Volume 150 – “Better” is “Better!”

What’s New?

On my recent visit to France (I’m going to milk this trip for all its worth) my sister and I were impressed by the ease in which so many Parisians slipped from one language to the next.  We witnessed one charming maitre’d attract tourists to his off-beat alley restaurant by speaking English, Portuguese, German, French, Romanian and Polish! Now that’s impressive. With divergent countries just a stone’s throw from one another, close quarters necessitate that Europeans excel in this kind of admirable linguistic gymnastics (and in my opinion, they’re richer for it). In this case,“less is definitely more.”

It’s exactly the opposite here in America where most of us have barely mastered English, let alone two or three other languages with any fluency or ease (‘Bar Spanish’ doesn’t count: “Dos mas cervezas por favor!”) Our home court is so vast, we’ve little motivation or practical experience to attempt other languages and that’s criminal in more ways than one. In our case, being “bigger” isn’t necessarily “better.”

In today’s more conservative marketplace, that sentiment is true for Real Estate as well.  Buyers aren’t necessarily shopping “bigger;” they are shopping “better.” Whereas just a few short years ago, buyers coveted increasingly larger homes, they are now more attuned to what it actually costs to run and carry these bigger properties and more than willing to sacrifice space for practicality. Hmmm, that’s a big switch.

Increasingly, many buyers are more comfortable purchasing a home under their maximum allowed loan qualification, instead of stretching to their limit -  as they used to do. They no longer covet formal rooms that have little use, save Thanksgiving and Passover. “The kids can share a room until they are older and we will convert the dining room to a family room. . .” Hmmm, BIG switch!

With much smaller families now the norm, buyers no longer require five or six bedrooms – each with its own bath. Today’s consumer typically seeks an open kitchen with adjoining family room, a home office, a master suite, a small garden, two-car garage, ample storage room, attractive architectural details and good bones! My boss, DJ Grubb, summed up this new market philosophy in DJ fashion: “The new, new is ‘authenticity. ‘” Quality outweighs quantity and form trumps function. Big SWITCH!

Moreover, ‘buy down’ buyers aren’t necessarily limited to the empty-nester any longer. They are just as likely to be 30-somethings preferring to reduce their growing overhead, minimize their payments and tighten their belts.  Their kids aren’t yet off to college; they’re off to elementary or middle school. BIG SWITCH!

So how to sell a bigger house? With ingenuity and with value. Stage one bedroom as a home office or gym and another as a convenient upstairs family room. The three or four plus bedroom home that telegraphs “flexible living space,” is increasingly more attractive to consumers than a five bedroom house which tends to state “large family home with possibly more bedrooms than you need!”

On the other hand, I grew up in a family of eight (five sisters in all) and the entire Shepherd clan shared one upstairs bathroom every morning. (Try that with today’s teens. It wasn’t pretty.) That’s a scenario, I don’t recommend, if family harmony rates high on your list.

The long and short of it is this:  if your needs via work or family are likely to evolve UPWARD and OUTWARD, then MORE space may be worth considering - especially with today’s bargain rates and even better values. If you anticipate the need for a larger home in the near future, NOW may be the best time to pursue it!  Not everyone is choosing to shop small.  Some brave souls have enthusiastically embraced the BIG family concept (either by design or by blending) while others are working from home and others are caring for elderly parents or in-laws.

Identify and market to this segment of the population and you stand a much better chance of attracting and finding the right buyer for your “bigger” home.

Add value to the mix and many sharp consumers will have a hard time walking away from the additional space - especially if your price per square foot is considerably better than the much smaller house down the street! While bigger isn’t necessarily better: “better” is “better” – and that’s always been true – in this or any market.

(Now that I’ve mentioned France more than a few times, do you suppose my trip is tax deductible as a “business expense?”)

What’s Coming?

So having spoken about the “bigger home” . . . here’s a couple of terrific, “big” opportunities! Please visit me at my newest listing at 852 Mountain Boulevard in Montclair. This truly Transfomred Contemporary hits the market Labor Day Weekend.  With 4+bdrms/3+bths, this sophisticated home near Broadway Terrace, features an open floor plan encompassing an inviting living room with stone fireplace, sunny dining area, cheerful solarium, updated kitchen, grand master suite, upstairs family room opening out to lovely terraced gardens, star gazing decks, 3-car garage and an elevator! It’s easy living in a dramatic package. Offering both form and function, this stunning home is also a tremendous value. Close to Montclair Village, Lake Temescal and Village Market. List price: $1,285,000.  Open Thursdays, September 2 & 9 for Broker’s Tour,  10:30-1:30 and to the public on Sundays, September 5 & 12,  2-4:30pm. (OR sooner, by appointment!).

Jill Carrigan offers an exciting new listing at 16 Sheridan Road in Rockridge.  The first “Green Point” home in Oakland, this 3+bdrm/2+bth eco-conscious Contemporary features a 13′ wall of glass that brings abundant natural light into the home. Featuring an open floor plan that encompasses kitchen, dining and living areas, an expansive master suite with private sitting room and deck, a zen-inspired spa bath, a family room AND a media room in an upstairs floating loft, there’s much to love here. Open Sunday 2-4:30pm.  List price: $1,350,000.  www.16SheridanRoad.com

Dana Cohen’s newest Piedmont listing at 210 Palm Drive is an elegant 3bdrm/2bth updated Traditional with an ideal floorplan which includes an eat-in kitchen/family room that opens out to a private patio and level lawn. Featuring remodeled kitchen and baths, master suite with walk-in closet, grand formal rooms and a bonus room (perfect for an office or den). Just around the corner from top schools and recreational facilities. Available for showings beginning Thursday, 8/26, 10:30-1:30 and on Sunday from 2 -4:30pm. List price: $1,139,000   www.210Palm.com (site up 8/26).

Dana Cohen also represents 138 Wildwood Gardens here in Piedmont.  This spectacular Mid-Century Remodel has been renovated from stem to stern and all of the choices sing!  For the more contemporary buyer, seeking location,  privacy and perfectly appointed rooms, don’t miss this glamorous piece of perfection! Open Sunday, 2-4:30pm. List price: $2,395,000.  www.138WildwoodGardens.com Make time to see  Nancy Lehrkind’s classic listing at 440 Jerome Avenue in Piedmont, featuring 3bdrms/2bths, renovated kitchen, sunny breakfast room, charming garden, bonus basement room and ample storage.  Conveniently located near the community center, swim club, top-rated schools and parks and fields, you’ll never need to drive your kids anywhere “in town” again! Open Sunday 2-4:30pm.  List price: $1,049,000.  www.grubbco.com

Anian Tunney has listed 522 Blair Avenue, just off  Highland Avenue. Conveniently and centrally located, this inviting Mid-Century offers large sunny rooms, spacious kitchen with adjoining family room, courtyard patio, SF Bay view and nearly all-level living!  Open Sunday 2-4:30pm. List price: $1,249,000. www.grubbco.com Bebe McRae brings 55 Ross Circle in Rockridge. This 3bdrm/2+bth Traditional offers a coveted location. Coming to the market September 8 and Open Sunday, September 12, 2-4:30pm.  List price: $1,075,000.  www.grubbco.com

(I haven’t mentioned every special home – just a few of my favorites!  For a more complete guide, please feel free to email me at jgardner@grubbco.com or better yet, give me a call 510 326-0840!)

What’s Pending?

While I have focused this edition on “bigger” homes, the easier sells are typically the smaller homes in town which continue to enjoy strong demand.  For many coveting Piedmont schools, they represent real affordability for the first time in many years!   The smaller home at 235 Park View has gone into contract (List price: $797,000 ) as has the unique property at 85 Oakmont (List price: $1,150,000) and finally, after 101 days on market , so too has 1150 Oakland Avenue (List Price: $1,227,000) which proves that there is a buyer for every home!

What’s Happening?

Piedmont currently has 26 homes actively listed on the MLS (The Multiple Listing Service) ranging from a low of $799,000 (61 Maxwelton) to a high of $4,695,000 (50 Bellevue). Nine listings (approx 30%) are listed above $2,000,000 and price per square foot is hovering around $570; which may point to higher than average expectations by the sellers! I’m not giving away trade secrets here when I share that homes that sold between January 1, 2010 through July 31, 2010, averaged a selling price of $470 a square foot and sold within 22 days; however, price per square foot has been steadily inching upwards all year with very mixed results.

Sellers, buoyed by the recent success of properties such as 25 Mesa (List price: $2,195,000) are hoping for similar results – but not always getting them. Of course, no one buys a home by the square foot (nor should they) but it is often a starting point on which to form a purchase offer. Unless your home is well above average, it isn’t likely to procure a “well above average” result. Make sense? Sellers, if your home has been on the market longer than 22 days, a price adjustment is in order. (I’ve watched my neighbor chase the market down for more than a year and he’s now more than a million dollars off his introductory market price!  Ouch, that’s just plain painful.)

The Piedmont Plug

Forgive my self-promotion but can I plug a brand new blog I’ve been working on: 3-2-See? My GRUBB Co. colleague, Karen Starr, and I, have joined forces to create an informal “Fave Friday” list for those of you knee deep in the search for a new home or for those of you who enjoy real estate as a bonafide hobby (you know who you are).

Karen and I will compare notes from our Monday, Tuesday and Thursday tours and send you our 3 favorite “must sees” each Friday – and as we evolve, 3 favorite restaurants, 3 favorites bakeries, 3 favorite yogurt flavors, etc. (You get the idea.)

To that end, we would like to  include your favorite 3 (of anything!) as well.  So send us some ideas (I’ll treat those of you we publish to lattes and a scone at Mulberry’s Market.) We will be debuting 3-2-See in September! Karen Starr can be reached at kstarr@grubbco.com and as always, you’ll find me at jgardner@grubbco.com

See you next week and a shout out to my older son, Case, who celebrates his 19 birthday today !  Phone home once in awhile, son!