Dear Friends, The holiday season is a time for reflection, and here at DeLeon Realty, we would like to reflect on the wonderful communities that we are so honored to serve. Throughout all of our years in business, we have been lucky to come in contact with countless people who have made our jobs fulfilling and fun. They have inspired us to work harder, and we take great pride in knowing we have helped so many people both sell their existing properties and find the home of their dreams. We would like to thank each and every member of these wonderful communities for not only embracing us, but for helping make Silicon Valley into one of the most sought-after areas to live in the entire world. May you and your loved ones enjoy a happy and healthy holiday season, and we look forward to continuing to serve you in the New Year! Warm Regards, Ken DeLeon, Michael Repka & The Entire DeLeon Team
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Table of Contents
04. The DeLeon Team Expands International Marketing
By Michael Repka
07. Don’t Let Agents Use Your Home as Bait to Attract Buyers
By Michael Repka
08. California Disallows Deferred Sales Trusts
By Michael Repka, Esq., LL.M.— Taxation
11.
DeLeon Gives Back
12.
The Dumbarton Rail Corridor Project: The Prologue
16.
Going to Work for DeLeon Realty
18.
Life Lessons from My Accident
By David Tobener By Bernie Leung
By Lisa Lombardi By Ken DeLeon
21. The Advantages of Buying a Home Off-Market
THE
DELEON INSIGHT OU R OFFICES ARE LO CAT ED AT : 1717 Embarcadero Road, Palo Alto, CA 94303 650. 900.7000 www.DELEO N REALT Y.co m DR E #0 190 3 2 2 4 Managin g Bro ker: M i c h a e l Re pka DRE #01 8 5 48 8 0 Founder — Ken DeLeon CEO & General Counsel — Michael Repka Corporate Counsel — Colette Thomason Creative Director — Anthony Halawa Photographer — Zachary Kinion Marketing Manager — Melanie Yu Copywriter — David Tobener Senior Graphic Designer — Nora Xu Graphic Designer — Monica Casorla CONTRIBUTORS: Ken DeLeon, Michael Repka, Steve Milender, Audrey Sun, David Tobener, Andrew VanSlyke, Bernie Leung, Lisa Lombardi, Anthony Halawa, and Tim0thy Young Contact Ken DeLeon for exceptional buying opportunities at 650.543.8501 DRE #01342140 To learn about our Platinum packages and incredible listing services for sellers, contact Michael Repka at 650.900.7000 DRE #01854880
22.
By Ken DeLeon
California Enacts Statewide Rent Control
By Andrew VanSlyke, Esq.
25. Down Payment Options
By Steve Milender
26. Holidays Around the World
By David Tobener
28. Realtor® Accreditations—Untangling the Alphabet Soup
31.
32.
35.
By Audrey Sun
How a Strong Marketing Department Sets DeLeon Realty Apart By Anthony Halawa
Behind-The-Scenes for 25621 Vinedo Lane
By David Tobener
Who is Really Your Broker?
By Andrew VanSlyke, Esq.
37.
PAUSD Superintendent Interview
39.
By Ken DeLeon and Timothy Young
Disclosure of Real Estate Commissions Paid to Buyer's Agents
By Michael Repka
41. Recent Client Review
By DeLeon Client Brian M.
43. Rule Change Proposed to Restrict Pocket Listings
By Michael Repka, Esq.
D ELEONREA LT Y.COM
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I N T E R NAT I O NA L
THE DELEON TEAM EXPANDS INTERNATIONAL MARKETING By Michael Repka
Several years ago, Ken DeLeon and I decided to launch what would turn out to be Silicon Valley’s preeminent international real estate marketing department. After all, it was clear that Silicon Valley home buyers come from all over the world, so we wanted to make sure that we reached all of these potential buyers. Although we lacked the personal skills and expertise, we had the reasons to hire the right people. From the first time we went to China, it was apparent that we were onto something special. The combination of the prestige Ken garnered from being the only Silicon Valley agent ever ranked number one in the entire nation (a distinction he still retains while adding two more #1 national rankings for the DeLeon Team), plus a thirst for my legal and international tax acumen, resulted in a remarkably warm welcome. Over the past few years, Melanie Yu, the head of our international marketing department, Audrey and I have continued to expand our outreach. However, until recently, our international efforts have been mainly focused on buyers from Mainland China, Taiwan, and India. With the continued tensions in the Middle East and the protests in Hong Kong, we have decided to step up our efforts in both of those areas.
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Hong Kong As discussed in the last edition of the DeLeon Insight Newsletter (September, 2019) (https://deleonrealty. com/2019/surge-in-demand-from-hong-kong-buyers/) I recently returned from a business trip to Hong Kong that occurred at the height of the protests. In the Spring of this year, I noticed a significant increase in interest from buyers coming from Hong Kong, so I wanted to meet with some of our Hong Kong contacts to understand what they are hearing from their clients and colleagues. As expected, they confirmed that many Hong Kong residents
I N T E R NAT I O NA L
have developed an increased desire for foreign real estate. As a result of the information I received from these meetings, DeLeon Realty booked a booth at the Smart Home Expo, which will occur November 23 -24, 2019, at the Hong Kong Convention and Exhibition Centre. As usual, I will be there personally, along with one of my colleagues on the listing team who speaks Chinese, promoting our listings and expanding our contacts. The Middle East As stories persist about tankers being attacked in the Red Sea off the coast of Saudi Arabia, and as tensions with Iran grow stronger, we continue to see an increase in demand from the Middle East as well. In fact, I am writing this article sitting by the pool at the Ritz Carlton, Grand Canal, in Abu Dhabi, which is located close to the Abu Dhabi National Exhibition Centre, where we have a booth at the International Real Estate & Investment Show (IREIS 2019). India Although we have always aggressively marketed our listings to the Indian community via a combination of online ads and Indian publications, we have decided to step up our efforts in India as well. To that end, I was in Mumbai the first week of November, meeting with some of my colleagues and contacts, and Ken will be there as well next month.
Shanghai You may have heard that the Chinese buyer pool has dried up due to the difficulty of moving money out of China; however, that is not the case here in Silicon Valley. Investors from China who were buying homes and leaving them as unoccupied “ghost houses” have definitely dried up, but we are noticing a dramatic increase of buyers who want to buy homes for their families to live in, while having their children attend the acclaimed local schools in the area. This is particularly true with Chinese companies moving executives over here. It is widely known that the DeLeon Team attends the annual Shanghai Luxury Property Showcase in December every year, and this year is no different, as we will be represented by Audrey Sun, Melanie Yu, Ann Ho, Ken DeLeon and me. We still value our relationships with local Chinese Realtors®, as well as real estate agents from overseas, and we will continue to foster these relationships by personally attending the tradeshow in Shanghai to market our listings for the fifth straight year. Personal Benefit from Cultural Understanding At this point, it is beyond question that our effort to market our homes to the international community is a tremendous advantage in terms of additional exposure. However, perhaps the number one benefit is the cultural appreciation that I get from understanding the wants, needs, and expectations of potential buyers from around the world. That is why I personally join my team at our booths at real estate events around the world. That, plus, the pool at the Ritz Carlton Abu Dhabi is very nice!
Michael Repka presents DeLeon Realty properties at the IREIS 2019 in Abu Dhabi from 10/30 to 11/1.
D ELEONREALT Y.COM
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THE DELEON INSIGHT
CALIFORNIA DISALLOWS
Deferred Sales Trusts By Michael Repka, Esq., LL.M.— Taxation The United States Treasury Department has long accepted
Deferred Sales Trusts
the proposition that taxpayers must only recognize gain
A few years ago, a number of companies started promoting a
on the sale of investment property upon receipt of the
tax structuring vehicle called a Deferred Sales Trust (“DST”).
consideration paid, irrespective of whether actual receipt
These DSTs sought to take advantage of the Installment
or constructive receipt of the proceeds. In application, this
Sales rules by creating an irrevocable trust that would
means that a seller who finances the buyer’s acquisition of
“purchase” the real estate from the taxpayer, sell it to a third
property should recognize the gain on the property pro-rata
party, invest the proceeds and then distribute the proceeds
as the proceeds are received.
to the taxpayer over a pre-agreed number of years.
By way of a simplified example, an investor who has a basis
The companies promoting these types of vehicles argued
of $1 million in a house that is now worth $4 million would
that since the seller sold the property to the irrevocable trust
have $3 million in gain. If they sold the property and received
(a separate entity from the taxpayer) and received payment
all of the proceeds in Year 1, they would have to recognize $3
for that sale over a period of multiple years, they should be
million in the gain in Year 1 (i.e., $4 million sales price minus
taxed based on the proportion of the funds received by the
the $1 million bases). On the other hand, if the seller sold the
taxpayer from the trust each year. In other words, they should
property under an agreement whereby the buyer agreed to
receive Installment Sales Treatment.
pay the seller 50% in Year 1 and then 10% in each of the next 5 years, they would recognize $1.5 million in gain in Year 1
For example, if the taxpayer agreed to take the distributions
and $300,000 in each of Years 2 through 6.
at the rate of 5% per year for 20 years, then the promoters asserted that the taxpayers should spread recognition of the
This is commonly referred to as an Installment Sale
gain over the same 20 year period, pro-rata.
Transaction, or Installment Sales Treatment, and is codified under section 453 of the Internal Revenue Code.
If this structure were to be accepted by the IRS, any buyer that can qualify for a bank loan would be able to purchase
Given that the capital gains tax rates are now graduated
the property because the trust, of which the seller is the
(i.e., the rate increases as the number of gain increases),
beneficiary, would get 100% of the sales proceeds at the
in addition to deferring recognition of gain, the taxpayer
time of the sale.
may pay tax at a lower blended rate via this method. Unfortunately, this structure would create too much risk in
After review of the contracts and other documentation
situations in which the buyer is not putting a large amount
for two of these DST companies for two of my sellers, I
down. Therefore, sellers are limited to only a small portion
found provisions that would make the structure subject to
of the buyer’s pool, such as foreign buyers, with a significant
challenge. For example, in one of the contracts, the taxpayer
amount of cash.
reserved the right to demand the early return of the sales
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R E A L E S TAT E TA X
t s u r T s e l a S d e Deferr
proceeds under certain conditions. Thus, the IRS could argue
Both California Revenue and Tax Code §18662, and the
that the taxpayer had constructive receipt of the money upon
related regulation (§18662-3) require the purchaser or the
sale. Additionally, the IRS has two catch-all tools in its arsenal:
§1031 facilitator to withhold and remit 3 1/3% of the gross
the Sham Transaction Doctrine and the Step-Transaction rule.
sales price unless an exemption applies.
Based on these concerns, I counseled both clients away from this structure.
In light of the FTB’s new Notice, it is clear that they are scrutinizing creative uses of the Installment Sales Rules.
Franchise Tax Board (“FTB”) Notice 2019-05—California Disallows Deferred Sales Trusts
Therefore, taxpayers utilizing the Deferred Sales Trust structure should carefully consider the risks and speak with a qualified tax and real estate attorney. Naturally, I am happy
Although not entirely on point, California’s Franchise Tax
to meet with any sellers that have listed their home with the
Board recently released Notice 2019-05, which conveyed the
DeLeon Team to discuss this, and any other tax questions
FTB’s intention to hold IRC §1031 facilitators responsible for
they may have on their minds. As always, there is no charge
failing to withhold 3 1/3% in situations where the taxpayer
for this consultation.
tries to use the Instalment Sales Rules (IRC §453) to defer tax on boot (a.k.a., not like-kind property) received.
D ELEONREALT Y.COM
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THE DELEON INSIGHT
THE DUMBARTON RAIL CORRIDOR PROJECT: THE PROLOGUE By Bernie Leung According to a recent poll surveying the five most populous
owners. The proposed multi-modal connection (including
Bay Area counties produced by the Silicon Valley Leadership
railway system) will directly link cities in the Peninsula such as
Group, 76% of respondents cited traffic congestion as an
Redwood City, Atherton, Menlo Park, East Palo Alto, and Palo
“extremely serious” or “very serious” problem. If there was
Alto with cities in the East Bay such as Newark, Fremont, and
a list of all things universally hated, traffic would certainly be
Union City. Even cities outside of the immediate Dumbarton
near the top.
Corridor area with a large number of residents or employment centers that already or potentially could use the Dumbarton
At the very least, it is for the thousands of commuters stuck
Corridor will be impacted, such as Mountain View, Sunnyvale,
in traffic on the Dumbarton Bridge every day, trying to reach
Santa Clara in the West, and Dublin, Pleasanton, Livermore,
the Peninsula from the East Bay, or vice-versa. And this
Hayward, and San Ramon in the East.
collective pain in the neck is no big secret – there have been multiple studies in the past aimed at facilitating movement
After
from the Dumbarton Corridor across the Alameda, San
analysis, and community outreach, the DTCS proposed a
almost
two
years
of
extensive
consideration,
Mateo, and Santa Clara counties. The most recent is the
multi-faceted approach, calling for improvements to the
Dumbarton Transportation Corridor Study (DTCS) started
Dumbarton Highway, rail bridges, and local roadways. The
in 2016 by SamTrans in partnership with Facebook, the San
DTCS also recommended a “phased” approach grouping
Mateo County Transportation Authority, Alameda County
short-term improvements by or around 2020, and long-
Transportation Commission, and the AC Transit.
term improvements by or around 2030. According to the projections in the DTCS, “approximately $2.58 billion in
The contents, findings, and recommendations of this study
capital and $90 million in annual operating funding will need
should be of great interest to anyone living in the San Mateo,
to be identified for full build-out.”
Santa Clara, or Alameda counties, especially property
12 | DE LEO N RE A LT Y.CO M
SPACIOUS AND ELEGANT IN BARRON PARK
MODERN TECHNOLOGY, SUPREME LUXURY IN OLD PALO ALTO
• Bright, spacious spaces
• 6 Bedroom
• Masterfully rebuilt
• 5.5 Bath
• Superb kitchen
• 5 Bath
• Fully automated smart home
• 4,002 Sq. Ft. Home
• Downstairs recreation room
• 3,250 Sq. Ft. Home
• top-of-the-line materials and
• Top schools
• 5,000 Sq. Ft. Lot
• 5 Bedroom
• 10,333 Sq. Ft. Lot
appliances
4051 EL CERRITO ROAD, PALO ALTO Offered at $5,495,000
142 KELLOGG AVENUE, PALO ALTO Offered at $4,988,000
For video tour and more photos, please visit: www.4051ElCerrito.com
For video tour and more photos, please visit: www.142Kellogg.com
MEDITERRANEAN OASIS IN LOS ALTOS HILLS
STUNNING ESTATE WITH SUPREME PRIVACY
• 5 Bedroom
• Luxuriously appointed
• 7 Bedroom
• Luxurious formal rooms
• 6 Full bath/2 Half bath
• Spacious formal rooms
• 6 Full bath/2 Half bath
• Offices, game and fitness room
• 5,326 Sq. Ft. Home
• Resort-like grounds
• 9,507 Sq. Ft. Home
• Verdant grounds with pool
• 1.1 Acre Lot
• Outdoor kitchen and pool
• 2.8 Acre Lot
• Detached guest home
11801 FRANCEMONT DRIVE, LOS ALTOS HILLS Offered at $6,488,000
86 TALLWOOD COURT, ATHERTON Offered at $14,988,000
For video tour and more photos, please visit: www.11801Francemont.com
For video tour and more photos, please visit: www.86Tallwood.com
14 | D E LEO N RE A LT Y.CO M
THE DELEON INSIGHT
GOING TO WORK FOR DELEON REALTY By Lisa Lombardi
I have been a residential appraiser since the spring of
After the crash in 2008, the corrupt and exploitive fled,
2002. I got into the business at one of the busiest times in
and those who were in it for the “quick buck” moved on.
history, when home values were skyrocketing in California. I
Appraisers became one of the targeted groups that were
was inspecting 12-14 homes a day, 2-3 days a week, and it
blamed for the fall of the market, and those of us who were in
wasn’t unusual for me to have 50 or more files piled on my
the business for the long haul were left holding the bag. New
desk: those that needed to be inspected, and those which
laws and codes were implemented, and it became illegal for
had been inspected and needed the reports to be typed. I
appraisers to speak directly with lenders or to speak about
worked 7 days a week, I’d eat at my desk or on the road, and
value with real estate agents and homeowners. Although
I would only stop to use the bathroom or get some sleep.
the “threats” ended at the start of appraisal management companies (AMCs), which were created as the “go-
It was a stressful time, not only because appraisers were
between” between loan officers and appraisers, the lenders’
expected to do the loan officers’ value checks, call and
expectations grew, and what once took me a little more than
set appointments with real estate agents or homeowners,
an hour to type turned into hours of work. Now appraisers
inspect the homes, and have the reports completed, all
worked significantly harder for less pay, as we had to share
within a few days, but also because appraisers were under
our fees with the AMCs. We complained about the AMCs for
duress to “make value” and were threatened to lose their
taking our money, the endless report requirements coming
client, i.e. mortgage company, realty company, etc., if they
from the lenders, and the real estate agents who would hand
didn’t. Some of us, without stepping over the line, could find
us so-called “comparable sales” which were usually located
value in a fireplace or covered patio just to make sure our
miles away in better markets, and properties which were far
values “hit the mark.” Some appraisers were so creative, they
superior to the subject property. And it just wasn’t appraisers
found comparable sales of homes that didn’t even exist. It
who complained; in fact, it seemed everyone in the real
was a dog-eat-dog world, and it was ferocious.
estate market believed someone had done them wrong.
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THE DELEON INSIGHT
LIFE LESSONS FROM MY ACCIDENT By Ken DeLeon
This is the second article discussing my four life tragedies and the accompanying lessons I learned by overcoming them. There are moments that can quickly and forever change your life. While we tend to worry about life’s uncertainties and setbacks, it is the things that we do not see coming that can impact us the most. On the morning of August 17th, 1998, my prospects never seemed brighter. I had recently graduated from Berkeley Law School with High Honors, had just passed the California Bar Exam, and was slated to start as a Patent and Trademark attorney at Wilson Sonsini Goodrich & Rosati in a few weeks. So when my father asked if I wanted to go on a walk with him that afternoon, I happily accepted his invitation. Little did I know that on this walk, I would be forced to face my own mortality and have my life fundamentally altered. This close brush with death became a nationwide news story (CNN, USA Today) as it was such an amazingly unique accident. My father and I were conversing about how excited I was for my move to Palo Alto while walking along the sidewalk, which had a 20’ grass divide from the road, so it felt particularly safe. This false sense of security was soon to be shattered, along with my reality, arm, and leg. Within a second and without warning, my life changed. Behind me and my father, a car traveling over forty miles per hour veered off the road and, without braking, slammed into my right leg. The force of the impact catapulted my body upward and ripped me out of my shoes. I was launched above the hood of the car. My right shoulder and upper arm crashed through the windshield, breaking several bones in the process. My body landed, contorted and mangled, half in and half out of the speeding
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vehicle which showed no sign of slowing down. My head and upper body were wedged against the passenger seat while my legs were painfully sprawled out over the hood of the car. I instantly went from walking with my father to hanging on for dear life. I screamed in agony, “Oh my God! Oh my God!” as extreme, searing pain tore through my body and inner core. Through my teary eyes and horrified screams, I looked at my throbbing leg and saw it twisted in an unnatural and hideous manner, pierced and punctured by broken glass fragments from the windshield. Then I noticed the clouds darting along overhead and realized that somehow I was moving. I suddenly stopped screaming when, through the haze of pain, I felt a new source of force being applied to my body. Unable to understand why I was being hit, I begged the driver, “Help me! What are you doing? Please help me!” I then looked to where the blows were coming from and will never forget the dilated, bloodshot eyes of my attacker. He was clearly under the influence of mind-altering drugs. His manic eyes glared at me with an animalistic hatred and darted back and forth between me and ahead at the cars he was dashing past. His face was drenched in sweat. While beating me, he screamed, “Get Out! Get Out!” in a guttural, ravenous snarl. Doing my best to block his punches, I did my best to resist him pushing me out of the speeding car. After my attacker ran several red lights with my twisted body still stuck through the windshield, he finally was forced to stop when there were cars filling up all of the lanes. Once that happened, I immediately tried to get out, but could not open the door with my right arm, which was badly broken. Using my left arm, I pulled the door latch and was able to barely
December 2019
open the door and began frantically trying to escape from his car. But because both my right arm and leg were badly broken, I could not disentangle myself. Finally, my attacker violently shoved my body out of the car and my broken arm slammed against the door and ground. Now that I was out of immediate danger, I slowly writhed away from the car while feeling an unbelievable and unbearable pain coursing through the right side of my body. I looked at my right arm and saw that it was pulled backwards and dangling limply. My first thought was that I would never be able to write again. I heard approaching sirens in the background. Two policemen arrived at the scene and asked me to describe what had happened. “I was walking with my father on the sidewalk and was then hit by a car. I think my father was hit, too. The driver of the car beat me while I was inside the car and finally pushed me out here.” After hearing this implausible story, the questioning officer drew away from me and then quietly whispered to his partner, “He’s in shock.” At that moment, the officers received word of a 911 call from my father reporting the accident. They then realized that I was the accident victim who had been hit, and that I had been beaten and held captive for over three miles before being shoved out here. I was relieved upon finding that my father was alive and not badly injured. I felt sorrier for my father than myself, as he had to witness his sole surviving child being run down while walking alongside him. We were walking side by side, and then my father felt a powerful push on his leg as the car tire brushed against him, leaving a road rash scar on his leg. Knowing I had been hit, my father looked all around for my thrown body. He used the term “body” when describing that moment, because he feared and felt that I was probably dead. Not finding my body, my father quickly looked ahead and saw the car speeding along on the sidewalk before darting back to the road. Seeing me inside the vehicle, my father ran after the car but soon realized that my attacker was not stopping and that he would never catch up. My father then waved down an approaching city bus whose driver saw the whole accident. The bus driver and my father chased after the car and my body, not knowing whether I was alive or dead. Because my attacker was weaving in and out of traffic and ran a red light, the bus driver could not keep up the pursuit. My father then told the bus driver to drop him off on the side of the road and called 911.
Apprehension of My Attacker When my attacker finally pushed me out of the car, he sped away from where he left me to escape capture. My attacker then pulled into a parking lot and discarded incriminating evidence in a grassy area adjoining the parking lot. This evidence was later found, and it was learned that he had discarded several weapons, including an 18-inch machete, a bloody baseball bat, and a billy club. Then, he attempted to destroy the most damning evidence of the attack: his car that now had a shattered windshield and blood all over the interior. He drove the car down a boat launch ramp and submerged it into the Intracoastal Waterway. Getting soaked in the process, he then stripped down to his underwear and sneakers, and ran away from the car. A call concerning a suspicious-looking and wounded person was received by the paramedics and police, as my attacker ran from his submerged car clothed only in his underwear, and bleeding profusely from wounds caused by glass shards from the shattered windshield. Finding my attacker hiding in an alley, the paramedics dressed his wounds and the police decided to take him to the hospital before determining who he was. This is where I had a fortuitous outcome, as the police who were at the hospital interviewing me and my father heard about this new hospital patient who perfectly matched my description. My attacker was then identified and they found out that just two days earlier he was arrested on felony charges for attempting to sell drugs to minors. While he was driving and hit me on a Monday afternoon, the tests found that he was on horse tranquilizers (ketamine), methamphetamines, ecstasy and marijuana. Apparently he blacked out due to all of the drug use and that is why he swerved off of the road into me. In his delusional mindset, he said I was a “demon from the sky attacking him,” which is why he had to punch me and was screaming “Get out!” at me. My attacker was sentenced to seven years in prison and was released early due to good behavior. Just a decade after losing my sister, my parents almost lost their sole remaining child. With this huge fork in my life, would this accident shatter my future as it shattered many of my bones? While I could not control the event, lying there in pain in the hospital bed made me realize that getting back up again and living life to the fullest was solely up to me and my mindset. I am thankful to say that my life is truthfully better and more fulfilled because this accident occurred. While this accident could have forever kept me down and depressed, the power of the mind to overcome all obstacles is our greatest gift. With this mindset and a determination to not let my attacker lessen my life, I had many epiphanies during this physically painful but mentally fulfilling time. Continued on next page D ELEONREALT Y.COM
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THE DELEON INSIGHT
Life Lessons from My Accident Life Lessons from My Accident I think that life events are neither inherently good nor bad. Instead, life events are open to our interpretation, and we can shape the outcome simply by our mindset. This accident, where the most likely outcome was losing my life, positively shaped my life instead and led me to: Find a New Life Purpose – Before the accident I felt that my life purpose was happiness. I wanted to first focus on making myself happy and then share this with others. However, the several months I spent convalescing really gave me a newfound perspective and appreciation for life. I realized that with the right mindset, seeking growth and being forgiving of myself, I could use this setback as a launching pad to become even greater than before and also uplift everyone around me. I now have made growth my life purpose. I want to grow as much as I can and also help others evolve to their full potential as well. The beautiful part about growth as my life purpose is that I can now embrace the full spectrum of emotions rather than just valuing happiness as before. This mindset is also excellent for transforming seemingly tragic circumstances into greater life growth and fulfillment. “While we cannot entirely control circumstances, we can control our perception of and reaction to circumstances. It is through our reaction, which determines the outcome, that we are in control of our lives even in an uncontrolled world.” Live Life to the Fullest – I have viewed studies which showed that pedestrians hit by speeding vehicles going 40 mph or more have an 85% chance of dying. Having come so close to death, I have gained a greater appreciation of life. I do not fear failure, but rather fear living a mediocre life, and I do not want a life filled with regrets. The greatest crime against life is boredom. We have only one life and it could end at any moment. I try and make every moment matter because I realize it can be my last. Pursuing My Passion – I was a very good lawyer and proud to be working at Wilson Sonsini, one of the preeminent law firms in the nation. However, my accident showed me how fleeting life can be, and this gave me the courage to pursue my passion for real estate. I always loved real estate and felt that there was a lot of inefficiency and room to improve this industry versus the efficiency of elite international law firms. Michael and I drew from our backgrounds in law to create a new, team-based salaried specialist model that is very similar to how a large law firm or top VC firm like Andreessen Horowitz operates.
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Forgive my Attacker – I have given hundreds of inspirational speeches to students on a volunteer basis, or at real estate conferences as a keynote speaker. I am always asked what I think of my attacker. I honestly reply, “I don’t,” for I have forgiven and nearly forgotten my attacker. I highly recommend Dr. Fred Luskin’s Forgive for Good. Dr. Luskin, the Director of Stanford’s Forgiveness Project, talks about all of the medical and psychological benefits of forgiveness. I forgave my attacker to heal and psychologically move forward, not out of kindness. Be very selective about who you let enter your life. When someone who is unworthy of your time enters your life as my attacker entered mine, throw them out immediately, as it just takes one bad apple to poison the entire barrel. Live Life and do not Spectate upon it – Realizing that time is our most valuable asset, I have become increasingly aware of how I and who I spend my time with. The biggest change is that instead of watching TV shows, I lead an active life. I now see my friends instead of watching the show “Friends,” or I play basketball with my kids versus watching it on TV. I want to be a good father to my children, happily work 60+ hours a week for my amazing clients, and stay in shape by exercising. I can only do all of this by efficiently utilizing my time and by actively living and not spectating upon life. As a result, everything is so much more authentic and fulfilling. Coming so close to death, I’ve gained a greater appreciation of life. I don’t fear death; instead, I fear living a mediocre life. I try and make every moment matter because there is no promise of a tomorrow. I founded DeLeon Realty because I wanted to create a business model that, for the first time in real estate, puts the client first, as I felt ethics has always been lacking in the industry. Let us all live our greatest lives together. Life is a dance circle and the greater a dancer you are, the more people you can inspire and positively impact. My next article will be centered on my life after recovery from my accident and entry into real estate. Everything was going amazingly well until I felt a terrible pain in my back, which was found to be a cancerous tumor the size of a softball. Life lessons also abound as I discuss bouncing back from my lymphoma and recovering thanks to the Stanford Cancer Center.
R E A L E S TAT E B U Y I N G S T R AT E G Y
THE ADVANTAGES OF BUYING A HOME OFF-MARKET By Ken DeLeon
I know that Michael Repka, the head of our listing team, is generally opposed to selling his listings off market. However, as the head of our Buyers' team, I believe that off-market sales represent a wonderful opportunity for buyers to get a home at a price below fair market value, and a way for sellers to experience a very easy transaction without the inconvenience of showing their home to a lot of buyers. Some sellers are willing to sell their home for considerably less than they could get on the open market for a variety of reasons. For example; • Couples going through a divorce, or financial troubles, may not want their neighbors to know that they’re selling; •
People who may need to sell but want a very long rent back or, alternatively, they need a really quick sale;
•
Others may not realize the potential price differential between an off-market sale and sale with maximum marketing effort;
•
Someone may have led them to believe that they can get the same high price with no marketing and only a few buyers knowing about the property.
Whatever the reason, these sales are often good opportunities for buyers. How to Find Off-Market Properties When an agent gets an off-market listing, they often try to sell it to their own buyers first so that they can get double commission. However, if that doesn’t work, they will reach out to other top agents in the area. Thus, it is highly beneficial to work with a top-producing buyer’s agent if you’re looking for off-market buying opportunities. Fortunately for buyers, some listing agents will encourage sellers to accept a quick sale, even if it is for less money, because the listing agent will save the marketing effort and expense associated with a full marketing program. Plus, the listing agent will avoid risk and get their commission sooner. As the top buyer’s agent in Silicon Valley, and probably the United States, I am one of the first calls that these agents make. Similarly, some sellers reach out to me directly. They may not be interested in listing their property, but they are open to selling it if I have a buyer, assuming we only charge them part of the commission they would normally pay, which I am happy to do.
In other words, sellers that are thinking about selling their home at some point down the road should let us know about it well in advance. Unlike other real estate brokerages, we never take commission from both sides of any transaction. Therefore, the economic incentives are exactly the same for us whether someone sells their home to one of my buyers off-market with no listing-side commission or if they list it with Michael and the DeLeon Listing Team. Opportunity for Buyers If you are a buyer, you should reach out to me and let me know what type of property you desire. I will then share all of the appropriate off-market properties of which I am aware. Additionally, I will keep an eye out for opportunities that may suit your needs and desires. Opportunity for Sellers On the other hand, if you are a seller who would be open to selling your home off-market, please let me know about it. This is true whether or not you have the property listed with another listing agent. My role would be only to bring an interested buyer - under our unique structure, I do not handle listings at all. Unfortunately, there are some listing agents who only let agents who give them a kick-back (or “referral fee”) know about their off-market properties. Therefore, you should let me know about your home directly to make sure your agent isn’t being “selective.” If you are not working with an agent, I would be happy to represent a buyer, and you could be represented by a real estate attorney for much less than the typical listing commission. In fact, we will reimburse you for up to $3,000 in outside legal fees out of our commission. Conclusion Purchasing a home off-market is only one of many ways to get a very good deal on a property. Please reach out to me so that we can discuss all of the different possibilities. D ELEONREALT Y.COM
| 21
R E A L E S TAT E TA X
DOWN PAYMENT OPTIONS By Steve Milender
Many of our prospects and clients assume that to obtain the necessary down payment for the purchase of a home, they must liquidate their stock and bond portfolio. This decision results in a potential capital gains tax, as well as the client losing the opportunity for these assets to continue to grow in value, and in some cases, pay a dividend. Rather than sell these stocks and bonds, there are financial institutions and banks that will allow you to borrow against this portfolio, including Restricted Stock Units (RSUs), as long as they are vested. An investment credit line can be provided by several lending institutions that manage these stocks or bonds, or these assets can be transferred to another institution that can provide a line of credit. Typically, you may borrow up to 50% of the value of these funds, at a rate of the one-month libor (which is, currently, approximately 2.0%) plus a margin. Therefore, if you borrowed $1 million against a $2 million portfolio at a floating rate of 4% interest only, your payment would be approximately $3,333/mo. This allows your portfolio to continue to grow in value over time, and avoids a potential costly capital gains tax, which could be as high as 37.1%. A second option which is often discussed is to take out a home equity loan on your current home, prior to listing for sale. If you plan to turn this property into a rental, all the more reason to request a home equity loan when the property is your primary residence. This allows for a lower interest rate, which is typically prime (4.75% estimated 10/30/19) plus a
margin. The banks will typically allow you to borrow up to 80% of the value of your home. This would include both your first mortgage, plus the allowable home equity line. We mentioned RSUs previously, which are part of compensation paid to many employees within the high-tech industry. Although RSUs are considered income, many of the banks that allow RSU income require the RSUs to be vested before they may be counted. To do so, these banks ask that you show the “recurring income,� which means that a vesting schedule be provided to show that the RSUs have been vested for a minimum of two years, with additional vesting to follow. This is a critical part of one’s income, and one for which we at DeLeon Realty can refer our prospects or clients to the appropriate lending institutions. At DeLeon Realty, my role as the Financial Consultant is to provide our clients with 18+ years of experience in mortgage lending, and to provide clients options where they can be referred to lenders who can provide the resources to meet their specific needs. Rates are not the only deciding factor when selecting a lender, and our goal is to understand your circumstances, your portfolio, your needs and wants, and ultimately refer you to the most appropriate lender(s). This is provided at no charge to our clients, and represents one of the many services provided by DeLeon Realty. For more information, please contact Steve Milender at: Steve@deleonrealty.com or via his direct number at: 650.543.8532. D ELEONREALT Y.COM
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S R E SQ S E GRI CI P CD S PE JD N M L L MLS
REALTOR® ACCREDITATIONS—UNTANGLING THE ALPHABET SOUP By Audrey Sun Experienced agents often look to sharpen their skills and differentiate themselves from the competition by earning advanced licenses, certifications, or accreditations. This is why some experienced agents’ ads have a string of letters after the agents' names. This article will decode and delve into some of this alphabet soup. Broker vs. Salesperson In California, there are two available licenses for real estate agents: Salesperson and Broker. A Salesperson license is the minimum license that one must hold to “engage in real estate activities.” This basic license empowers the real estate agent to show properties, host open houses, discuss valuation, negotiate deals, and conduct other activities related to the purchase and sale of real estate. However, all Salespeople are required to operate under the supervision of a Broker. A Broker’s license is the highest license offered by the California Department of Real Estate. In order to qualify as a Broker, one must have at least two years of real estate experience, take additional training, and pass a more difficult exam with a higher minimum passing score. Only a small percentage of real estate agents are Brokers. [Ken DeLeon and Michael Repka are both Brokers. Audrey Sun is currently studying to take the Broker’s exam.]
28 | DE LEO N RE A LT Y.CO M
Esquire (“Esq.”) vs. Juris Doctorate (“J.D.”) People who have graduated from a United States Law School generally obtained a Juris Doctorate degree and often note "J.D." after their name. However, that does not necessarily mean that they are an attorney. In order to be licensed as an attorney, one must also pass the Bar Exam. In California, this is a two-day exam (recently reduced from three days) that consists of a multi-state multiple choices section, a practical skills section, and an essay section. After passing the Bar Exam, an ethics exam, and a comprehensive background check, the person may be sworn in as an attorney and permitted to use the designation "Esq." It should be noted that under the Bar rules, a real estate agent that is also an attorney is held to a higher standard than a regular real estate Salesperson or Broker. The more stringent of the Realtor® rules of ethics or the attorney rules of ethics applies, which is almost always the attorney rules. [On the DeLeon Team, Ken DeLeon, Michael Repka, Rachel Repka, Colette Thomason, and Andrew VanSlyke have all obtained J.D.s, have all passed the California Bar exam, and are all licensed California attorneys.] Master of Laws (“LL.M.”) An “LL.M.” is a graduate law degree that one may obtain after completing a Juris Doctorate (“J.D.”). Generally, LL.M.s are obtained in a specialized area of law, such as Taxation or International Law.
December 2019
Additionally, some foreign attorneys complete an LL.M. program to qualify to sit for some states’ Bar Exams. [Michael Repka has an LL.M. in Taxation from NYU School of Law.] Certified Residential Specialist (“CRS”) Generally, the CRS and the GRI are considered the most prestigious Realtor® designations offered by the National Association of Realtors®. Although both destinations require a commitment, neither is very difficult to obtain. The CRS is granted to real estate agents who have completed a substantial number of transactions (either 60 or 150 depending on other qualifications) and taken up to 30 hours of training, with an exam after each class. These classes can cover a variety of different subjects depending on the agent’s area of interest and specialization. These classes can be taken online or in person. [Michael Repka has obtained his CRS.] Graduate Realtor Institute (“GRI”) The GRI training provides a very solid foundation for a career in real estate. Unlike the CRS, the GRI has no minimum experience requirement, but the classroom requirements are significantly more substantial. Also, the curriculum is far more structured, with 12 specific full-day classes with an exam after each class. [Michael Repka has obtained his GRI.] Certified International Property Specialist (“CIPS”) Perhaps one of the most interesting designations for Silicon Valley agents is the CIPS, which includes training on a variety of different subjects vital to working with clients from around the world. The training includes a comprehensive study of various foreign real estate markets and customs, which helps agents understand buyers’ wants, needs, and expectations. This training touches upon a variety of different cultural issues that can impact negotiations and includes a fundamental overview of some international legal and tax matters. [Michael Repka, Audrey Sun, and Melanie Yu have earned their CIPS designations.] Senior Real Estate Specialist (“SRES”) There are a variety of different issues that impact senior citizens. Top Real Estate Specialists have completed a twoday class that delves into a range of different skills useful in helping people entering retirement and beyond. This training touches on some basic tax topics, legal issues, and presentation skills unique to the elderly community. [Ken DeLeon has obtained his SRES.]
Certified Distressed Property Expert (“CDPE”) Although Silicon Valley real estate owners avoided the brunt of the financial crisis of 2008, there were still a number of foreclosures, bank-owned properties, and short sales in the area. The CDPE designation denotes someone who has received special training in the legal and practical issues related to properties facing foreclosure. Although the provider of this training and designation stopped issuing new CDPE credentials, it will be interesting to see if the need for this training reemerges in the future. [Michael Repka has obtained his CDPE.] Nationwide Mortgage Licensing System (“NMLS”) An NMLS licensing designation is required for any individual working with clients for the purposes of providing mortgage financing. Loan Officers who work for Mortgage Brokers are required to take 20 hours of training prior to taking the Federal Licensing exam, as well as an additional 20 hours to meet the State of California licensing requirements, followed by the State of California MLO exam. Continuing education is required for Mortgage Loan Officers employed by Mortgage Brokers. These hours qualify them to renew their NMLS & MLO licenses annually. [Steve Milender, the DeLeon Team’s in-house Financial Consultant, has obtained his NMLS and MLO Licenses.] Graduate Certificate in Negotiation and Conflict Management Rutgers University School of Law and Graduate School of Business offers a joint Certificate in Negotiation and Conflict Management. This intensive program includes five graduate-level classes in courses such as: Alternative Dispute Resolution; Negotiation; Cross-Cultural Negotiation; Mediation; and Negation with Difficult People. Additionally, completion of this program requires a multi-week externship mediating disputes between divorcing couples. [Michael Repka has a Graduate Certificate in Negotiation and Conflict Management.] Harvard Program on Negotiation Arguably, the most valuable training that an agent can take without going to graduate school or law school is Harvard University’s Program on Negotiation. Although primarily presented by Harvard Law professors, faculty members from other disciplines, such as psychology, are brought in to enhance the program. Many of the topics and skills taught in the Rutgers comprehensive program (above) are presented in a more concise format in Harvard’s program. This program is offered several times a year in Cambridge, Massachusetts. [The DeLeon Team has sent five people to this program, including Ken DeLeon, Michael Repka, and Audrey Sun.] D ELEONREALT Y.COM
| 29
R E A L E S TAT E S E L L I N G S T R AT E G Y
CLAS SIC STYLE MEETS NEW WORLD COMFORTS
REBUILT LUXURY IN GREEN GABLES
• 5 Bedroom
• California Mission style
• 5 Bedroom
• Completely rebuilt
• 5.5 Bath
• Contemporary amenities
• 4 Bath
• Bright and spacious
• 5,036 Sq. Ft. Home
• Bright living spaces
• 2,753 Sq. Ft. Home
• Open floorplan
• 1.07 Acre Lot
• 60-foot pool
• 7,946 Sq. Ft. Lot
• Great Location
2388 LOUIS ROAD, PALO ALTO Offered at $3,988,000
For video tour and more photos, please visit: www.14780Manuella.com
For video tour and more photos, please visit: www.2388Louis.com
PA RK L A N E
14780 MANUELLA ROAD, LOS ALTOS HILLS Offered at $6,488,000
TIMELESS LUXURY, CONTEMPORARY DESIGN • 6 Bedroom
• Luxurious living spaces
• 5.5 Bath
• Lower level recreation room
• 5,415 Sq. Ft. Home
• Resort-like backyard
• 11,614 Sq. Ft. Lot
• Central Menlo location
1740 OAK AVENUE, MENLO PARK Offered at $6,988,000 For video tour and more photos, please visit: www.1 740OakAve.com
30 | D E LEO N RE A LT Y.CO M
IMAGINE THE POSSIBILITIES • 1.43 Acre Lot
• Peaceful atmosphere
• Prestigious West Atherton
• Excellent Schools
• Great opportunity to build your dream estate
226 PARK LANE, ATHERTON Offered at $14,988,000 For video tour and more photos, please visit: www.226Park.com The above photo is an artistic rendering of the home and property line. Buyer to verify accuracy.
BEHIND-THE-SCENES FOR
25621 VINEDO LANE
By David Tobener With every listing, we look for unique features that set it apart. When we first saw the resort-like backyard at 25621 Vinedo Lane in Los Altos Hills, we knew that not only would it be a major selling point of the home, but it would also look incredible on the professionally produced video tour we provide for all of our properties. With that in mind, we went to work to create a fun video that would showcase the home’s five-star grounds. The idea came to us quickly: the sparkling pool and grotto in this backyard was so enticing, people just couldn’t wait to enjoy it, even if they weren’t dressed for the occasion! In addition to DeLeon CEO Michael Repka, this video would also star DeLeon Listing Manager, Audrey Sun, who was forced to labor through a hard day of work floating on an inflatable flamingo raft and enjoying a cold drink. The end result is a video that not only showcases the home’s incredible features, it also adds a whimsical touch to show interested buyers just how much fun they could be having on 25621 Vinedo Lane’s magnificent grounds. Part of what sets DeLeon Realty apart from our competitors is the commitment to go the extra mile for our clients. We won’t hesitate to work our hardest for you, and as the video for 25621 Vinedo Lane shows, sometimes we get to have a little fun, too!
®
December 2019
RULE CHANGE PROPOSED TO RESTRICT POCKET LISTINGS By Michael Repka, Esq. For years I have been writing and speaking about the perils associated with “pocket listings.” In fact, I addressed the very same topic in the article Don’t Let Agents Use Your Home as Bait to Attract Buyers on page 7 of this newsletter. Unfortunately, I often face opposition with some in the local Realtor® community when I voice my opinion on this topic. After all, many real estate agents, and real estate offices, love to get commission from both sides of the transaction whenever they can.
Realtors® and Brokerage Reaction Unfortunately, at least one real estate brokerage, Compass, responded to an east coast MLS‘s implementation of a rule nearly identical to the one proposed by N.A.R. by sending a letter saying that they “are prepared to take direct legal action to challenge this policy.” In this letter, Compass’ Head of Inventory Strategy & Operations, Cory Perkins, appeared adamantly opposed to N.A.R.’s proposed restrictions on pocket listings.
Therefore, I was pleased to read the National Association of Realtors® (N.A.R.) proposed rule changes, which were published on September 20, 2019. These changes would crack down on pocket listings and “periods of exclusivity.”
On the other hand, Glenn Kelman, the CEO of Redfin, has publicly voiced strong support for the new pocket listing restrictions proposed by N.A.R. In fact, in a recent Inman article, Kelman said that “Pocket listings are cheating: They undermine the trust on which the whole market is based” and further indicated a belief that pocket listings disproportionality impact minorities, immigrants and outsiders. Although Kelman has stated that pocket listings are bad for both buyers and Sellers, I believe that they are generally far worse for Sellers.
Specifically, the proposal calls for a change to the N.A.R. Handbook on Multiple Listing Policy by adding new MLS Statement 8.0. This rule would require agents to post all pocket listings on the MLS within 24 hours of marketing the property to the public. Public marketing would include email blasts, yard signs, public facing websites, and brokerage website displays, among other things. The National Association of Realtors’ stated rationale for this proposed rule change was: “Distribution of listing information and cooperation among MLS participants is pro-competitive and pro-consumer.” It probably comes as no surprise that I applaud this proposal and see it as a step in the right direction.
I reached out to the CEO of the Silicon Valley Association of Realtors, Paul Cardus, and he said that neither the California Association of Realtors® nor the Silicon Valley Association of Realtors® has taken a positon on this proposal. Breaking News: On Saturday, November 9, I went to a very well-attended N.A.R. forum on this issue. At that meeting, N.A.R.’s MLS Issues and Policies Committee adopted the proposed restrictions on “Pocket Listings” with an amendment that moved the mandatory implementation date from March 1, 2020 to May 1, 2020. D ELEONREALT Y.COM
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THE DELEON INSIGHT
City Market Conditions
Average Sale Price
$10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0
Atherton
Los Altos
Los Altos Hills
Menlo Park
Mountain View
Palo Alto
Portola Valley
Redwood City
Sunnyvale
Woodside
01/2018 - 10/2018
Average sale price for single-family homes from 01/2019 to 10/2019,
01/2019 - 10/2019
compared to the period from 01/2018 to 10/2018.
Price/Square Foot Ratio $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0
Atherton
Los Altos
Los Altos Hills
Menlo Park
Mountain View
Palo Alto
Portola Valley
Price per square foot ratio for single-family homes from 01/2019 to 10/2019, compared to the period from 01/2018 to 10/2018.
Redwood City
Sunnyvale
Woodside
01/2018 - 10/2018
01/2019 - 10/2019
Data gathered from the Multiple Listing Service on 11/01/2019
44 | DE LEO N RE A LT Y.CO M
R E A L E S TAT E M A R K E T P U L S E
ATHERTON Atherton Inventory # of New Listings
$12,000,000
$2,500
25
$10,000,000
$2,000
20
$1,500
15
$1,000
10
Sale Price, Median
Oct-19
Sep-19
Aug-19
Jul-19
Jun-19
May-19
Apr-19
Mar-19
Feb-19
Jan-19
Dec-18
$0
Nov-18
$2,000,000
$500
5
$0
0 Ja
$4,000,000
ov -1 8 D ec -1 8
$6,000,000
N
$8,000,000
n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9 A ug -1 9 Se p19 O ct -1 9
Atherton Median Sales Price & Price/Sq. Ft. Ratio
Price/SqFt Ratio
LOS ALTOS Los Altos Median Sales Price & Price/Sq. Ft. Ratio
Los Altos Inventory # of New Listings
$5,000,000
$1,550 $1,500
$4,000,000
$1,450
$3,000,000
$1,400 $1,350
$2,000,000
$1,300
$1,000,000
Sale Price, Median
40 30 20 10
0 ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9 A ug -1 9 Se p19 O ct -1 9
$1,200
60 50
N
Oct-19
Sep-19
Aug-19
Jul-19
Jun-19
May-19
Apr-19
Mar-19
Feb-19
Jan-19
Dec-18
Nov-18
$0
$1,250
70
Price/SqFt Ratio
LOS ALTOS HILLS Los Altos Hills Median Sales Price & Price/Sq. Ft. Ratio
Los Altos Hills Inventory # of New Listings
$4,000,000
$1,500
20
$1,000
$3,000,000 $2,000,000
Sale Price, Median
Oct-19
Sep-19
Aug-19
Jul-19
Jun-19
May-19
Apr-19
Mar-19
Feb-19
Jan-19
Dec-18
Nov-18
$1,000,000 $0
25
15 10
$500
5
$0
0 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9 A ug -1 9 Se p19 O ct -1 9
$5,000,000
$2,000
ov -1 8 D ec -1 8
$6,000,000
N
$7,000,000
Price/SqFt Ratio
D ELEONREALT Y.COM
| 45
R E A L E S TAT E M A R K E T P U L S E
MENLO PARK Menlo Park Median Sales Price & Price/Sq. Ft. Ratio
Menlo Park Inventory # of New Listings
$2,500,000 $2,000,000 $1,500,000 $1,000,000
Sale Price, Median
Oct-19
Sep-19
Aug-19
Jul-19
Jun-19
May-19
Apr-19
Mar-19
Feb-19
Jan-19
Dec-18
$0
Nov-18
$500,000
$1,500 $1,450 $1,400 $1,350 $1,300 $1,250 $1,200 $1,150 $1,100
70 60 50 40 30 20 10 0 ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9 A ug -1 9 Se p19 O ct -1 9
$3,000,000
N
$3,500,000
Price/SqFt Ratio
MOUNTAIN VIEW Mountain View Median Sales Price & Price/Sq. Ft. Ratio
Mountain View Inventory # of New Listings
$3,000,000
$1,450
$2,500,000
$1,400 $1,350 $1,300
$2,000,000 $1,500,000
$1,250
$1,000,000
$1,200
Sale Price, Median
30 20 10 0 ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9 A ug -1 9 Se p19 O ct -1 9
$1,150 $1,100
40
N
Oct-19
Sep-19
Aug-19
Jul-19
Jun-19
May-19
Apr-19
Feb-19
Mar-19
Jan-19
Dec-18
$0
Nov-18
$500,000
50
Price/SqFt Ratio
PALO ALTO Palo Alto Median Sales Price & Price/Sq. Ft. Ratio
$1,000
Sale Price, Median
Price/SqFt Ratio
46 | DE LEO N RE A LT Y.CO M
Oct-19
Sep-19
Aug-19
Jul-19
Jun-19
May-19
Apr-19
Mar-19
Jan-19
Feb-19
Dec-18
$500 $0
40 30 20 10 0 ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9 A ug -1 9 Se p19 O ct -1 9
$1,500
60 50
N
$2,000
Nov-18
$4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0
Palo Alto Inventory # of New Listings
R E A L E S TAT E M A R K E T P U L S E
PORTOLA VALLEY Portola Valley Median Sales Price & Price/Sq. Ft. Ratio
Portola Valley Inventory # of New Listings
$4,000,000 $3,000,000 $2,000,000
Sale Price, Median
Oct-19
Sep-19
Aug-19
Jul-19
Jun-19
May-19
Apr-19
Mar-19
Feb-19
Jan-19
Nov-18
$0
Dec-18
$1,000,000
$1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0
20 15 10 5 0 ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9 A ug -1 9 Se p19 O ct -1 9
$5,000,000
N
$6,000,000
Price/SqFt Ratio
REDWOOD CITY Redwood City Median Sales Price & Price/Sq. Ft. Ratio
Redwood City Inventory # of New Listings
$2,000,000
$1,100
100
$1,500,000
$1,050
80
$1,000
60
$1,000,000
Sale Price, Median
ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9 A ug -1 9 Se p19 O ct -1 9
0
N
Oct-19
Sep-19
Aug-19
Jul-19
Jun-19
May-19
Apr-19
$850
Mar-19
$0
Feb-19
20
Jan-19
$900 Dec-18
40
Nov-18
$950
$500,000
Price/SqFt Ratio
Mortgage Rates Below are mortgage rates that have recently been provided to clients for Purchase transactions, and are based upon “relationship” pricing. Note that rates for refinances will be much higher.
7/1 ARM
10/1 ARM
30 Year FiXED
2.25%-2.375%
2.375%-2.50%
3.0%-3.125%
Please contact Steve Milender at Steve@deleonrealty.com or 650.543-853, if you would like to be connected to our best lenders.
Rates are subject to change without notice and are for illustration purposes only.
D ELEONREALT Y.COM
| 47
$0
$1,600,000
$1,500,000
$10,000,000 $2,000
20
$8,000,000
$1,500
15
$1,000
10
$6,000,000
$4,000,000
$2,000,000
ov -1 8 De c18 Ja n19 Fe b19 M ar -1 9 Ap r-1 9 M ay -1 9 Ju n19 Ju l-1 9 Au g19 Se p19 O ct -1 9
$1,700,000
N
$1,800,000 $1,150
$1,100
$1,050
$1,000
$950
$900
$500
$0
ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9 A ug -1 9 Se p19 O ct -1 9
Oct-19
Sep-19
Aug-19
Jul-19
Jun-19
May-19
Apr-19
Mar-19
Feb-19
Jan-19
Dec-18
$1,200
N
Oct-19
Sep-19
Aug-19
Jul-19
Jun-19
May-19
Apr-19
Mar-19
Feb-19
Jan-19
Dec-18
Nov-18
$1,400,000
Nov-18
$1,900,000
120
100 80
60
40
20 0
5
0
THE DELEON INSIGHT
PALO ALTO
REDWOOD CITY Coding for Kids
Pride and Prejudice
FREE Library Code Workshops for beginners! All materials
TheatreWorks Silicon Valley rings in the holidays with the new
provided. Learn how to code and make your own video
musical Pride and Prejudice, the 2019 Tony-winning company’s
games! All ages welcome - ten students will be admitted on
70th World Premiere. Based on Jane Austen’s iconic novel,
a first come, first served basis.
this engaging work features book, music, and lyrics by Paul
TIME: 2:00 PM – 3:00 PM WHERE: : Downtown Library, 1044 Middlefield Road,
Gordon, whose musicals include TheatreWorks favorites Jane
Redwood City
Broadway musical Jane Eyre. Pride and Prejudice follows
Sundays, December 1 & 8, 2019
Saturday, December 28, 2019
Austen’s EMMA, Daddy Long Legs, and the Tony-nominated delightfully liberated Lizzie Bennet and dashing, disdainful Mr.
Math Games
Sunday, January 5, 2020 Practice problem solving and math skills while playing fun games.
TIME: 3:00 PM – 4:30 PM WHERE: : Downtown Library, 1044 Middlefield Road, Redwood City
Darcy as they discover the irresistible power of love.
COST: $30.00 to $100.00 TIME: Start from 2:00 PM or 8:00 PM WHERE: Lucie Stern Theatre, 1305 Middlefield Road, Palo Alto
Open Studio Afternoons at The Foster Thursday, January 02, 2020
Every Thursday, all are invited to connect and create during an afternoon of artmaking in The Foster galleries. Bring your own
MOUNTAIN VIEW Farmer’s Market
Every Sunday Year-Round Enjoy Seasonal fruits and vegetables fresh from the farm.
TIME: 9:00 AM – 1:00 PM WHERE: 600 W. Evelyn Avenue, between Hope and View Streets
Tree Lighting Ceremony Monday, December 9, 2019
Come to City Hall Plaza to enjoy live holiday music, refreshments, lights and the arrival of Santa Claus.
TIME: 5:30 PM – 7:30 PM WHERE: City Hall, 500 Castro St, Mountain View
English/Mandarin Storytime Saturday, January 18, 2020
Join Miss Renee for songs, rhymes, and stories in both English and Mandarin for ages 2 through 5.
TIME: 11:30 PM – 12:00 PM WHERE: 1st Floor Program Room, 585 Franklin Street, Mountain View
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art supplies or visit the watercolor and drawing stations where you can create your own works of art while surrounded by Tony Foster's wilderness landscapes and souvenir details. Tea and biscuits will be served. Drop ins are welcome, but RSVPs are appreciated.
TIME: 1:00 PM – 4:00 PM WHERE: The Foster, 940 Commercial Street, Palo Alto
Learning Differences - Parent Support Group Fridays, December 13, 2019 and January 17, 2020
Do you feel like you are all alone as a parent of a child with learning and attention issues? You are not alone—come and join other parents of kids with learning differences at CHC/ PEN’s parent support group. This facilitated group meets at CHC in Palo Alto. Feel free to attend any or all meetings.
TIME: 11:30 AM – 1:00 PM WHERE: CHC, 650 Clark Way, Palo Alto
December 2019
STANFORD The Melancholy Museum: Love, Death, and Mourning at Stanford All Mondays, and Wednesdays through Sundays starting from September 18, 2019 to March, 2020 When Leland Stanford Jr. died unexpectedly just before his 16th birthday, he had already established himself as a dedicated collector who showed extraordinary curiosity about the world. The museum, founded 125 years ago in conjunction with the opening of the university that bears his name, was to provide education and serve as a reminder of young Leland’s enthusiasm for collecting.
SUNNYVALE Sunnyvale Farmers Market Every Saturday Year-Round
Open year-round, rain or shine. Enjoy fresh fruits, vegetables, and arts and crafts from local growers and artisans.
TIME: 9:00 AM – 1:00 PM WHERE: Murphy Avenue at Washington Ave, Sunnyvale
Winter Ice Rink Coming to Downtown Sunnyvale!
From Friday, November 22, 2019 to Monday, January 20, 2020 Bundle up with family and friends and start a new holiday tradition at the Winter Ice Rink!
To celebrate this milestone anniversary, the Cantor Arts Center has invited Mark Dion, known for his work on the history
WHERE: CityLine, Downtown Sunnyvale, near Redwood Square
of museums and their collections, to serve as the Diekman Contemporary Commissions Program Artist in Residence
WOODSIDE
for 2019. Dion will delve into the original Stanford family collection to create a cabinet of curiosities for the 21st century.
TIME: 11:00 AM – 5:00 PM WHERE: Cantor Arts Center, 328 Lomita Drive at Museum Way, Stanford
Exhibition: Process and Pattern
All Mondays and Wednesdays through Sundays from August 15, 2019 to February 17, 2020
Tai Chi
Every Wednesday in December 2019 and January 2020 (except Christmas Day and New Year’s Day) Join Tai Chi instructor Ben Dineen in the Native Plant Garden as he leads a sixty-minute class open to all ability levels. This centuries-old Asian exercise builds stronger bodies, better balance, and a sharper mind, and is also a great stress reliever.
Memory, history, and making collide in the work of
For all adults including 55+.
contemporary artists McArthur Binion, Charles Gaines, Julie
TIME: 10:00 AM – 11:00 AM WHERE: Woodside Library. 3140 Woodside Road, Woodside
Mehretu, and Analia Saban. Their artworks—through process, subject, or medium—signal the presence of the artist and engage the viewer in the acts of exploration, decoding, and discovery.
TIME: 11:00 AM – 5:00 PM WHERE: Anderson Collection at Stanford University
PORTOLA VALLEY Tai Chi and Chi Kung Friday, November 29, 2019
Join Tai Chi and Chi Kung instructor Ben Dineen as he leads
Creative Writing Group Every Fridays in in December, 2019
Have a novel, poem, essay, or memoir in the works? Interested in hearing what others are writing? Join our new creative writing group to exchange constructive, encouraging feedback with other writers and readers. All are welcome! For all adults including 55+.
TIME: 11:15 AM – 1:00 PM WHERE: Woodside Library. 3140 Woodside Road, Woodside
a sixty-minute class in the Redwood Grove next to the Town Center Community Hall. These centuries-old Asian exercises help relieve stress and build stronger bodies, better balance, and sharper minds. For all ability levels. For all adults including 55+.
TIME: 10:00 AM – 11:00 AM WHERE: 765 Portola Road, Portola Valley D ELEONREALT Y.COM
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