Happy Buyers!

I recently helped Maria and Kehl find a new home as they were relocating to the Bay Area! It was an awesome process working with two California newbies, and I couldn’t be happier for them.

They left Houston just in the nick of time, but what has struck them most is how friendly people are here. Initially, they did not want to be in the downtown area of Martinez, but still wanted to be close to the Shell refinery. They ended up staying three months in an AirBNB in downtown Martinez and came to love the proximity to work, the easy and quick access to open space and all the fun things Martinez has to offer. It is a changing downtown area as the city is incorporating more events and family-friendly activities.  Even their lender came to their signing – thanks, Sean!

Check out this nice Zillow review they left me:

You could be next! Contact me at kristin@lanham.com if you’d like to buy or sell a home in the East Bay!

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Open House: 4391 Pembroke Dr. (Concord)

The Kristin Lanham Team has another beautiful home going on the market – this one is in Concord, on Pembroke Dr. Take a look at some of the pictures below, and swing by for a peek at our Open House this weekend!
 
The home is a cozy, mid-century charmer with a serene, quiet backyard. There is room for an RV or a boat, which includes a spa and storage shed, all surrounded by professional landscaping and lots of plants and flowers.
An open concept makes it warm and welcoming. The updated kitchen with its expansive island is the centerpiece for family gatherings and additional storage. The open-beamed ceilings add to the interior charm. There are stylish updated bathrooms, dual-pane windows, lots of natural light and great flow from outdoor to indoor for entertaining.
 
This house has been meticulously loved – an updated, warm interior and a vibrant backyard planted specifically to attract hummingbirds, butterfiles, and bees.  A perfect place to call home!
Come take a look at the Open House this weekend from 1-4 p.m. on both Saturday (9/9) and Sunday (9/10)!
3 bedrooms | 2 baths | 1250 sq. ft. |.17 acre lot
Offered at $580,000
To take a virtual tour of 4391 Pembroke Dr., click HERE!

What is the most expensive zip code in CA?

If you had to guess which California city has the most expensive real estate, what would you say? San Francisco, maybe? Certain parts of Los Angeles – remember the show 90210?
Watkins-Cartan House, 98 Alejandra Ave., Atherton, CA
Nope, the honor goes to the 94027 zip code – Atherton, CA. For those not familiar, Atherton is right above Palo Alto and the average cost of a home there is…wait for it…$6.17 million. According to Zillow, home values in Atherton reached a low point in summer 2009, dipping below $3 million.
I asked my friend Jay Vorhees of JVM Lending what kind of average income would be necessary to afford a home in Atherton at 25 percent and 50 percent down.
Given that the average income in Atherton is about $250,000, I was wondering how exactly a median home price of $6.17 million was affordable there! Here’s his assessment:
Assuming no consumer debt, a 4.0% rate and a 42% debt ratio, with 25% down, PITI would be about $29,000 per month (rounded). This would require $69,000 of monthly income or $828,000 annually.
With 50% down, PITI would be about $22,000 per month (rounded). This would require about $52,500 of monthly income or $630,000 annually.
So how does the average income earner in that area afford Atherton? Most likely people have had these homes for years, thus the lower income. For new purchases, stock options from IPOs are not usually included in your annual income, thus allowing the the nouveau riche of Silicon Valley to buy with cash or put 50% or more down.

Tips for surviving the next drought

Last winter, the rains were plentiful. This spring and summer, the rivers have been gushing, lakes have been full and waterfalls have been crashing.

It’s a scene we haven’t had in the Bay Area in quite some time. But since the drought ended, all the regular water usage has returned – flushing normally, watering our gardens more than once a month, leaving the water going occasionally and not worrying about it…

That said, we’re still in California and we’re still in an accelerated state of global warming (according to most climatologists, anyway). So, there will be another drought. Here are some Bay Area-specific tips from the Contra Costa Water District (CCWD) for surviving the next one:

Know your water provider’s Drought Program and its requirements

Every water provider should have a Drought Program. Contact them to make sure you know what their requirements are, ahead of the next drought. If you have CCWD, you can sign up for their newsletter to get updates.

Know how much water you are using

You can read your water meter to better understand how much water you’re using. However, that can be tricky. Here are some tips on CCWD’s website: www.ccwater.com.

Check for leaks

You can also utilize your meter to check for leaks. One of the most common leaks and wastes of water comes from the toilet. Check regularly!

Use efficient fixtures and appliances

You should always get EnergyStar appliances if possible, and you should have a toilet with 1.28gpf or less. Check if yours does at www.map-testing.com. Also, make sure your laundry loads are always full and don’t leave faucets running!

Convert lawns to gardens

Some water providers offer rebates for converting a lawn to a garden. For example, CCWD offers $1 per square foot of lawn converted ($1,000 maximum residential, $20,000 maximum Commercial/HOA). And California will give you a state rebate for front and back lawn conversions as well. Plus, it just looks prettier!

If you irrigate, do it efficiently

If you irrigate or have sprinklers, make sure the system is in good shape (no blocked or broken heads) so there’s no water waste. Try to water after the sun goes down or before it goes up to avoid evaporation. And turn the system off when rain is coming.

There are a million different simple ways to avoid water loss when the next drought occurs. Water is a still a precious commodity!

Art Town: Fantasy

This graceful, curving sculpture is located on the corner of Mt. Diablo and California. To me, it always looks like it’s in constant motion. And the shape even reflects the curved surface of the office building just north of it.

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This piece, named “Fantasy,” was built in 1990 by Louis Pearson, and uses polished stainless steel to create the mesmerizing shape. Don’t forget about today’s Art Walk downtown!

Even though Fantasy won’t be included on this specific walking tour, you can always check it out on your own. Hope to see you there!

California getting snotty about their potties

Did you know California has put a new law in place that went into effect on Jan. 1 of this year? It’s causing quite a commode-tion.
It basically says that any home built after 1994 must flush away some money meeting the requirement of having water-conserving plumbing (WCP) fixtures in their bathrooms, whether it’s going on the market or not. What a stinker!
Additionally, the law calls for installation of WCP fixtures – and wiping away the old one – when the existing plumbing fixtures use more than the following:
  • Any toilet manufactured to use more than 1.6 gallons of water per flush.
  • Any urinal manufactured to use more than one gallon of water per flush.
  • Any shower head manufactured to have a flow capacity of more than 2.5 gallons of water per minute.
  • Any interior faucet that emits more than 2.2 gallons of water per minute.

Now that the drought is over, I wonder if the regulations might go down the drain and on the sale side nobody is enforcing it. But either way, a very important question remains: who the heck has a urinal in their house?

Road Trips: Scenic Drives in Northern CA

Nothing can top the beauty of Northern California. From the ocean, to the mountains, to lakes, rivers and cities, the Bay Area is one of the most breathtaking places in the world.

California Redwood Road Trip

We have officially kicked off the summer season, the rain has stopped and given NorCals mild summer weather, it’s a perfect place to explore, especially during these upcoming months. I’m a big fan of road trips – there’s nothing like hopping in the car, rolling the windows down and going for a drive on a warm summer day.

With that in mind, I found a great article on OnlyInYourState.com listing 11 great scenic drives in Northern California. I’ll list a few of my favorites out below for reference, but take a look at the full list, and then take a trip!

1. Volcanic Legacy Scenic Byway – Lassen National Park

2. Yuba Donner Scenic Byway – Tahoe National Forest

3. Emigrant Trail – Tahoe/Donner Area

4. Route 101 Redwood Highway – Del Norte Redwoods State Park

5. Carson Pass – CA/NV Border

Happy Trails and have a great summer!

 

Road Trips: Strawberry Jam 5K in Capay

Grab your kids for a short road trip! Today there is a fun event going on in Capay (1.5 hours from Walnut Creek, just North of Vacaville): a 5K run and farm tour at Capay Organic.

I get produce from the delivered to my door weekly if I choose and you pick what you put into that box – of course it is only fruits and veggies currently in season and they often have a recipe included.  Last week I got sunchokes as I forgot to modify my order – these are also called Jerusulum  articokes and I made a wonderful potato sunchoke latke which will be recreated and served for Easter Brunch.

From the Capay Organic website.

Tickets are available here, and sign in begins at 10 a.m., with the run starting a half hour later. The farm will be open to tours from 11 a.m. to 2 p.m., and includes the options of tractor rides, a Q&A, arts and crafts, face-painting, a petting zoo and an Easter egg hunt!

If that’s not the most perfect way to spend Saturday of Easter weekend, I don’t know what is! For you foodies, there will be a little farmer’s market section with local honey, olive oil and pesto tastings, fresh Mexican food and plenty of sweet dessert and coffee options.

For a little different twist on your regular Bay Area road trip, consider Capay Organic for your next weekend away. They have events almost every month, and the pictures make it look like an absolutely gorgeous setting. I wish I could have been there today myself!

Daylight Savings Time: Don’t forget!

At 2:00 a.m. while you’re sleeping tonight, Daylight Savings Time takes effect. Don’t forget to “Spring” your clocks forward one hour! We’ll have to lose an hour of sleep, but we gain an extra hour of that warm sunshine during the day!

Supplemental property taxes can confuse a buyer

Have you recently purchased a home and been thrown off by getting bills about “supplemental property taxes?” Our friend Jay Vorhees at JVM Lending breaks it down for you:

Supplemental property taxes often create significant confusion for new homebuyers. When someone purchases a property in California, the County Assessor is required to immediately re-asses the property for property tax purposes. This re-assessment usually correlates to the purchase price and can take up to six months to complete.

JVM Supplemental property taxes

When a home is purchased, property taxes are usually based on the property tax bill of the current owner or seller. But usually, their property tax bill correlates to the price the seller paid for the property – often much less than the buyer is paying. Then, buyers mistakenly believe the property tax payment estimate when they purchase is an accurate reflection of their actual property tax. Usually, that’s false.

Anywhere from three months and beyond, buyers should expect a “supplemental tax bill” from the County Assessor. Even if a buyer has an escrow or impound account, they have to pay for the supplemental taxes, which can be sizable. As soon as a supplemental bill is received, a buyer should contact their loan servicer.

Also, when new buyers refinance into a new loan less than a year after a purchase, supplemental tax bills can cause confusion. Even if a borrower is refinancing into a lower rate, the housing payment can appear to increase. This is because lenders are basing the new housing payment on the new property tax liability, while borrowers are still basing their housing payment on the seller’s property tax liability, which is too low.