City Market Conditions
$10,000,000 $9,000,000
Average Sale Price
$8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0
Atherton
Los Altos
Los Altos Hills
Menlo Park
Mountain View
Palo Alto
Portola Valley
Redwood City
Sunnyvale
Woodside
04/2019 - 03/2020
Average sale price for single-family homes from 04/2020 to 03/2021,
04/2020 - 03/2021
compared to the period from 04/2019 to 03/2020.
$1,800
Price/Square Foot Ratio
$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0
Atherton
Los Altos
Los Altos Hills
Menlo Park
Mountain View
Palo Alto
Portola Valley
Price per square foot ratio for single-family homes from 04/2020 to 03/2021, compared to the period from 04/2019 to 03/2020.
Redwood City
Sunnyvale
Woodside
04/2019 - 03/2020
04/2020 - 03/2021
Data gathered from the Multiple Listing Service on 04/04/2021
2 | D E LEO N RE A LT Y.CO M
Table of Contents 04.
Is California Exodus Real? Where are Silicon Valley Residents Buying?
By Michael Repka
12.
Introducing Our Piper M600 Aircraft– The Newest Addition to the DeLeon Family By Michael Repka, Pilot
14.
Form Follows Feeling – How Architecture and Interior Design Impact Our Happiness
By Ken DeLeon
16.
Coronavirus Eviction Update By Colette R. Thomason, Esq.
18.
THE
DELEON INSIGHT OU R OFFICES A RE LO CAT ED AT : 1717 Embarcadero Road, Palo Alto, CA 94303 650. 543. 8500 www.DELEON REALT Y.co m DRE #0190 3 2 2 4 Man agin g Bro ker: M i c h a e l Re pka DRE #018 5 48 8 0 Founder — Ken DeLeon CEO & General Counsel — Michael Repka Corporate Counsel — Colette Thomason CONTRIBUTORS: Ken DeLeon, Michael Repka, Colette Thomason, Audrey Sun, Jessica Taylor Contact Ken DeLeon for exceptional buying opportunities at 650.543.8501 DRE #01342140 To learn about our Platinum packages and incredible listing services for sellers, contact Michael Repka at 650.900.7000 DRE #01854880
20.
25.
Off-Market Sales Almost Always Cost Sellers Money, But Some May Think Privacy is Worth the Price By Michael Repka, Esq.
How Covid has Impacted Real Estate Marketing on The Peninsula By Michael Repka
New Ways to Save Our Clients Money with DeLeon Design and Construction, Inc.
26.
Why Artificial Grass is Growing in Popularity
28.
Proposed Changes to U.S. Tax Policy That Could Impact Silicon Valley Real Estate
30.
Creating a Pet-friendly Backyard
32.
Changes to HOA Rental Restrictions
34.
The Power of Love Letters with Offers
36.
Buyer Beware: The When, What, and Why Now to Signing Disclosures and Advisories
By Michael Repka
By Michael Repka
By Michael Repka, Esq. LL.M. (Taxation) NYU School of Law
By Jessica Taylor
By Colette R. Thomason, Esq.
By Audrey Sun & Colette R. Thomason, Esq. By Colette R. Thomason, Esq.
D ELEONREA LT Y.COM
| 3
May 2021
Reasons for Leaving California Across the board, many who leave California share similar reasons for doing so. California has high taxes with little-to-no state deductions or exemptions, as well as heavy governmental regulations, astronomical real estate prices, sky-high rents, high cost of living, and bad traffic (at least pre-pandemic). For example, California has the highest state income tax in the nation, going all the way to 13.3% (FY 2020-2021). The median home price in Palo Alto in 2020 was around $3.0 million1, while the average rent was over $2,900 for an 822 square foot apartment.2 In San Francisco, the median home price in 2020 was around $1.6 million3, while the average rent was over $2,900 for a 739 square foot apartment.4 Based on PayScale, the cost of living in San Francisco is 80% higher than the national average, and the cost of living in Palo Alto is 50% higher than the national average.5
Due to the pandemic, perspectives on workplaces have changed. Companies realize they do not need to provide office space to house all of their employees as people can work remotely, and meetings and communications can be done online. Following on the heels of McKesson Corporation (previously one of the Bay Area’s top employers), in 2020, Oracle, HewlettPackard Enterprise, and Palantir – just to name a few – announced they are relocating their headquarters to another state. Other companies, like Dropbox, Twitter, VMware, and Facebook, offered alternative work structures and policies that embraced workfrom-anywhere arrangements.
company. Many prefer to trade in California sunshine and the convenience of being close to the office for places with cheaper real estate, lower taxes, and a lower cost of living. The Pandemic’s Impact on Migration Throughout last year, rumors circulated of a mass exodus of Californians due to the pandemic. Research released in March 2021 by the nonpartisan California Policy Lab provided no unusual pattern of mass exodus;6 rather, the number of Californians leaving the state followed recent historical trends. So yes, many people are leaving the Bay Area, but it does not appear that COVID has resulted in a huge spike. Interestingly, the pandemic brought about a few atypical deviations. There was a noticeable movement of Californians within the state. In particular, the net exits from San Francisco between the end of March and end of December 2020 “increased 649% as compared to the same period in 2019, from 5,200 net exits to 38,800. Approximately two-thirds of people who moved out of San Francisco remained within the 11-county Bay Area economic region, and 80% remained in California.”7 For this reason, the DeLeon Team dramatically enhanced our marketing efforts last year in San Francisco for our Silicon Valley listings. A number of Bay Area residents also moved to the Sierra Nevada Mountains, with many remaining on the California side despite the tax advantages in Nevada. In fact, these areas saw between 50-100% increase in migrants in 2020 as compared to 2019.8 Many of my sellers have moved to places like Placerville, Grass Valley, Truckee, and most notably Martis Camp. The silver lining is that Silicon Valley has also benefited from many people moving out of San Francisco in favor of places like Palo Alto, Menlo Park, and Los Altos.
Given that many employees do not need to physically be in the office every day, they now have the option of moving to lower cost areas while remaining with their D ELEONREALT Y.COM
| 5
THE DELEON INSIGHT
Why do Californians Move to the Sierra Nevada Mountains, particularly Lake Tahoe? It is quite understandable why Californians, particularly those from San Francisco and the Bay Area, have rushed to purchase properties in the Sierra Nevada Mountains, particularly Lake Tahoe. Lake Tahoe was the #1 most searched community on Redfin’s “2021 Hottest Neighborhoods.”9 A report published in December 2020 showed Lake Tahoe home sales increased 87% year-over-year from October 2019 to October 2020, with the median sale price ($945,000) increasing 28%, median views per listing surging 280%, and the median number of days on the market decreasing from 48 to 25 days during that same period.10 Two-thirds of Lake Tahoe is located in California, with the remaining third in Nevada. From Silicon Valley, Lake Tahoe is around 4–5 hours by car and 35–60 minutes by private plane. This close proximity to Silicon Valley enables an easy commute for those who need to physically be in the office once every couple of weeks or months. Lower home prices, lower cost of living, more space, access to countless outdoor activities, and slower pace of living are among the attractions of Lake Tahoe. For instance, one can hit the ski slope or go kayaking around the lake in the morning, and come back home to work afterwards. Depending on locations and types of property, the home prices range from the low $200,000s to over $40 million. There are also exclusive and private communities on and around Lake Tahoe that offer residents bountiful amenities (e.g., golfing, skiing, hiking, horse riding, fishing, watersport activities), while enabling the residents to build networks and relationships. These
6 | D E LEO N RE A LT Y.CO M
communities, which are located within California, include Martis Camp, Lahontan, Schaffer’s Mill, and Mountainside at Northstar. My wife and I visited these communities late last year and discussed the amenities at length with the executives there, and they commented on a noticeable trend of San Franciscans and Bay Area residents purchasing properties within these communities. They also lamented the short supply of properties on the market, while also celebrating a dramatic increase in sale prices and a decrease in days on the market of these homes. Why do Californians Move to Nevada? Nevada is an excellent choice for those who still want to be close to California, but are looking for a tax break. Since 2017, Nevada has been in the top 5 states for Californian migration. Between 2017 and 2019, around 47,000 to over 50,000 Californians had migrated to Nevada each year, with many choosing areas such as Incline Village (Lake Tahoe), the East Shore of Lake Tahoe, Las Vegas, and Reno. As the most innovative and exclusive real estate brokerage in Silicon Valley, DeLeon Realty has taken notice of this trend, with many of our sellers relocating to Lake Tahoe and Nevada. In fact, this trend became so prevalent we opened an office in Incline Village, Nevada earlier this year. On a personal level, I even purchased a property on the shores of Lake Tahoe to take advantage of the amazing recreational opportunities and the exceptional appreciation. There are several reasons why Californians are drawn to Nevada. First and foremost, the tax benefits Nevada offers its residents are extremely tempting. Nevada has no state income tax, no corporate income tax, no estate or inheritance tax, and low property tax (about half the percentage of California).
May 2021
Recently, DeLeon Realty purchased a 2020 Piper M600 business aircraft that can take our clients to these locations in style. The M600 provides far more comfort and luxury, with cabin-class seating, cruise flight as high as 28,000 feet (Flight level 280), pressurization, a powerful turbo prop engine (a jet engine that is enhanced with a five blade prop), and airstairs to get into and out of the cabin. Plus, strong tailwinds at these higher altitudes can result in cruise speeds in excess of 400 mph. An added benefit of this more robust plane is that we can take an entire family, and their luggage, to explore new areas. Also, because the turbo-prop includes reverse thrust, the plane can comfortably operate out of Palo Alto Airport’s short runway. Features of the M600 We selected the Piper M600 for a variety of reasons, but one of the main attributes was remarkable customer comfort and safety. Not only is the plane pressurized, which eliminates the need for supplemental oxygen at higher altitudes, it also features Piper’s new Auto-Land feature. In the extremely unlikely event of an emergency, the plane has the ability to declare an emergency, analyze all of the available airports, consider weather conditions and runway lengths, communicate with passengers and air traffic control, land the plane, and bring it to a safe and complete stop – all without any input from a pilot. Additionally, the M600 features Garmin’s latest G3000 avionics suite. This system is not only very powerful, with on-board radar and terrain awareness features, it is also remarkably user friendly. Within my first 100 hours of flying the new plane, I already felt very comfortable with the new interface. Although our new interstate initiative will initially be available only to Platinum sellers of homes valued at over $5 million, we hope to expand this benefit to an array of clients over the years to come.
D ELEONREALT Y.COM
| 13
THE DELEON INSIGHT
FORM FOLLOWS FEELINGS
HOW ARCHITECTURE AND INTERIOR DESIGN IMPACT OUR HAPPINESS
By Ken DeLeon
“We shape our buildings, and afterwards our buildings shape us,” Winston Churchill The pandemic has forced us to involuntarily spend the majority of our time in our homes. A recent article in the Washington Post discussed how the share of US residents in their home at any given hour rose from 28% in 2019 to 61% in 2020. While the pandemic will end, its impact, including spending more time at home versus a corporate office will be an enduring legacy. Given this likely permanent shift to more time at home, more research is occurring in the field of environmental psychology, which studies how buildings affect our health, mental processes, and social interactions. A 2020 article entitled “How to Make a Happier Home” in Psychology Today showed that the empirical research indicates that homes and buildings are most conducive to human happiness when they mimic the scale and tone of the natural world through their design and layout. This replicates
14 | D E LEO N RE A LT Y.CO M
a famous experiment where hospital patients healed faster with a view of nature; additionally, natural light was correlated with an alleviation of pain symptoms. Consistent findings show that incorporating nature into interior design has a positive impact on health, such as the study which showed that spending time in rooms constructed with a moderate balance of wooden surfaces has been linked to decreasing diastolic blood pressure and to a general sensation of comfort. In a recent study, participants were less stressed and fatigued in wooden indoor spaces than non-wooden ones. Overall, visual access to a natural setting has been correlated to positively influencing overall happiness, mood, and attitude. Unsurprisingly, natural light throughout a home has been found to be one of the most restorative features found in a home. Recent studies have confirmed that human performance, both indoors and out, is improved by natural light. We think more clearly, have more energy and endurance, and simply feel more sanguine about ourselves in well-lit spaces.
May 2021
In 2015, a University of Toronto study found that highceilinged spaces were considered more aesthetically beautiful. Through the use of MRI scanners to gauge reactions to photos of different types of interior spaces, the team discovered that high-ceilinged spaces stimulated the part of the brain structures aiding visual navigation and behavior. Interestingly, men in particular seem to crave larger personal space bubbles when they find themselves in low-ceilinged environments and are more likely to act antagonistically when they feel cramped. This is likely due to a sense of being enclosed, stimulating our fight-or-flight response. Other design attributes that have been correlated with happiness include curved design elements. A 2017 study found that rooms with curvature were rated more stimulating and pleasurable to reside in versus rooms defined by rectilinear lines. Curvature may delight us because it recalls pleasant forms found in nature such as bodies of water, eggs, and fruit whereas sharp shapes may invoke thorns, fangs, and jagged rocks, things we associate with riskier situations. The pandemic has impacted so many facets of our lives. Now that we will be spending more time in our homes as we embrace remote working, our focus on homes should turn towards designing homes that maximize our happiness and to do so generally involves incorporating natural beauty and materials into home design. Since it has been scientifically proven that spending time in natural environments improves overall happiness, a logical conclusion is that the fields of architecture and interior design should increasingly bring the outdoors in, both literally through more windows and doors and metaphorically through incorporating natural design elements throughout the home. While home is where the heart is, so too should this be where happiness resides as well.
D ELEONREALT Y.COM
| 15
R E A L E S T A T E L AW
CORONAVIRUS EVICTION UPDATE By Colette R. Thomason, Esq.
In a previous article, my colleague wrote that the Tenant Relief Act, which delayed evictions for qualifying tenants, was likely going to be extended by the state legislature further into 2021. This legislation has now passed, and the current eviction moratorium officially extends to June 30, 2021. With this update, a tenant is protected from eviction until June 30, 2021, (previously January 31, 2021) as long as the tenant provides a declaration of decreased income due to COVID-19 and pays 25% of their rent. Once the tenant provides the declaration, they will have until the end of June to make this 25% payment even if the 15-day notice is up.
Some good news for landlords is that the legislation also established a Rental Assistance Program, which will assist qualified tenants with unpaid back rent. Assistance will also be available to landlords, provided they waive 20% of their tenant’s unpaid rent. If this 20% is waived and permanently forgiven, landlords will be reimbursed for the remaining 80% of the rent through government programs. These funds will be distributed by state and local agencies, and the programs are now accepting applications. If a landlord chooses not to participate in this program, renters can still apply and potentially receive rental assistance up to 25% of their monthly rent.
The crux of the new legislation is to extend eviction protections, and much of the law remains the same as the earlier protections, although there are some small changes. As before, the tenant must sign the “Declaration of COVID Related Financial Distress” under penalty of perjury, and while they are still responsible for unpaid amounts from September 1, 2020 to June 30, 2021, they cannot be evicted for the non-payment. However, if a tenant does not provide a declaration, they can still face eviction for nonpayment of rent.
While these changes are an important protection for tenants, the lack of consistent rent and decreased rental payments may become a strain on certain landlords, especially as rental prices are already notably down. As a result, there may be an influx of rental properties hitting the market in the coming year as some landlords decide to change their investments. The DeLeon Team is happy to speak with anyone interested in the current state of the law and how we see these changes affecting the market.
16 | D E LEO N RE A LT Y.CO M
THE DELEON INSIGHT
OFF-MARKET SALES ALMOST ALWAYS COST SELLERS MONEY, BUT SOME MAY THINK PRIVACY IS WORTH THE PRICE By Michael Repka, Esq.
Once a real estate agent starts to feel comfortable that they have the inside track on a listing, many start angling for an opportunity to show the property to their buyers, or their office’s buyers, before allowing other interested buyers to know about the home’s availability. Naturally, this period of exclusivity greatly enhances the chances of that agent, or that office, getting commission from both sides of the same transaction. This strategy is generally better for buyers because they are likely to pay a lower price due to less competition. However, these “pocket listings,” “periods of exclusivity,” or early access periods, are almost always bad for a seller seeking the highest possible price. It is just common sense that increased exposure and competition results in the highest possible price. Individual buyers are likely to pay more if they know that they are competing with other interested parties. Alternatively, one of those other parties may be willing to pay more than the particular buyer that has already been identified.
18 | DE LEO N RE A LT Y.CO M
So the question becomes: Why do so many sellers allow agents to show their home to a mere fraction of the potential buyer pool and give these preferred buyers early access? I believe the answer is simple: Some agents trick their clients into letting them do this despite the clear disadvantages to sellers. Clearly, agents have a tremendous amount of commission to be gained by “double-ending” the transaction, plus they are likely to save time, money, and effort in marketing the property. Similarly, real estate offices use their listings as bait to attract buyers by promising them they will be able to get homes at lower prices due to less competition if they work with one of their agents. In fact, one large real estate brokerage ran an extensive local ad campaign encouraging buyers to visit their website and work with their agents to get access to “hundreds of homes before anyone else.” Implicit in this campaign was the idea that the buyers would be able to pay less due to reduced competition. While I agree that this makes sense
May 2021
from the buyers’ point of view, that savings to the buyers comes at a direct and equal cost to the seller who listed with that brokerage. To encourage sellers to allow listing agents an opportunity to show the homes with limited competition, some brokerages or agents have created scripts that make this seem innocuous to inexperienced homeowners. The general gist of the scripts goes something like this: “I may have some buyers who are willing to pay an above-market price if we can get them in early. After all, it can’t hurt to show them the property because we can turn down the offer and come on the Multiple Listing Service if it isn’t high enough.” This sounds safe enough, but this is only step one. Once the listing agent has a buyer who submits an offer, the seller then turns to the same listing agent for advice on what to do. Often for self-serving reasons, many agents encourage the seller to accept the offer, arguing that the market has taken a turn for the worse and that buyer may not be around in a few more weeks. Then the seller has to make a decision in a vacuum. There’s no way to know what other buyers would offer, especially once the home is fully prepped, staged, and marketed, but many sellers feel like the offered price is good enough. They may be leaving a lot of money on the table without even knowing it. The Real Estate Market Has Changed Many years ago, access to listings was restricted to licensed real estate agents. Now, however, this information is broadly disseminated to the public via the Multiple Listing Service (the “MLS”). Once uploaded to the MLS, this information is syndicated through a number of popular websites such as MLSlistings.com, Zillow, Realtor.com, Redfin, and thousands of individual real estate agents’ websites, including the DeLeon Team. Nowadays, many buyers work with out-of-thearea agents, discount agents, part-time agents, or a friend with a real estate license. Just because
these potential buyers are not working with a wellestablished real estate agent or team, such as the DeLeon Team, that does not mean that they are not good and qualified buyers. Similarly, a lot of buyers do almost all searching on their own via the aforementioned websites and only contact an agent once they have identified a property. Therefore, not listing the property on the MLS dramatically reduces the property’s exposure. Some argue that I am such a strong proponent of maximizing exposure because DeLeon Realty does not take commission from both sides of any transaction. Therefore, we have nothing to lose by arguing against these off market, “double-ended” transactions. That is exactly the point. I don’t think the real estate industry would recommend offmarket sales very often if there was not a financial windfall attached to them. Sure, some sellers may be willing to give up tens (or hundreds) of thousands of dollars to prevent anyone from knowing that they need to sell their home, but I think these sellers are few and far between. My Recommendation Sellers should be very skeptical of any agent who suggests allowing them the opportunity to show the property to a small number of select buyers before putting the home on the MLS and before launching a broad multimedia marketing campaign to promote the property. If the agent really does have an interested buyer, they will have a bias that could, and probably would, prevent them from doing their very best to stimulate competing offers. Plus, if a potential buyer is truly that excited about a home, it is likely that they will wait a few more weeks and submit an offer with all other interested parties. At a minimum, the agent and the brokerage should agree that they will waive 100% of the buyer-side commission if the same brokerage represents the buyer on an off-market sale. As mentioned above, this is DeLeon Realty’s company-wide policy for all sales, and I hope it spreads.
D ELEONREALT Y.COM
| 19
R E A L E S TAT E D E S I G N
reason one of the world’s largest lawn maintenance companies selected the name ChemLawn, after all!). Those same parents and pet owners will not need to fret about those little ones tracking in mud from an artificial lawn. For those who suffer grass allergies, artificial turf will keep the allergy attacks at bay. Disadvantages of Artificial Turf In the past, artificial turf looked remarkably fake and had the tendency to attract more heat than an 18year old speeding in their mom’s red Ferrari. In recent years, some significant improvements in the design and development of next generation artificial turfs have dramatically reduced these problems. Nowadays, the biggest disadvantage to artificial turf is the cost. Installation of a small area of top-quality artificial turf can cost in excess of $40 per square foot, which is more expensive than many ceramic tile and hardwood floors. Alternatives are available that can bring down these costs dramatically. Installation Process Contractors utilize a variety of approaches to installing artificial turf lawns. Generally, the first step is to create a base, which requires digging several inches of top soil from the area where the new artificial turf will sit. This soil is replaced with base rock, which compacts well and forms a solid base. Next, many contractors utilize a level of fine shredded rubber that comes from recycled tires. Additionally, or alternatively, some contractors use a layer of sand. Either way, this level is designed to create a very smooth surface upon which the artificial turf is applied. Then, the artificial turf is rolled out in 15-foot wide sections from rolls that weigh about 600 pounds. When the area is wider than 15 feet, the material is seamed together in a fashion very similar to wall-towall carpeting.
and the stakes are typically placed about every 6 to 9 inches on center. Finally, a very light layer of sand is spread over the top of the material, which settles down into the base of the grass. Impact on Real Estate Resale Value As the head of DeLeon Realty’s listing team, one of the most common artificial turf questions I get is whether or not it is worth it for a seller to replace their existing lawn with artificial turf for resale value. Generally, the answer is “no” if the area is irrigated and trees do not prohibit natural turf growing. In situations in which the seller already has an effective irrigation system, and trees do not inhibit growth, DeLeon Realty has a top-of-the-line over-seeder that can strengthen the condition of natural turf lawns by cutting slits in the soil, injecting seeds, and closing up the slits – all at no cost to our sellers. However, I do think an artificial turf lawn will pay for itself in situations in which natural grass is not a realistic option. Additionally, artificial turf may be a financially wise move if the costs are brought down to a reasonable level. DeLeon Design and Construction has entered into a wholesale arrangement with turf providers whereby we can purchase the artificial turf at less than $2 per square foot! Even with the cost of the base rock and other materials, the client cost is dramatically less than some other options on the market. As always, we do not charge any sort of a markup on these services we provide to our clients. In fact, sometimes we replace areas with artificial turf at no charge to our sellers. If someone is purchasing a home and they would enjoy having an artificial turf lawn, they should seriously consider the possibility of installing a synthetic lawn. On the other hand, if a seller is thinking about adding artificial turf for resale value, they should consult with me for a specific analysis.
Lastly, the contractor installs small stakes through the material into the base rock. This serves as an anchor, D ELEONREALT Y.COM
| 27
THE DELEON INSIGHT
PROPOSED CHANGES TO U.S. TAX POLICY THAT COULD IMPACT SILICON VALLEY REAL ESTATE By Michael Repka, Esq. LL.M. (Taxation) NYU School of Law
Whenever there is a change in administration, there is an inherent uncertainty related to tax policy. Fortunately, during the presidential campaign, nowPresident Joe Biden laid out a pretty clear blueprint for his tax proposals. Although it is inevitable that there will be negotiation, compromise, and changes that alter the legislation ultimately enacted, this article will delve into some of the proposed changes that could impact Silicon Valley real estate. Increase to Capital Gains Tax Rates Without question, the biggest proposed tax change that could impact Silicon Valley real estate is the proposal to increase the federal capital gains tax rate from 20% to 39.6%. As proposed, this change would only impact taxpayers with adjusted gross income (“AGI”) in excess of $1 million. However, one should note that the gain on the property being sold will likely be included when applying this $1 million limit. As such, a couple who is making $800,000 a year in combined
28 | DE LEO N RE A LT Y.CO M
income from their jobs and other investments may be lulled into a false sense of comfort because their income is less than $1 million. However, if they have a hypothetical taxable gain of $900,000 on the sale of their home, that $900,000 would have to be added to their $800,000 in other income, thus pushing them well beyond the million dollar threshold. Likely Impact on Silicon Valley If this tax change is enacted, it is likely that some homeowners will rush to sell before the effective date. Although it is impossible to know when this change will become effective, it is unlikely that it will be retroactive to the beginning of 2021 despite the fact that the prohibition against ex-post facto laws has been determined not to apply to tax changes. It is my prediction that the harshness of enacting a law retroactive to sales that were consummated prior to the date the legislation was passed will be enough to make it untenable to legislators.
R E A L E S TAT E TA X
However, it is also unlikely that the tax changes will take effect at some date in the future because that type of structure would result in a mass dumping of assets onto the market, thus creating dire economic consequences. Consequently, it is likely that legislation will be enacted with an effective date contemporaneous with the bill’s passage out of the House Ways and Means Committee. Taxpayers may then have some advance notice before the pivotal date, but not much. The Elimination of Step-Up in Basis Although far less fleshed-out than the proposed increase to capital gains taxes, in passing thencandidate Biden mentioned closing tax loopholes such as the step-up in basis rule. Under current law, when someone inherits property, they take the property with a basis equal to the fair market value on the date of death of the decedent. In other words, all of the capital gains that the decedent would have paid if they had sold the property is permanently forgiven. This is what is known as a “step-up in basis.” Because California is a community property state, the death of one spouse results in a full step-up in basis of assets held as community property with rights of survivorship. This is a tremendous tax advantage.
If this taxpayer-favorable provision is eliminated, there will be even more of an increase in the supply of homes on the market. Currently, many Silicon Valley homeowners are refraining from selling their property because they know that their heirs will take a stepped-up basis. If that benefit is eliminated, many homeowners with substantial appreciation will refrain from waiting and elect to sell their properties and move out of the area. Proposed State Tax Changes Although the California legislature introduced legislation to increase state tax rates from an already high 13.3% to as much as 16.8%, this legislation was defeated. Nevertheless, there have already been calls for re-introduction of similar legislation. Similarly, there have been proposals to increase the California corporate income tax rate from 8.84% to 9.6% (Assembly Bill 71)1 . If California continues to increase state tax rates, it is inevitable that companies and individuals will continue to consider moving to lower tax states. The favorable attributes of California are undeniable and compelling, but only time will tell how much people and businesses will continue to pay to remain here. 1
Assembly Bill 71 has been amended in assembly and much of the language relating to corporate tax rate 8.84% to 9.6% has been removed. On March 26, 2021, the Bill was re-referred to the Committee on Revenue & Tax. See https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB71.
D ELEONREALT Y.COM
| 29
THE DELEON INSIGHT
CREATING A PET-FRIENDLY BACKYARD By Jessica Taylor
Pets are considered family members by many people – in fact, on some days I would say my dog is my favorite family member. Just look at the number of dog parks popping up around the country, or the countless pet groomers in every city, or even the number of TikTok videos starring a person’s furry friend: people truly love their pets. According to the American Pet Products Association, 67% of U.S. households, or 84.9 million homes, owned a pet in 2019-2020.1 Of these, around 63.4 million homes owned a dog, and 42.7 million homes owned a cat. Since the pandemic hit, the demand for pet adoptions has gone up significantly.2 Since we treat our pets as family, we should provide them an environment that is safe from wild animals, toxic plants, and the dangers of the outside world. Our backyard should be a place where they can eat, sleep, and play safely. When moving into a new home, there may be dangers that you are not aware of that should be addressed before letting your pet run free in the yard. Spring also happens to be the perfect time to assess and update your yard as the winter months could have destroyed fences and gates, which may result in unexpected wildlife visitors to the property.
30 | D E LEO N RE A LT Y.CO M
Proper Yard Enclosure is Important Having the right yard enclosure is critical. Not only will it keep your pet in, but also help keep unwanted wildlife out. A standard 6-foot tall fence should contain most dogs. If you have the “Michael Jordan” jumper of dogs, you may need to consider using landscaping such as dense shrubs along the fence line to keep your dog away. For diggers, consider an L-Footer which is wire fencing laid down and bent to a 90 degree angle shaped as an “L.” If this is a bit of an eye sore, you can hide it under dirt or grass. A simple, yet important recommendation is to add a more sophisticated lock to your gate. A typical latching system can easily be blown open by the wind or opened by a curious child. Adding an additional hook-and-eye latch or self-closing gate hinges are options to consider. Grass: Natural and Artificial Over the winter months, grass can get long and unkempt. Make sure to mow your lawn and keep the surrounding shrubs trimmed. Short grass will let more sunlight reach the ground, which in turn makes
May 2021
the lawn drier so fleas and ticks are less likely to thrive. Snakes, which pose a danger to pets, are also less likely to reside in short grass. Additionally, consider altering your watering schedule so that your grass and garden are not constantly damp. Snails, slugs, and similar critters love damp environments. Snail or slug bait can be fatal for dogs and cats if ingested, so keeping the area dry will reduce the need for it entirely. For those looking for an eco-friendly option, artificial grass is a great choice. Not only is artificial grass safer for your pets – no harmful pesticides or fertilizers – but it also reduces water consumption. Additionally, many dogs (and people) are allergic to natural grass. Installing artificial turf eliminates the problem and also reduces other allergens, such as pollens, mildew, and mold. See our article on Artificial Turf on page 26 of this newsletter. If you decide to install artificial grass, make sure to choose a turf that does not use backing containing lead. You also want to use a permeable or perforated backing and base rock under the grass, as this will help to effectively drain urine and other moisture. Use of Pesticides Dogs are low to the ground and therefore are even more susceptible to the dangers of pesticides. According to the National Canine Cancer Foundation, 1 in 3 dogs will be diagnosed with cancer and 50% of those dogs will die from it.3 If you must treat your lawns and gardens, keep your pets away from those areas for 48 hours after application. There are also safer alternatives to using pesticides. Consider organic fertilizers or pesticides made with natural, non-toxic ingredients, such as diatomaceous earth. For natural pesticides, pest-eating insects such as ladybugs, mantises, and nematodes are great options.
Choosing the Right Plants and Mulch There are hundreds of toxic plants prevalent in California, so knowing which ones to avoid planting in your garden is crucial. Avoid plants such as aloe vera, azaleas, oleander, daffodils, lily of the valley, sago palm, tulips, and marigolds. Opt for dog-friendly plants such as daisies, orchids, roses, hibiscus, sunflowers, and snapdragons. California’s weather makes growing grapes ideal, but grapes are highly toxic to dogs – even fatal. Along the same lines, look at the algae in your yard and pond. While most algae is harmless, some species of algae are so toxic that it can kill a dog within minutes if ingested. A simple UV light installed in the pond or water feature can destroy deadly algae. Chlorine tablets are also an option, but overchlorinated water can also be a danger to man’s best friend, not to mention the poor koi fish. While mulching is important for plants and to beautify the yard, some mulch is not pet-friendly, such as cocoa bean mulch. This sweet smelling mulch is very inviting to pets, but can be deadly for dogs. Consider using less-toxic mulch such as pine, cedar, or rubber. Cedar and pinewood also help to repel fleas, ticks, and other types of pests. Finally, have a place where your pooch can relax with protection from the sun. During the warmer months, some breeds are prone to heat stroke and dehydration. Having trees to provide shade or a dog house is vital. Your pets are part of your family. It may be costly to implement some of the changes, but your pet’s safety is priceless. If you believe your pet is ill or may have ingested a poisonous substance, contact your local veterinarian or the Animal Poison Control Center (APCC) 24-hour emergency poison hotline at 1-888-426-4435. 1 2 3
https://www.americanpetproducts.org/press_industrytrends.asp https://www.washingtonpost.com/dc-md-va/2021/01/06/animal-shelters-coronavirus-pandemic/ https://wearethecure.org/
D ELEONREALT Y.COM
| 31
THE DELEON INSIGHT
CHANGES TO HOA RENTAL RESTRICTIONS By Colette R. Thomason, Esq.
Since the 1970s, housing shortage has been an issue in California. In the past few years, the state and counties have enacted various rules in response to the housing crisis, such as construction of accessory dwelling units, legalizing microapartments (as small as 150 square feet), and increasing housing production. In the latest effort, California Legislature passed a bill (AB 3182) that addresses homeowners' association (“HOA”) rental restrictions. Passed in September 2020, AB 3182 now requires HOAs to adopt more permissible regulations regarding rentals. The bill amended California Civil Code section 4741, and the most relevant change to homeowners is that it renders certain rental restrictions void and unenforceable. This measure went into effect on January 1, 2021, so we should see these changes implemented as the associations themselves begin to amend their rules to conform to these guidelines. Significantly, restrictions that limit the number of an association’s units that can be rented to less than 25% of all units are now unenforceable. For example, many associations include in their rules a rental restriction allowing only 10% of their total units to be rented at any time. With the passing of this new law any restriction lower than a 25% limit will no longer be enforceable. However, the HOA can adjust their current rental restriction to 25% in order to conform to the new law. This law also changes the minimum rental term an HOA may require. In practice, if you decide to rent your unit, many HOAs contain terms requiring that the lease with the tenant be at least six months or one year long. HOAs will need to amend this so that
32 | DE LEO N RE A LT Y.CO M
the minimum term, if there is any, is only 30 days. Therefore, an HOA can still prevent weekly vacation rentals, but tenants will be able to rent on a monthto-month basis. Finally, the provision renders unenforceable any timed ownership requirements that may be imposed prior to renting a unit. As an example, I have seen HOAs require a new owner to own the property for a period of time, usually a year or even two, before they can rent it. This is done to prevent investors from buying the property with the sole intention of renting the unit. These restrictions are no longer enforceable, so a newly purchased unit may be rented immediately. These restrictions took effect on January 1, 2021, and are enforceable regardless of whether the HOA has revised its CC&Rs. However, the associations themselves have until December 31, 2021, to revise their restrictions to ensure compliance, so a homeowner may not yet see the change reflected in their own HOA rules until the end of the year. These new rules will likely create some positives and some negatives for those looking to sell or purchase a unit in a HOA. Condominium value is held down by restrictions on rentals, as the use restrictions limit income generated as well as the pool of potential buyers. With these new rules, it also becomes much easier for investors to purchase multiple units with the sole intention of renting them. Therefore, we may expect the sales price of some condominiums to increase as there is a larger potential pool of buyers and competition, especially if the unit was previously subject to especially restrictive provisions.
THE DELEON INSIGHT
THE POWER OF LOVE LETTERS WITH OFFERS By Audrey Sun & Colette R. Thomason, Esq.
Dear Sellers, We cannot express to you how much we love your home. It is easy to see the love and care you put into making this house so special. We see this as our forever home....
As more people get vaccinated and the economy’s outlook is on the rise, more buyers are purchasing properties in Silicon Valley. Since the beginning of this year, DeLeon Realty has received multiple offers on many of our listings, oftentimes resulting in a sales price significantly over list price. In fact, we recently sold three homes for more than $1 million over asking! As such, one of the most common questions we hear from people is: what can buyers do to make their offer stand out in such a competitive market? One of the most common strategies is to include a “love letter” to the sellers, which is a personal letter where the buyers introduce themselves and explain what they love about the home, why they would love to live there, and how they love what the sellers have done with the place. Photographs of the happy buyers are often included so sellers can place a face to a name. The love letter adds life to the buyers’ offer. Hopefully for the buyers, the end result is a more personal connection with the sellers, which may prompt the sellers to accept the buyers’ offer instead of another. Last year, Michael had a home where the sellers actually accepted an offer that was
34 | DE LEO N RE A LT Y.CO M
$50,000 less than another offer with near identical terms because their agent, Laura Bryant of Keller Williams, did such a great job presenting a moving letter from her buyers. Having represented and sold several hundred listings in Silicon Valley over the years, we have seen how our sellers welcome, and often ask for, more information about the buyers. Our sellers look for a connection with a buyer and like to know where the buyers work, where they went to school, or whether they are financially stable. Most sellers were in the same position when they were competing to purchase a home, and know the stress and struggle that can accompany the search. Having that connection, and being able to relate to buyers, can be essential for sellers when deciding on an offer. Sellers may feel as if they are “passing the baton,” so to speak, to loving buyers who will care for a place they have called home. Sometimes, sellers may even forego a higher offer because of the connection with the buyers who wrote the letter, and the love they’ve shown for the home.
May 2021
Recently, some brokerages have started banning these love letters. The concern is that the letters often contain personal information and reveal characteristics of the buyer, such as race, religion, or familial status, which could then be used, knowingly or through unconscious bias, as an unlawful basis for a seller’s decision to accept or reject an offer. Indeed, in one of our current listings, we received a call from a real estate agent asking if she would be allowed to submit a letter from her buyer with her offer. The agent said her brokerage had recently prohibited agents from submitting love letters because of potential Fair Housing Act violations, which could create liability for both the agent and the brokerage. While love letters are a way to strategically tug at the sellers’ heartstrings and increase the likelihood of the buyers getting a home, these brokerages’ fear of liability and lawsuits outweighs the benefit to their clients. They are afraid their agents will be accused of discriminating against buyers, or that they will be accused of helping sellers discriminate against buyers, based on the love letter. Instead of taking a “client first” approach by coming up with solutions that benefit both sellers and buyers in hot markets with bidding wars, while still safeguarding the Fair Housing Act, some brokerages find it simpler to outright ban love letters. In this turbulent pandemic time, when we have been discouraged from human contact, are we further stripping emotion and feeling from sellers and buyers in the name of the Fair Housing Act? Selling and buying a home, without a doubt, is a very emotional process for sellers and buyers. Sellers do not get to know the buyers from a personal standpoint, even when the buyers are about to purchase the home that the sellers have loved for many years. By banning love letters, the message to the buyers and sellers is that the involved parties cannot be trusted to purchase or sell their own home without discrimination based on race, age, familial status, etc. Where will the line be drawn? Will the next step be to redact the buyers’ names on offers for fear of racial or gender discrimination based on a name?
We have heard recently that the California Association of Realtors (CAR) is considering yet another standard form disclosure to help agents save themselves from a lawsuit. This form would disclose to potential buyers whether or not a seller agrees to accept love letters with offers. Based on what we have seen, the resounding answer that agents will recommend to their sellers is “no.” We hope that if such a form were created by CAR or PRDS, the form would explain the benefits of receiving love letters so sellers can make their own independent and informed decision. In our opinion, banning love letters is not the correct solution, as there are ways for sellers and buyers to connect without violating the Fair Housing Act. Instead of training to the lowest common denominator and enacting blanket prohibitions, brokerages should invest in hiring and training competent agents, which includes educating them on fair housing laws, discrimination violations, and what is permissible within love letters. Brokerages also should take an aggressive role by having attorneys review the love letters before they are submitted with the offers. At DeLeon Realty, as part of the strategic discussion about the offer process, we explain to our clients the pros and cons of the love letter, the contents of the letter, and the Fair Housing Act. We also educate our buyer agents on the best practices of love letter writing and fair housing laws. Our in-house counsel reviews each buyer’s love letter before it is submitted with an offer to ensure that it does not leave the door open to a discrimination lawsuit. On the listing side, Michael Repka and Colette Thomason, both California real estate attorneys, are qualified to review and answer client questions related to the Letters. We review the offers and walk our sellers through the decisionmaking process to accept, counter, or reject with a fair mind and based on objective criteria. It is undeniable that we all have an emotional connection to our homes. Accordingly, sellers and buyers should have both the right to choose and the right to be heard during the selling process.
D ELEONREALT Y.COM
| 35
THE DELEON INSIGHT
BUYER BEWARE:
THE WHEN, WHAT, AND WHY NOW TO SIGNING DISCLOSURES AND ADVISORIES
By Colette R. Thomason, Esq.
The “love letter” prohibition is only one example of a brokerage choosing self-centered policies over a thoughtful policy that puts their client first. In the days before escrow closes, outside agents double-check their paperwork to be sure every disclosure that their brokerage requires is signed. I see a lot of agents send a stack of paperwork to DeLeon Realty asking our sellers to sign at the 11th hour. Why? Like many sellers, I believe the 50+ pages of disclosures that sellers and buyers sign before getting into contract is more than enough. Do we really need them to sign more before closing? Plus, what good does that do to either the buyer or the seller? The contract is agreed upon, funds are in escrow, and closing is confirmed. The only “good” it does is to help the agent point their finger at their own client if an issue arises in the future to say, “I told you so, remember you signed that form.” For example, an agent will send DeLeon Realty the new “Home Hardening Disclosure” that is required only for homes built in a high or very high fire hazard area, whether it applies or not, and ask our seller to sign it before closing. Agents blindly insist that their buyer and our seller sign the disclosure because their broker requires it, without any thought
36 | D E LEO N RE A LT Y.CO M
as to how this places their client at a disadvantage if a dispute arises, as long as it saves the agent from liability. Similarly, without a second thought, outside buyer agents will ask our sellers to sign a Fair Housing Act disclosure that explains what discrimination is and how it can be avoided, even though the disclosure is not legally required, and we are already in contract (thus, the time for discrimination has passed). Non-DeLeon listing agents, on the other hands, likely require their sellers sign this “how to not discriminate” disclosure before they get into a contract, which creates unfavorable evidence for their sellers if their sellers ever were accused of discrimination when selecting the buyer. But the agent can say they educated their seller about discrimination before the seller chose the buyer, so the agent avoids liability at their clients’ expense. These forms protect agents against their own clients, but they do not protect the clients. These last-minute forms that outside agents insist on getting signed are about anything from discrimination, fire preparedness, market conditions, to wire fraud, and are all meant for the agent to be able to tell their client “I told you so” if an issue arises in the future.
May 2021
We also have heard of agents who have their buyers sign a non-contingent offer and then have their buyers sign advisories to explain the risks of a noncontingent offer only after their non-contingent offer is accepted. Agents may also ask their buyers to sign a “Buyer Inspection Election” form to confirm that a buyer chooses not to conduct certain inspections, only after the buyer is already in contract. To these agents and their brokerages, they are just checking boxes to be sure their file is complete with no regard to placing the client’s interest first. I suggest that when an agent asks a buyer to sign any type of disclosure or advisory after getting into contract rather than before, the buyer ask their agent “Why now?” Why are they signing this form now and not before, and why do they need to sign the form at all? Better yet, the client should ask the agent to provide a licensed California residential real estate attorney to answer their questions about the disclosure or advisory that their agent is asking them to sign. The pandemic has showcased other ways in which brokerages shift liability from their agents to their clients. When the pandemic began last year, the California Association of Realtors issued forms that discussed protocols for sanitizing an active listing. These forms assigned liability from the brokers/agents to their sellers. For example, a form titled “Listing Agreement Coronavirus Addendum or Amendment” had sellers agree to release their brokers/agents from liability, and even indemnify the brokerage for any damages, costs, attorney’s fees, and/or other fines from any third party that arose from or were related in any manner to marketing or showing a home during the pandemic. This is a major undertaking of liability for sellers. This means that sellers assume all risk and liability for the broker and agent’s actions during the pandemic and would be held responsible if their agent caused harm, illness, or even death to a third party by neglecting to safely show a home or caused a third party to contract COVID-19. I wonder how many agents explained this Addendum to sellers as being a mandatory change to their existing listing agreements, when it was not. No change in terms
is mandatory when a signed and binding listing agreement exists. Instead of using the standard form, DeLeon Realty drafted its own Listing Agreement Addendum to clarify the protocols for showing and marketing a home during the pandemic that was much friendlier to sellers and allowed DeLeon Realty to maintain responsibility for its own actions or omissions, not to selfishly pass that liability to sellers. DeLeon Realty then hired additional employees to regularly sanitize homes after showings, purchased and even manufactured hand-sanitizer when stores were sold out, stocked hand soap and disinfectants, and took extra precautions to be sure listings were sanitized for sellers. The love letter bans, the unscrupulous timing of a buyer signing advisories, and the assumption of risk from brokerages to sellers are only a few examples of how brokerages put their own interests before a client’s interest. As a real estate attorney, one of my favorite things about DeLeon Realty and working with Ken and Michael, is that they developed a business model that places a client’s interest first. It seems simple enough for an outside agent to claim they do the same, but as you see from our advertising, DeLeon Realty waives buyer-side commission when we represent both buyer and seller while providing each party their own agent; we engage specialists and attorneys to provide a high-level of expertise to each client; and our agents are paid salaries to avoid the conflict that commission brings. These types of “client first” approaches are readily dismissed by bigger brokerages. Beyond that, these ordinary brokerages require their clients to sign numerous forms that are meant to protect the brokerage and agent at the client’s expense. At DeLeon Realty, we do many things differently, hence the tagline the “DeLeon Difference.” However, the biggest point of differentiation is that we really do put our clients’ interests before our own. In turn, I think this client-first mentality and these policies are what has made and continues to make the DeLeon Team so successful. D ELEONREALT Y.COM
| 37
R E A L E S TAT E M A R K E T P U L S E
ATHERTON
25
$2,000
20
$1,500
15
$1,000
10
Sale Price, Median
Feb-21
Mar-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
$0
Apr-20
$2,000,000
$500
5
$0
0 M
$4,000,000
pr -2 0
$6,000,000
A
$8,000,000
Ja n21 Fe b21 M ar -2 1
$2,500
$10,000,000
Ju n20
$12,000,000
Ju l-2 0 A ug -2 0 Se p20 O ct -2 0 N ov -2 0 D ec -2 0
Atherton Inventory # of New Listings
ay -2 0
Atherton Median Sales Price & Price/Sq. Ft. Ratio
Price/SqFt Ratio
LOS ALTOS Los Altos Median Sales Price & Price/Sq. Ft. Ratio
Los Altos Inventory # of New Listings
$3,000,000
$1,500 $1,000
$2,000,000
$500
Sale Price, Median
20 10 0
pr -2 0
$0
30
A
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
Apr-20
$1,000,000 $0
50 40
ay -2 0 Ju n20 Ju l-2 0 A ug -2 0 Se p20 O ct -2 0 N ov -2 0 D ec -2 0 Ja n21 Fe b21 M ar -2 1
$4,000,000
$2,000
M
$5,000,000
Price/SqFt Ratio
LOS ALTOS HILLS Los Altos Hills Inventory # of New Listings
$3,000,000 $2,000,000
Sale Price, Median
Price/SqFt Ratio
40 | D E LEO N RE A LT Y.CO M
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
$0
Apr-20
$1,000,000
$1,500
15
$1,000
10
$500
5
$0
0
M
$4,000,000
20
pr -2 0
$5,000,000
$2,000
A
$6,000,000
ay -2 0 Ju n20 Ju l-2 0 A ug -2 0 Se p20 O ct -2 0 N ov -2 0 D ec -2 0 Ja n21 Fe b21 M ar -2 1
Los Altos Hills Median Sales Price & Price/Sq. Ft. Ratio
R E A L E S TAT E M A R K E T P U L S E
MENLO PARK Menlo Park Median Sales Price & Price/Sq. Ft. Ratio
Menlo Park Inventory # of New Listings
$1,500,000 $1,000,000
Sale Price, Median
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
$0
Apr-20
$500,000
50 40 30 20 10 0
ay -2 0 Ju n20 Ju l-2 0 A ug -2 0 Se p20 O ct -2 0 N ov -2 0 D ec -2 0 Ja n21 Fe b21 M ar -2 1
$2,000,000
60
M
$2,500,000
$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0
pr -2 0
$3,000,000
A
$3,500,000
Price/SqFt Ratio
MOUNTAIN VIEW Mountain View Median Sales Price & Price/Sq. Ft. Ratio
Mountain View Inventory # of New Listings
$1,000,000
Sale Price, Median
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
$0
Apr-20
$500,000
40 30 20 10 0
ay -2 0 Ju n20 Ju l-2 0 A ug -2 0 Se p20 O ct -2 0 N ov -2 0 D ec -2 0 Ja n21 Fe b21 M ar -2 1
$1,500,000
50
M
$2,000,000
60
pr -2 0
$2,500,000
$1,450 $1,400 $1,350 $1,300 $1,250 $1,200 $1,150 $1,100 $1,050
A
$3,000,000
Price/SqFt Ratio
PALO ALTO Palo Alto Median Sales Price & Price/Sq. Ft. Ratio $2,000
100
$1,500
80
Sale Price, Median
$0
40 20 0 pr -2 0 M ay -2 0 Ju n20 Ju l-2 0 A ug -2 0 Se p20 O ct -2 0 N ov -2 0 D ec -2 0 Ja n21 Fe b21 M ar -2 1
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
$500
60
A
$1,000
Apr-20
$4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0
Palo Alto Inventory # of New Listings
Price/SqFt Ratio
D ELEONREALT Y.COM
| 41
$0
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000 $0
$1,400 $1,200 $1,000 $800 $600 $400 $200 $0 ay -2 0 Ju n20 Ju l-2 0 A ug -2 0 Se p20 O ct -2 0 N ov -2 0 D ec -2 0 Ja n21 Fe b21 M ar -2 1
$600 $400 $200
M
$1,000,000
pr -2 0
$2,000,000
A
$3,000,000
$1,000 $800
pr -2 0 M ay -2 0 Ju n20 Ju l-2 0 A ug -2 0 Se p20 O ct -2 0 N ov -2 0 D ec -2 0 Ja n21 Fe b21 M ar -2 1
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
$4,000,000 $1,600 $1,400 $1,200
A
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
Apr-20
$0
Apr-20
$5,000,000 20
15
10 5
0
100
80
60
40
20
0
R E A L E S TAT E M A R K E T P U L S E
SUNNYVALE Sunnyvale Median Sales Price & Price/Sq. Ft. Ratio $1,300 $1,250 $1,200 $1,150
Sale Price, Median
100 80 60 40
$1,050
20
$1,000
0 Ap r-2 0 M ay -2 0 Ju n20 Ju l-2 0 Au g20 Se p20 O ct -2 0 N ov -2 0 De c20 Ja n21 Fe b21 M ar -2 1
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
$1,100
Apr-20
$2,050,000 $2,000,000 $1,950,000 $1,900,000 $1,850,000 $1,800,000 $1,750,000 $1,700,000 $1,650,000 $1,600,000
Sunnyvale Inventory # of New Listings
Price/SqFt Ratio
WOODSIDE Woodside Median Sales Price & Price/Sq. Ft. Ratio
Woodside Inventory # of New Listings
$1,500
20
$2,000,000
$500
Sale Price, Median
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
Apr-20
$1,000,000
$0
15 10 5 0 ay -2 0 Ju n20 Ju l-2 0 A ug -2 0 Se p20 O ct -2 0 N ov -2 0 D ec -2 0 Ja n21 Fe b21 M ar -2 1
$1,000
$3,000,000
$0
25
M
$4,000,000
$2,000
pr -2 0
$5,000,000
A
$6,000,000
Price/SqFt Ratio
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, please do not construe this publication as a solicitation of that listing. 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.
D ELEONREALT Y.COM
| 43
