DeLeon Insight Newsletter March 2018 Menlo Park

THE DELEON INSIGHT MARCH 2018

M E N L O PA R K R E A L E S TAT E

®

w w w . D E L E O N R E A LT Y. c o m

Menlo Park

Market Conditions (Sept. 2017 � Feb. 2018) ALLIED ARTS

CENTRAL MENLO

COUNTY/ALAMEDA AREA

Month

Average Sale Price

Price/SqFt Ratio

Number of Sales

Month

Average Sale Price

Price/SqFt Ratio

Number of Sales

Month

Average Sale Price

Price/SqFt Ratio

Number of Sales

Sep-17

$1,680,000

$1,006

1

Sep-17

$3,869,667

$1,703

6

Sep-17

$4,525,000

$1,196

2

Oct-17

$2,413,000

$1,587

2

Oct-17

$3,525,833

$1,555

3

Oct-17

$2,992,857

$1,453

7

Nov-17

0

Nov-17

$4,013,333

$1,555

3

Nov-17

$2,703,750

$1,268

4

Dec-17

0

Dec-17

$4,425,000

$1,658

5

Dec-17

$2,889,000

$1,588

5

Jan-18

$3,000,000

$1,961

1

Jan-18

$6,025,000

$1,118

2

Jan-18

$2,875,000

$1,742

1

Feb-18

$3,100,000

$1,925

1

Feb-18

$5,177,625

$1,290

2

Feb-18

$3,696,250

$1,459

4

FELTON GABLES Month

Average Sale Price

FLOOD PARK Price/SqFt Ratio

MENLO OAKS

Number of Sales

Month

Average Sale Price

Price/SqFt Ratio

Number of Sales

Month

Average Sale Price

Price/SqFt Ratio

Number of Sales

Sep-17

0

Sep-17

$1,930,000

$1,370

2

Sep-17

$2,245,000

$1,388

2

Oct-17

0

Oct-17

$1,420,000

$1,127

2

Oct-17

$2,916,667

$1,295

3

Nov-17

0

Nov-17

$1,703,500

$1,302

3

Nov-17

$4,712,500

$1,288

2

Dec-17

0

Dec-17

$1,944,000

$1,455

2

Dec-17

$4,080,000

$1,065

1

Jan-18

0

Jan-18

$2,030,000

$1,664

1

Jan-18

Feb-18

0

Feb-18

$2,450,000

$1,561

1

Feb-18

MIDDLEFIELD TO EL CAMINO

WILLOWS/O’CONNER

Month

Average Sale Price

Price/SqFt Ratio

Number of Sales

Month

Sep-17

$3,015,000

$1,297

2

Sep-17

Oct-17

$2,657,500

$1,182

2

Oct-17

$2,460,000

Nov-17

$2,180,440

$967

2

Nov-17

0

Dec-17

Average Sale Price

Price/SqFt Ratio

0 $2,080,000

$1,010

1

SHARON HEIGHTS Number of Sales

Month

Average Sale Price

Price/SqFt Ratio

Number of Sales

0

Sep-17

$1,200

3

Oct-17

$2,460,000

$1,200

3

$1,851,500

$1,578

6

Nov-17

$1,851,500

$1,578

6

Dec-17

$2,933,333

$1,482

3

Dec-17

$2,933,333

$1,482

3

0

Jan-18

$1,900,000

$815

1

Jan-18

$1,300,000

$1,193

1

Jan-18

$1,300,000

$1,193

1

Feb-18

$3,500,000

$1,394

1

Feb-18

$3,141,667

$1,634

3

Feb-18

$3,141,667

$1,634

3

Data gathered from the Multiple Listing Service on 02/26/2018

2 | D E LEO N REA LT Y.CO M

Table of Contents 04.

Attracting Palo Alto Buyers to Menlo Park Listings

By Michael Repka

07.

Eight Listing Traps to Avoid

11.

Construction Techniques – Insulated Concrete Forms (“ICF”)

By Michael Repka

By Michael Repka

12.

Has Silicon Valley and SF eclipsed NYC as America’s Top Region?

13.

The Peril of Pocket Listings

15.

Tax Topics—Deductions for Pass-Through Entities

17.

DELEON INSIGHT OU R O F F I CES ARE LO CAT ED AT : 1717 Embarcadero Road - Palo Alto, CA 94303 650. 900.7000 www. DEL EO N REALT Y.co m

By Michael Repka

By Michael Repka

The Power of DeLeon Realty’s Online Marketing

19.

Cash is Still King

20.

Real Estate and the Millennial Home Buyer

THE

By Ken DeLeon

By Mike Ran

By Darrell Martin

By Huy Vu

Founder — Ken DeLeon CEO & General Counsel — Michael Repka Copy Writers — Sarah Last, David Burkhard Chief Photographer — Anthony Halawa Marketing Specialist — MyMy Trieu Chinese Marketing Specialist — Melanie Yu Online Marketing Specialist — Mike Ran Senior Graphic Designer — Nora Xu Graphic Designer — Monica Carsola

Contact Ken DeLeon for exceptional buying opportunities at 650.543.8501 To learn about our Platinum packages and incredible listing services for sellers, contact Michael Repka at 650.900.7000

CONTRIBUTORS: Ken DeLeon, Michael Repka, Darrell Martin, Huy Vu, Mike Ran D EL EONR EA LT Y.COM

| 3

Attracting Palo Alto Buyers to Menlo Park Listings At first blush, some homeowners in Menlo Park may assume that they should limit their search to Menlo Park-based listing agents when selling their home. Their reasoning is that a local Menlo Park agent knows the community and the other agents in town. While local knowledge is very important, the downside to an agent that focuses primarily or exclusively on Menlo Park is that these agents don’t have the geographic reach to bring the Menlo Park property to people considering other areas that are even more expensive such as Palo Alto. The DeLeon Team is the #1 listing team in Palo Alto, and number #2 in Menlo Park (per MLS data 1/1/2017 – 12/31/2017), giving us the perfect combination of local knowledge and broad reach.

Nowadays, buyers who are already focused on Menlo Park are easy to attract. Free services, such as the Multiple Listing Service (“MLS”), Zillow, Redfin and other online services, coupled with automated listing alerts, ensure that these focused buyers will see a Menlo Park property. The key measure of a listing agent should be their ability to bring in additional qualified buyers that would not otherwise see the property.

While not intuitive, there is a very substantial advantage to be had by using a listing agent based in a city that is even more expensive than Menlo Park—in this area, that is Palo Alto.

As the top listing agent in Palo Alto, with a sales volume of over four times the next highest agent or team, I am regularly called in when Palo Alto homeowners are considering selling their properties. Many of my listings command aggressive bidding from multiple bidders and sell well over list price.

In fact, I was recently featured on a CBS News story about Silicon Valley homes selling for more than $1 million over asking because their research revealed that 6 of the 10 Silicon Valley homes that commanded such a jump in 2017 were my listings.

Buyers that lose in multiple-offer situations are often disappointed, frustrated, and more than happy to explore alternatives in other attractive cities. Through my interactions with the buyer agents whose clients lost in a multiple offer situation in Palo Alto, I am able to bring my Menlo Park listings to these buyers’ attention. Naturally, this is in addition to running TV commercials and full-page ads in Palo Alto, as well as in Menlo Park.

4 | DE LEO N R E ALT Y.CO M

When expanding their search to Menlo Park, many buyers find our comprehensive videos introducing the town and neighborhoods very educational. Additionally, the custom website we create for each property (containing a professionally-produced and narrated video of property and nearby amenities, parks and schools, 3D virtual tour, features lists, and disclosures for the property) illustrates the essence and elements of the homes. These buyers are often quite surprised by how much more they can get in Menlo Park while still enjoying an extraordinarily high quality of life, great schools, and a friendly welcoming community. In fact, many current residents of Menlo Park started their home search in Palo Alto, only to “discover” that Menlo Park’s combination of lifestyle and relative value was a better fit for them. Ken DeLeon himself owns two homes in Menlo Park and only one in Palo Alto.

Further, our robust marketing -- such as TV commercials, fullpage ads in local newspapers (e.g., the Almanac, Palo Alto Weekly, Mountain View Voice, and Los Altos Crier), Chinese radio commercials and websites, paid Google and Facebook ads -- attract attention from multiple sources and cast a wide net for buyers for our properties. All of this attracts qualified buyers that would not otherwise see the Menlo Park property merely from being on the MLS. Other factors that the sellers should consider when selecting a listing agent include, but are not limited to, the agent’s background before entering into real estate sales, the agent’s experience, the breadth and depth of his/her marketing, his/her local knowledge, and his/her ability to achieve the highest possible price.

DeLeon Realty’s unique team approach, industry leading marketing, and Palo Alto-based location give us unique competitive advantages. When coupled with the local Menlo Park knowledge that comes from listing more homes in Menlo Park than every Menlo-based agent and team except one, we think we offer the perfect combination of local knowledge and potential reach. We would love to discuss the benefits associated with using a Palo Alto based agent at a private, no obligation listing appointment.

Michael Repka

C.E.O. & General Counsel

S elli ng y our S ilicon Valley hom e ?

First, meet with Michael Repka of the DeLeon Realty team.

Unlike most real estate agents, Michael holds two law degrees, including an LL.M in taxation from NYU School of Law, and has years of experience as a real estate and tax attorney, giving his clients a unique advantage as most other brokerages do not provide an in-house attorney to help clients. In addition, the expertise and marketing available through the team at DeLeon Realty are the very best in the business. Meet with Michael to discuss any preliminary tax and legal questions about selling your home and let him tell you more about what makes DeLeon Realty’s innovative approach to real estate so successful. There is no cost or obli-

Michael Repka 650.900.7000 CalBRE #0 1 8 5 4 8 8 0

gation for this consultation.

650.900.7000 | m i c h a e l @ d e l e o n r e a l t y . c o m | w w w . d e l e o n r e a l t y . c o m | C a l B R E #01903224

HADSOME UPDATES WITHIN A PRIME LOCATION •

3 Bedroom

•

Acacia hardwood floors

•

2 Bath

•

Chef's kitchen

•

Warm, functional layout

PRIVATE WOODLAND PARADISE •

5 Bedroom

•

Designer kitchen

•

4 Bath

•

Premier Location

•

Office

•

Top schools

•

Panoramic views

1116 VASQUEZ AVENUE, SUNNYVALE Offered at $1,498,000

25870 RIDGEWOOD LN, LOS ALTOS HILLS Offered at $3,788,000

For video tour and more photos, please visit: www.1116Vasquez.com

For video tour and more photos, please visit: www.25870RidgewoodLane.com

SO LD

BEAUTIFULLY REMODELED IN POPULAR SETTING •

4 Bedroom

•

Open-concept living

•

2.5 Bath

•

Prestigious Old Palo Alto

•

Newly remodeled

•

Top schools

NEWLY REMODELED, GORGEOUS BACKYARD •

4 Bedroom

•

Open-concept

•

2 Bath

•

Indoor-outdoor living

Desirable property along a

•

Central location

quiet, tree-lined street

•

Top schools

•

350 EMBARCADERO ROAD, PALO ALTO

952 EL CAJON WAY, PALO ALTO Offered at $�,988,000

For video tour and more photos, please visit: www.350Embarcadero.com

For video tour and more photos, please visit: www.952ElCajon.com

6 | DE LEO N R EA LT Y.CO M

R E A L E S T A T E L AW

Eight Listing Traps to Avoid

By Michael Repka, Esq.

Many sellers enter into a listing agreement feeling very optimistic and with a high level of trust in their listing agent. However, there may be devils lurking in the details of the listing agreement that the sellers are being asked to sign.

Many sellers erroneously conclude that they can sign the

accepted over another. To protect themselves, sellers should

“standard form” listing agreements published by the

include in an addendum a requirement that all referral fees

California Association of Realtors (“C.A.R.”) or Peninsula

be disclosed or, ideally, the listing agent (and/or their entire

Regional Data Service (“PRDS”) without review. These

office) should waive all commission if his/her buyer is the one

agreements are written by the Realtor® community

to purchase the property.

and contain many provisions which should be carefully considered, either by the sellers or, ideally, by their attorney.

Lack of Specificity in the Listing Agreement

After careful consideration of the “standard form,” the sellers

Sellers have more bargaining power to negotiate the terms

should prepare a comprehensive addendum spelling out the

of the listing agreement before signing on the dotted line.

precise nature of the agreement and making sure that both

The language included in the common “standard form”

sides are treated fairly. Below are eight areas to consider

listing agreement provides incredible latitude to the listing

when selecting a listing agent.

agent in deciding what marketing, if any, he/she will provide

Approach to Conflicts of Interest

for the property. Typically, these forms provide that the listing agent can advertise and market the property in any medium

When an individual agent represents both buyers and sellers,

selected by him/her unless otherwise instructed in writing by

it is inevitable that one of their buyers may be interested in

the seller. As such, the addendum to the listing agreement

one of their listings. This is particularly true because many

should include a comprehensive breakdown of exactly what

buyers find homes on their own and approach the listing

marketing the listing agent will provide, including the size

agent thinking they will either get a better price or a portion

and frequency of any ads, the number of TV commercials,

of the commission rebated back to them if they go through

the type of home brochure, a sample of the home’s video,

the listing agent. Therefore, sellers should have a detailed

the scope of international marketing, and any other relevant

conversation with the agent about how such situations will

marketing techniques that will be implemented to sell the

be handled if either the listing agent or another agent in

house.

their office represents the buyer. DeLeon Realty prohibits all of its employees from working on, or taking any money from,

Unquantifiable Efforts

both sides of a transaction. In fact, DeLeon Realty waives all

Sellers should be beware of any agents that make statements

buyer’s-side commission when its agents represent a buyer

such as: “I will market aggressively,” “I will turn over every

on a DeLeon listing. This is a brokerage-wide policy.

stone until I find the buyer,” or “I have a secret list of potential

Non-Disclosed Referral Fees

buyers who will buy your house.” Similarly, sellers should be cautious of agents who claim to have a buyer whom they

Unfortunately, some agents say that they will not represent a

will bring as soon as the sellers sign the listing agreement. If

buyer on their own listing; however, they do take substantial

these claims were true, they should be specifically identified

referral fees if they send that potential buyer to another agent

in terms that can be measured.

in their office. They argue that, under California law, there is no requirement that these referral fees be disclosed to the

Long Listing Agreements

sellers prior to their acceptance of the offers. Therefore,

Once the sellers have signed a listing agreement, they are

sellers may be receiving biased advice, yet have no idea

bound to pay commission throughout the entire length of

that the listing agent is making more money if one offer is

the agreement unless they can prove that the listing agent

Continued on page 8 D EL EONR EA LT Y.COM

| 7

R E A L E S T A T E L AW

Eight Listing Traps to Avoid

By Michael Repka, Esq.

Continued from page 7 has not lived up to contractual requirements. Before signing

contractors that are licensed to use the brokerage name for

the listing agreement, sellers should negotiate for a shorter

marketing purposes. These agents are not employees and

duration listing agreement (e.g., no more than 45 days after

they generally have no financial stake in the other agents’

the home hits the market) rather than let the listing agent bind

sales results. Therefore, the seller is really only going to get

them to a 90-day or 180-day listing agreement. If the property

the attention of the individual agent or team with whom they

has not sold during the listing period, the seller may elect

work and very little, if any, collaboration from other agents in

to extend the agreement if they are pleased with the overall

their office.

efforts and the quality of work exhibited by the listing agent.

Sellers, however, should not be contractually bound for many

Paying Out of Escrow

months to an agent that falls short of the client’s expectations.

The addendum to the listing agreement should specifically

Seller Costs

identify items that the listing agent will pay for during the listing period. Occasionally, the listing agents will agree

Listing agents should make a financial investment in the

to pay for certain items with a provision that they will be

listings. Nowadays, many, if not most, listing agents will pay

reimbursed by the sellers out of escrow or, conversely, the

for staging, property inspection, and pest inspection fees if

sellers must pay for certain items upfront and the agent will

required by the sellers at the time the listing agreement is

reimburse them out of escrow, assuming that there is a close of

signed. Not only does this relieve the sellers of some costs,

escrow. Neither of these approaches is the same as the

it also makes sure that the listing agent is fully vested in the

agent paying for the expenses themselves and not being

result. Before signing the listing agreement, the seller should

reimbursed by the sellers. Therefore, the sellers should be

ask the listing agent for pictures of other homes that the

very careful to ensure that their understanding is documented

agent has staged so that the seller can ascertain the quality

in the listing agreement.

of the design and furnishings. In other words, it is important for the sellers to know that their home will be staged by a

Although it does involve some additional cost, many sellers

high-end stager with the appropriate style of inventory for

would benefit from having an independent residential real

their property.

estate attorney review the listing agreement and the related

Focus on Brokerage Rather Than Agent

addendum prior to signing. Additionally, the sellers should request a written printout of all of the listing agent’s sales in

Some agents will attempt to distract the sellers from their

the area to ensure that the sellers accurately understand the

limited amount of volume or experience by touting the

listing agent’s sales volume and experience.

combined volume of all of the independent contractor agents in their office rather than their individual statistics. It is important to note that most brokerages utilize independent

8 | D E LEO N RE ALT Y.CO M

S OL D

SO LD

FLEXIBLE LIVING AMID VERDANT SCENERY

BI-LEVEL LUXURY WITH DRAMATIC BACKYARD

•

5 Bedroom

•

Generous property

•

5 Bedroom

•

Bi-level residence

•

3.5 Bath

•

Indoor-outdoor living

•

4.5 Bath

•

Richly appointed spaces

•

3,212 Sq. Ft. Home

•

Choice location

•

3,713 Sq. Ft. Home

•

Backyard retreat

•

20,411 Sq. Ft. Lot

•

Top schools

•

17,892 Sq. Ft. Lot

•

Premier location

822 MESA COURT, PALO ALTO Offered at $2,988,000 Sold with multiple offers

1275 WINDIMER DRIVE, LOS ALTOS Offered at $3,988,000 Sold with multiple offers at $4,700,000

For video tour and more photos, please visit: www.822Mesa.com

For video tour and more photos, please visit: www.1275WindimerDrive.com

SO LD S OL D

TIMELESS STYLE IN DOWNTOWN NORTH •

2 Bedroom

•

Open-concept floorplan

•

2.5 Bath

•

Premier Location

•

1,871 Sq. Ft. House

•

Top Schools

PEACEFUL LUXURY OASIS •

5 Bedroom

•

Sought-after location

•

3.5 Bath

•

High-tech amenities

•

3,475 Sq. Ft. Home

•

Pool and home thearter

•

43,995 Sq. Ft. Lot

•

Top Schools

325 CHANNING AVENUE #310, PALO ALTO Offered at $2,988,000 Sold for $3,200,000

13505 BURKE ROAD, LOS ALTOS HILLS Offered at $5,988,000 Sold with multiple offers at $6,500,000

For video tour and more photos, please visit: www.325ChanningUnit310.com

For video tour and more photos, please visit: www.13505Burke.com D EL EONR EA LT Y.COM

| 9

UPGRADED LUXURY IN LINDENWOOD

PROVINCIAL LIVING AMONG WORLD-CLASS PRESTIGE

•

5 Bedroom

•

Prestigious location

•

6 Bedroom

•

Exclusive views

•

4.5 Bath

•

Gorgeous retreat

•

6.5 Bath

•

Prime location

•

Cul-de-sac

•

Top schools

•

European style

•

Top schools

95 MAPLE LEAF WAY, ATHERTON Offered at $4,988,000

26401 ESHNER COURT, LOS ALTOS HILLS Offered at $9,988,000

For video tour and more photos, please visit: www.95MapleLeaf.com

For video tour and more photos, please visit: www.26401Eshner.com

TASTEFUL UPDATES REVEAL STYLE

EXCITING DOWNTOWN HOME WITH EXCEPTIONAL GROUNDS

2 Bedroom

•

•

2.5 Bath

•

Peaceful location

•

Modern style

•

Top schools

•

Backyard retreat

•

3 Bedroom

•

Sprawling indoor spaces

•

2.5 Bath

•

luxuriant, private gardens

•

2,637 Sq. Ft. Home

•

Prime location

•

11,250 Sq. Ft. Lot

•

Top schools

680 EMILY DRIVE, MOUNTAIN VIEW Offered at $1,298,000

101 WAVERLEY STREET, PALO ALTO Offered at $5,988,000

For video tour and more photos, please visit: www.680Emily.com

For video tour and more photos, please visit: www.101Waverley.com

10 | DE LEO N REA LT Y.CO M

R E A L E S TAT E D E S I G N

Construction Techniques – Insulated Concrete Forms (“ICF”)

By Michael Repka Over the past decade, the building industry has become

conduits and other internal wall elements are installed prior to

more environmentally conscious while also striving to find

filling the walls.

ways to improve the quality and durability of homes. One construction technique that has seen increased popularity in

The walls are finished in relatively short sections, roughly

recent years is building with Insulated Concrete Forms, also

four-feet high and filled. If the contractor were to fill a section

known as ICF construction.

much higher than four feet, then the weight of the wet cement could cause the forms to bow or fail. While completing walls

Traditional residential construction generally consists of

in four-foot high sections results in a very strong-finished

a foundation and framing, comprised of either wood or

home, the need to have a cement truck make multiple visits

aluminum studs. In modern construction, the space between

to the property can result in significant additional cost.

the studs on exterior walls is usually filled with insulation of some sort, however there are often insulation gaps near

This building technique is fairly flexible. Builders can use ICF

the studs, electrical outlets, and plumbing. While certainly

for basements and then switch to more traditional techniques

adequate, this technique results in a structure that may lack

for the living areas, or they can use ICF all the way from the

the structural rigidity and overall insulation of ICF homes.

below-grade basement up to the roofline. Generally, once a

A Closer Look at ICF Construction The concept behind ICF construction can be traced back to the three little pigs. When the big bad wolf huffed and puffed, he was able to blow down the two little pigs’ homes

contractor and/or luxury home builder becomes familiar with this technique, they seem inclined to use it all the way to the roof. On the inside, however, interior walls may be built using traditional methods, ICF, or a combination of both.

that were made of straw and sticks. Yet, the third little pig’s

Resistance to the Elements

home, which was constructed of bricks, survived the ordeal

The terrible disasters this nation has faced over the past year,

unscathed. That wolf would not stand a chance against a

including the hurricanes in Florida, Texas, and Puerto Rico;

modern home made with insulated forms reinforced with

the wild fires in northern and southern California; and the

rebar and filled with concrete.

tornados in the Midwest, may lead to increased interest in ICF construction. After all, homes constructed out of solid

ICF construction is actually fairly easy to understand. A

concrete walls are much more resistant to wind damage.

manufacturer produces forms that are made of insulated

Additionally, if coupled with a fire resistant roof, this type

panels, which are separated by braces or similar structural

of construction is likely to fare better in a wild fire when

dividers. These forms have teeth on the edges such that they

compared with homes constructed out of wood.

can lock together much like

Lego®

bricks. Once the bricks

are in place, reinforcing rebar is added and the gap between

Shad Shokralla, of Brighton Builders Limited of Los Altos, a

the two panels is filled with 8 to 12 inches of concrete. This

builder experienced in this type of construction, is a strong

results in thick, solid walls covered on both the inside and

advocate of this construction method even though it is more

the outside by the insulated panels. Once fully hardened,

costly than traditional methods because the finished product

this process creates walls that are extremely strong, solid and

is so solid.

resistant to any sort of air penetration. Plus, even the most ambitious termite would starve to death or move on to one

Shad built a masterpiece of ICF construction for a couple

of the delicious wood houses in the neighborhood.

in Los Altos Hills, which can be seen at 26401 Eshner Court. These satisfied homeowners love the final product,

A contractor trained in this building technique will position

noting that the entire house feels rock-solid and completely

the “bricks” to form openings for windows and doors

squeak-free.

before the cement is added. Similarly, all necessary D EL EONR EA LT Y.COM

| 11

R E A L E S TAT E M A R K E T P U L S E

Has Silicon Valley and SF eclipsed NYC as America’s Top Region?

By Ken DeLeon

“If I can make it there, I'll make it anywhere.” This line from

as there has been a flow of innovation and prestige from the

Frank Sinatra’s aspirational “New York, New York” reflects the

East to West Coast, so too has the growth of gastronomic

long-held belief that New York is the epicenter of American

delights followed. While cuisine is highly subjective, there is

commerce and progress. Yet, as technology pervades more

quantitative data to support this contention. The preeminent

industries and becomes the ubiquitous driving force of

of which is the number of three-star Michelin restaurants in

innovation and wealth creation, has Silicon Valley and the

each region. According to Eater San Francisco, since 2011

San Francisco Bay Area surpassed the Big Apple as America’s

New York has not gained a single three-star restaurant. In

preeminent region? While the San Francisco Bay Area has

this same timeframe, the Bay Area has gained five three-

only 7 million people compared to New York’s metropolitan

star restaurants. The Bay Area now has seven three-star

population of over 20 million, multiple measurements of

restaurants versus New York’s five.

wealth, culture, and education indicate that the Bay Area now comes out on top.

Mirroring the trend of tech overtaking finance, Stanford has a brighter future than Harvard. While I would still consider

One metric illustrative of the success of Silicon Valley’s tech

Harvard the world’s preeminent university, Stanford may

companies would be the increase in market cap value of

appropriate that role in coming decades. According to

the top three companies headquartered here versus New

Philanthropy.com, Stanford is the leader in fundraising in

York. This pits the combined market cap growth of Apple,

recent years, collecting over $2.5 billion in the last two

Alphabet, and Facebook versus J.P. Morgan, Pfizer, and

recorded years—more than Harvard and more than double

Verizon. The comparison is startling, and demonstrates how

New York’s Columbia University. In addition, according to

much technology companies have grown recently. According

Times Higher Education, since 2000 Stanford has been ranked

to Ycharts.com, since the stock market rally from President

as one of the top two universities, along with Princeton,

Trump’s election on November 8, 2016, Apple is up $309

for creating Nobel laureates. While the past belongs to

billion in market cap value, and now worth an unprecedented

Harvard, Stanford and its excellence in the sciences and

$901 billion. Alphabet is up $235 billion in market cap growth,

entrepreneurial innovation will likely be the leading light for

with a total value of $780 billion. Facebook has added $163

the world in coming decades.

billion in market cap, and is now valued at $521 billion. While these tech titans, three of the five most valuable companies

Clearly, which region in America is the most innovative,

in the world, collectively added $707 billion in value in the last

creative and successful is difficult to answer and everyone will

15 months, the top three New York companies collectively

have their own perspective. Yet this article poses more of a

added only $223 billion in market cap value, or less than

question than a clear conclusion. The fact that the Bay Area

one-third as much. With more value creation now stemming

can even be compared to one of the top cities in the world

from Silicon Valley’s tech innovation rather than New York’s

with three times the population illustrates how amazing this

financial markets, expect the Bay Area to continue to expand

area is which we all get to live in and enjoy. Let us be thankful

and add wealth more than New York or any other US region.

and appreciative of all that the Bay Area provides: a world class economy set in a stunning natural environment coupled

With wealth and education come the desire for cultural

with the benefit of a highly educated population. While it is

amenities and improvements. New York was always viewed as

perhaps the best region in America or even the world, at a

the center of the nation’s culture and food excellence. But just

minimum, it is a great area to call home.

12 | DE LEO N REA LT Y.CO M

R E A L E S TAT E S E L L I N G S T R AT E G Y

The Peril of Pocket Listings

By Michael Repka, Esq. As the most active listing agent in Silicon Valley, I receive many phone calls from people interested in selling their property. The majority are interested in taking all steps necessary to achieve the highest possible sale price – which includes the proper preparation of the home, the appropriate timing of the listing, and ensuring the maximum amount of exposure. However, some sellers indicate that they are looking for a quick and/or easy sale that doesn’t require the aforementioned steps. As the highest-volume listing agent in the area, I am uniquely positioned to bring about a quiet and expeditious sale, yet I feel compelled to caution sellers about traveling down the “quiet sale” road without fully considering the drawbacks to such an approach.

Undoubtedly, there are some sellers who are willing to forego the highest possible sale price in exchange for increased privacy or added convenience. However, there are sellers who unwittingly travel down the path of limited exposure based on reassurances that they will achieve the same price without any inconvenience or effort. In other words, some sellers end up with a lower sale price without fully considering the potential costs associated with limited exposure. Quite simply, a home that is not properly prepped and/or receives less than the maximum amount of exposure is much more likely to sell for a lower sale price.

Conflicts of Interest One of the biggest problems that arises out of “pocket listings,” “off-market listings,” or periods of exclusive access is that the listing agent dramatically increases the chance of the buyer being represented by the listing agent or someone close to the listing agent, such as a friend in the same brokerage. More often than not, this works to the benefit of the buyer and, because the listing agent’s interests are often diametrically opposed, to the detriment of the seller. When a seller is presented with an offer before full public exposure, they often have to make a decision in a vacuum. The seller doesn’t know how much other potential buyers would be willing to offer, so they need to rely upon either their own judgment or the advice of the real estate agent. The problem is that the real estate agent and/or their brokerage often gains a direct financial benefit from a quick and quiet “doubleended” sale. Therefore, the seller needs to take the agent’s advice with a grain of salt. It is easy to imagine that a listing agent would prefer this route, as they might get commission (or a referral fee) from both sides of the transaction, while simultaneously saving some marketing costs. Therefore, the listing agent may be tempted to encourage a seller to accept

an offer, even though it is quite possible that there could be another buyer out there who would pay a higher price.

Alternatively, the actual winning buyer may be willing to pay a higher price if they were faced with competition.

Limited Exposure The key to generating the highest possible sale is making sure that the maximum number of qualified buyers are aware of the property and come to see it. There are a number of ways to do this. The first is getting the home onto the radar screen of all potential buyers. At a minimum, this should include listing the property on the Multiple Listing Service (the “MLS”) with a link to a fully narrated video, a 3-Dimensional tour, high quality photography, and a comprehensive description of the home. Moreover, properly marketing a home in Silicon Valley requires far more than simply listing it on the MLS. Many buyers may be searching for a home of a certain type, but they are not actively searching in your particular MLS area, or even your city, for that matter. That’s why comprehensive exposure also includes other media such as radio, television commercials, multiple newspaper ads in different towns, direct mail, and active promotion by the real estate agent.

It’s simply common sense that a home that is exposed to fewer qualified buyers will receive fewer offers and those buyers that do put in offers will feel empowered to make lower offers because of the lack of competition.

Level of Proper Preparation Although it’s hard to understand why so many sellers are willing to sell their homes without adequate exposure, one possible explanation is their ability to forego the listing preparation process. Unfortunately, I have heard reports that some real estate agents proactively encourage sellers to allow them to show their own buyers the property without full exposure by instilling fear of staging, touch-up paint, cleaning, or many of the other steps that are involved with properly preparing a home. While the ease of this approach is certainly enticing, the lack of preparation is yet another reason why sellers should be reluctant to blindly travel down this road. Quite simply, homes look better once they’re properly prepared, staged, and marketed. Thus, when a limited number of buyers are seeing a home that has not properly been prepped, and they are comparing this home to other homes on the market that have been diligently prepared, the buyers are inclined to offer lower prices. From

Continued on page 14 D ELEONR EA LT Y.COM

| 13

R E A L E S TAT E S E L L I N G S T R AT E G Y

The Peril of Pocket Listings

By Michael Repka, Esq.

Continued from page 13 the buyer’s point of view, this makes a lot of sense because he/she will probably get the home for substantially less than a property that is properly prepared and marketed, but from the seller’s point of view, it can potentially result in leaving hundreds of thousands of dollars on the table.

Engaging in the Listing Process While some agents are quick to ask for a period of exclusivity or encourage sellers to allow them to market it as a pocket listing or an off-market listing, sellers should see any of these suggestions as a red flag. If a seller is particularly interested in selling a home without maximum exposure, they should be working with a trusted professional that will advise them about the potential costs involved with such an approach. If the seller nevertheless wants to go forward after receiving the required advice, then that is completely their prerogative.

However, sellers that encounter an agent who habitually encourages clients to restrict access to only their buyers (or buyers in their office) should consider other alternatives for a listing agent. The formula for achieving the highest possible price for a Silicon Valley listing is really quite simple—make sure the property is: (1) presented in the best possible light; (2) marketed very aggressively to the maximum number of potential buyers in a variety of different areas; (3) easy to access and well-presented throughout the duration of the listing period; and (4) represented by an agent who acts solely in your best interest, and that will not accept any commission or referral fees from any buyers on his/her listings.

At DeLeon Realty, I encourage all of my sellers to follow these steps, and all DeLeon sellers know that I am looking out for their best interest. As has been well publicized, DeLeon Realty takes the extreme measure of waiving all buyer-side commission in any transaction where a DeLeon buyer’s agent represents a buyer on any DeLeon listing. The greatest benefit of this approach is that both the buyer and seller confidently know that they are working with someone who is completely loyal to them.

PREMIER NEW LUXURY RESIDENCE •

5 Bedroom

•

Attention to every detail

•

4.5 Bath

•

Central fireplace

•

3,623 Sq. Ft. Home

•

Open-concept living

•

9,652 Sq. Ft. Lot

•

Master chef's kitchen

490 LOMA VERDE AVENUE, PALO ALTO Offered at $4,788,000 For video tour and more photos, please visit: www.490LomaVerde.com

GORGEOUS GARDEN ESTATE IN WEST ATHERTON •

5 Bedroom

•

Large, sun-lit spaces

•

7.5 Bath

•

Gourmet kitchen

•

6,449 Sq. Ft. Home

•

Premier location

•

1.05 Acre Lot

•

Prestigious schools

�65 PATRICIA DRIVE, ATHERTON Offered at $8,790,000 For video tour and more photos, please visit: www. �65PatriciaDrive.com

14 | D E LEO NRE ALT Y.CO M

R E A L E S TAT E TA X

Tax Topics—Deductions for Pass-Through Entities

By Michael Repka, Esq. (LL.M.—Taxation, NYU School of Law ‘01) On December 22, President Trump signed the Tax Cuts and Jobs Act (the “Act”) into law. This sweeping legislation dramatically lowered corporate tax rates, encouraged multinational companies to bring money back to the United States, generally lowered individual income tax burdens, reduced mortgage interest deductibility, and, perhaps most significantly for people in California, eliminated all but $10,000 of state income and real property tax deductibility.

Additionally, the Act created a new deduction for income from pass-through entities. On December 26, we published an article addressing these changes which was featured in many local newspapers, Gentry Magazine, and it is available on our website at: https://deleonrealty.com/2017/new-taxlegislation-impact-california-real-estate/.

Since enacted, there have been a tremendous number of questions and substantial concern about the likely impact of the new law, which hits homeowners in California particularly hard. Nowhere was this concern more evident than at my last tax seminar which we held on January 6. Normally my tax seminars attract between 80 and 100 people with some attendees as interested in the delicious crab cakes at the Palo Alto Hills Country Club, as they are in hearing about various tax structuring ideas. However, this latest seminar

new regulations clarifying this issue, it appears that landlords will not need to form a new entity to take advantage of this deduction. In other words, real estate investment income reported on Schedule E (Form 1040) should qualify.

Over the years there has been much debate as to whether owning investment qualifies as a “Trade or Business,” but the IRS has acquiesced to an old case from the 1940’s, which held that even owning one residential rental property qualifies as a trade or business. Hazard v. Commissioner, 7 T.C. 372 (1946).

However, it should be noted that the new rules under Section 199A contain a maze of limitations and restrictions that serve to reduce the applicability of the deduction. While taxpayers that are “fortunate” enough to earn less than $315,000 as a couple (Inc. income from most sources) should be able to take full advantage of the 20 percent deduction on qualified business income. Taxpayers that make more than this amount will see the deduction phased out, with a full phase-out achieved at $415,000, unless the taxpayer qualifies for either the wage or the wage and capital exception to the phase out.

Wage or Wage and Capital Exception to the Phase Out Some lucky taxpayers may be able to take a deduction even if their taxable income is in excess of $157,500 ($315,000 if married filing jointly), if the business pays enough wages to employees or if they have sufficient capital invested in the business. This increase to the phase is calculated as follows: 50 percent of the wages paid by the entity, or 25 percent of the wages paid by the business plus 2.5 percent of the unadjusted basis of qualified property used in the business.

attracted over 850 people—and we didn’t even serve the crab cakes! In fact, we had to split the seminar into two shows, with the second being a standing-room-only show at the JCC’s theater in Palo Alto. There is no doubt that local home owners are concerned about the potential impact on home prices and interested in possible ways to save taxes.

20 Percent Deduction for Pass-Through Entities With regard to the positive changes, many real estate investors were interested in the new rules codified as Sec. 199A of the internal Revenue Code which provides for a 20 percent deduction for income from a pass-through entity. The number-one question was whether landlords should form an LLC or an S-Corporation to hold their investment properties.

Although the Treasury Department has not promulgated any

It is widely speculated that the latter rule, which provides relief for capital intensive businesses, was crafted to help real estate investors. Additionally, some businesses may want to reconsider the amount paid as W-2 wages to owners of the company.

As if these rules are not complicated enough, there are additional restrictions on income from service-based businesses that rely upon the individual’s professional skill, such as lawyers, doctors, musicians, and professional athletes, among many others.

So, what does all this mean? It means that taxpayers with income from small businesses or real estate holdings should make an appointment with their tax professional to ensure compliance with the new rules and to make sure they are taking advantage of all deductions to which they are entitled.

D ELEONR EA LT Y.COM

| 15

COM I NG S OON

CENTRAL LOCATION GRANTS DESIRABLE CONVENIENCE

GATED PARADISE IN PRESTIGIOUS SETTING •

Pristine grounds

•

West Atherton

•

Immaculate craftsmanship

•

Top schools

•

5 Bedroom

•

Spacious and sun-lit

•

3 Bath

•

Centrally located

•

Remarkably updated

•

Top schools

65 ROBLEDA DRIVE, ATHERTON Offered at $11,888,000

788 S. BERNARDO AVENUE, SUNNYVALE Offered at $�,498,000

For video tour and more photos, please visit: www.65Robleda.com

For video tour and more photos, please visit: www.788SouthBernardo.com

CO MI NG SO O N

BREATHTAKING CUL-DE-SAC RESIDENCE

SERENE SETTING REVEALS BRIGHT ELEGANCE •

5 Bedroom

•

Elegant gathering areas

•

5 Bedroom

•

Recently remodeled

•

3 Bath

•

Extensive backyard retreat

•

4.5 Bath

•

Open-concept

•

3,820 Sq. Ft. Home

•

Mature fruit trees

•

Peaceful cul-de-sac

•

Gorgeous chef’s kitchen

•

12,236 Sq. Ft. Lot

•

Privacy

•

Award-winning schools

�3 BOTANY COURT, EMERALD HILLS Offered at $2,798,000

5 LASSEN COURT, MENLO PARK

For video tour and more photos, please visit: www.�3Botany.com

For video tour and more photos, please visit: www.5LassenCourt.com

16 | D E LEO NRE ALT Y.CO M

R E A L E S TAT E M A R K E T I N G

The Power of Digital Marketing for Real Estate

By Mike Ran, Online Marketing Specialist

When it comes to modern digital marketing, new technologies arise almost every day with the promise to be the next big thing.

Trends and buzzwords come and go, but establishing an

be mobile responsive so they are easy to use on any device.

effective online strategy means focusing on what works.

Additionally, bringing web development in house is a great

For the digital presence of real estate brands, evolution is

way to efficiently implement the latest functionality, interface

important but the foundation should always be constructed

design, and security standards. Staying current with these key

on proven systems.

aspects results in a better user experience as well as higher

Targeting and Analytics

organic search engine rankings for any website.

One facet of successful online marketing is breadth to extend

Cross-Pollination

across a variety of platforms such as social media, search

In addition to multimedia-rich pages for homes, websites

engines, and email. Nonetheless, a powerful marketing

that contain a plethora of exclusive content leads to more

campaign should also be targeted so the most relevant

cross-traffic from clients. For example, the news and events

audiences can be reached. For example, it is wise to focus

section of deleonrealty.com is full of insightful articles tailored

more advertising on people within a certain income bracket,

to Silicon Valley real estate. This includes a summary of the

geographical area, and whose social media behaviors

new tax legislation’s impact on California real estate and a

demonstrate the likeliness to move.

prediction for the appreciation of local markets. These articles resonate with relevant audiences both organically as well as

Furthermore, most online marketing platforms come with

through social media channels. Furthermore, a feature-rich

powerful analytical tools. Metrics, such as clicks and leads,

MLS system with advanced search and live market report

can be used to reiterate campaigns and attain optimal results.

data can be easily integrated into any website. Another

This is a proven way to quantify performance so marketers

potential resource are the neighborhood guides with local

can invest more in the strategies that work.

information, charts on appreciation, and community videos.

Technology and Multimedia

These features create more exposure of property listings to potential buyers who are already browsing the site.

Maintaining a high volume of website visitors is beneficial, but what they see and experience during a visit is equally

Delivering quality content to your target audience is a tried

important. Professional photography and videography are

and tested method for optimizing your marketing resources.

essential for capturing beautifully staged homes. High-

The internet features an array of tools for real estate, making

end multimedia can have a profound emotional impact on

it easier than ever to reach and engage with customers. As a

potential buyers and so can the feel of a cutting-edge website.

result, it is important to develop a marketing strategy based

Custom-built webpages are a great way of showcasing the

on a proven groundwork, while allowing enough room for

uniqueness of properties along with their photos, videos, and

integrating effective innovations.

interactive 3D tours. Effective websites should be designed to D ELEONR EA LT Y.COM

| 17

S OL D

DAZZLING UPDATES EVOKE SOPHISTICATION •

4 Bedroom

•

full-scale remodel

•

3.5 Bath

•

Indoor-outdoor lifestyle

•

2,040 Sq. Ft. House

•

Peaceful, private Location

•

10,200 Sq. Ft. Lot

•

Prestigious private schools

483 DENISE LANE, REDWOOD CITY Offered at $1,798,000 Sold with multiple offers

HIGH-END LUXURY IN UNIVERSITY SOUTH •

2 Bedroom

•

Flexible floorplan

•

2 Bath

•

latest technology

•

1,285 Sq. Ft. House

•

Top Schools

185 FOREST AVENUE, UNIT 2A, PALO ALTO Offered at $1,788,000 For video tour and more photos, please visit: www.185ForestAveUnit2A.com

For video tour and more photos, please visit: www.483DeniseLane.com

INVITING GLAMOUR IN PREMIERE LOCATION

THOUGHTFUL UPDATES EVOKE QUIET ELEGANCE

•

4 Bedroom

•

Sky-lit Interior

•

3 Bedroom

•

Prime location

•

4 Bath

•

Oudoor retreat

•

2.5 Bath

•

Versatile living

•

3,179 Sq. Ft. Home

•

Sought-after Location

•

1,447 Sq. Ft. Residence

•

Outdoor retreat

•

9,514 Sq. Ft. Lot

•

Top Schools

•

1,161 Sq. Ft. Lot

•

Easy Commute

866 SEALE AVENUE, PALO ALTO Offered at $4,988,000

1918 HACKETT AVENUE, MOUNTAIN VIEW Offered at $1,298,000

For video tour and more photos, please visit: www.866Seale.com

For video tour and more photos, please visit: www.1918Hackett.com

18 | DE LEO N REA LT Y.CO M

R E A L E S TAT E B U Y I N G S T R AT E G Y

Cash is Still King

By Darrell Martin, Senior Buyer Specialist Many times over the past year, I have learned that the

in their bank account and then purchased the second,

winning offer for a home was an all-cash offer. Fortunately,

smaller home utilizing that cash. Even though both homes

some of those winning offers were made by buyers I had the

received multiple offers, my buyers’ offers were accepted

good fortune to represent. After another one of my buyers’

primarily because they were compelling, all-cash, quick-close

all-cash offers was recently accepted in a multiple-offer

offers that provided the seller with complete confidence in

scenario, I started wondering, “How can more of my buyers

our ability to perform.

make all-cash offers even though they do not have all of that cash available?” In this incredibly competitive Silicon Valley

very quick close.

FOR HOME BUYERS WHO DO NOT HAVE THE CASH AVAILABLE AND ARE EAGER TO SUBMIT A COMPELLING, ALL-CASH, QUICK-CLOSE OFFER, BORROWING THE MONEY FOR THE MONTH OR SO IT WILL TAKE TO FUND THE MORTGAGE MAY BE AN OPTION WORTH EXPLORING.

So, how can buyers increase the odds of their offer being

You may be asking: “But where can a home buyer go to

accepted by submitting an all-cash offer when they do not

borrow this money?” A few possible options include:

housing market where it is common for a home to receive 10-20 offers, buyers’ agents are always looking for ways to help make their buyers’ offers as attractive and compelling as possible to sellers. Ideally, for each of my buyers, I would love to submit a competitive, all-cash, quick-close offer with a few other terms and conditions that are very attractive to sellers and typically not utilized by most agents. I was recently told by a listing agent that his sellers chose to accept my buyers’ offer over a significantly higher offer without countering on price due primarily to the strength of our all-cash offer with a

have all of the cash available and/or are planning to carry a mortgage on the home? Believe it or not, there are a few options worth considering.

1. Borrow from someone, such as a parent or other family member, who has the cash available 2. Borrow from Home Equity Line of Credit, if

Some lenders offer programs that provide all-cash home

moving up from a home with significant equity

buyers the opportunity to finance their new home with a

3. Borrow against equities in an investment account

mortgage within 90 days after closing escrow with the same interest rate and terms as if the mortgage had been used

(on margin) 4. A combination of some, or all, of the above

to purchase the home. For buyers with the cash available, this provides an excellent opportunity for them to increase

In this extremely competitive housing market, submitting the

the odds of their offer being accepted without needing to tie

strongest and most compelling offer possible is a necessity

their cash up for more than a month or so.

for home buyers wishing to prevail in multiple-offer scenarios.

An all-cash offer, written with the right terms and conditions,

This is exactly how some recent buyers of mine were able

can provide the edge many home buyers are seeking.

to purchase two homes for their extended family within

Creating a successful strategy up front and connecting with

walking distance of each other. They purchased the first,

the right lender are just two of the many critical steps that

more expensive home with cash, immediately took out a

DeLeon Buyer Specialists can help home buyers in preparing

mortgage on that home, deposited the mortgage proceeds

that winning all-cash offer.

D ELEONR EA LT Y.COM

| 19

R E A L E S TAT E I N F LU E N C E

Real Estate and the Millennial Home Buyer

By Huy Vu, Senior Buyer Specialist

The American Dream has not changed for Millennials. It is very much the same dream our parents might have had: a career, a family, and a home.

It’s just taken us more time to get there because we grew

With so many Millennials interested in buying homes, it’s

up in a world where unpaid internships and contract work

not a surprise that there are now so many real estate apps

did not usually mean long-term employment or a career.

available to aid buyers in their home search.

Saving wasn’t enough with school debt and rising rents.

Growing up in an age where the internet dominates daily

Redfin and Zillow have popular websites and phone apps

life and surrounds us with distractions and a non-stop flow

buyers can use to find information about open houses, offer

of information. However, the American Dream of home

dates, school systems, comparable properties, and more.

ownership has always been a part of what has driven us

They are powerful tools, and I know more than a few agents

forward.

who use these tools themselves to help them search for homes for their buyers. However, home buyers will quickly

We Millennials are growing up, though. Engagement parties,

find the search can be overwhelming—this market moves

wedding planning, baby showers, and buying homes are

fast! A home search can span across multiple cities. There

hot topics of conversation among my peers, who, ten years

are open houses every weekend. There are hundreds of

ago, merely had the goal of self-sufficiency. Now, many of

pages of disclosures to review per property. There could be

their goals involve supporting a family. Before I got into real

multiple offers to put together in a week. Furthermore, the

estate, my fiancée (then girlfriend) and I decided to speak

buyers I work with are commonly dual-income households.

with a lender to get a home loan because we were working

Couples who have children, pets, and other responsibilities

toward home ownership. While we weren’t in a position to

on top of their careers may have little time to devote to the

purchase a home then, the meeting wasn’t a waste of time.

home search. This is why I believe real estate agents are

We walked away knowing we had things to work on such as

underutilized, especially among my fellow Millennials. A

improving credit scores, managing our budget, and working

good realtor should be viewed as a necessity.

harder in our careers to establish our financial stability. As we’ve grown older, we’ve sensed an increasing optimism

At DeLeon, our agents are all real estate professionals who

among our Millennial friends that the American Dream is

have chosen this industry as our career. Many of us have

becoming an achievable reality.

advanced degrees and experience beyond real estate. We all love working with clients, and know this industry is built

As an agent with DeLeon, I’ve worked with a diverse group

on relationships. Beyond that, we are people who all have

of homebuyers of different industries and various ages. An

personality, ambition, and our own sense of humor. I would

increasing number of Millennials are showing up to our open

never hesitate to refer a friend or family member to any one

houses and calling in to inquire about properties. Millennials

of my colleagues because I know that they are hardworking,

have overtaken baby boomers as American’s largest

knowledgeable, ethical, and friendly people to work with.

generation and workforce, and it’s likely that this Millennial-

Beyond DeLeon, there are plenty of excellent agents out

homebuyer trend will only continue to move forward.

there in the community as well. Finding the right agent for you

Millennials are well-educated, career driven, ambitious, and

is one of the best things you could do as buyers looking to

technologically savvy. We grew up surrounded by computers,

find a home.

smart phones, and free information at our fingertips.

20 | D E LEO NRE ALT Y.CO M

MARCH 2018

City Market Conditions

Average Sale Price

$6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Los Altos

Los Altos Hills

Menlo Park

Mountain View

Average Sale Price (August 2016 - January 2017)

Palo Alto

Portola Valley

Redwood City

Sunnyvale

Woodside

Average Sale Price (August 2017 - January 2018)

08/2016 - 01/2017

Average sale price for single-family homes from 08/2016 to 01/2017, compared to the period from 08/2017 to 01/2018.

08/2017 - 01/2018

Price/Square Foot Ratio $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Los Altos

Los Altos Hills

Menlo Park

Mountain View

Price/SqFt Ratio (August 2016 - January 2017)

Palo Alto

Portola Valley

Redwood City

Sunnyvale

Woodside

Price/SqFt Ratio (August 2017 - January 2018)

08/2016 - 01/2017

Price per square foot ratio for single-family homes from 08/2016 to 01/2017, compared to the period from 08/2017 to 01/2018.

08/2017 - 01/2018

Data gathered from the Multiple Listing Service on 02/13/2018

D ELEONR EA LT Y.COM

| 21

Community Calendar- Menlo Park Burgess Park Egg Hunt Saturday, March 31, 2018

Each year the Bunny visits Burgess Park with toys and candy filled eggs for girls and boys, ages 8 and under. The Burgess Egg Hunt festivities start with bounce houses, crafts, and pictures with the Bunny. Be sure to catch photos opportunities with the fire trucks, and maybe take a ride on “Old Tom”, an antique fire engine.

WHEN: 10:00 am to Noon WHERE: Burgess Park, 701 Laurel St. Menlo Park, CA

Come enjoy kite flying, a hot dog lunch, jump houses, facepainters, and cool down with a ice cold snow cone. If the wind is just right, you’ll catch a glimpse of “Mega Fish”, a 46-foot giant kite.

WHEN: Noon to 3:00 pm WHERE: Bedwell Bayfront Park, 1600 Marsh Road Menlo Park, CA

Kid’s Library Storytimes Celebrate the special bond between parents / caregivers and their babies! Registration is required in advance.

Kelly Park Egg Hunt Saturday, May 5, 2018

Since 2009, the Egg Hunt at Kelly Park has delighted residents with crafts, a jelly bean-guess, magic show, music, and photo opportunities with the Bunny! Bring the family, and enjoy a fun-filled morning as the kids scramble for plastic eggs filled with goodies.

WHEN: 10:00 am to Noon WHERE: Kelly Park, 100 Terminal Ave, Menlo Park, CA

Kite Day

Saturday, May 5, 2018 Since the first Kite Day in 1988 there has been no better place to fly a kite in Menlo Park than Bedwell Bayfront Park.

161 Stanford Ave, Menlo Park Listed at $3,488,000 For more info, please visit: www.161Stanford.com

22 | DELE O N REA LT Y . C O M

WHEN: Monday 10:15 am-Rhymes and Signs for Ones (12-24 months) Monday 11:15 am-Spanish/English (2-4 years) Tuesday 7:00 pm-Drop-In Family Storytime Wednesday 10:15 am-Stories and Songs (24-36 months) Wednesday 11:15 am-Preschool Storytime (3-5 years) Thursday 10:15 am-Rhymes and Signs for Ones (12-24 months) Friday 10:15 am-Baby Lap-sit (0-12 months)

WHERE: Menlo Park Library, 800 Alma Street, Menlo Park, CA

MARCH 2018

Recent Sales in Menlo Park BEDS

BATHS

SQ FT TOTAL

LOT SIZE

PROPERTY SUB TYPE

DOM

PRICE

455 San Mateo Drive

5

5|2

5,456

10,240 Lot SqFt

Res. Single Family

92

$6,350,000

1715 Bay Laurel Drive

4

4|1

5,315

11,934 Lot SqFt

Res. Single Family

172

$5,700,000

415 Olive Street

4

4|2

5,142

12,100 Lot SqFt

Res. Single Family

77

$5,555,250

264 Leland Avenue

4

3|1

2,720

7,050 Lot SqFt

Res. Single Family

9

$4,100,000

4 Russell Court

4

3|0

2,370

7,057 Lot SqFt

Res. Single Family

13

$3,825,000

407 Laurel Avenue

5

4|1

3,000

8,750 Lot SqFt

Res. Single Family

32

$3,600,000

17 Shasta Lane

4

3|0

2,510

17,200 Lot SqFt

Res. Single Family

0

$3,550,000

12 Sunset Lane

4

2|1

2,720

13,420 Lot SqFt

Res. Single Family

10

$3,525,000

40 WILLOW Road

4

3|0

2,510

9,800 Lot SqFt

Res. Single Family

5

$3,500,000

401 Olive Street

3

2|0

2,130

13,520 Lot SqFt

Res. Single Family

0

$3,500,000

1145 Rosefield Way

3

2|0

1,660

9,975 Lot SqFt

Res. Single Family

0

$3,350,000

308 Princeton Road

4

2|0

1,610

7,500 Lot SqFt

Res. Single Family

10

$3,100,000

333 Yale Road

2

2|0

1,530

7,800 Lot SqFt

Res. Single Family

0

$3,000,000

315 Trenton Way

3

2|0

1,650

6,405 Lot SqFt

Res. Single Family

6

$3,000,000

1274 Orange Avenue

4

2|0

1,650

8,236 Lot SqFt

Res. Single Family

34

$2,875,000

2001 Mills Avenue

3

4|0

1,940

6,720 Lot SqFt

Res. Single Family

0

$2,795,000

323 Trenton Way

3

2|0

1,770

9,800 Lot SqFt

Res. Single Family

0

$2,600,000

256 Marmona Drive

3

2|0

1,500

5,060 Lot SqFt

Res. Single Family

15

$2,600,000

722 University Drive

2

2|1

1,530

1,472 Lot SqFt

Res. Townhouse

5

$2,100,000

117 Hedge Road

3

2|0

1,220

5,500 Lot SqFt

Res. Single Family

7

$2,030,000

140 Forest Lane

3

2|1

2,330

1,742 Lot SqFt

Res. Single Family

164

$1,900,000

2010 Avy Avenue

2

1|0

850

6,000 Lot SqFt

Res. Single Family

0

$1,850,000

352 Hedge Road

3

1|0

1,205

5,550 Lot SqFt

Res. Single Family

10

$1,835,000

1307 Hoover Street

3

2|1

1,559

27,076 Lot SqFt

Res. Townhouse

0

$1,635,000

732 San Benito Avenue

3

2|0

1,140

5,350 Lot SqFt

Res. Single Family

28

$1,575,000

1280 Sharon Park Drive, #26

2

2|0

1,844

7.01 Acres

Res. Condominium

4

$1,450,000

1358 Sevier Avenue

3

1|0

1,130

5,750 Lot SqFt

Res. Single Family

4

$1,355,000

511 Durham Street

2

1|0

1,090

6,580 Lot SqFt

Res. Single Family

7

$1,300,000

1100 Sharon Park Drive, #2

2

2|0

1,196

3.92 Acres

Res. Condominium

8

$1,283,000

21 Willow Road, #25

2

2|0

1,167

2.08 Acres

Res. Condominium

7

$1,265,000

718 15th Avenue

2

1|0

830

5,350 Lot SqFt

Res. Single Family

0

$1,150,000

1370 Henderson Avenue

2

2|0

1,000

5,900 Lot SqFt

Res. Single Family

43

$1,034,750

1224 Carlton Avenue

2

1|0

800

6,000 Lot SqFt

Res. Single Family

5

$1,005,000

2140 Santa Cruz Avenue, #A103

2

2|0

1,140

Lot SqFt

Res. Condominium

1

$910,000

STREET ADDRESS

HOME SALES FROM 12/1/2017 - 2/21/2018 D ELEONR EA L T Y. C OM

| 23

®

PRSRT STD ECRWSS U.S. POSTAGE PAID SAN JOSE, CA PERMIT #2196

DeLeon Realty 1717 Embarcadero Road Palo Alto, CA 94303

******ECRWSSEDDM******

RESIDENTIAL CUSTOMER

SEMINAR

SHARP MIND

Buying a Home Below Market Value with Ken DeLeon Palo Alto Hills Golf & Country Club 3000 Alexis Drive Palo Alto, CA

U.C. Berkeley Law (Boalt) – High Honors Former Wilson Sonsini Attorney

RIGHT BRAIN

Creative solutions

GOOD HEARING

Listening to your goals

LEFT BRAIN

Analytical math & economic background

SHARP VISION

Spotting great deals for clients

HANDS

Over $3.3 billion in sales since 2011

Tuesday, April 24, 2018 6:00 PM - 8:00 PM

HEART

Belongs to my clients.

Putting your interests first

RSVP@DELEONREALTY.COM 650.543.8500 Seminar is for prospective clients only.

No outside real estate professionals permitted.

STRONG ENDURANCE

Walking clients through the long home-buying and selling process

FLEET OF FOOT

Running clients to excellent opportunities

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650.700.9000

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