This is primarily a blog devoted to real estate and lifestyle issues in Pleasanton and the Tri-Valley, and in general I avoid discussing politics. But one observation I have made over time is that voters often are attracted to the personality and the idea of what a certain candidate represents, while having little or no knowledge about what their favorite candidate actually stands for. My mom, for example, is an Irish Catholic who was raised in the great depression. She is a card carrying Democrat come hell or high water, mostly because that’s the way most Irish voted at that time, and because of her fondness for Roosevelt and the New Deal. However, much has changed since the 1930’s, and yet she clings to the label “democrat” like Brittany Spears clings to celebrity. But if I ask her about specific issues, her responses are typically more conservative than liberal…. but she remains a tried and true “democrat”.

Here is a link to a short questionnaire about several important political issues. When you answer the questions about your feelings on these various issues, the survey tallies your answers and shows how your answers compare to all of the candidates’ actual stance on the same issues. This is the greatest thing since Al Gore invented the internet, because it removes the “rock star” persona and slick political messages that most people are attracted to, and instead focuses on what the candidate actually stands for, and how that compares to your personal beliefs. The results are very interesting to say the least. It shows you which issues you have in common with each candidate, and on which issues you differ. It is a fun exercise. Give it a try (courtesy WQAD in Iowa)

Select a Candidate Quiz

We’ve all seen them. And if we REALTORS are honest, we have written some of them as well. I’m talking about the real estate cliche’s that are seemingly in every ad, sign, and description of homes for sale. Lest you be confused, I have decided to take some of the mystery out of the most commonly used phrases and tell you what they really mean in plain English. Please understand that I am not in any way suggesting that Realtors are prone to exaggeration. It’s just that sometimes our definition of a word or phrase is somewhat different from what a consumer’s definition would be. Here are some examples.

“I’m Gorgeous Inside” = I know the house isn’t that great on the outside, and neither is the inside, but I have to put something on the sign for crying out loud. Seems as good a choice as any.

“Hurry, won’t last!” = There is nothing about this house that will generate any excitement or enthusiasm on the part of buyers, so maybe if I put this phrase in there, a buyer will feel some sense of urgency to see it.

“Honey Stop the Car!” = This house is really boring, and the only way to get you to notice it is to physically pull the car over and look at it.

“Bring Your Paintbrush” = House has major issues, and probably has thousands in termite and other damage

“Contractor’s Special!” = House basically needs to be rebuilt from the ground up.

“Motivated Sellers” = Sellers are really motivated to sell at that price. Their motivation, however, dissipates quickly as your offering price drops.

“Seller says make an offer” = House is overpriced, and rather than reduce the price like most smart sellers, seller wants to hedge his bet in case someone with more money than brains wants to pay him too much for the house. And this is smart, because there are so many of those buyers out there.

“Updated Kitchen” = The seller replaced the leaky faucet with a new one, or has painted the cabinets, but has otherwise not touched the kitchen in 20 years.

“Plenty of Room to Expand” = This house is really small, and the only way to make it workable is to add on to it

“Great Freeway Access!” = This house likely has major freeway noise because it is close to or backs up to the freeway. I don’t think that being able to hop your back fence and land in the slow lane is the kind of freeway access most buyers are looking for.

“Low Maintenance Yard” = There is nothing alive in the yard to maintain. Basically cement/deck and dirt.

“Gorgeous Spa “as is” = Old, leaky spa that is not worth fixing so don’t even ask

“Private, woodsy back yard” = Overgrown and probably hasn’t been trimmed in years

“cozy” = small, not spacious in any way

When it comes to written descriptions of the house, such as on Realtor.com or the MLS, you can also learn a lot about the house before you even see it. Realtors are limited to 5 or 6 lines of text, so the choice of words used by the agent tells you everything. If there are any upgrades or remodeling, they will be prominently mentioned. Let’s take 2 fictitious examples, and I will translate for you.

“Remodeled from top to bottom. New gourmet cherry & granite kitchen, professional stainless gas range & hood, hardwood floors throughout, luxurious master suite with walk-in shower, jacuzzi tub, travertine floors, and fireplace. All new hardwood interior doors, skylights, and designer carpeting. Professionally landscaped 3/4 acre lot, etc etc etc”

This is obviously a very nice house. Since space is limited, the agent is having a hard time fitting all of the upgrades to the home in the space allotted. High probability that this home is drop dead gorgeous.

Now let’s look at another example:

“Hurry! This one won’t last! Prime neighborhood. Your buyers will love this great home! Excellent floor plan, great for entertaining, nice kitchen with eating area, big family room, formal living room, roof replaced in 1985, lovely low maintenance yard, close to schools & shopping, cabinets in garage installed with over-sized screws, etc etc etc”

This house probably hasn’t been touched in 30 years. Agent is reaching for things to put into the description. You see lots of general descriptive terms, with no specific mention on upgrades because there probably are none.

I hope this helps take some of the mystery out of the real estate terms you see. Like everything in life, it is best to take these descriptions with a grain of salt (speaking of cliche’s).

The long discussed Catholic High School, proposed for North Livermore, finally got the approval of the Oakland Diocese, and is moving full speed ahead. Named after Pope John Paul II, the coed high school will be the first high school built in the East Bay in over 40 years.

As planned, the new high school campus will encompass 32 acres of a 122-acre plot owned by the diocese and annexed by the city of Livermore. The remaining 90 acres, including segments of two arroyos, will be kept as open space.

The new Catholic college preparatory high school will accommodate a coed student body of 1,200 students, starting out with only a freshman class and possibly a sophomore class as well, each with about 300 students. The diocese said the state-of-the-art school will include administrative offices, classrooms, a chapel, performing and visual arts facilities, a sports complex and about 800 parking spaces.

Pre-construction work will get under way in the coming months, including finalizing the school’s design and building an access road to Interstate 580. A capital campaign fundraising drive also will start shortly at the same time the new school’s administration is chosen. An opening date has not yet been set.

There has long been a need in the Tri-Valley for a Catholic High School. Right now, the only reasonable options for Catholic High Schools are Moreau in Hayward (coed) and De La Salle (boys) & Carondelet (girls) in Concord, all of which are long commutes for students in Pleasanton/Dublin and the Tri-Valley. The demand is certainly there, as these Catholic schools are highly regarded high schools academically, and there are three area Catholic grade schools locally in Danville (St. Isadore), Dublin (St. Raymonds), and Livermore (St. Michaels). This comes on the heels of the new public high school in San Ramon, Dougherty Valley High School, which opened this fall.

Read the whole article in the Pleasanton Weekly.

At least according to the Contra Costa Times. Now I know I live a sheltered life, because I have not been to any of these on the list. But this critic has, and here is his list of the 10 best. Most of these seem to be new restaurants, so maybe I get a pass for not having eaten there. Some of them definitely look interesting.

1. Wood Tavern. An instant success, the restaurant’s tempo blends the best of urban sophistication and neighborhood charm. Rich and Rebekah Wood, previously owners of Frascati in San Francisco, are ever-present. The food, by chef Maximilian DiMare, is at once refined and rustic, delivering bold flavors and hearty portions in a pretty package. Salads are sublime, the Hot Pastrami at lunch is transcendent, and DiMare shows talent with anything cured or smoked. 6317 College Ave. (at Alcatraz Avenue), Oakland. 510-654-6607.

2. Metro Lafayette. Metro was Contra Costa’s biggest hit this year. True to its name, it gave this hamlet a taste impeccably fresh oysters to skin-on fries. Founding chef Mark Lusardi has just departed, but Jack Moore, the tireless owner, insists that the kitchen hums without him. Minimalism is hip, but Metro distills the formula: refining service, simplifying and purifying the menu, and surrounding it all with an arty, almost austere, ambiance. Great wine list. 3524 Mt. Diablo Blvd. (in the Safeway shopping center), Lafayette. 925-284-4422; http://www.metrolafayette.com.

3. Riva Cucina. The stripped-down cuisine here has startled some, but most foodies find it refreshing, on a par with Oliveto and Bay Wolf. Young chef-owner Massi Boldrini delivers — a stunning piece of fish, of cheese, of tomato, a little salt, a little olive oil — accentuating natural goodness. Riva is out of the way, but worth seeking out. While Boldrini’s cooking is sweet — from ripe produce and careful caramelization — it’s not overly rich. Small but stunning Italian wine list. 800 Heinz Ave. (at 7th Street), Berkeley. 510-841-7482; http://www.rivacucina.com.

5. Maria Maria. Maria Maria’s mellow-dramatic, wick-lit quasi-hallucinogenic dining room has you melting in your seat. Moles have a fruity, haunting complexity. Vegetarians will love the roasted chile rellenos; everyone else should indulge in a platter of carnitas, served in glorious gnarly chunks. A trio of salsas are best chased with agave-enhanced margaritas. 1470 N. Broadway, Walnut Creek. 925-946-1010; http://www.mariamariarestaurants.

6. Digs Bistro. Call 2007 “coming out” year for Digs. For 30 months, it was an underground “restaurant” where friends could gather to eat good food and indulge in the local music and arts. The 35-seat restaurant has all the charm of a fairy-tale cottage, including dishes with a homespun honesty. The cooking style is honest and gutsy — American, you might say — with just enough finesse to park in California. Start with the charcuterie and finish with a sundae. 1453 Dwight Way (at Sacramento), Berkeley. 510-548-2322; http://www.digsbistro.com.

7. Huynh. A number of Vietnamese restaurants — both upscale bistros and humble noodle houses — opened in 2007, but none outshone Huynh’s Jan. 6 debut. The dining room’s varied shades of green capture all that’s compelling about this fresh, calming and refined cuisine. The serving platters — metallic, Asian and shapely — are dazzling by themselves, and well-suited to the stark presentations. Look for stuffed squid, steamed bass with coconut broth and crusty Shaking Beef. 1512 Locust St., Walnut Creek. 925-952-9898; http://www.huynhrestaurant.com.

8. Gigi. Slammed with customers the moment the doors opened in July, chef/owner Jeff Amber is just now catching his breath. His dishes, when the kitchen is calm, don’t blow you away so much as nourish you, like a market-inspired weeknight meal. He’s at his best with french fries, salads and seasonal presentations of fresh fish. The setting, in the antique cottage that housed Kaffee Barbara for 30 years, has the same sprawling brick patio and a refurbished, contemporary indoor space. 1005 Brown Ave., Lafayette. 925-962-0882.

9. Baci Ristorante. The garish decor will tell you otherwise, but Baci is trying hard to bring fine dining to Vallejo. With dishes such as grilled bitter lettuce and whole poached fish, Baci’s menu has the sex appeal of a Tuscan trattoria. Chef Scott Larson persuaded the owners to go upscale. It was a move as gutsy as the pastas are bold. Larson uses a minimum of sauce, extracting maximum flavor by searing produce and protein in extra virgin olive oil. 324 Virginia St., Vallejo. 707-552-4888; http://www.bacicaffe.com.

10. Sahara. Mahida and Abe Hadeed have established a winning restaurant in a location that has struggled for years. Their dining room is bathed in the warm, golden tones of dunes at sunset. High-quality authentic kabobs, hummus and falafel are served at reasonable prices. Delicious wraps at lunch. Mahida makes everything by eye, taste and hand, meaning she’s in the kitchen all day, every day. Wines are quite reasonable. Service can be amateurish, but that just adds to the relaxed atmosphere. 907 First St., Benicia. 707-746-0505.

Absent from the list but definitely worthy of mention (in my humble opinion) are

Forbes Mill, Danville (Very good steaks and seafood)
Havana, Walnut Creek (trendy Cuban restaurant with great bar)
Izzy’s Steak House, San Ramon (Classic steak house)
Piatti’s, Danville (Still one of the best italian restaurants in the area)
Pasta’s Trattoria, Pleasanton (great pastas & seafood)
Zachary’s Pizza, San Ramon (unique pizzas, an Oakland institution now in San Ramon)
Senro Sushi, Pleasanton (probably the best fish going right now)
Casa Orozco, Dublin (consistently the best Mexican cuisine in the Tri-Valley)

There are dozens more, and it is always fun to talk about restaurants. Feel free to chime in with your favorite.

Lost in all the negative news about real estate and the on again off again talk about recession (mostly on again lately) is the fact that mortgage rates are down… a lot. As I have written about on numerous occasions, long term mortgage rates are not generally directly effected by Fed rate cuts. Long term mortgage rates are more closely tied to long term bonds and treasury securities. It is the long term outlook for inflation, and the strength of the economy that has the greatest impact on long term mortgage rates. Here is the latest interest rate graph, which clearly shows both conventional (loans up to $417,000) and jumbo 30 year fixed rate mortgages in California. As you can see, both conventional and jumbo rates have trended down significantly, especially the conventional mortgage rates which are well under 6%. Jumbo loans are down as well, though not as much as conventional rates. (click on graph to enlarge)

This is great news for buyers, and helps make homes, especially entry level homes, more affordable. With prices down, and uncertainty rampant, buyers are finding excellent opportunities in today’s market. Indeed, a home will cost you less today than it would have even a year ago.

For short term fixed loans (3 year to 7 year fixed rate loans), rates are down even more sharply. This is to be expected, as short term fixed rate loans are directly impacted by moves in short term interest rates, and the Fed has continued to lower short term rates to stimulate the economy and try to avoid a recession. The graph below shows Jumbo 3 and 7 year interest only loans in California. As you can see, they are down sharply. (click on graph to enlarge)

While inflation jumped in December, mainly due to spikes in the cost of energy, it is the threat of recession which is driving the lower rates. If you pay attention, there are some tremendous buying opportunities in the market right now.

If you are in the market to buy a home, you have no doubt heard the term “Short Sale”. No, this does not refer to sellers who are under 5′ tall. A “short sale” is industry jargon for a seller who owes more on the property than what it is worth. The seller in this situation needs the lender to accept a “short” loan payoff, or in other words accept less than the full amount due on the loan. So how does that effect you the buyer?

First of all, short sales require the lender to agree to the reduced pay off. Therefore, when you negotiate on a short sale, you are negotiating with two parties: The seller who owns the property, and the lender who holds the loan. You need the approval of both parties to get your offer accepted. It is important to make sure the seller has received preliminary approval from the lender, because if the lender does not agree to the terms you will have no contract. Therefore, it is important to question the seller and/or the seller’s agent to make sure the process is in place, and that the bank will cooperate. This process requires the seller to submit documentation to the lender demonstrating hardship, along with evidence that the market value is less than the outstanding loan.

Secondly, be prepared for a long process. Dealing with banks in a situation like this can sometimes be comparable to getting allergy shots… it can be a long, drawn out, and ultimately aggravating experience. Often, you are dealing with layers of bureaucracy, and this can slow the process down. So short sales usually require patience on the part of buyers. It is also important to have interest rate protection during this process. In a normal transaction, buyers will typically lock in interest rates for 30 to 60 days. That may not be enough time for a short sale, and you want to avoid being 45 or 60 days into the sale only to find out that your rate lock expired, and your interest rate just went up 1/4%. Plan for the worst case. It is good practice to include in the purchase agreement a time frame for lender approval, with a clause that gives the buyer the right to cancel the transaction if the lender does not approve the sale after a certain period of time. This way, as a buyer you are free to pursue other properties if the lender is dragging their feet.

Thirdly, be prepared for potential issues at close of escrow if the owner is still living in the home. Often times, sellers in this situation are angry and frustrated, and on occasion can damage the property, remove appliances, fail to maintain the landscaping, leave the property dirty and full of debris, or take other actions that will cost you money. Be sure to do a walk through prior to close of escrow. Since the seller theoretically has no money, any issues at close typically have to be negotiated with the bank.

Lastly, lenders like to sell properties “as is” in these situations, as they do not want to get into negotiations over property repairs. This is okay, but make sure you as a buyer have the right to inspect the property to your satisfaction, and the ability to cancel the contract if the inspections uncover issues with the property. And if there are issues that come up, you can certainly request that the bank resolve them. They are under no obligation to do so, but if the request is reasonable and it makes business sense for the bank to agree, they usually will.

Short sales can be fairly straightforward, or very complicated. This depends on the stance of the lender. Some banks are much easier to deal with than others when it comes to short sales. As always, you should seek out an experienced, professional real estate agent to help you navigate these waters.

The Pleasanton CA real estate market behaved as expected in December, with both inventory and sales declining. Many sellers took their homes off the market in December, and sales slowed as the holdiay season hit full swing. This is typical of a December market, and this year was no different. Overall, the inventory of available homes in Pleasanton dropped to 136 single family homes at the end of December, down from 176 at the end of November. It is identical to the inventory on the market at the end of December 2006. Pending sales were also down, with 23 pending sales in December, as compared to 31 in November. For comparison, there were 34 pending sales in December 2006. (Click on the graph to enlarge).

In the Under $1 million market segment, inventory ended December at 67 homes, down from 95 at the end of November. There were 17 pending sales in this price bracket, up slightly from 15 in November. (click graph to enlarge).

In the $1 million to $2 million market segment, there were 43 homes on the market at the end of December, down from 51 at the end of November. Pending sales were down, with 5 pending sales in December, compared to 12 pending sales in November. (click graph to enlarge).

In the luxury segment (over $2 million), inventory of available homes was down slightly in December with 26 listings at the end of the month, down from 30 at the end of November. Pending sales were very quiet, with 1 pending sale in December, down from 4 in November and 9 in October. (click graph to enlarge).

Overall, as we enter the new year, inventory will be a key factor. Expect to see a steady climb in inventory as we get into the Spring market. This is a normal pattern for this time of year. We are seeing buyers start to realize that there are some tremendous opportunities in the market right now, and it is a great time to take advantage of these opportunities. Certainly, it is anticipated that activity levels will pick up as we head for the Spring.