales crossed the $1 million mark in 2009, compared with one in nine in 2006, according to DataQuick.

Yipes. That certainly doesn’t look very good to an untrained eye. But real estate professionals, they know that this is normal – after all, real estate is cyclical.

2009 was the bottom out year 2010 is when the chart is going to come back up. Haven’t you seen all those billboards on 101 plugging Zynga? The startup community is back… and with a vengeance! Jobs are starting to flow like water from the sierra nevadas.

It’s only a matter of time before million dollar homes become the norm again. You just wait.

It’s saturday! That means it’s time for Burbed’s book of the week!

Real Estate Finance (Appraisers Edition) (Paperback)

~ Walt Huber & Levin Messick (Author)

$59.50 & this item ships for FREE with Super Saver Shipping. Details

This strikes me as a slightly silly book. Why would an appraiser need a book on real estate finance in California. It’s simple: prices always go up. Just add 5% to 8% at a minimum to last year’s value. Heck, it could be summarized into a formula:

Current House Price = House Price in Year Y x (1.08)^(This year-Y)

Boom! Instant time saver!

Now, sure you could use statistics, modeling, and finance, but for what reason? To use data and all that sort of silliness? Nah, forget about! Prices come from the gut – everyone knows that.

Could someone buy this book and let us know if it covers key topics? Such as when to add “888” to the price? Or to take your gobs of money and re-invest it into other California real estate? Or how we can finally beat Manhattan? Now those would be time savers!

Here’s a another time saver! Click this link to learn more about donating to this site’s hosting costs!

$249,900

Thanks to Burbed reader Nate for this find!

Here’s what Nate had to say:

While many parts of the Peninsula RE market remain near their highs, it looks like the market for 90+ year old shacks on tiny lots in Redwood City is more than 50% off the prices paid during the bubble.

Let’s take a look!

Hello instant equity!

It’s clear to me that Redwood City has reached the absolute bottom. At $269 per square foot, this can’t get any lower. I mean heck, this is practically being given away. Now sure it needs some repairs… but hey its cozy! Cozy! Can you say that about any other 930 sqft house?

It’s only a matter of time before this returns to its $629 per square foot glory. Maybe it’s waiting for you! Some pergo, some granite, some steel – BOOM! This house will take off!

What are you waiting for?

646 DOUGLAS Ave Redwood City, CA 94063

$260,000

Beds:	3
Baths:	1.5
Sq. Ft.:	1,010
$/Sq. Ft.:	$257
Lot Size:	5,000 Sq. Ft.
Property Type:	Detached Single Family
Style:	Mediterranean
Stories:	1
Year Built:	1954
Community:	Dumbarton
County:	San Mateo
MLS#:	80955918
Source:	MLSListings
Status:	Pending With Release This listing is in escrow and all contingencies have been fulfilled. "With Release" means that there’s a release clause with the offer stating that the buyer is trying to sell his current home before closing. A release clause lets the seller back out of the deal if the buyers can’t sell their home within a set time frame.
On Redfin:	87 days

Thanks to Burbed reader Herve for this find!

Unfortunately, this house is already pending. Bummer.

It’s peculiar, usually listings talk about how well maintained they are. This listing? It tells you want to do.

So you’d better maintain this house! You’d better keep it near freeways and stores!

There’s so much other strangeness… for example, why did this realtor take the picture while driving by? Was it to emphasize the dynamics of owning in this neighborhood?

I’m guessing this isn’t going to win the listing of the year.

2580 38TH Ave Oakland, CA 94601

$99,000

Beds:	3
Baths:	1
Sq. Ft.:	1,200
$/Sq. Ft.:	$82
Lot Size:	1,800 Sq. Ft.
TYPE:	Detached
STYLE:	Other
STORIES:	1
Year Built:	1910
Community:	Oakland
County:	Alameda
MLS#:	40451794
Source:	EBRD
Status:	Active This listing is for sale and the sellers are accepting offers.
On Redfin:	8 days

Thanks to Burbed reader sonarrat for this find!

Here’s what sonarrat had to say:

Ever wonder how you fit a 1200 sf house on a 1800 sf lot?

yes, that really is the house!

What a curious property! It looks something that would be fitting for the show 24! Is this where the weapons of mass destruction are located? Is this where the “harsh interrogations” happen?

But… no… that really is the house. Go figure!

And… it’s shockingly affordable. At just $82 per square foot, most readers here can probably charge it to a credit card.

Sure… this was probably a zoning mistake:

But hey, their mistake is your gain! Buy it today and rent it out! Start your slumlording today!

1100 S WINCHESTER Blvd San Jose, CA 95128

$380,000

Beds:	2
Baths:	2
Sq. Ft.:	926
$/Sq. Ft.:	$410
Lot Size:	1,306 Sq. Ft.
Property Type:	Condominium
Stories:	1-3 (Low Rise)
View:	Valley
Year Built:	1992
Community:	Campbell
County:	Santa Clara
MLS#:	80952012
Source:	MLSListings
Status:	Active This listing is for sale and the sellers are accepting offers.
On Redfin:	117 days

Thanks to Burbed reader Herve for this find!

Have you ever dreamed about owning the Winchester Mystery House? Well, now’s your chance to buy the Winchester Mystery Condo!

Just look at those photos! How your friends will ooh and ahh as you recount to them the story of how a machine from the future came back to look for Sarah Winchester, and as a result built this condo in 1992. Or… uh… something like that.

Just think of all the money you’ll make from renting this house to Ghost Hunters on Syfy! See how the windows are alarmed? It’s alarmed for ghosts!

And those high-definition tvs that are remaining? Haunted.

Personally, I think kudos are deserved for the person who remodeled a 17 year old condo, considering how many Bay Area houses haven’t been touched since they were built.

Great buy. If you’re brave enough.

http://www.repaircalifornia.org/

Prop 1: "Allows voters to place question of calling a constitutional convention on the ballot."

Prop 2:"Calls a limited convention to propose changes to state constitution."

Alright folks… so what’s the deal with Repair California?

Is this a good cause? A bad cause? Will they help fix this state or will they further wreck it?

Can we get some serious discussion on this thread please?

My initial take – it’s a good thing. But then again, they seemed to have put their campaign on hold due to lack of funding, so that’s not a very good sign.

California Real Estate Principles
Walter Roy Huber

California Real Estate Principles, June 2, 2000

This text, by Walt Huber, is used in teaching a beginning course in real estate principles in numerous community colleges in California. As the title implies the specifics (ie laws, requirements, licensing, etc.) conform to the law in California.

At the end of every chapter there are a few review questions and important terminology covered in that chapter. Key topics within the text are highlighted and www (Internet) addresses are given for sites that corrospond to subjects discussed.

I found this to be easy-to-understand and written in a clear and informative manner. Also I believe this to be a good resource for questions concerning transactions within this state. If you are outside California this is NOT for you. Overall a favorable impression of this book.

Sounds like a good buy. But really, do you need a book for this? Here are the principles:

1) Real estate prices in California always go up.

2) You should always buy houses in 1975 so that your property tax will be locked in at amazingly low rates for you, your children, and all of your decedents.

3) Real estate anywhere else is useless. That’s why everyone flocks to California to buy real estate here. Especially the Bay Area.

4) Profit = Selling Price – Purchase Price. Ignore things like maintenance (you won’t need to do any).

What are some of your California Real Estate principles that you think are worth sharing?

Here’s a principle: Support Burbed.com! Click this link to learn more about donating to this site’s hosting costs!

Knock knock! Can you hear it? No? Well that’s because you live in a rental and there’s probably too much noise.

But if you could hear it, it would be the sound of “oporunity” knocking!

Now sure there’s no interior pics, that’s sort of bummer – but it’s mountain view. And it’s only $760k! Hello what a steal!

And just check out your access to 101!

You’ll definitely be able to see it all the time! Talk about easy! And look at all the construction across the street/freeway. You know what they’re building on Moffet Federal Air Field right? Don’t tell anyone – they’re building White House: West. You heard it hear first.

Let’s face it, the President needs to have a residence in the heart of America’s most intelligent, most sushi place. Once Obama moves across the street – CHA CHING! Watch as your property value soars.

Just keep it on the down-low ok? You can thank me later!

The other day, I noticed a dramatic uptick in lottery related searches

ohlone mandarin school lottery 

"mountain view" schools lottery elementary 2010 

cupertino school district are all students enrolled?

cupertino union school district lottery date 2010 

Wow. That’s a lot of lottery searches!

I touched upon this last week, and I think that it’s now time to discuss this.

So what are these searches all about? Now, you might guess that this is because Bay Area Schools are so packed because voters in the late 1970’s decided to close many of them to save money because children aren’t the future… or that some districts are dramatically better than others voters in the late 1970’s decided to defund schools believing that children aren’t the future so districts rely on direct parental donations…

Or, these searches could be about how enrolling your child into a Bay Area school is like buying a winning lottery ticket! You’re guaranteed to get back a huge reward on your investment – even if you need to bring $2000-$10,000 in cash to class. Your child will go to Stanford, and then booom start the next Google.

I think it’s the latter… not the former. But that’s just my guess.

349 Laurel St San Carlos, CA 94070

$949,000

Beds:	3
Baths:	2
Sq. Ft.:	1,370
$/Sq. Ft.:	$693
Lot Size:	-
Property Type:	Detached, Single-Family Home
Style:	Ranch
View:	City Lights
Year Built:	1926
Community:	San Carlos
County:	San Mateo
MLS#:	364716
Source:	San Francisco MLS
Status:	Active This listing is for sale and the sellers are accepting offers.
On Redfin:	40 days

This is a very mysterious house, to say the least. Big lot – but no details. Nice house – but no interior pics.

Heck! The exterior pic is too dark to see! Fortunately, the realtor included another one:

Better?

Frankly, I don’t think this realtor tried very hard. Just look at the location:

What? No traditional comment on “walk to downtown” or “walk to caltrain”? No “easy access to shopping”?

I’m going to hazard a guess that perhaps this realtor doesn’t deserve to make up to $56,940 when this house sells.

But then again, who am I to say? How should the realtor be comped on this one?

89 WHITTIER St Milpitas, CA 95035

$499,000

Beds:	3
Baths:	2
Sq. Ft.:	1,116
$/Sq. Ft.:	$447
Lot Size:	6,480 Sq. Ft.
Property Type:	Detached Single Family
Stories:	1
Year Built:	1955
Community:	Milpitas
County:	Santa Clara
MLS#:	81005907
Source:	MLSListings
Status:	Active This listing is for sale and the sellers are accepting offers.
On Redfin:	6 days

Dear Realtors of the world,

It seems to me that recently you discovered Adobe Photoshop and some of the filters it has. While I appreciate your artistic aspirations, and your attempts to bring the art of selling real estate to the visual arena, let’s just say that some results are not particularly flattering.

For example, I find myself wondering if this house is located in/near Mordor based on the sky and background.

I know the photographer was “on fire” when he took this amazing shot, but looking at it, I wonder if he was literally on fire.

In closing, might I suggest that you please discontinue using these new fangled techniques. Perhaps you can return to the old standbys of fuzzy focus, soft edges, and painted blue skies.

Thank you.

3930 VIA CRISTOBAL Campbell, CA 95008

$525,000

Beds:	5
Baths:	2
Sq. Ft.:	1,900
$/Sq. Ft.:	$276
Lot Size:	6,720 Sq. Ft.
Property Type:	Detached Single Family
Stories:	2
View:	Neighborhood
Year Built:	1961
Community:	Campbell
County:	Santa Clara
MLS#:	80949841
Source:	MLSListings
Status:	Active This listing is for sale and the sellers are accepting offers.
On Redfin:	119 days

Wow… check out how classy those columns make this house look. It almost hides the fact that the wall might be coming apart. But as we all know, it’s all about curb appeal!

Who lives there? The pope? The president? Nope… it could be you!

And look! It’s even got bedrooms in the basement! Just look at the funky window! Great for guests or for renting out!

And let’s check out that back yard:

Hm. Not sure what’s going on there, but that is certainly pretty funky. Maybe someone is building a skateboard park there?

Not that it matters – those columns on the front simply make this house an amazing buy in Campbell!

Homeowners rent out rooms to stave off foreclosure

Reeling from the recession’s one-two-three-punch of job woes, climbing mortgage payments, and evaporating equity, desperate Silicon Valley homeowners are dipping into a nearby income stream to avoid foreclosure:

That bedroom just down the hall.

While renting out a room has been around for years, especially in the South Bay’s Latino neighborhoods, sharing a home in order to save it has become an increasingly popular way to hang on to the front-door keys to the American dream.

"I’m up against a wall and I had no other place to turn for income," said Rafael Porras, a 50-year-old waiter who began renting out a room in his downtown San Jose condo this month after he was squeezed by pay cuts at work and a mortgage payment about to rise. "But I had to do it because I don’t want to walk away from this place. My credit’s excellent, and without good credit, you’re nobody."

Whether they’ve rented out rooms in the past to make ends meet, or a job loss has prompted them to tap into their inner landlord for the first time, many people say their rental income is the only thing keeping them from losing their homes. And for many homeowners — even those whose property is worth less than their loan amount — losing their home is not an acceptable option.

"I can’t imagine life anywhere else," said 71-year-old Margaret Licon, who bought her San Jose house 40 years ago and raised six kids in it before losing her husband 25 years ago.

—

"Renting out bedrooms is a growing trend," says Sunnyvale housing counselor Maritza Wong, who works for the nonprofit Project Sentinel. "And it’s not just lower-income people doing it, but even people who were making good money before losing their jobs.’

At Project Sentinel, where staffers report as many as 20 percent of their clients becoming landlords under their own roof, counselors are recommending the practice as a way for homeowners to tweak their debt-to-income ratio in order to qualify for a modification. But a word of caution: becoming a landlord, especially for someone with little or no experience, can bring headaches, from tenants who fail to pay rent to those who are just a pain in the neck to live with.

Did you see that? “I can’t imagine life anywhere else”. That’s just how amazing Silicon Valley is – people would rather rent out their homes than leave!

Really, this is a reflection of two aspects of Silicon Valley’s nature:

1: Generosity. Just like how companies love to share stock options (equity) instead of paying something dinky like cash (like they do on Wall St), homeowners love to share their houses so they can offer others the opportunity to move to Silicon Valley!

2: Entrepreneurship. Silicon Valley folks are incredibly resourceful in finding new ways to raise revenue. Besides, how much of a 1100 sqft house do you really need?

Congrats Bay Area! Congrats! The rest of this nation could really learn from us!

Royal Sovereign Front Loading Cash Counter with Dual Counterfeit Protection (RBC-1003)

Product Specifications

• Brand Name: Royal Sovereign
• Model number: RBC-1003
• Color: Gray
• Number of Items: 1
• Manufacturer Part Number: RBC1003

Technical Details

• Counts over 1200 bills per minute
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• Dual protection systems to detect false bills by UV reflection and magnetic scanning
• Remote LED Display with touch pad controls and batching and adding functions
• Retractable Handle, provides easy portability

I thought it might be good to take a break from books for a little bit. Let’s face it, here in Silicon Valley there is so much cash floating around that you may have trouble keeping track. For example, you may heard of people using their houses as ATMs – well, in Silicon Valley, because houses are guaranteed to appreciate, houses really can have ATMs built in!

And then there’s the fact that every time you go outside in Silicon Valley, there’s practically money raining down from all the startups, the virtual farms, the social networks, the virtualization, the clouds, the cupcake stores. Do you have $20000 or $200000 in your backyard today? You’ll need a counter to be sure!

How do you handle your daily uncovering riches today?

If you have some extra cash, this site could definitely use some to pay for servers! Click this link to learn more about donating to this site’s hosting costs!

Some people trash their house when they know they’re going to be foreclosed… these folks apparently decided to paint the exterior to vent their frustrations.

Seems that with tenants, the owners would’ve been able to keep up with the payments.  They originally put 20% down to buy it (according to PropertyShark).

This seems to imply that the design was in malice. Personally, I think this is exactly the kind of house that San Francisco is famous for – individualized, iconic, controversial. Just think of how this house is already cheering up this Friday at Burbed!

If you’re not proud of owning this house and its color scheme, then this house probably isn’t for you.

Now, to onto the nitty gritty: offers will be reviewed as they come. So, it’s definitely in your best interest to bid early and at a very high price. Otherwise, this could easily slip away. Maybe you should even go as far as to place multiple bids under secret names – each higher than the last! Now that’s a strategy that any realtor would approve of. Ignore the fact that there are no interior pics – it’s probably just too fabulous.

And, with the separate detached units… in a word… cashflow. Sweet sweet cashflow.

Happy friday!

Usually an actual search query is featured.However, lately there has so many “cupertino union school district lottery date” and “cusd lottery” (what’s that all about?) in the logs that it wasn’t particularly interesting. So, let’s examine a different potential query: is new york too expensive compared to california

The answer is a resounding yes. New York is absolutely too expensive compared to California… the Bay Area should definitely be more expensive. We’ve got sushi, world class universities, El Camino Real – what do they have? Jersey Shore?

Now let’s give credit where credit is due – we are certainly getting there. Out in the suburbs, we’re beating them soundly. Take this for example:

1.47 acre house – with access to Wheatley Schools

versus this:

Duc & Elliot built good houses in Cupertino

Oh yeah. Beaten.

More importantly, I think we’re even making progress against Doomedhattan with its Doomed Bankers.

For example, some of you may recall that the “smallest apartment in the city” at 175 sqft sold for an astounding $150,000. At the time, it made all the headlines!

Do the math people. Is it any wonder why all those Bankers failed and our VC succeeded? $150,000/175 is a mere $857 per square foot. Palo Alto… even Cupertino can beat that on most days!

Great work everyone! Don’t worry… 2010 is the year we’ll beat Manhattan and take the reign of “most expensive”! It’s our destiny!