What is the Value of My Home in a “Declining Marketplace?” The Piedmont Perspective, Vol 66 – September 10, 2008

What’s New?

Nothing good ever comes from opening the mail anymore. (All the fun invites show up on email!) Last week I made the mistake of opening a letter from the County of Alameda Assessor’s Office (that already sounds ominous) and choked on the “increased property assessment” of my home. You guessed it, per the county assessor, my home’s value has gone UP (who knew?) – and so have my property taxes!

While rising values in our current economy should be cause for celebration (whoo hoo!) it seems inherently contradictory to current market indicators to raise taxes in what lending institutions have now deemed “a declining marketplace.” (Have you tried to apply for an equity line recently?)

Like many of you, I bought and sold at the height of the market and like many of you, have experienced some depreciation in that number since. Not to worry, I plan on staying in my current home for a looong time. (I know that real estate is a long-term investment and that eventually, my home is going to recoup any decline in anticipated appreciation – and then some!)

Moreover, I believe the market has already hit bottom AND I expect the market to rebound in the very near future! Still, what to do about my impending “increased assessment?”

Or put another way – What is the value of a home in a declining marketplace?

That depends. For many of you needing to sell right away – your home has NOT depreciated in value (really!). You have remodeled and updated appropriately, your home is in “turnkey” condition and your expectations are realistic. While you may have lost some “anticipated appreciation,” you haven’t lost any “real value”.(This is an important distinction.) Lucky you – your home is in high demand!

For others, your home unfortunately, may now be worth less than you paid for it just a few years ago or less than you anticipate in a sale. You may need to sit tight and wait out the market (historically, time is on your side) or take a loss now and realize the greater gain on the “up leg” as one seller did who bought in San Francisco (her new Nob Hill residence has much greater appreciation potential than her previous East Bay home would have ever provided). For her, it made sense (and cents) to cut her short-term losses and potentially realize a greater return down the road.

Define your goal and work in the market you are currently in!

There are real advantages to“buying up” in a “soft market” where favorable pricing and negotiable terms now rule the day – bigger house, better location and higher appreciation when the market kicks back in! The hard part of the equation is that you may need to sell your current residence at a “discounted value.”

Remember, markets are relative. Sell high and you are likely to buy high. Sell low and you are likely to buy low. (Having done both, I vote for the latter.) In the meantime, I have appealed the tax increase. In the case of property taxes, “declining values” may merit a significant decrease in one’s annual taxes that may well be worth pursuing.

Oh, and I have vowed to stop opening the mail . . .

What’s Coming?

Look for Katherine Cooper’s circa 1938 home in St. James Woods to hit the market in the next few weeks. This 3bdrm/2bth home offers charm, space and Hampton field location!

There are few homes that appeal to the senses as much as Anian Tunney’s newest Grand Cape Cod listing at 334 Sheridan Avenue (my dream home!). Beautifully restored from top to bottom, this elegant Traditional could easily rival any Presidio or Pacific Heights mansion and features 5+bdrms/4+bths, finished attic, old-world front porch, mature gardens and gorgeous details throughout. Centrally located on a tree-lined street, this timeless beauty is built for memories – for garden weddings, for Christmas mornings, for lemonade on a hot summer afternoon. Shown by appointment only!
Price: $5,5959,000. www.Grubbco.com

On the other hand, if all-level living in a sleek contemporary setting appeals to you more, look no further than the sophisticated and spacious home on Farragut Avenue. This 5bdrm/4+bth home with soaring ceilings and abundant natural light packs an impressive punch.

Mindy Scott has listed a French Revival Chateau at 370 Hampton Road. This distinctive home complete with turret, designed by Newsom & Newsom, features 4bdrms/3 bths, master suite, au pair room, family room, formal living and dining rooms and pretty garden with pool. Price: $3,295,000. Open Sunday 2-4:30. www.Grubbco.com

Dana Cohen brings a wonderful Mediterranean to market this Sunday in Redwood Heights. Situated on a cul-de-sac known for its Spanish cottages, this authentic Guido Avenue beauty features 3bdrms/1bth, formal living and dining rooms, hardwood floors, coved ceiling, and a huge level back lawn and garden! Price: $689,000. Open Sunday 2-4:30.

What’s Pending?

The home at 300 Wildwood Avenue went pending and closed in quick succession.

What’s Happening?

Trulia.com has just made it easier for you to identify Sunday Opens! Utilizing GPS technology, your criteria and Google maps, agents and consumers alike can make quick work out of a formerly time-consuming process. Check it out! The more information you have, the better prepared to compete! (And yes, there is still heavy competition for the right properties!)

What’s Fun!

If you missed last year’s Birdhouse Gala and silent auction, you are still in luck and still in time! PAINTS Progressive Wine Tasting Party still has room for several more “strollers”. This progressive party, on October 4, from 6:30-10:00 is set to wind its way through five wonderful Piedmont homes and gardens in the Park Way/Monticello neighborhood.

Beginning at the Scimens-Moss home at 4 Park Way, the party will divide into five smaller groups to sample fine wines and delectable homemade hors d’oeuvres. Each home will be staged with fabulous art for sale. * Tempting desserts and cool jazz performed by the JazKatz, will round out the evening at house number five! Tickets are $70 each.

Contact Lisa Scimens at 655-6540 or scimens@sbcglobal.net, for tickets. Send checks to:
PAINTS Inc., PO Box 20920, Oakland, CA 94620. Please support this fun event – and don’t forget to wear comfortable shoes!

*Twenty percent of ALL art purchases will go directly to PAINTS, Inc. to support art in Piedmont’s public schools!

The Piedmont Plug!

I am plugging the final Movie Night in the Park this week – not only because I help underwrite this fun annual series, put on by Piedmont’s own fantastic Park and Recreation Dept., but because it’s represents our Piedmont lifestyle in a nutshell!

Admission is FREE! Grab your lawn chairs, a picnic dinner and a blanket and head over to the main park this Friday, September 12 for the screeing
of SKY HIGH. The movie starts at dusk (which is creeping in earlier and earlier now that fall is definitely headed our way.) Bring a jacket – the weather has grown a bit chilly.

See you next week!

THANKS FOR READING!

For more information about any of the properties or events listed above, please call me at (510) 339-0400 x264, or simply respond to this email. I’d love to share my real estate tips and my experience in the Piedmont community with you!

Feel free to visit my website at JulieGardner.com for more information as well.