DRE #01903224
Managing Broker: Michael Repka
WE ARE LOCATED AT: 1717 Embarcadero Road, Palo Alto, CA 94303 650. 543. 8500 | DELEONREALTY.com
| 650.785.5822
Founder — Ken DeLeon CEO & Managing Broker — Michael Repka General Counsel — Colette Thomason
CONTRIBUTORS:
Ken DeLeon, Michael Repka, Alexander J. Lewicki (DRE #02189814) and David Tobener
Contact Ken DeLeon for exceptional buying opportunities at 650.543.8501 | DRE #01342140
Contact Michael Repka to learn about our Platinum packages and incredible listing services for sellers at 650.488.7325 | DRE #01854880
DISCLAIMER: As prominent members of the real estate community, we respect all pre-existing listing agreements. If your home is currently under a listing contract, or if you are contractually obligated to work with a particular agent because you signed a Buyer Broker Agreement or similar form, please do not construe this publication as a soliciation. On the other hand, if you have not yet selected an agent, we urge you to consider our team's resources and design acumen, as demonstrated in this proprietary publication, which was created completely in-house by our talented marketing team.
Advertising. All rights reserved. DeLeon Realty is not a law firm and the publication of this information does not create an attorney-client relationship with this brokerage or any of its members. Likewise, the material in this publication does not constitute a solicitation and is not intended to provide legal advice. The content in this publication is informational only and may not reflect current legal developments. This publication should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction. You should always consult a suitably qualified attorney regarding any specific legal problem or matter. DeLeon Realty expressly disclaims all liability with respect to actions taken or not taken based on any or all the contents of this publication. See also deleonrealty.com for additional disclaimers. Legal services are provided by the Integra Law Group, LLP at no additional charge to our clients.
Real estate agents in the United States are amongst the highest paid in the world − both in terms of actual dollars and as a percentage of the sales price. Unlike other countries, such as the United Kingdom and Australia, where sellers typically pay around two percent (2%) to sell a home, American sellers have grown accustomed to paying significantly more, often ranging from 5% to 6%.
One major factor contributing to these high costs in the US is the so-called Buyer Broker Commission Rule, where agents tell sellers they have to pay a 2.5% commission to the buyer’s real estate agent, in addition to the commission for their own listing agent. A recent study revealed that 94.9% percent of Palo Alto sellers of homes priced from $2 to $10 million offered exactly 2.5% to the buyer’s agent.
However, this longstanding practice is now facing significant scrutiny. Recent federal lawsuits have accused the real estate industry of collusion in an effort to inflate commissions by forcing sellers to make unilateral and non-negotiable offers of compensation to the buyer’s agent for listings on the Multiple Listing Service (MLS).
In a landmark federal legal ruling with far-reaching implications, a Kansas City jury found the National Association of Realtors (NAR), HomeServices of America (including Berkshire Hathaway and Intero), and Keller Williams guilty of conspiring to inflate or artificially support high commission rates. This decision arose from the Sitzer/Burnett buyer broker commission lawsuit. It should be noted that Anywhere Real Estate (including Coldwell Banker and Sotheby’s), RE/MAX, and Keller Williams all reached settlements in which they agreed to pay over $200 million. Subsequent lawsuits targeting brokerages and Realtor® associations in California, including Compass and eXp, are ongoing.
Despite reaching a tentative settlement, it is uncertain whether the Court will approve it. On February 15, 2024, the US Department of Justice (DOJ) submitted a legal filing known as an amicus brief arguing against approving the settlement. The DOJ argued that the settlement would not cure the underlying inequity of agents persuading sellers into paying the buyer’s agent a non-negotiable amount of commission that is not tied to the value of the services provided.
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And still enjoy COMPLIMENTARY access to our vast experience and top-notch services in:
• Marketing
• Home Prep
• Inspections
• Staging
• Legal Services through Integra Law Group, LLP ... and much more!
We’ve entered a new era in real estate, where Sellers do not need to pay 2.5% or more for the Buyer’s Agent. Most of our Sellers elect to offer only $10,000 to the Buyer’s Agent. Should the agent seek additional compensation, the Buyer can cover the difference. Alternatively, the DeLeon Buyer’s Team will represent that Buyer on our listings without any charge. Yes, we’re even waiving the $10,000!
This client-centric approach not only saves our Sellers money but also draws more Buyers to our listings. It’s no wonder we are the #1 Listing Team in Silicon Valley!
Caution: Despite a recent court case, some other agents still advocate for high commissions.
The DOJ appears adamant that the amount of commission paid to the buyer’s agent should be permanently decoupled from the listing agreement. Instead, the buyer and the buyer’s agent should negotiate the appropriate compensation based on the agent’s level of experience, education, time invested, and extra service provided.
On the other hand, some in the industry are arguing that the buyer’s obligation to pay any commission would limit their funds available for a deposit. Unlike DeLeon Realty, most brokerages in Silicon Valley do not offer an alternative for buyers to purchase a home completely free from buyer’s-side commission. Consequently, buyers may need to allocate funds to compensate their broker, potentially impacting their deposit. However, this argument overlooks the likelihood that market competition would naturally reduce the buyer-side commission.
The New World Order
This legal development marks a significant shift for sellers, as it is now clear that they do not have to offer a 2.5% commission to the buyer’s agent. According to guidance from the California Association of Realtors® and the Silicon Valley Association of Realtors®, agents should inform sellers that they are not obligated to offer any particular amount to the buyer’s agent − or even anything at all. The amount of compensation paid, if any, is up to the seller.
Even if the seller chooses not to offer any compensation to the buyer’s agent, the home can still be showcased on the MLS, ensuring visibility on popular platforms such as Zillow, Trulia, Realtor.com, and MLSlistings.com, as well as brokerage websites like DeLeonRealty.com, Compass. com, and ColdwellBankerHomes.com. In essence, buyers will have access to information about all homes available for sale, irrespective of whether the seller offers minimal or even no compensation to the buyer’s agent.
While some listing agents may resist this change and continue to pressure sellers to pay 2.5% to the buyer’s agent, others are engaging in transparent discussions with sellers about their options. If a listing agent is unwilling to reduce the amount offered to the buyer’s agent, then the seller should consider alternative listing agents.
It’s worth noting that some unethical buyer’s agents may insist on inflated commissions to show certain properties. As such, it is important that listing agents continue to put all listings on the MLS and invest in a robust advertising campaign to reach all buyers. Meanwhile, buyers should continue to monitor the MLS and other advertising materials to verify that their agent is presenting them with all available properties. Again, if the buyer’s agent is not looking out for the buyer’s best interest, then the buyer may want to find a different agent − or consider any DeLeon Realty listing, which they can purchase with absolutely no buyer’s-side commission.
Although many buyer’s agents are willing to prepare the offer paperwork and provide appropriate guidance for “only” $10,000 or $20,000, there may be circumstances where the agent’s long-term involvement with the buyer warrants compensation exceeding $20,000. In such instances, buyers are routinely being asked to compensate their agent with an additional amount based on the agent’s education, experience, services, and time invested. Fundamentally, this concept makes sense in that the buyer, rather than the seller, is the one who benefits from the enhanced services provided by the buyer’s agent.
Looking ahead, this shift is expected to significantly reduce the cost of selling a home in Silicon Valley, potentially removing barriers to selling and, in turn, increasing housing inventory. Sellers can now expect total commissions as low as 3% to 3.5%, a notable departure from the previously common 5% to 6%.
Illustrating this point, we recently listed a property that “only” offered $10,000 to the buyer’s agent. Despite this, we received an impressive 17 offers, resulting in the property selling for a very high price, surpassing both the seller’s expectations and comparable sales. It was rewarding to witness most agents prioritizing their clients’ interests and submitting strong offers. However, one buyer’s agent stated that they would not represent the buyer unless the seller increased the compensation offered to buyer’s agent even before they submitted an offer. After the seller declined this request, the interested buyer simply submitted their offer with a different agent. Ultimately, everyone won – everyone except the agent who refused to submit an offer, that is.
1 ACRE WITH A PRIME ATHERTON LOCATION
• 4 Bedrooms
• 3 Bathrooms
• 2,850 Sq. Ft. Home
• 1-Acre Lot
• West of Alameda
• Bright Living Spaces
• Expansive Lot
• Top Schools
366 STEVICK DRIVE, ATHERTON Offered at $6,488,000
366Stevick.com
LUXURY AND PRIVACY ON MORE THAN AN ACRE
• 4 Bedrooms
• 3.5 Bathrooms
• 4,350 Sq.
• 1.03-Acre Lot
• Refinished Hardwood Floors
• Great Natural Light
• Large Ipe Deck in Backyard
• Top Public/Private Schools
76 MELANIE LANE, ATHERTON
76Melanie.com
REMODELED AND EXPANDED ON MORE THAN AN ACRE
• 7 Bedrooms
• 7 Bathrooms (5 Full, 2 Half)
• 5,490 Sq. Ft. Home
• 1.01-Acre Lot
• Luxurious Appointments
• Primary Suite w/2 Baths
• Gym, Pool, Tennis Court
• Top Public/Private Schools
6 SARGENT LANE, ATHERTON
at $ 9,488,000
6Sargent.com
STUNNING TUDOR IN PRIME CRESCENT PARK
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1449
• Gorgeous Interiors
• Large Gathering Spaces
• Sprawling Outdoor Grounds
• Top-ranked Schools
AVENUE, PALO ALTO
1449University.com
Senate Bill 9 (“SB9”) allows for the development of two residential units on lots zoned for single-family use, or the subdivision of one lot into two smaller lots. The goal of this Bill was simple: to alleviate California’s housing crisis by creating additional housing opportunities. Now, over two years since the Bill went into effect in January 2022, have we seen any impact?
Despite theoretically streamlining the housing application process by removing subjective approval power from local jurisdictions, utilization of SB9 has been relatively slow to gain steam. This is due to a number of issues, most notably the text of the bill itself. There are two important facets of the bill aimed at preventing its abuse by developers and which will limit its widespread usage. The first is that SB9 requires property owners looking to lot split to commit to living on the property for at least three years. The second is that you cannot use SB9 to split two adjacent lots.
Another inhibiting factor has been the response to the law by local municipalities. The fear of SB9 prompted towns and cities to enact emergency ordinances in order to adapt to the changing landscape. Many of these ordinances were cumbersome and redundant, while others clashed with the spirit of the law altogether. Woodside notoriously declared the entire city exempt as a mountain lion habitat in an attempt to overcome SB9, garnering threats from the California Attorney General’s Office, while Palo Alto chose to enact an ordinance filled with some 60+ rules aimed at bogging down these applications in the planning process. More recently, Palo Alto is in the midst of unilaterally adding 100+ homes to the city’s historic inventory, an effort which it has admitted is driven by a desire to curb SB9’s usage.
Despite lofty goals, nearly every town in Silicon Valley could count the number of approved SB9 projects on one hand at the end of 2022. Even larger neighbors such as San Jose and San Francisco saw limited activity - San Jose only approved five projects in 2022,
while San Francisco approved six. Even Saratoga, which had received a relative flurry of 36 applications by comparison, had only approved three projects by year’s end. Conversely, the state’s recent efforts to increase housing via accessory dwelling units (ADUs) have been overwhelmingly successful and heavily utilized, with over 20,000 ADUs permitted in 2021 alone.
The following year has plodded along similarly, with the majority of Silicon Valley cities having approved fewer than ten SB9 projects. As the NIMBY fears for the downfall of our communities fade and the reality of the bill sets in, we begin to see local jurisdictions adopt more pragmatic approaches. The emergency ordinances are being replaced by more streamlined planning provisions, and some states are even warming up to the potential benefits of SB9. By way of example, Palo Alto, which has recently predicted that they will see 40 new dwellings due to SB9 by 2030, has now replaced its 60+ rules with new streamlined objective standards and is expected to entertain an increase of the maximum floor area of a new SB9 dwelling from 800 square feet to 1,200 square feet in 2025.
Despite the slow implementation of SB9, it is important for real estate agents to understand the nuances of this, and other, useful tools. For example, a potential buyer could unlock flexibility, or discover value, though the strategic use of SB9. Similarly, a listing agent should understand, and be able to explain, how SB9 could be of benefit to a potential buyer, under the right circumstances.
SB9 will never singlehandedly overcome California’s housing crisis, since its requirements are too onerous to do so. And that is, at least in this author’s opinion, a good thing. Instead, it has become a tool best utilized by the savvy homeowner or homebuyer. We are hopeful that as we continue to see these SB9 projects trickle onto the market, it will begin to ease some of the tension created by multiple years of record low inventory in the valley.
In the dynamic landscape of California real estate, the practice of holding properties under the name of a California registered Limited Liability Company (LLC) has become increasingly popular among property owners. Utilizing an LLC offers various advantages, the most prevalent being to preserve privacy, especially in Silicon Valley. However, as of January 1, 2024, LLCs in California face a new regulatory landscape with the introduction of the Corporate Transparency Act (CTA). This legislation significantly impacts how LLCs operate and their reporting requirements, particularly concerning real property ownership.
The CTA was enacted with the primary goal of enhancing transparency in corporate ownership and combating illicit financial activities such as money laundering and terrorism financing. By requiring certain entities to disclose their beneficial ownership information, the CTA aims to close existing loopholes that have allowed individuals to conceal their identities behind anonymous shell companies.
Under the CTA, LLCs engaging in real estate transactions in California are subject to reporting requirements. Specifically, LLCs must file reports disclosing information about their beneficial owners.1 This includes individuals who directly or indirectly exercise “substantial control” over the reporting company, or directly or indirectly own or control 25% or more of the “ownership interests” of the reporting company.2
Reporting under the CTA involves providing details such as the beneficial owners’ names, dates of birth, addresses, and unique identification numbers, such as a driver’s license or passport number. Additionally, LLCs must designate a "responsible party" who will serve as the primary point of contact for the company’s compliance with the CTA.
Compliance with the CTA is not optional. Failure to file the required reports or providing false or misleading information can result in severe penalties including civil fines, criminal prosecution, or other enforcement actions imposed by regulatory authorities.
California has mirrored the federal CTA by introducing its own rendition (Senate Bill 738), specifically targeting corporations incorporated outside of California’s jurisdiction or LLCs registered to operate within the state. This proposed legislation mandates the submission of Beneficial Ownership Information (BOI) to the Secretary of State. The bill is currently before the Secretary of Senate.
One significant distinction between state reporting requirements and those imposed by the CTA is the level of confidentiality. While state-level disclosures may be accessible to the public, information submitted under the CTA remains confidential and is accessible only to authorized government agencies for law enforcement purposes. This confidentiality provision is intended to safeguard sensitive information while enabling law enforcement agencies to effectively investigate and prosecute illicit activities.
In essence, the CTA represents a significant shift in the regulatory landscape for LLCs, particularly those involved in California real estate transactions. By requiring greater transparency in corporate ownership, the CTA aims to enhance the integrity of the financial system and protect against illicit activities. While compliance with the CTA may present additional administrative burdens for LLCs, it is essential for property owners to understand and adhere to these new reporting requirements to avoid potential legal consequences.
While the stated objectives of the CTA are laudable and generally palatable provided the information is kept confidential and used only for law enforcements purposes, the California legislation would be more objectionable if the homeowner’s identity is made public. Various privacy and safety issues are at play here, warranting careful consideration.
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Offered at $4,488,000
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• Open Floorplan
• Flex Space Downstairs
• Nice Backyard Space
Offered at $3,488,000
171Everett.com
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When individuals are considering buying or selling real estate, they often turn to their agent for advice on whether to initial the arbitration provision. If both parties initial this provision, it binds them to arbitrate most disputes arising under the contract. Realtors® typically respond in one of two ways: either they admit they lack the requisite legal knowledge to competently answer that question, leaving clients to select or reject arbitration without guidance; or they simply state that arbitration is quicker and cheaper than litigation. Unfortunately, depending on the circumstances, the opposite may be true. This article will examine some of the pros and cons of arbitration and shed light on a major challenge that is often unconsidered.
Arbitration is simply an alternative form of dispute resolution that generally reduces the involvement of the court system and usually takes place after the parties have failed to reach a settlement through negotiation
and/or voluntary mediation. Arbitrated disputes are adjudicated by an impartial arbitrator selected by the involved parties.
In real estate, the arbitrators are usually retired judges or highly qualified and respected real estate attorneys. The arbitration process is less formal than a courtroom hearing or trial, but more formal than mediation or negotiation. The parties may, and generally do, hire legal counsel to represent them throughout the arbitration process. The arbitrator considers the relevant facts and evidence of the case, listens to arguments, and renders a decision. The award in arbitration is final and binding on the parties. It may not be reviewed or overturned by a court except in very limited circumstances, such as when fraud, corruption, or misuse of power has been involved. Neither the trial court nor an appellate court provide recourse for a party that feels that the decision is wrong, even if the arbitrator made a mistake as to the facts or law.
Generally, this process is a less expensive and more efficient way to resolving disputes between two parties compared to filing a lawsuit in court. Nonetheless, there exists a hidden pitfall that many are not aware of –namely, third parties, such as real estate agents involved in the transaction, are not a party to the contract so they cannot be compelled to arbitrate.
What many Realtors® fail to realize, or omit to disclose to their clients, is that the Realtors® are not obligated to participate in arbitration proceedings between clients. Therefore, disputes involving sellers, buyers, and potentially one or more of the Realtors® (e.g., the listing agent or buyer’s agent) could need to go through both arbitration and litigation, unless the Realtors®agree to participate in the arbitration. This dual process can significantly escalate expenses, as it entails both arbitration and litigation costs. This additional financial burden causes many clients to leave Realtors®out of disputes, even if they have some level of culpability, potentially relinquishing a portion of the financial resolution that they might have been compelled to contribute. Conversely, if the parties had chosen not to initial the arbitration paragraph, the aggrieved party could include any responsible party, including the Realtors® in a lawsuit.
Another drawback of arbitration is that arbitration awards are not self-executing. This means that the prevailing party may have to resort to court proceedings to confirm the award, after which they could use all the ordinary means to collect on the judgment.
Litigation is what we all imagine when we think of a good courthouse movie, L.A. Law or Perry Mason. Given the strain on the court system, it can take well over a year to resolve even a relatively straightforward matter. However, litigation offers predictability due to the principle of stare decisis, whereby judges based their current decisions on established precedents from previous cases. Therefore, a review of past cases can offer insight into how a judge might rule on a current case.
Another advantage to litigation is that parties named in the lawsuit have the opportunity to appeal an erroneous decision. While this adds extra expense and considerable time, it also provides reassurance for parties concerned about potential errors or an unjust decision at the trial court level.
Although there may be many reasons why both buyers and sellers might prefer to opt for litigation over arbitration, this election could be viewed as a sign that the party requesting litigation is litigious or difficult, which could weaken their offer. Additionally, despite the potential benefits to both the buyer and the seller, the agents involved may not explain the request in its best possible light out of self-interest or unfamiliarity with this nuanced choice.
Choosing arbitration entails both advantages and disadvantages, but there is no one-size-fits-all solution. When deciding what is best, clients should take into account whether they are buyers or sellers, the likelihood of litigation, the potential involvement of the listing agent or the buyer's agent in litigation, and the desire for a competitive offer. It's essential to have in-depth discussions about these matters with your Realtors® and/or a qualified real estate attorney well before making an offer.
BRIGHT AND SPACIOUS IN SOUGHT-AFTER NEIGHBORHOOD
• 5 Bedrooms
• 3.5 Bathrooms
• 3,570 Total Sq. Ft.
• 13,800 Sq. Ft. Lot
• Bright, Airy Interiors
• Large Gathering Spaces
• Great Backyard w/Patio
• Short Trip to Parks
849 CALIFORNIA WAY, REDWOOD CITY Offered at $3,488,000
849California.com
BEAUTIFULLY RENOVATED IN CRESCENT PARK
• 4 Bedrooms
• 3 Bathrooms
• 2,022 Sq. Ft. Home
• 5,000 Sq. Ft. Lot
• Renovated 2017
• Green Features & Materials
• Top-tier Appliances
• Top-ranked Schools
815 UNIVERSITY AVENUE, PALO ALTO Offered at $3,788,000
815University.com
How can one’s darkest moments lead to the light of knowledge? How can a seemingly horrific experience result in greater insight and later happiness? Through having to face and overcome four “tragedies” with the right mindset, I have become an emotional alchemist. I can now transform adversity into life lessons, resulting in growth. I wrote this article in hopes that you take bold chances and live the most fulfilled life possible, for I have found that we create our own lives and outcomes.
While we cannot control what happens to us, I believe that we can control our responses and thereby we indirectly determine our outcome, and our lives. These tragedies catalyzed new thoughts and personal growth that has essentially resulted in me being able to live the life of my dreams and have the courage to start my own real estate brokerage utilizing a new, client-centric business model.
The hardest and most painful of my hardships is the childhood loss of Jane, my older sister and my only sibling. Jane was a brilliant and kind person, better than me in almost every way. The one attribute that I had and she did not was self-confidence. Doubting herself and struggling with depression, when her long-term boyfriend broke up with Jane, it was too much for her and she took her life at the tender age of 17.
Losing Jane was a hand grenade to my heart. At first, I was overwhelmed with guilt. I kept wondering what I could have said or done differently to give her enough hope and resilience to carry on. Within a few weeks, guilt transformed into anger. I endlessly thought of this question: how could she do this to me and our parents? No matter how hard I tried, I could not wrap my mind around Jane’s decision to end her own life, leaving everything behind over a mere boyfriend.
The passage of time changed my attitude and emotions. I began to feel more and more empathy for Jane and started to wonder how she felt and what she saw before making that mortal decision. Then there was the feeling of acceptance and less anger. I came to realize that my sister was so depressed and distraught that she truly did not know what she was doing and could not think fully of the consequences. I moved from guilt, to anger, and finally settled upon a peaceful acceptance of her love. I can attribute the following lessons from losing my sister:
1. Become self-reliant. My sister’s fatal flaw was letting another person determine her self-worth. While initially a people pleaser, seeing my sister’s downfall due to her need for approval, I learned to no longer seek validation from others. My selfworth is determined by my actions and thoughts. I have learned how to generate my own happiness, motivation, energy, and satisfaction. For example, not needing the approval of business competitors empowered me to support Michael Repka’s drive to create a new, more ethical, and client-centric real estate listing model that has revolutionized the way people sell houses and changed the homeselling process for the better.
2. Focus on strengths and positives. Before Jane’s suicide, she was burdened with absurdly high expectations as the first born. Her 99% test scores in both math and English were excellent, but the sad irony is that many geniuses use their intellect to overanalyze their flaws and Jane focused on what she lacked versus what she had. To help myself recover, I vowed to carry the best attributes of Jane in my heart. I became more empathetic and aware. I also became a better communicator and ended every conversation with family members by telling them I love them, since those being my last words to Jane gave me solace. With Jane gone, I wanted to achieve more in life and honor her memory by using her loss to fuel me to greater heights. My grades went from B+/A- to all A’s and I sat in the front row and became fully engaged in school. Until age 40, I lived for Jane almost more than myself, as I thought of her daily. I have now released this through finally coming to terms with her loss and now my focus is on my family and clients.
3. Become an inspiration to others. While it is wise to learn from your own life mistakes, it is even more ideal to learn from the errors of others. I used the emotional loss of Jane and my other tragedies to speak on a volunteer basis at many local high schools, to at-risk youth, and suicide prevention groups, to give strength and perspective to these young people. It is my hope that by sharing my experiences and my unique perspective on life, that I can help someone else get through a hard night and realize that the sun will rise just as beautifully tomorrow. Losing Jane gave me a resilience that prepared me for quickly overcoming three subsequent hardships.
On the morning of August 17th, 1998, my prospects never seemed brighter. I had recently graduated from Berkeley Law School, 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. I was visiting my parents in Florida and went on a walk that would nearly end and forever change my life.
My father and I were conversing about how excited I was for my move to Palo Alto while walking along the sidewalk; then, 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 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 screamed in agony, 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
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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.
Confused as to where the blows were coming from, I looked up 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 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. 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. Then, I heard approaching sirens in the background.
My attacker was soon identified and arrested. They found out that just two days earlier he had been arrested on felony charges for attempting to sell drugs to minors. Tests found that he was on horse tranquilizers (ketamine), methamphetamines, ecstasy, and marijuana when the accident happened. 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 only son. 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 of my life.
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:
1. 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 for self-improvement and doing great things in this world. I now have made growth my life purpose. I want to grow as much as I can, and help others evolve to their full potential. The beautiful part about focusing on growth as my life’s purpose, is that I can embrace the full spectrum of emotions, rather than just valuing happiness as before. Mindset is excellent for transforming seemingly tragic circumstances into greater life growth and fulfillment.
2. 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,
I fear living a mediocre life. 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 now seek to live a life so great that it eliminates any fear of death.
3. Pursue passion – leaving law for real estate. I was a very good lawyer and was 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 Repka 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 operates.
4. Forgive. I have given hundreds of inspirational speeches on a volunteer basis and 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 the book Forgive for Good by Dr. Luskin, the Director of Stanford’s
Forgiveness Project, which talks about the medical and psychological benefits of forgiveness.
5. Love yourself. Realizing that life may end at any moment, I will not waste my limited time being beholden to the approval of others. The goal in life is to be your truly unique self and to find likeminded people to grow together. Wasting time and energy caring about what others think of you will lead to endless comparisons and will limit growth.
Although these two “tragedies” caused me great hardship, in many ways, my life is much more fulfilled and I appreciate every moment, as I know how fleeting life may be. While I do not wish adversity upon anyone, with the right mindset, you can gain resilience and wisdom when overcoming life’s hardships. It is important to leave a legacy, as I know life is ephemeral. The life lessons I learned instilled me with the courage to follow my passion for real estate.
The two subsequent cancers that resulted from Ken’s accident will be discussed in his next newsletter article.
“... [DeLeon] transformed our house so that we fell in love with it all over again, and apparently so did potential buyers!” - Jackie L.
the lessons he learned from the Stanford Graduate School of Business to enhance an already innovative real estate model. His focus on putting the client first has propelled the DeLeon Team to the top of the Silicon Valley real estate industry.
Nestled amidst the stunning Sierra Nevada Mountain range, Lake Tahoe stands as a picturesque gem that captivates visitors and locals alike. For those considering a home purchase, Lake Tahoe offers an irresistible blend of natural beauty, all-season activities, and a unique sense of community.
Many Bay Area families develop memories at “The Lake of the Sky” or “Big Blue” that last a lifetime. Whether the perfect choice is the activity-rich Martis Camp in Truckee, which Forbes designated as “possibly the best four-season private community in the United States,” a condo with pristine lake views, or a simple cabin in the woods, the lifestyle is addictive − particularly for families seeking a perfect blend of tranquility and adventure. However, for the very affluent thinking of buying the perfect lakefront home, timing can be a challenge. Often, busy lifestyles conflict with the ability to drive up to the lake promptly after a prime property hits the market. Fortunately, there are four general aviation airports in close proximity to Lake Tahoe, coupled with our evergrowing fleet of aircraft (we currently own two aircraft and have two more on order) give DeLeon Realty’s Platinum clients a unique advantage to be amongst the first to see the most coveted properties along the lake.
Lake Tahoe has long been regarded as an ideal family destination, offering a myriad of activities that cater
to all age groups. The allure of Lake Tahoe lies in its year-round appeal, providing a diverse range of activities for both children and adults. As summer unfolds, families can immerse themselves in the beauty of the surroundings through activities like hiking, biking, and water-based adventures such as kayaking and paddle boarding. Numerous hiking trails offer breathtaking views of the lake and its picturesque landscapes, creating an adventurer's paradise.
Come winter, Lake Tahoe undergoes a magical transformation as the mountains don a pristine coat of snow, becoming a haven for winter sports enthusiasts. Renowned ski resorts like Heavenly, Palisades Tahoe, and Northstar cater to individuals of all skill levels, ensuring that the region becomes a snowy utopia for winter sports enthusiasts. Whether it’s careening down the slopes or enjoying the tranquility of a snow-covered landscape, Lake Tahoe provides an enchanting setting for winter activities. One of our most recent company trips included skiing at Palisades Tahoe (formerly Squaw Valley), snowmobiling on some pristine trails and a gourmet dinner at the fantastic Wolfdales restaurant in Tahoe City.
This family-friendly haven is not only a playground for outdoor enthusiasts but also a nurturing environment for education. With excellent schools in the area, such as the Academy of Arts Careers (#5 in Nevada) and Technology and Coral Academy High School (#7 in Nevada), Lake Tahoe becomes an even more attractive
option for families with children. The local communities are renowned for their strong sense of unity and safety, fostering an environment where families can not only reside but truly thrive.
Lake Tahoe boasts a diverse real estate market, offering a wide range of homes to suit various preferences and budgets. From charming cabins nestled in the woods to luxurious lakefront estates, prospective homeowners can find the perfect property that aligns with their lifestyle.
For those seeking a cozy retreat, quaint cabins tucked away in the forest provide a sense of seclusion and tranquility. On the other hand, lakefront properties offer unparalleled views and direct access to the water, creating a luxurious and serene living experience. Condominiums and townhouses are also available, catering to those who prefer a more low-maintenance lifestyle.
When considering a home purchase in Lake Tahoe, it’s essential to explore the cost differences among key regions, namely South Lake Tahoe, North Shore (California), and the Nevada side. Each area presents its unique charm and characteristics, influencing property prices.
South Lake Tahoe is known for its vibrant atmosphere, bustling with casinos, restaurants, and entertainment options. The housing market here can be diverse, with prices influenced by proximity to the lake and other amenities.
The North Shore, located in California, exudes a more laid-back vibe with charming communities such as Tahoe City and Kings Beach. The real estate market here may reflect a blend of affordability and scenic beauty, making it an attractive option for many families.
On the Nevada side, Incline Village and the exclusive, gated Glenbrook community offer a serene and picturesque environment with the significant tax benefit of no state income tax for Nevada residents and a much lower property tax. Both of these areas come complete with community amenities reserved solely for those who call it home. While prices may be higher in some areas, the allure of a secluded mountain retreat can be a compelling factor for potential homeowners.
Thus, investing in a home in Lake Tahoe isn’t just about acquiring property; it’s about embracing a lifestyle in tune with nature, adventure, and a vibrant community spirit. The region’s all-season appeal, diverse real estate options, and family-friendly atmosphere make it a compelling choice for those looking to create lasting memories and establish a multigenerational home.
If you are interested in knowing more about Lake Tahoe properties, particularly exclusive high-end and/or offmarket opportunities, please to reach out to Ken DeLeon at 650.543.8501.
If you’ve ever driven through any town or suburb in the United States, chances are you’ve encountered the work of Cliff May. Though his name may not be immediately recognizable, his most celebrated creation certainly is: the California ranch home.
As a Southern California native who spent his formative years on a ranch, May grew up surrounded by the diverse architectural styles of the region, from Spanish Colonials to Mediterranean homes. This cultural enrichment left a lasting impression on him. “The early Californians had the right idea,” he once explained. “They built for the seclusion and comfort of their families, for the enjoyment of relaxation in their homes. We want to perpetuate these ideas of home building.”1
May’s early years instilled a love for wide-open spaces and he sought to bring that aspect to his designs. His grand idea was to combine the western ranch home with Hacienda architecture and aspects of modernism, thereby creating what is now known as the California ranch. His innovative approach called for houses to be built out, rather than up, with the goal of bringing the outside in.
May started his own architectural firm in the early 1930s and immediately began to act upon his vision. His early work focused on custom homes in Southern California built around a simple philosophy: homes should reflect the way people truly live. He studied the way families lived in his houses, from how they threw parties, to how they prepared meals, entertained outdoors, and more. Whatever aspects of his homes that families enjoyed, he would work to improve on in his next builds. And he was a stickler for detail – for example, large picture windows and sliding glass doors became part of his designs as soon as they were commercially available.
May’s creation was an instant sensation, and with the need for housing in post-WW2 America at an all-time high, his design experienced significant demand. Marked by their simplicity and functionality, May’s ranch homes enjoyed open floor plans that allowed for easy flow between rooms, while low-pitched roofs and horizontal lines contributed to the unassuming
elegance of the architecture. These features made the homes accessible and appealing to a broad spectrum of homeowners.
The influence of May's design extended far beyond California, affecting residential architecture across the United States. The ranch home gained popularity in the 1950s and 1960s, becoming synonymous with the American suburban dream. It represented a departure from the formal and ornate architectural styles of the past, reflecting a shift towards a more casual lifestyle that was rapidly taking hold throughout the country.
Despite his contributions to the American suburban landscape, May never became a member of the American Institute of Architects and spent the majority of his career as a licensed building designer. Still, he received numerous awards and honors throughout his career, and ultimately was given the designation of licensed architect later in his life.
Cliff May’s impact on the architectural landscape of America has proven to be profound and enduring, and his legacy as a trailblazer in architecture continues to influence our perceptions of modern homes. His innovative approach to residential design has made a permanent impact on the American architectural scene, with many contemporary architects drawing inspiration from his principles of open living spaces and harmony with nature. The California ranch home stands as a testament to May's vision, appreciated for its simplicity, functionality, and the dedication to the concept of indoor/outdoor living.
STUNNING LOS ALTOS RETREAT
• 5 Bedrooms
• 4.5 Bathrooms
• 3,907 Total Sq. Ft.
• 18,972 Sq. Ft. Lot
• Luxurious Interiors
• Spacious Great Room
• Vibrant Grounds
• Top Schools
848 NASH ROAD, LOS ALTOS
Offered at $6,488,000
848NashRd.com
SPECTACULAR OASIS IN LINDENWOOD
• 5 Bedrooms
• 5.5 Bathrooms
• 5,720 Total Sq. Ft.
• 40,890 Sq. Ft. Lot
• Luxurious Appointments
• Incredible Yard w/Pool
• Spacious Guest Home
• Top Schools
197 GREENOAKS DRIVE, ATHERTON
Offered at $7,988,000
197Greenoaks.com
SPECTACULAR WEST ATHERTON ESTATE ON 1.1+ ACRES
• 6 Bedrooms
• 9 Bathrooms (7 Full, 2 Half)
• 9,150 Sq. Ft. Home
• 48,454 Sq. Ft. Lot
• Gated Estate
• High-end Craftsmanship
• Theater, Gym, Wine Cellar
• Top Schools
481 STOCKBRIDGE AVENUE, ATHERTON
Offered at $12,988,000
481StockbridgeAve.com
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