THE DELEON INSIGHT MARCH 2018
PA L O A LT O R E A L E S TAT E
®
w w w . D E L E O N R E A LT Y. c o m
Palo Alto
Table of Contents
Market Conditions (Sept. 2017 � Feb. 2018) BARRON PARK
COMMUNITY CENTER
COLLEGE TERRACE
Month
Average Sale Price
Price/SqFt Ratio
Number of Sales
Month
Average Sale Price
Price/SqFt Ratio
Number of Sales
Month
Average Sale Price
Price/SqFt Ratio
Number of Sales
Sep-17
$2,606,250
$1,761
4
Sep-17
$2,815,000
$2,001
2
Sep-17
$2,940,000
$2,789
2
Oct-17
$3,125,000
$1,708
4
Oct-17
$2,500,000
$1,483
1
Oct-17
$4,802,500
$2,299
2
Nov-17
$3,497,500
$1,460
2
Nov-17
$4,750,000
$1,508
1
Nov-17
$3,805,000
$1,720
3
Dec-17
$2,650,000
$2,107
1
Dec-17
$3,588,000
$1,644
1
Dec-17
Jan-18
0
Jan-18
0
Jan-18
Feb-18
0
Feb-18
0
Feb-18
CRESCENT PARK Month
Average Sale Price
Price/SqFt Ratio
Number of Sales
Month
Sep-17
$5,516,500
$1,934
2
Oct-17
$7,950,000
$1,804
Nov-17
$4,337,500
$1,605
Dec-17 Jan-18
$5,599,750
$1,653
Feb-18
Price/SqFt Ratio
$4,450,000
$1,528
Average Sale Price
Price/SqFt Ratio
Number of Sales
Sep-17
0
Sep-17
$3,330,000
$1,369
2
2
Oct-17
0
Oct-17
$2,812,000
$1,840
1
2
Nov-17
0
Nov-17
0
0
Dec-17
0
Dec-17
0
2
Jan-18
$3,194,000
$1,444
2
Jan-18
0
Feb-18
$2,525,000
$2,009
2
Feb-18
$3,670,000
$1,875
11.
Construction Techniques – Insulated Concrete Forms (“ICF”)
13.
The Peril of Pocket Listings
15.
Tax Topics—Deductions for Pass-Through Entities
17.
0
Price/SqFt Ratio
Number of Sales
Month
Average Sale Price
Price/SqFt Ratio
Number of Sales
Month
Average Sale Price
Price/SqFt Ratio
Number of Sales
Sep-17
$4,154,800
$1,708
5
Sep-17
$3,678,000
$1,459
6
Sep-17
$6,474,590
$1,783
3
Oct-17
$3,238,000
$1,477
6
Oct-17
$3,074,200
$2,080
5
Oct-17
$3,184,000
$1,688
2
Nov-17
$3,317,500
$1,689
8
Nov-17
$4,066,600
$1,195
5
Nov-17
$6,883,333
$2,181
3
Dec-17
$4,460,000
$2,210
3
Dec-17
$4,629,333
$1,438
3
Dec-17
$12,831,667
$5,872
3
Jan-18
$4,400,000
$2,084
2
Jan-18
$3,100,000
$2,855
1
Jan-18
$6,500,000
$1,438
1
Feb-18
$2,988,000
$1,945
5
Feb-18
$3,944,000
$2,038
2
Feb-18
$4,350,000
$1,856
1
PALO ALTO HILLS, PROFESSORVILLE, SOUTH PALO ALTO & VENTURA - PAGE 22 Data gathered from the Multiple Listing Service on 02/26/2018
THE
DELEON INSIGHT OU R O F F I C ES A RE LO C ATED AT: 1717 Embarcadero Road - Palo Alto, CA 94303 650. 900.7000 w w w.DELEO NREA LTY.co m
By Ken DeLeon
By Michael Repka
By Michael Repka
The Power of DeLeon Realty’s Online Marketing
19.
Cash is Still King
20.
Real Estate and the Millennial Home Buyer
OLD PALO ALTO
Average Sale Price
By Michael Repka
Has Silicon Valley and SF eclipsed NYC as America’s Top Region?
1
Month
2 | D E LEO N RE A LT Y.CO M
Eight Listing Traps to Avoid
12.
0
Month
MIDTOWN
07.
By Ken DeLeon
By Michael Repka
2
Number of Sales
GREEN GABLES
Average Sale Price
Palo Alto - An Exceptional City
0
GREEN ACRES
DOWNTOWN PALO ALTO
04.
By Mike Ran
By Darrell Martin
By Huy Vu
Founder — Ken DeLeon CEO & General Counsel — Michael Repka Copy Writers — Sarah Last, David Burkhard Chief Photographer — Anthony Halawa Marketing Specialist — MyMy Trieu Chinese Marketing Specialist — Melanie Yu Online Marketing Specialist — Mike Ran Senior Graphic Designer — Nora Xu Graphic Designer — Monica Carsola
Contact Ken DeLeon for exceptional buying opportunities at 650.543.8501 To learn about our Platinum packages and incredible listing services for sellers, contact Michael Repka at 650.900.7000
CONTRIBUTORS: Ken DeLeon, Michael Repka, Darrell Martin, Huy Vu, Mike Ran D E L EO N R E A LT Y.CO M
| 3
Palo Alto - An Exceptional City Being a Palo Alto resident for the last twenty years, I have
were once or are headquartered in Palo Alto. While the media,
come to love Palo Alto as I truly appreciate how uniquely
real estate attorneys and other real estate experts often
exceptional it is. Residents of other communities cannot
comment on the innovative approach we have brought to the
understand why buyers will pay such a premium for Palo Alto
real estate industry, I know that we are a product of our
homes (the Listing side of our team had 5 of our Palo Alto
environment. DeLeon Realty’s innovative goals and client
listings last year jump by over a million dollars!). Palo Alto’s
centric focus are consistent with Palo Alto being the
secret sauce is that it can paradoxically combine many great
epicenter of the world’s innovation. DeLeon Realty has the
attributes such as the cosmopolitan nature of a world class
honor of being the only major brokerage in Silicon Valley
community, while still maintaining its small-charm appeal.
headquartered within 10 miles of downtown.
While so much of Palo Alto’s appeal cannot be articulated or empirically illustrated, the supreme ratings of our schools
DeLeon Realty’s sales volume in Palo Alto continues to
are an easy metric to show how exceptional our schools and,
climb every year as we have optimized the preparation
indirectly, our community is.
and marketing of our great Palo Alto listings. Personally knowing and loving all that Palo Alto has to offer allows us
Palo Alto being ranked as the top school district in the
to so effectively showcase and sell its many virtues. With
entire state is impressive, although not shocking. What was
our focus on Palo Alto and our values being consistent with
amazing was how dominant Palo Alto schools are at all three
our founding city, DeLeon Realty’s sales volume in Palo Alto
levels. Out of 6,222 California elementary schools ranked in
continues to grow every year and now we are selling around
2018 by niche.com, Palo Alto has eleven of the top twelve
six times as many listings as the second ranked team in Palo
elementary schools! Palo Alto has the two top middle
Alto (per broker metrics for 2017).
schools in California as well. Gunn is ranked as the best high school in the state and Paly is strongly in the top 5. Given that California’s population hovers near 40 million and our GDP is
DeLeon Realty Palo Alto Sales Over the Years $350,000,000
the sixth largest in the world, for Palo Alto to dominate the
$300,000,000
state rankings at each educational level illustrates one facet
$250,000,000
of why we all love Palo Alto and how DeLeon Realty can get
$200,000,000
home buyers to pay so much for our listings.
$150,000,000
Congratulations to our exceptional faculty, with our teachers being ranked by niche.com as the best in the entire state as well. Not too surprising given that the proof is in the pudding and these amazing results
S e l l i ng y o u r S i li co n Va l l ey h om e? First, meet with Michael Repka of the DeLeon Realty team.
$100,000,000 $50,000,000 $0
2014
2015
2016
2017
Unlike most real estate agents, Michael holds two law degrees, including an LL.M
speak for themselves. On the private school side,
Despite our small size, DeLeon Realty is already the second
Castilleja is the 29th best high school in the nation per
largest brokerage in Palo Alto, ahead of all of the combined
in taxation from NYU School of Law, and has years of experience as a real estate
niche.com out of approximately 18,500 private high schools
independent contractor agents of Coldwell Banker, Sereno,
in the nation!
Intero or Keller Williams (per Brokermetrics for the period
and tax attorney, giving his clients a unique advantage as most other brokerages
from January 2017 until February 2018). We look forward to
do not provide an in-house attorney to help clients. In addition, the expertise and
Palo Alto is also uniquely exceptional in that it has birthed
continuing to provide our Palo Alto clients with even more
marketing available through the team at DeLeon Realty are the very best in the
or been a large part of the history of many of the region’s
services and becoming the top brokerage in Palo Alto.
business. Meet with Michael to discuss any preliminary tax and legal questions
most innovative companies. These luminaries, whose market cap exceeds $1.5 trillion, include Google, Facebook, Hewlett Packard, Tesla, VMware, Paypal, Intuit, and Palantir, all who
4 | D E LEO N RE A LT Y.CO M
Ken DeLeon Founder
about selling your home and let him tell you more about what makes DeLeon Realty’s innovative approach to real estate so successful. There is no cost or obli-
Michael Repka 650.900.7000 CalBRE #0 1 8 5 4 8 8 0
gation for this consultation.
650.900.7000 | m i c h a e l @ d e l e o n r e a l t y . c o m | w w w . d e l e o n r e a l t y . c o m | C a l B R E #01903224
R E A L E S T A T E L AW
Eight Listing Traps to Avoid By Michael Repka, Esq.
Many sellers enter into a listing agreement feeling very optimistic and with a high level of trust in their listing agent. However, there may be devils lurking in the details of the listing agreement that the sellers are being asked to sign.
HADSOME UPDATES WITHIN A PRIME LOCATION •
3 Bedroom
•
Acacia hardwood floors
•
2 Bath
•
Chef's kitchen
•
Warm, functional layout
PRIVATE WOODLAND PARADISE •
5 Bedroom
•
Designer kitchen
•
4 Bath
•
Premier Location
•
Office
•
Top schools
•
Panoramic views
Many sellers erroneously conclude that they can sign the
accepted over another. To protect themselves, sellers should
“standard form” listing agreements published by the
include in an addendum a requirement that all referral fees
California Association of Realtors (“C.A.R.”) or Peninsula
be disclosed or, ideally, the listing agent (and/or their entire
Regional Data Service (“PRDS”) without review. These
office) should waive all commission if his/her buyer is the one
agreements are written by the Realtor® community
to purchase the property.
and contain many provisions which should be carefully
1116 VASQU EZ AVENUE, SUNNYVALE Offered at $1,498,000
25870 RIDGEWOOD LN, LOS ALTOS HILLS Offered at $3,788,000
For video tour and more photos, please visit: www.1116Vasquez.com
For video tour and more photos, please visit: www.25870RidgewoodLane.com
SO LD
considered, either by the sellers or, ideally, by their attorney.
Lack of Specificity in the Listing Agreement
After careful consideration of the “standard form,” the sellers
Sellers have more bargaining power to negotiate the terms
should prepare a comprehensive addendum spelling out the
of the listing agreement before signing on the dotted line.
precise nature of the agreement and making sure that both
The language included in the common “standard form”
sides are treated fairly. Below are eight areas to consider
listing agreement provides incredible latitude to the listing
when selecting a listing agent.
agent in deciding what marketing, if any, he/she will provide
Approach to Conflicts of Interest
•
4 Bedroom
•
Open-concept living
•
2.5 Bath
•
Prestigious Old Palo Alto
•
Newly remodeled
•
Top schools
NEWLY REMODELED, GORGEOUS BACKYARD •
4 Bedroom
•
Open-concept
•
2 Bath
•
Indoor-outdoor living
•
Desirable property along a
•
Central location
quiet, tree-lined street
•
Top schools
350 EMBARCADERO ROAD, PALO ALTO
952 EL CAJON WAY, PALO ALTO Offered at $ �,988,000
For video tour and more photos, please visit: www.350Embarcadero.com
For video tour and more photos, please visit: www.952ElCajon.com
6 | D E LEO N RE A LT Y.CO M
agent can advertise and market the property in any medium
When an individual agent represents both buyers and sellers,
selected by him/her unless otherwise instructed in writing by
it is inevitable that one of their buyers may be interested in
the seller. As such, the addendum to the listing agreement
one of their listings. This is particularly true because many
should include a comprehensive breakdown of exactly what
buyers find homes on their own and approach the listing
marketing the listing agent will provide, including the size
agent thinking they will either get a better price or a portion
and frequency of any ads, the number of TV commercials,
of the commission rebated back to them if they go through
the type of home brochure, a sample of the home’s video,
the listing agent. Therefore, sellers should have a detailed
the scope of international marketing, and any other relevant
conversation with the agent about how such situations will
marketing techniques that will be implemented to sell the
be handled if either the listing agent or another agent in
house.
their office represents the buyer. DeLeon Realty prohibits all
BEAUT IFULLY REMODELED IN P OPULAR SETTING
for the property. Typically, these forms provide that the listing
of its employees from working on, or taking any money from,
Unquantifiable Efforts
both sides of a transaction. In fact, DeLeon Realty waives all
Sellers should be beware of any agents that make statements
buyer’s-side commission when its agents represent a buyer
such as: “I will market aggressively,” “I will turn over every
on a DeLeon listing. This is a brokerage-wide policy.
stone until I find the buyer,” or “I have a secret list of potential
Non-Disclosed Referral Fees
buyers who will buy your house.” Similarly, sellers should be cautious of agents who claim to have a buyer whom they
Unfortunately, some agents say that they will not represent a
will bring as soon as the sellers sign the listing agreement. If
buyer on their own listing; however, they do take substantial
these claims were true, they should be specifically identified
referral fees if they send that potential buyer to another agent
in terms that can be measured.
in their office. They argue that, under California law, there is no requirement that these referral fees be disclosed to the
Long Listing Agreements
sellers prior to their acceptance of the offers. Therefore,
Once the sellers have signed a listing agreement, they are
sellers may be receiving biased advice, yet have no idea
bound to pay commission throughout the entire length of
that the listing agent is making more money if one offer is
the agreement unless they can prove that the listing agent
Continued on page 8 D E L EO N R E A LT Y.CO M
| 7
R E A L E S T A T E L AW
Eight Listing Traps to Avoid By Michael Repka, Esq.
SO LD
SOLD
Continued from page 7 has not lived up to contractual requirements. Before signing
contractors that are licensed to use the brokerage name for
the listing agreement, sellers should negotiate for a shorter
marketing purposes. These agents are not employees and
duration listing agreement (e.g., no more than 45 days after
they generally have no financial stake in the other agents’
the home hits the market) rather than let the listing agent bind
sales results. Therefore, the seller is really only going to get
them to a 90-day or 180-day listing agreement. If the property
the attention of the individual agent or team with whom they
has not sold during the listing period, the seller may elect
work and very little, if any, collaboration from other agents in
to extend the agreement if they are pleased with the overall
their office.
efforts and the quality of work exhibited by the listing agent.
FLEXIBLE LIVING AMID VERDANT SCENERY
BI-LEVEL LUXURY WITH DRAMATIC BACKYARD
Sellers, however, should not be contractually bound for many
Paying Out of Escrow
•
5 Bedroom
•
Generous property
•
5 Bedroom
•
Bi-level residence
months to an agent that falls short of the client’s expectations.
The addendum to the listing agreement should specifically
•
3.5 Bath
•
Indoor-outdoor living
•
4.5 Bath
•
Richly appointed spaces
identify items that the listing agent will pay for during the
•
3,212 Sq. Ft. Home
•
Choice location
•
3,713 Sq. Ft. Home
•
Backyard retreat
listing period. Occasionally, the listing agents will agree
•
20,411 Sq. Ft. Lot
•
Top schools
•
17,892 Sq. Ft. Lot
•
Premier location
Seller Costs Listing agents should make a financial investment in the
to pay for certain items with a provision that they will be
listings. Nowadays, many, if not most, listing agents will pay
reimbursed by the sellers out of escrow or, conversely, the
for staging, property inspection, and pest inspection fees if
sellers must pay for certain items upfront and the agent will
required by the sellers at the time the listing agreement is
reimburse them out of escrow, assuming that there is a close of
signed. Not only does this relieve the sellers of some costs,
escrow. Neither of these approaches is the same as the
it also makes sure that the listing agent is fully vested in the
agent paying for the expenses themselves and not being
result. Before signing the listing agreement, the seller should
reimbursed by the sellers. Therefore, the sellers should be
ask the listing agent for pictures of other homes that the
very careful to ensure that their understanding is documented
agent has staged so that the seller can ascertain the quality
in the listing agreement.
822 MESA COURT, PALO ALTO Offered at $2,988,000 Sold with multiple offers
1275 WINDIMER DRIVE, LOS ALTOS Offered at $3,988,000 Sold with multiple offers at $4,700,000
For video tour and more photos, please visit: www.822Mesa.com
For video tour and more photos, please visit: www.1275WindimerDrive.com
of the design and furnishings. In other words, it is important for the sellers to know that their home will be staged by a
Although it does involve some additional cost, many sellers
high-end stager with the appropriate style of inventory for
would benefit from having an independent residential real
their property.
estate attorney review the listing agreement and the related
Focus on Brokerage Rather Than Agent
SOLD SO LD
addendum prior to signing. Additionally, the sellers should request a written printout of all of the listing agent’s sales in
Some agents will attempt to distract the sellers from their
the area to ensure that the sellers accurately understand the
limited amount of volume or experience by touting the
listing agent’s sales volume and experience.
combined volume of all of the independent contractor agents in their office rather than their individual statistics. It is important to note that most brokerages utilize independent
8 | DE LEO N RE A LT Y.CO M
TIMELESS STYLE IN DOWNTOWN NORTH •
2 Bedroom
•
Open-concept floorplan
•
2.5 Bath
•
Premier Location
•
1,871 Sq. Ft. House
•
Top Schools
PEACEFUL LUXURY OASIS •
5 Bedroom
•
Sought-after location
•
3.5 Bath
•
High-tech amenities
•
3,475 Sq. Ft. Home
•
Pool and home thearter
•
43,995 Sq. Ft. Lot
•
Top Schools
325 CHANNING AVENUE #310, PALO ALTO Offered at $2,988,000 Sold for $3,200,000
13505 BURKE ROAD, LOS ALTOS HILLS Offered at $5,988,000 Sold with multiple offers at $6,500,000
For video tour and more photos, please visit: www.325ChanningUnit310.com
For video tour and more photos, please visit: www.13505Burke.com D E L EO N R E A LT Y.CO M
| 9
R E A L E S TAT E D E S I G N
Construction Techniques – Insulated Concrete Forms (“ICF”) By Michael Repka Over the past decade, the building industry has become
conduits and other internal wall elements are installed prior to
more environmentally conscious while also striving to find
filling the walls.
ways to improve the quality and durability of homes. One
UPGRADED LUXURY IN LINDENWOOD
PROVINCIAL LIVING AMONG WORLD-CLASS PRESTIGE
•
5 Bedroom
•
Prestigious location
•
6 Bedroom
•
Exclusive views
•
4.5 Bath
•
Gorgeous retreat
•
6.5 Bath
•
Prime location
•
Cul-de-sac
•
Top schools
•
European style
•
Top schools
95 MAPLE LEAF WAY, ATHERTON Offered at $4,988,000
26401 ESHNER COURT, LOS ALTOS HILLS Offered at $9,988,000
For video tour and more photos, please visit: www.95MapleLeaf.com
For video tour and more photos, please visit: www.26401Eshner.com
construction technique that has seen increased popularity in
The walls are finished in relatively short sections, roughly
recent years is building with Insulated Concrete Forms, also
four-feet high and filled. If the contractor were to fill a section
known as ICF construction.
much higher than four feet, then the weight of the wet cement could cause the forms to bow or fail. While completing walls
Traditional residential construction generally consists of
in four-foot high sections results in a very strong-finished
a foundation and framing, comprised of either wood or
home, the need to have a cement truck make multiple visits
aluminum studs. In modern construction, the space between
to the property can result in significant additional cost.
the studs on exterior walls is usually filled with insulation of some sort, however there are often insulation gaps near
This building technique is fairly flexible. Builders can use ICF
the studs, electrical outlets, and plumbing. While certainly
for basements and then switch to more traditional techniques
adequate, this technique results in a structure that may lack
for the living areas, or they can use ICF all the way from the
the structural rigidity and overall insulation of ICF homes.
below-grade basement up to the roofline. Generally, once a
A Closer Look at ICF Construction The concept behind ICF construction can be traced back to the three little pigs. When the big bad wolf huffed and puffed, he was able to blow down the two little pigs’ homes
contractor and/or luxury home builder becomes familiar with this technique, they seem inclined to use it all the way to the roof. On the inside, however, interior walls may be built using traditional methods, ICF, or a combination of both.
that were made of straw and sticks. Yet, the third little pig’s
Resistance to the Elements
home, which was constructed of bricks, survived the ordeal
The terrible disasters this nation has faced over the past year,
unscathed. That wolf would not stand a chance against a
including the hurricanes in Florida, Texas, and Puerto Rico;
modern home made with insulated forms reinforced with
the wild fires in northern and southern California; and the
rebar and filled with concrete.
tornados in the Midwest, may lead to increased interest in ICF construction. After all, homes constructed out of solid
EXCITING DOWNTOWN HOME WITH EXCEPTIONAL GROUNDS
TASTEFUL UPDATES REVEAL STYLE
•
2 Bedroom
•
Backyard retreat
•
2.5 Bath
•
Peaceful location
•
Modern style
•
Top schools
•
3 Bedroom
•
Sprawling indoor spaces
•
2.5 Bath
•
luxuriant, private gardens
•
2,637 Sq. Ft. Home
•
Prime location
•
11,250 Sq. Ft. Lot
•
Top schools
680 EMILY DRIVE, MOUNTAIN VIEW Offered at $1,298,000
101 WAVERLEY STREET, PALO ALTO Offered at $5,988,000
For video tour and more photos, please visit: www.680Emily.com
For video tour and more photos, please visit: www.101Waverley.com
10 | DE LEO N RE A LT Y.CO M
ICF construction is actually fairly easy to understand. A
concrete walls are much more resistant to wind damage.
manufacturer produces forms that are made of insulated
Additionally, if coupled with a fire resistant roof, this type
panels, which are separated by braces or similar structural
of construction is likely to fare better in a wild fire when
dividers. These forms have teeth on the edges such that they
compared with homes constructed out of wood.
can lock together much like
Lego®
bricks. Once the bricks
are in place, reinforcing rebar is added and the gap between
Shad Shokralla, of Brighton Builders Limited of Los Altos, a
the two panels is filled with 8 to 12 inches of concrete. This
builder experienced in this type of construction, is a strong
results in thick, solid walls covered on both the inside and
advocate of this construction method even though it is more
the outside by the insulated panels. Once fully hardened,
costly than traditional methods because the finished product
this process creates walls that are extremely strong, solid and
is so solid.
resistant to any sort of air penetration. Plus, even the most ambitious termite would starve to death or move on to one
Shad built a masterpiece of ICF construction for a couple
of the delicious wood houses in the neighborhood.
in Los Altos Hills, which can be seen at 26401 Eshner Court. These satisfied homeowners love the final product,
A contractor trained in this building technique will position
noting that the entire house feels rock-solid and completely
the “bricks” to form openings for windows and doors
squeak-free.
before the cement is added. Similarly, all necessary D E L EO N R E A LT Y.CO M
| 11
R E A L E S TAT E M A R K E T P U L S E
R E A L E S TAT E S E L L I N G S T R AT E G Y
Has Silicon Valley and SF eclipsed NYC as America’s Top Region? By Ken DeLeon
“If I can make it there, I'll make it anywhere.” This line from
as there has been a flow of innovation and prestige from the
Frank Sinatra’s aspirational “New York, New York” reflects the
East to West Coast, so too has the growth of gastronomic
long-held belief that New York is the epicenter of American
delights followed. While cuisine is highly subjective, there is
commerce and progress. Yet, as technology pervades more
quantitative data to support this contention. The preeminent
industries and becomes the ubiquitous driving force of
of which is the number of three-star Michelin restaurants in
innovation and wealth creation, has Silicon Valley and the
each region. According to Eater San Francisco, since 2011
San Francisco Bay Area surpassed the Big Apple as America’s
New York has not gained a single three-star restaurant. In
preeminent region? While the San Francisco Bay Area has
this same timeframe, the Bay Area has gained five three-
only 7 million people compared to New York’s metropolitan
star restaurants. The Bay Area now has seven three-star
population of over 20 million, multiple measurements of
restaurants versus New York’s five.
wealth, culture, and education indicate that the Bay Area now comes out on top.
Mirroring the trend of tech overtaking finance, Stanford has a brighter future than Harvard. While I would still consider
One metric illustrative of the success of Silicon Valley’s tech
Harvard the world’s preeminent university, Stanford may
companies would be the increase in market cap value of
appropriate that role in coming decades. According to
the top three companies headquartered here versus New
Philanthropy.com, Stanford is the leader in fundraising in
York. This pits the combined market cap growth of Apple,
recent years, collecting over $2.5 billion in the last two
Alphabet, and Facebook versus J.P. Morgan, Pfizer, and
recorded years—more than Harvard and more than double
Verizon. The comparison is startling, and demonstrates how
New York’s Columbia University. In addition, according to
much technology companies have grown recently. According
Times Higher Education, since 2000 Stanford has been ranked
to Ycharts.com, since the stock market rally from President
as one of the top two universities, along with Princeton,
Trump’s election on November 8, 2016, Apple is up $309
for creating Nobel laureates. While the past belongs to
billion in market cap value, and now worth an unprecedented
Harvard, Stanford and its excellence in the sciences and
$901 billion. Alphabet is up $235 billion in market cap growth,
entrepreneurial innovation will likely be the leading light for
with a total value of $780 billion. Facebook has added $163
the world in coming decades.
billion in market cap, and is now valued at $521 billion. While these tech titans, three of the five most valuable companies
Clearly, which region in America is the most innovative,
in the world, collectively added $707 billion in value in the last
creative and successful is difficult to answer and everyone will
15 months, the top three New York companies collectively
have their own perspective. Yet this article poses more of a
added only $223 billion in market cap value, or less than
question than a clear conclusion. The fact that the Bay Area
one-third as much. With more value creation now stemming
can even be compared to one of the top cities in the world
from Silicon Valley’s tech innovation rather than New York’s
with three times the population illustrates how amazing this
financial markets, expect the Bay Area to continue to expand
area is which we all get to live in and enjoy. Let us be thankful
and add wealth more than New York or any other US region.
and appreciative of all that the Bay Area provides: a world class economy set in a stunning natural environment coupled
With wealth and education come the desire for cultural
with the benefit of a highly educated population. While it is
amenities and improvements. New York was always viewed as
perhaps the best region in America or even the world, at a
the center of the nation’s culture and food excellence. But just
minimum, it is a great area to call home.
12 | DE LEO N RE A LT Y.CO M
The Peril of Pocket Listings By Michael Repka, Esq. As the most active listing agent in Silicon Valley, I receive many phone calls from people interested in selling their property. The majority are interested in taking all steps necessary to achieve the highest possible sale price – which includes the proper preparation of the home, the appropriate timing of the listing, and ensuring the maximum amount of exposure. However, some sellers indicate that they are looking for a quick and/or easy sale that doesn’t require the aforementioned steps. As the highest-volume listing agent in the area, I am uniquely positioned to bring about a quiet and expeditious sale, yet I feel compelled to caution sellers about traveling down the “quiet sale” road without fully considering the drawbacks to such an approach. Undoubtedly, there are some sellers who are willing to forego the highest possible sale price in exchange for increased privacy or added convenience. However, there are sellers who unwittingly travel down the path of limited exposure based on reassurances that they will achieve the same price without any inconvenience or effort. In other words, some sellers end up with a lower sale price without fully considering the potential costs associated with limited exposure. Quite simply, a home that is not properly prepped and/or receives less than the maximum amount of exposure is much more likely to sell for a lower sale price.
Conflicts of Interest One of the biggest problems that arises out of “pocket listings,” “off-market listings,” or periods of exclusive access is that the listing agent dramatically increases the chance of the buyer being represented by the listing agent or someone close to the listing agent, such as a friend in the same brokerage. More often than not, this works to the benefit of the buyer and, because the listing agent’s interests are often diametrically opposed, to the detriment of the seller. When a seller is presented with an offer before full public exposure, they often have to make a decision in a vacuum. The seller doesn’t know how much other potential buyers would be willing to offer, so they need to rely upon either their own judgment or the advice of the real estate agent. The problem is that the real estate agent and/or their brokerage often gains a direct financial benefit from a quick and quiet “doubleended” sale. Therefore, the seller needs to take the agent’s advice with a grain of salt. It is easy to imagine that a listing agent would prefer this route, as they might get commission (or a referral fee) from both sides of the transaction, while simultaneously saving some marketing costs. Therefore, the listing agent may be tempted to encourage a seller to accept
an offer, even though it is quite possible that there could be another buyer out there who would pay a higher price. Alternatively, the actual winning buyer may be willing to pay a higher price if they were faced with competition.
Limited Exposure The key to generating the highest possible sale is making sure that the maximum number of qualified buyers are aware of the property and come to see it. There are a number of ways to do this. The first is getting the home onto the radar screen of all potential buyers. At a minimum, this should include listing the property on the Multiple Listing Service (the “MLS”) with a link to a fully narrated video, a 3-Dimensional tour, high quality photography, and a comprehensive description of the home. Moreover, properly marketing a home in Silicon Valley requires far more than simply listing it on the MLS. Many buyers may be searching for a home of a certain type, but they are not actively searching in your particular MLS area, or even your city, for that matter. That’s why comprehensive exposure also includes other media such as radio, television commercials, multiple newspaper ads in different towns, direct mail, and active promotion by the real estate agent. It’s simply common sense that a home that is exposed to fewer qualified buyers will receive fewer offers and those buyers that do put in offers will feel empowered to make lower offers because of the lack of competition.
Level of Proper Preparation Although it’s hard to understand why so many sellers are willing to sell their homes without adequate exposure, one possible explanation is their ability to forego the listing preparation process. Unfortunately, I have heard reports that some real estate agents proactively encourage sellers to allow them to show their own buyers the property without full exposure by instilling fear of staging, touch-up paint, cleaning, or many of the other steps that are involved with properly preparing a home. While the ease of this approach is certainly enticing, the lack of preparation is yet another reason why sellers should be reluctant to blindly travel down this road. Quite simply, homes look better once they’re properly prepared, staged, and marketed. Thus, when a limited number of buyers are seeing a home that has not properly been prepped, and they are comparing this home to other homes on the market that have been diligently prepared, the buyers are inclined to offer lower prices. From
Continued on page 14 D E L EO N R E A LT Y.CO M
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R E A L E S TAT E S E L L I N G S T R AT E G Y
R E A L E S TAT E TA X
The Peril of Pocket Listings
Tax Topics—Deductions for Pass-Through Entities By Michael Repka, Esq. (LL.M.—Taxation, NYU School of Law ‘01)
By Michael Repka, Esq.
Continued from page 13 the buyer’s point of view, this makes a lot of sense because he/she will probably get the home for substantially less than a property that is properly prepared and marketed, but from the seller’s point of view, it can potentially result in leaving hundreds of thousands of dollars on the table.
Engaging in the Listing Process While some agents are quick to ask for a period of exclusivity or encourage sellers to allow them to market it as a pocket listing or an off-market listing, sellers should see any of these suggestions as a red flag. If a seller is particularly interested in selling a home without maximum exposure, they should be working with a trusted professional that will advise them about the potential costs involved with such an approach. If the seller nevertheless wants to go forward after receiving the required advice, then that is completely their prerogative. However, sellers that encounter an agent who habitually encourages clients to restrict access to only their buyers (or buyers in their office) should consider other alternatives for a listing agent. The formula for achieving the highest possible price for a Silicon Valley listing is really quite simple—make sure the property is: (1) presented in the best possible light; (2) marketed very aggressively to the maximum number of potential buyers in a variety of different areas; (3) easy to access and well-presented throughout the duration of the listing period; and (4) represented by an agent who acts solely in your best interest, and that will not accept any commission or referral fees from any buyers on his/her listings. At DeLeon Realty, I encourage all of my sellers to follow these steps, and all DeLeon sellers know that I am looking out for their best interest. As has been well publicized, DeLeon Realty takes the extreme measure of waiving all buyer-side commission in any transaction where a DeLeon buyer’s agent represents a buyer on any DeLeon listing. The greatest benefit of this approach is that both the buyer and seller confidently know that they are working with someone who is completely loyal to them.
PREMIER NEW LUXURY RESIDENCE •
5 Bedroom
•
Attention to every detail
•
4.5 Bath
•
Central fireplace
•
3,623 Sq. Ft. Home
•
Open-concept living
•
9,652 Sq. Ft. Lot
•
Master chef's kitchen
490 LOMA VERDE AVENUE, PALO ALTO Offered at $4,788,000 For video tour and more photos, please visit: www.490LomaVerde.com
Since enacted, there have been a tremendous number of questions and substantial concern about the likely impact of the new law, which hits homeowners in California particularly hard. Nowhere was this concern more evident than at my last tax seminar which we held on January 6. Normally my tax seminars attract between 80 and 100 people with some attendees as interested in the delicious crab cakes at the Palo Alto Hills Country Club, as they are in hearing about various tax structuring ideas. However, this latest seminar
new regulations clarifying this issue, it appears that landlords will not need to form a new entity to take advantage of this deduction. In other words, real estate investment income reported on Schedule E (Form 1040) should qualify. Over the years there has been much debate as to whether owning investment qualifies as a “Trade or Business,” but the IRS has acquiesced to an old case from the 1940’s, which held that even owning one residential rental property qualifies as a trade or business. Hazard v. Commissioner, 7 T.C. 372 (1946). However, it should be noted that the new rules under Section 199A contain a maze of limitations and restrictions that serve to reduce the applicability of the deduction. While taxpayers that are “fortunate” enough to earn less than $315,000 as a couple (Inc. income from most sources) should be able to take full advantage of the 20 percent deduction on qualified business income. Taxpayers that make more than this amount will see the deduction phased out, with a full phase-out achieved at $415,000, unless the taxpayer qualifies for either the wage or the wage and capital exception to the phase out.
Wage or Wage and Capital Exception to the Phase Out Some lucky taxpayers may be able to take a deduction even if their taxable income is in excess of $157,500 ($315,000 if married filing jointly), if the business pays enough wages to employees or if they have sufficient capital invested in the business. This increase to the phase is calculated as follows: 50 percent of the wages paid by the entity, or 25 percent of the wages paid by the business plus 2.5 percent of the unadjusted basis of qualified property used in the business.
GORGEOUS GARDEN ESTATE IN WEST ATHERTON •
5 Bedroom
•
Large, sun-lit spaces
•
7.5 Bath
•
Gourmet kitchen
•
6,449 Sq. Ft. Home
•
Premier location
•
1.05 Acre Lot
•
Prestigious schools
�65 PATRICIA DRIVE, ATHERTON Offered at $8,790,000 For video tour and more photos, please visit: www.� 65PatriciaDrive.com
14 | D E LEO N RE A LT Y.CO M
On December 22, President Trump signed the Tax Cuts and Jobs Act (the “Act”) into law. This sweeping legislation dramatically lowered corporate tax rates, encouraged multinational companies to bring money back to the United States, generally lowered individual income tax burdens, reduced mortgage interest deductibility, and, perhaps most significantly for people in California, eliminated all but $10,000 of state income and real property tax deductibility. Additionally, the Act created a new deduction for income from pass-through entities. On December 26, we published an article addressing these changes which was featured in many local newspapers, Gentry Magazine, and it is available on our website at: https://deleonrealty.com/2017/new-taxlegislation-impact-california-real-estate/.
attracted over 850 people—and we didn’t even serve the crab cakes! In fact, we had to split the seminar into two shows, with the second being a standing-room-only show at the JCC’s theater in Palo Alto. There is no doubt that local home owners are concerned about the potential impact on home prices and interested in possible ways to save taxes.
20 Percent Deduction for Pass-Through Entities With regard to the positive changes, many real estate investors were interested in the new rules codified as Sec. 199A of the internal Revenue Code which provides for a 20 percent deduction for income from a pass-through entity. The number-one question was whether landlords should form an LLC or an S-Corporation to hold their investment properties. Although the Treasury Department has not promulgated any
It is widely speculated that the latter rule, which provides relief for capital intensive businesses, was crafted to help real estate investors. Additionally, some businesses may want to reconsider the amount paid as W-2 wages to owners of the company. As if these rules are not complicated enough, there are additional restrictions on income from service-based businesses that rely upon the individual’s professional skill, such as lawyers, doctors, musicians, and professional athletes, among many others. So, what does all this mean? It means that taxpayers with income from small businesses or real estate holdings should make an appointment with their tax professional to ensure compliance with the new rules and to make sure they are taking advantage of all deductions to which they are entitled. D E L EO N R E A LT Y.CO M
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R E A L E S TAT E M A R K E T I N G
CO M I NG S OON
CENTRAL LOCATION GRANTS DESIRABLE CONVENIENCE
GATED PARADISE IN PRESTIGIOUS SETTING •
Pristine grounds
•
West Atherton
•
Immaculate craftsmanship
•
Top schools
•
5 Bedroom
•
Spacious and sun-lit
•
3 Bath
•
Centrally located
•
Remarkably updated
•
Top schools
65 ROBLEDA DRIVE, ATHERTON Offered at $11,888,000
788 S. BERNARDO AVENUE, SUNNYVALE Offered at $ �,498,000
For video tour and more photos, please visit: www.65Robleda.com
For video tour and more photos, please visit: www.788SouthBernardo.com
COM I NG SO O N
The Power of Digital Marketing for Real Estate By Mike Ran, Online Marketing Specialist
When it comes to modern digital marketing, new technologies arise almost every day with the promise to be the next big thing. Trends and buzzwords come and go, but establishing an
be mobile responsive so they are easy to use on any device.
effective online strategy means focusing on what works.
Additionally, bringing web development in house is a great
For the digital presence of real estate brands, evolution is
way to efficiently implement the latest functionality, interface
important but the foundation should always be constructed
design, and security standards. Staying current with these key
on proven systems.
aspects results in a better user experience as well as higher
Targeting and Analytics
organic search engine rankings for any website.
One facet of successful online marketing is breadth to extend
Cross-Pollination
across a variety of platforms such as social media, search
In addition to multimedia-rich pages for homes, websites
engines, and email. Nonetheless, a powerful marketing
that contain a plethora of exclusive content leads to more
campaign should also be targeted so the most relevant
cross-traffic from clients. For example, the news and events
audiences can be reached. For example, it is wise to focus
section of deleonrealty.com is full of insightful articles tailored
more advertising on people within a certain income bracket,
to Silicon Valley real estate. This includes a summary of the
geographical area, and whose social media behaviors
new tax legislation’s impact on California real estate and a
demonstrate the likeliness to move.
prediction for the appreciation of local markets. These articles resonate with relevant audiences both organically as well as
BREATHTAKING CUL-DE-SAC RESIDENCE
SEREN E SETTING REVEALS BRIGHT ELEGANCE 5 Bedroom
•
•
3 Bath
•
3,820 Sq. Ft. Home
•
•
•
•
Extensive backyard retreat
•
4.5 Bath
•
Mature fruit trees
•
Peaceful cul-de-sac
12,236 Sq. Ft. Lot
�3 BOTANY COURT, EMERALD HILLS Offered at $2,798,000 For video tour and more photos, please visit: www.�3Botany.com
16 | D E LEO N RE A LT Y.CO M
5 Bedroom
Elegant gathering areas
•
Privacy
Furthermore, most online marketing platforms come with
through social media channels. Furthermore, a feature-rich
powerful analytical tools. Metrics, such as clicks and leads,
MLS system with advanced search and live market report
can be used to reiterate campaigns and attain optimal results.
data can be easily integrated into any website. Another
This is a proven way to quantify performance so marketers
potential resource are the neighborhood guides with local
can invest more in the strategies that work.
information, charts on appreciation, and community videos. These features create more exposure of property listings to
Recently remodeled
Technology and Multimedia
•
Open-concept
Maintaining a high volume of website visitors is beneficial,
•
Gorgeous chef’s kitchen
but what they see and experience during a visit is equally
Delivering quality content to your target audience is a tried
Award-winning schools
important. Professional photography and videography are
and tested method for optimizing your marketing resources.
essential for capturing beautifully staged homes. High-
The internet features an array of tools for real estate, making
end multimedia can have a profound emotional impact on
it easier than ever to reach and engage with customers. As a
potential buyers and so can the feel of a cutting-edge website.
result, it is important to develop a marketing strategy based
Custom-built webpages are a great way of showcasing the
on a proven groundwork, while allowing enough room for
uniqueness of properties along with their photos, videos, and
integrating effective innovations.
•
•
5 LASSEN COURT, MENLO PAR K For video tour and more photos, please visit: www.5LassenCourt.com
potential buyers who are already browsing the site.
interactive 3D tours. Effective websites should be designed to D E L EO N R E A LT Y.CO M
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R E A L E S TAT E B U Y I N G S T R AT E G Y
Cash is Still King
SOLD
By Darrell Martin, Senior Buyer Specialist
DAZZLING UPDATES EVOKE SOPHISTICATION •
4 Bedroom
•
full-scale remodel
•
3.5 Bath
•
Indoor-outdoor lifestyle
•
2,040 Sq. Ft. House
•
Peaceful, private Location
•
10,200 Sq. Ft. Lot
•
Prestigious private schools
483 DENISE LANE, REDWOOD CITY Offered at $1,798,000 Sold with multiple offers
HIGH-END LUXURY IN UNIVERSITY SOUTH
Many times over the past year, I have learned that the
in their bank account and then purchased the second,
winning offer for a home was an all-cash offer. Fortunately,
smaller home utilizing that cash. Even though both homes
some of those winning offers were made by buyers I had the
received multiple offers, my buyers’ offers were accepted
good fortune to represent. After another one of my buyers’
primarily because they were compelling, all-cash, quick-close
all-cash offers was recently accepted in a multiple-offer
offers that provided the seller with complete confidence in
scenario, I started wondering, “How can more of my buyers
our ability to perform.
make all-cash offers even though they do not have all of that cash available?” In this incredibly competitive Silicon Valley
very quick close.
FOR HOME BUYERS WHO DO NOT HAVE THE CASH AVAILABLE AND ARE EAGER TO SUBMIT A COMPELLING, ALL-CASH, QUICK-CLOSE OFFER, BORROWING THE MONEY FOR THE MONTH OR SO IT WILL TAKE TO FUND THE MORTGAGE MAY BE AN OPTION WORTH EXPLORING.
So, how can buyers increase the odds of their offer being
You may be asking: “But where can a home buyer go to
accepted by submitting an all-cash offer when they do not
borrow this money?” A few possible options include:
•
2 Bedroom
•
Flexible floorplan
housing market where it is common for a home to receive
•
2 Bath
•
latest technology
10-20 offers, buyers’ agents are always looking for ways to
•
1,285 Sq. Ft. House
•
Top Schools
help make their buyers’ offers as attractive and compelling as possible to sellers. Ideally, for each of my buyers, I would love
185 FOREST AVENUE, UNIT 2A, PALO ALTO Offered at $1,788,000 For video tour and more photos, please visit: www.185ForestAveUnit2A.com
For video tour and more photos, please visit: www.483DeniseLane.com
to submit a competitive, all-cash, quick-close offer with a few other terms and conditions that are very attractive to sellers and typically not utilized by most agents. I was recently told by a listing agent that his sellers chose to accept my buyers’ offer over a significantly higher offer without countering on price due primarily to the strength of our all-cash offer with a
have all of the cash available and/or are planning to carry a mortgage on the home? Believe it or not, there are a few options worth considering.
1. Borrow from someone, such as a parent or other family member, who has the cash available 2. Borrow from Home Equity Line of Credit, if
Some lenders offer programs that provide all-cash home
moving up from a home with significant equity
buyers the opportunity to finance their new home with a
3. Borrow against equities in an investment account
mortgage within 90 days after closing escrow with the same interest rate and terms as if the mortgage had been used
INVITING GLAMOUR IN PREMIERE LOCATION
THOUGHTFUL UPDATES EVOKE QUIET ELEGANCE
(on margin) 4. A combination of some, or all, of the above
to purchase the home. For buyers with the cash available, this provides an excellent opportunity for them to increase
In this extremely competitive housing market, submitting the
the odds of their offer being accepted without needing to tie
strongest and most compelling offer possible is a necessity
their cash up for more than a month or so.
for home buyers wishing to prevail in multiple-offer scenarios.
•
4 Bedroom
•
Sky-lit Interior
•
3 Bedroom
•
Prime location
•
4 Bath
•
Oudoor retreat
•
2.5 Bath
•
Versatile living
•
3,179 Sq. Ft. Home
•
Sought-after Location
•
1,447 Sq. Ft. Residence
•
Outdoor retreat
This is exactly how some recent buyers of mine were able
can provide the edge many home buyers are seeking.
Easy Commute
to purchase two homes for their extended family within
Creating a successful strategy up front and connecting with
walking distance of each other. They purchased the first,
the right lender are just two of the many critical steps that
more expensive home with cash, immediately took out a
DeLeon Buyer Specialists can help home buyers in preparing
mortgage on that home, deposited the mortgage proceeds
that winning all-cash offer.
•
9,514 Sq. Ft. Lot
•
Top Schools
•
1,161 Sq. Ft. Lot
•
866 SEALE AVENUE, PALO ALTO Offered at $4,988,000
1918 HACKETT AVENUE, MOUNTAIN VIEW Offered at $1,298,000
For video tour and more photos, please visit: www.866Seale.com
For video tour and more photos, please visit: www.1918Hackett.com
18 | DE LEO N RE A LT Y.CO M
An all-cash offer, written with the right terms and conditions,
D E L EO N R E A LT Y.CO M
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R E A L E S TAT E I N F LU E N C E
MARCH 2018
Real Estate and the Millennial Home Buyer
City Market Conditions
Average Sale Price
By Huy Vu, Senior Buyer Specialist
The American Dream has not changed for Millennials. It is very much the same dream our parents might have had: a career, a family, and a home. It’s just taken us more time to get there because we grew
With so many Millennials interested in buying homes, it’s
up in a world where unpaid internships and contract work
not a surprise that there are now so many real estate apps
did not usually mean long-term employment or a career.
available to aid buyers in their home search.
$6,000,000 $5,000,000 $4,000,000 $3,000,000
Saving wasn’t enough with school debt and rising rents. Growing up in an age where the internet dominates daily
Redfin and Zillow have popular websites and phone apps
life and surrounds us with distractions and a non-stop flow
buyers can use to find information about open houses, offer
of information. However, the American Dream of home
dates, school systems, comparable properties, and more.
ownership has always been a part of what has driven us
They are powerful tools, and I know more than a few agents
forward.
who use these tools themselves to help them search for
$2,000,000 $1,000,000
homes for their buyers. However, home buyers will quickly We Millennials are growing up, though. Engagement parties,
find the search can be overwhelming—this market moves
wedding planning, baby showers, and buying homes are
fast! A home search can span across multiple cities. There
hot topics of conversation among my peers, who, ten years
are open houses every weekend. There are hundreds of
ago, merely had the goal of self-sufficiency. Now, many of
pages of disclosures to review per property. There could be
their goals involve supporting a family. Before I got into real
multiple offers to put together in a week. Furthermore, the
estate, my fiancée (then girlfriend) and I decided to speak
buyers I work with are commonly dual-income households.
with a lender to get a home loan because we were working
Couples who have children, pets, and other responsibilities
toward home ownership. While we weren’t in a position to
on top of their careers may have little time to devote to the
purchase a home then, the meeting wasn’t a waste of time.
home search. This is why I believe real estate agents are
We walked away knowing we had things to work on such as
underutilized, especially among my fellow Millennials. A
improving credit scores, managing our budget, and working
good realtor should be viewed as a necessity.
harder in our careers to establish our financial stability. As
$0 Los Altos
Mountain View
Palo Alto
Portola Valley
Redwood City
Sunnyvale
Woodside
Average Sale Price (August 2017 - January 2018)
08/2016 - 01/2017
Average sale price for single-family homes from 08/2016 to 01/2017, compared to the period from 08/2017 to 01/2018.
08/2017 - 01/2018
Price/Square Foot Ratio $2,000
At DeLeon, our agents are all real estate professionals who
$1,800
among our Millennial friends that the American Dream is
have chosen this industry as our career. Many of us have
$1,600
becoming an achievable reality.
advanced degrees and experience beyond real estate. We
$1,400
As an agent with DeLeon, I’ve worked with a diverse group
on relationships. Beyond that, we are people who all have
$1,200
of homebuyers of different industries and various ages. An
personality, ambition, and our own sense of humor. I would
$1,000
increasing number of Millennials are showing up to our open
never hesitate to refer a friend or family member to any one
houses and calling in to inquire about properties. Millennials
of my colleagues because I know that they are hardworking,
have overtaken baby boomers as American’s largest
knowledgeable, ethical, and friendly people to work with.
generation and workforce, and it’s likely that this Millennial-
Beyond DeLeon, there are plenty of excellent agents out
$400
homebuyer trend will only continue to move forward.
there in the community as well. Finding the right agent for you
$200
Millennials are well-educated, career driven, ambitious, and
is one of the best things you could do as buyers looking to
technologically savvy. We grew up surrounded by computers,
find a home.
smart phones, and free information at our fingertips.
Menlo Park
Average Sale Price (August 2016 - January 2017)
we’ve grown older, we’ve sensed an increasing optimism
all love working with clients, and know this industry is built
Los Altos Hills
$800 $600
$0 Los Altos
Los Altos Hills
Menlo Park
Mountain View
Price/SqFt Ratio (August 2016 - January 2017)
Palo Alto
Portola Valley
Redwood City
Sunnyvale
Woodside
Price/SqFt Ratio (August 2017 - January 2018)
08/2016 - 01/2017
Price per square foot ratio for single-family homes from 08/2016 to 01/2017, compared to the period from 08/2017 to 01/2018.
08/2017 - 01/2018
Data gathered from the Multiple Listing Service on 02/13/2018
20 | D E LEO N RE A LT Y.CO M
D E L EO N R E A LT Y.CO M
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Recent Sales in Palo Alto
Community Calendar- Palo Alto 4th Annual Baylands 8K Double Run/Walk
STREET ADDRESS
Run in the Palo Alto Bayland Open Space. The Double 8K Run/Walk is a two-stage road and trail run (5K+halftime+3K). This is a flat fast course. (This course is not suited for strollers.)
WHEN: 7:00 pm – 10:15 am WHERE: Palo Alto Baylands, 1900 Geng Rd, Palo Alto MORE INFO: https://www.doubleroadrace.com/run/ pa/home
BATHS
SQ FT TOTAL
LOT SIZE
PROPERTY SUB TYPE
DOM
PRICE
215 Coleridge Avenue
6
4|1
4,586
32,500 Lot SqFt
Res. Single Family
8
$23,495,000
438 Chaucer Street
4
4|1
4,686
14,210 Lot SqFt
Res. Single Family
12
$7,199,500
Sunday, March 25, 2018
471 Nevada Avenue
5
5|2
4,521
8,970 Lot SqFt
Res. Single Family
0
$6,500,000
A Festive Spring Tradition! Bring the Family and enjoy an
3239 Waverley Street
5
3|1
3,073
8,441 Lot SqFt
Res. Single Family
9
$5,050,000
5 Phillips Road
3
2|1
2,398
12,863 Lot SqFt
Res. Single Family
0
$4,900,000
Easter Bunny and participate in Arts & Crafts. (Children must
781 Channing Avenue
5
4|1
3,535
10,400 Lot SqFt
Res. Single Family
10
$4,900,000
be accompanied by a paying adult.)
757 Moreno Avenue
4
4|0
3,779
6,689 Lot SqFt
Res. Single Family
31
$4,800,000
280 Colorado Avenue
5
4|0
2,998
8,250 Lot SqFt
Res. Single Family
20
$4,688,000
280 Colorado Avenue
5
4|0
2,998
8,250 Lot SqFt
Res. Single Family
3787 Louis Road
5
4|1
2,925
8,256 Lot SqFt
Res. Single Family
0
$4,400,000
2290 South Court
4
2|0
2,344
6,300 Lot SqFt
Res. Single Family
11
$4,350,000
1151 Guinda Street
4
3|0
2,394
7,597 Lot SqFt
Res. Single Family
0
$4,000,000
Sunday, May 6, 2018
205 Walter Hays Drive
3
2|0
1,394
8,717 Lot SqFt
Res. Single Family
5
$3,980,000
Experience the towering redwoods, lush ferns, and beautiful
1815 Hamilton Avenue
3
2|0
1,759
6,882 Lot SqFt
Res. Single Family
9
$3,860,000
trails through Huddart Park, King’s Mountain and Bear
4276 Los Palos Avenue
4
3|0
1,957
9,480 Lot SqFt
Res. Single Family
11
$3,670,000
Easter Egg Hunt in our Beautiful Garden. Meet more than 20 Animals at the Petting Zoo. Take Photographs with the
WHEN: 9:30 am - 2:00 pm WHERE: 1431 Waverley Street, Palo Alto MORE INFO: https://www.gamblegarden.org/event/ annual-easter-egg-hunt/
Coastal Trail Runs
2018 Racing Hearts 5k/10k Sunday, March 18, 2018
Join us on Sunday, March 18th for our 5th Annual community event. We are excited to celebrate active living, heart wellness and heart safety, and helping to place more AEDs in our community. Get educated and come join the fun!
WHEN: 2:00 pm PDT WHERE: King Plaza in downtown Palo Alto (City Hall) MORE INFO: https://raceroster.com/
Gulch.
315 Oxford Street
3
2|1
2,182
5,000 Lot SqFt
Res. Single Family
14
$3,588,000
465/469 Ruthven Avenue
4
3|0
2,000
7,500 Lot SqFt
Res. Single Family
4
$3,500,000
The preserve’s entrance is located one mile south of the
325 Channing Avenue, #310
2
2|1
1,871
21,523 Lot SqFt
Res. Condominium
9
$3,200,000
intersection of Skyline Boulevard (Highway 35) and Page Mill
3111 Cowper Street
3
2|0
1,274
6,117 Lot SqFt
Res. Single Family
9
$3,200,000
Road.
2870 Kipling Street
3
1|0
1,086
6,569 Lot SqFt
Res. Single Family
0
$3,100,000
1879 Hamilton Avenue
3
2|0
1,357
6,873 Lot SqFt
Res. Single Family
9
$3,050,000
3465 Louis Road
4
2|0
1,713
6,900 Lot SqFt
Res. Single Family
9
$3,025,000
244 Webster Street
4
2|0
1,806
5,149 Lot SqFt
Res. Single Family
9
$2,950,000
952 El Cajon Way
4
2|0
1,791
7,595 Lot SqFt
Res. Single Family
0
$2,860,000
325 Channing Avenue, #314
2
2|0
1,552
21,523 Lot SqFt
Res. Condominium
0
$2,850,000
975 El Cajon Way
4
2|0
1,639
6,510 Lot SqFt
Res. Single Family
0
$2,820,000
354 Embarcadero Road
3
2|0
1,998
5,214 Lot SqFt
Res. Single Family
0
$2,800,000
PROFESSORVILLE
Month
Average Sale Price
Price/SqFt Ratio
Number of Sales
Month
Sep-17
$5,200,000
$1,819
1
Oct-17
Average Sale Price
$4,688,000
WHEN: 8:00 am WHERE: Skyline Ridge Open Space Preserve, Palo Alto.
events/2018/15006/2018-racing-hearts-5k10k
PALO ALTO HILLS
HOME SALES FROM 12/1/2017 - 2/23/2018
BEDS
Gamble Garden’s Easter Egg Hunt
Sunday, March 11, 2018
Represents DeLeon Realty Sales
SOUTH PALO ALTO Number of Sales
Month
Average Sale Price
Price/SqFt Ratio
Number of Sales
Sep-17
0
Sep-17
$2,671,667
$1,683
6
0
Oct-17
0
Oct-17
$2,814,286
$1,560
7
Nov-17
0
Nov-17
3
Nov-17
$2,942,333
$1,526
9
3519 Ross Road
4
2|0
1,754
8,697 Lot SqFt
Res. Single Family
0
$2,650,000
Dec-17
0
Dec-17
0
Dec-17
$2,849,286
$1,650
7
1115 Oregon Avenue
3
2|0
1,195
6,246 Lot SqFt
Res. Single Family
13
$2,350,000
Jan-18
0
Jan-18
1
Jan-18
$2,440,000
$1,653
1
4201 Juniper Lane, #G
3
3|1
2,322
441 Lot SqFt
Res. Townhouse
32
$2,210,888
Feb-18
0
Feb-18
0
Feb-18
$3,525,000
$1,508
2
817 & 819 Kipling Street
2
2|0
881
2,829 Lot SqFt
Res. Single Family
9
$2,100,000
447 Homer Avenue
3
2|1
1,580
784 Lot SqFt
Res. Townhouse
7
$2,025,000
101 Alma Street, #503
2
2|0
1,216
1,133 Lot SqFt
Res. Condominium
11
$1,875,000
555 Byron Street, #410
3
2|0
1,546
1,432 Lot SqFt
Res. Condominium
207
$1,850,000
4282 Ponce Drive
3
2|0
1,777
4,608 Lot SqFt
Res. Townhouse
10
$1,812,000
355 Kingsley Avenue
2
1|0
979
1,496 Lot SqFt
Res. Single Family
44
$1,775,000
325 Fernando Avenue
4
2|0
1,337
3,104 Lot SqFt
Res. Single Family
7
$1,642,000
518 Everett Avenue, #F
2
2|0
1,056
1,053 Lot SqFt
Res. Condominium
9
$1,630,000
496 W Charleston Road, #302
3
2|0
1,401
1,405 Lot SqFt
Res. Condominium
7
$1,461,000
582 Vista Avenue
2
1|0
1,109
1,225 Lot SqFt
Res. Condominium
10
$1,210,000
4151 El Camino Way, #E
1
1|0
639
5,374 Lot SqFt
Res. Condominium
7
$825,000
$4,568,333
$1,775,000
Price/SqFt Ratio
$2,627
$1,813
VENTURA Month
Average Sale Price
Price/SqFt Ratio
Number of Sales
Month
Sep-17
$2,282,500
$1,233
2
Dec-17
0
0
Jan-18
0
1
Feb-18
Oct-17 Nov-17
$2,050,000
$2,755
22 | DE LEO N RE A LT Y.CO M
Average Sale Price
$1,642,000
Price/SqFt Ratio
$1,228
Number of Sales
1
Data gathered from the Multiple Listing Service on 02/26/2018
®
PRSRT STD ECRWSS U.S. POSTAGE PAID SAN JOSE, CA PERMIT #2196
DeLeon Realty 1717 Embarcadero Road Palo Alto, CA 94303
******ECRWSSEDDM******
RESIDENTIAL CUSTOMER
SEMINAR
SHARP MIND
Buying a Home Below Market Value with Ken DeLeon Palo Alto Hills Golf & Country Club 3000 Alexis Drive Palo Alto, CA
U.C. Berkeley Law (Boalt) – High Honors Former Wilson Sonsini Attorney
RIGHT BRAIN
Creative solutions
GOOD HEARING
Listening to your goals
LEFT BRAIN
Analytical math & economic background
SHARP VISION
Spotting great deals for clients
HANDS
Over $3.3 billion in sales since 2011
Tuesday, April 24, 2018 6:00 PM - 8:00 PM
HEART
Belongs to my clients. Putting your interests first
RSVP@DELEONREALTY.COM 650.543.8500 Seminar is for prospective clients only. No outside real estate professionals permitted.
STRONG ENDURANCE
Walking clients through the long home-buying and selling process
FLEET OF FOOT
Running clients to excellent opportunities
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650.700.9000
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