Yountville weekly real estate update
Posted by Curtis Van Carter on August 17th, 2008 filed in From Curtis
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This is a weekly feature to keep you informed about the real estate happenings in Yountville. Besides just real estate info, I hope to give the readers of my blog some insight into the heart of Yountville using a variety of media including photos, tidbits, gossip and other fun things. If this is of interest to you, I would love hearing from you. If there are other cities here in the Napa Valley, such as St. Helena or Calistoga, you would like this feature expanded to, let me know.
STATS
last 7 days acivity new listings 1 sale pending 2 sold 1 expired 0 withdrawn 1
new listing(s) 6757 Jefferson Street, $1,659,000, 2 br, 2.5 ba, 2,000 SF
new pending(s) 35 Forrester Lane, $599,000, 2 br, 2 ba, 1,069 SF
6600 Oak Leaf Court, $449,000, 2 br, 1 ba, 1,056 SF
sold(s) 2142 Pedroni Street, $375,000, 2 br, 1 ba, 798 SF
Facts, numbers, SF from BAREIS and/or Napa County tax records, not guaranteed
current active listings for sale 22 average price $1,175,445 average days on market 83
current sale pendings 2 average price $765,000 average days on market 184
sold in last 6 months 10 average price $626,500 average days on market 154
FACTS ETC
Sorry, but there will be no FACTS ETC this week.
My thoughts on the truth about foreclosures, are we at the bottom for Napa Valley real estate prices
Posted by Curtis Van Carter on August 13th, 2008 filed in Auctions, Deals & Foreclosures, From Curtis, Napa Valley, Real Estate current info
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In July, this home on Pacific Avenue showed all the obvious signs of a foreclosure and quick abandonment by the family that lived there. Napa County saw 209 foreclosures between March 10 and August 6, nearly all in the cities of Napa and American Canyon. J.L. Sousa/Register
On a tree-lined street in central Napa, green lawns in front of modest 1940s-era homes paint the typical picture of middle class suburbia.All seems in order — except for the one house with furniture dumped on the lawn and boxes of clothing and other detritus scattered on the driveway. An old garage sale sign hangs on the trunk of a shady tree, covered with a second, hastily scrawled sign that reads “Free.”
The two-bedroom, one-bath home on Pacific Street foreclosed on June 30. To a passerby, it seems the residents attempted to make few bucks as an eviction date drew near, then gave up as the deadline passed.Unfortunately, the trouble isn’t isolated to Pacific Street.
But declining values have meant tough times for some homeowners, including a number on Harrison Avenue in Napa.This Westwood street of about 60 homes built in the early 1940s is just two blocks long. Back in late 2004 and early 2005, a number of the typically 800-square foot homes on Harrison Avenue sold in the low-to-mid $400,000s.Between March and July 2008, five of those homes foreclosed. Another three are in pre-foreclosure, meaning the owners must renegotiate their debt or make arrangements to stave off loss of the properties to banks and other lenders.
In the past 12 months, the median price of a Napa County home has fallen approximately $200,000, according to Trendgraphix, Inc. In June 2007 the median price for a Napa County home was $660,000. As of June 2008, the median was $446,000.A foreclosed home in the Rancho Del Mar neighborhood of American Canyon is just one example. Three years ago, the three-bedroom, one-bath home at 211 Carolyn Dr. sold for $465,000.The current listing price: $219,900.
“Historically Napa has shown the ability to bounce back from economic downturns,”
“My opinion is that the worst is over, especially locally.”“Good times are ahead.”
Yountville weekly real estate update
Posted by Curtis Van Carter on August 10th, 2008 filed in From Curtis, Yountville
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This is a weekly feature to keep you informed about the real estate happenings in Yountville. Besides just real estate info, I hope to give the readers of my blog some insight into the heart of Yountville using a variety of media including photos, tidbits, gossip and other fun things. If this is of interest to you, I would love hearing from you. If there are other cities here in the Napa Valley, such as St. Helena or Calistoga, you would like this feature expanded to, let me know.
STATS
last 7 days acivity new listings 2 sale pending 0 sold 0 expired 0 withdrawn 0
new listing(s) 120 Vineyard Circle, $759,000, 2 br, 2 ba, 1,154 SF
28 Ivy Court, $849,950, 4 br, 2 ba, 1,800 SF
Facts, numbers, SF from BAREIS and/or Napa County tax records, not guaranteed
current active listings for sale 24 average price $1,114,948 average days on market 96
current sale pendings 2 average price $677,500 average days on market 49
sold in last 6 months 10 average price $672,000 average days on market 161
FACTS ETC
Today’s Sunday Napa Valley Register, the largest local newspaper, like woke up to the fact there are quite a few foreclosures happening especially in a City of Napa subdivision called Westwood and the City of American Canyon. If you read this blog, you know I wrote a very extensive article about Westwood July 18th and what is happening there. This week’s FACTS ETC will be my next post which will contain links to the Register’s three front page stories and my thoughts about what they wrote.
Thomas Keller’s Luxury Inn gets Yountville Council approval
Posted by Curtis Van Carter on August 9th, 2008 filed in From Curtis, Yountville
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Thomas keller
After nearly 6 years of planning, changes and juggling, Thomas Keller won approval for his luxury 20 room inn from Yountville’s Town Council by a 4-0 vote. The inn will offer visitors who dine at the French Laundry an opportunity to combine the fine dining with the same quality of lodging if they stay overnight in Yountville.
The inn will be constructed on a 3.1 acre site across the street from the French Laundry. The site will retain the culinary gardens currently in use for dishes prepared at the restaurant. The general look of the new inn will be flat roofed buildings with a minimalist, geometric form, built of simple, humble materials said John Frame, the architect. The inn’s name was originally submitted as the Aloysius Inn and should break ground next spring. As as writing this article, I have been unable to ask Thomas how he chose the name Aloysius and if he elects to continue to call the inn by this name. In case you wonder, according to one web site Aloysius comes from Old German and means “famous Warrior”. Knowing Thomas, he has probably put a lot of thought behind the name and as soon as I find out, I will let you know.
Street Elevation view of the new Thomas Keller inn
Since opening his world known eatery, the French Laundry, Thomas Keller has been prolific in expanding his presence here. Through the years, he has purchased several residential properties, the site of his Inn, the old Diner (now Ad Hoc and his soon to be hamburger joint), and Beard Plaza (a commercial center which used to be a horse corral for the old Wells Fargo Bank which is now Bouchon). Bouchon and the Bouchon Bakery he leases from clients of mine who I sold the building to back in 1996. As many locals express their thoughts of his doings, Yountville is often jokingly said to be “Kellerville”.
Given Thomas’ attention to detail, there is no doubt of the success of his inn. As put be one local resident during the comment period before the Council, “This is one of the most carefully planned projects I’ve seen in Yountville”. No doubt the price you will pay for staying there will be par with the prices one pays in dining at the French Laundry. This is not saying it won’t be worth it and for all who do stay there in the future, what a wonderful experience it will be.
Sobbering News about selling real estate in the Napa Valley
Posted by Curtis Van Carter on August 8th, 2008 filed in From Curtis, Napa Valley, Real Estate current info
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Empty Pockets image from blogspot.com
Even though the real estate bubble has absolutely popped and many of us in the business are experiencing some of the worst years as far as our incomes, I am amazed how many people still think we have it easy. To put a reality to what “Just the Facts, Ma’am” are, as Sargent Joe Friday of Dragnet used to say, here are the sobbering statistics for the sales by agents in the Napa Valley are for the first six months of 2008:
0 sales – 261 agents Income this year $ 000 The 590 agents in these first five
1 sale - 210 agents $ 9,172 income groups represent 89.67%
2 sales – 82 agents $ 18,344 of all agents in the Napa Valley
3 sales – 37 agents $ 27,516 Average income first 6 mon 2008
4 sales – 30 agents $ 36,688 $9,388
5 sales – 9 agents
6 sales – 7 agents
7 sales – 6 agents
9 sales – 4 agents
9+ sales – 7 agents
These statistics are from BAREIS, my local MLS provider, for January 1 to June 30, 2008. Presently, there are 658 agents registered with BAREIS, down from a high of 800+, with this number expected to drop to around 550 at years end. There have been 484 sales in all property categories during this period which include SFR, condo, land, multi-units and mobile homes. The average sales price is $685,583 and the median is $475,000. For this example I chose to use the median price for I feel it is more representative of the sales prices many of the agents selling 4 or less properties encounter. Thus the per agent sales for the first six months of 2008 is .74 units and the average commission earned per side is $9,172 based upon 5.25% which is the average here.
These are very sobbering facts for all of us selling property here in the Napa Valley but I am certain we are not alone. I have chatted with several other agent friends in different parts of California and am hearing similar tales. I would love to hear from others across the country to learn what is happening in your area.
Sattui Castle new home for President Bush????????
Posted by Curtis Van Carter on August 7th, 2008 filed in From Curtis
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Jorgen Gulliksen Napa Register photo Marine One
Jorgen Gulliksen Napa Register photos President Bush
A little know fact, there was a special contingency as part of the advance team which always precedes any Presidential visit. Their primary mission was to check out the local real estate for a possible West Coast haunt for the President after his leaving office.
We all know the President is first and foremost a Texan and would never abandon his ranch there. Another little known fact and something kept very quiet for obvious reasons, his love of the Napa Valley and desire to have a small abode here to use for those special upscale events which require a little more decorum than cowboy gear and barbecue. At the top of his list of possible properties was the newly completed Castello di Amorosa, better know to the locals as Sattui’s Castle.
Castello di Amorosa photo from their web site
Castello di Amorosa walls
Besides the normal requirements any former President would need for a future residence; room to entertain, for staff, for security, etc.; there were a list of unusual criteria which I have just uncovered. Here are just a few I found unique and very unusual:
On those special occasions when the guests are required to wear cowboy hats, the rooms had to be spacious enough so the hat wouldn’t be the entire focus of the event
There is an old family dining set with chairs, which I am told resemble thrones, and the rooms had to be regal enough to make the chairs feel down home
The President is really into carrying off the fair maiden and riding into the sunset
The President has always wanted a moat and drawbridge
Castello di Amorosa feast from their website
Unfortunately for him, Darryl Sattui said no to selling his Castle to anyone. In non-jest, it is truly one of those exceptional properties in the Napa Valley and if you every get the chance to visit, it is a must see.
Castello di Amorosa
Kevin Boer
Purchasing Real Estate South of the Border by Valarie Brown-Coon
Posted by Curtis Van Carter on August 7th, 2008 filed in From Valarie, San Miguel de Allende
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Series #3 From the Flying Pan Into The Fire????????
San Miguel de Allende is rich with history, culture and celebrations
So what could go wrong in a third world country giving power of attorney to a total stranger we’d known only three weeks to close our real estate transaction? Well in our case nothing. Our transaction went smooth as silk. No clouded title, no unexpected unpaid utility bills, no unpaid real estate back taxes. There were no unexpected surprises except for the condition of the property during our next visit. We attributed our good fortune to the conscientious work of our professional real estate team because such problems have happened to other gringos we know.
But in our case, as buyers—not sellers, we paid the full 6% real estate commission which we considered money well spent purchasing property in a foreign country, especially when English isn’t the primary language spoken here. Of course, 6% of $111,000 doesn’t amount to much and is good insurance, especially in areas like San Miguel where title insurance isn’t readily available. But for those of you who are braver than us, you can forgo paying real estate commissions altogether if you purchase a FSBO, referred to here as Trato Directo (Direct Deal). But it will be your job and responsibility to hire a translator if you aren’t fluent in Spanish and a lawyer/notario to research the title, negotiate the contract, handle the closing and transfer of funds. We have known friends to choose this route only to regret it later.
We purchased a FSBO called here Se Vende Trato Directo...or for sale by direct deal
Okay, so I mentioned there were no surprises at our closing, but our walk through was quite another matter. If you purchase a true Mexican middle class home or fixer, expect the house to be devoid of light fixtures when you arrive and in some cases plumbing fixtures like faucets and towel racks. Even though the seller promised to leave a few lamps and light fixtures I’d chosen, what we encountered were bare bulbs in sockets if they had bulbs at all. There was also garbage and debris everywhere and no apparent concern for the new buyers or condition of the property. Fortunately for us, we hadn’t planned to stay there during our week long visit to begin working on our dream house. The mission of this trip was to hire an architect and builder, pay our property taxes and transfer all utilities. All mundane tasks made better when we learned our annual property tax bill was a mere $212.00. What’s more, if we paid our tax bill during the first two months of the year, we received an additional 17% discount. Of course the government of Mexico only provides public education until the 9th grade. Thereafter families are responsible for their children’s education in addition to the cost of uniforms. Nevertheless, the tax difference represents quite a savings over the $4,000 we paid in Napa property taxes each year.
San Miguel de Allende is rich with history, culture and celebrations
At the top of our priority list was to secure the property. In Mexico, it is possible to loose your property after you’ve acquired it to squatters if it isn’t properly secured. That’s right, if you aren’t living there and squatters can easily enter and occupy your property, they can stake claim to your residence. So if you don’t have a door or gate to barricade, hire a night watchman, called a Velador or Candleman, who will sleep on the bare floor from the time the crew quits until they arrive again the next morning, as well as the weekend, day and night. Even after you begin remodeling or construction efforts, it is common to have a night watchman on the payroll to ensure against squatters or theft of construction materials. We happily paid the additional $1000 pesos (approx $75 USD) a week for the two years we lived in Napa while developing our property. Only during the last year of construction when we were living on site, did we forego this expense. But in hindsight, if we were to make this decision again, we would keep the night watchmen and rent a residence close by to live in during construction. We called that last year, our year of “pain and suffering” as we never had any privacy, had chronic allergies and respiratory infections living in a construction site and truly struggled to keep our marriage together. Not that we didn’t love each other; we were just ill equipped or prepared for the endless decisions that needed to be made each day with no respite from the noise that enveloped us from 7am-5pm, five days a week, all while still trying to make a living to pay for our dream home.
After shot of our center courtyard
Our final decision this trip was to choose our architect and builder. If you don’t already have one in mind, I suggest touring homes in your community to determine what style of architecture you like best and then researching who was responsible. Many Mexican towns and cities offer home tours and it is a great way to discover your likes and dislikes…colonial or contemporary, rammed earth or adobe. There are also countless books on Mexican architecture to explore your unique tastes and desires.
Outside before shot of Michael and Valarie's home
In our case we chose a San Francisco architect, whose vacation home we rented and adored, and who split their time between Mexico and California. We also had to choose from a “fixed price builder” or one who charged based on “time and materials.” This will be the single most difficult decision you’ll make. With a fixed price bid, you know up front the cost—provided you don’t make any change orders–however the home will be constructed as quickly as possible with less concern for quality. With a time and materials contract, you’ll never know what the home will cost but it is generally better constructed. We opted for the latter and time will tell whether we made the right decision…………..!
Yountville weekly real estate update
Posted by Curtis Van Carter on August 3rd, 2008 filed in From Curtis, Yountville
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This is a weekly feature to keep you informed about the real estate happenings in Yountville. Besides just real estate info, I hope to give the readers of my blog some insight into the heart of Yountville using a variety of media including photos, tidbits, gossip and other fun things. If this is of interest to you, I would love hearing from you. If there are other cities here in the Napa Valley, such as St. Helena or Calistoga, you would like this feature expanded to, let me know.
STATS
last 7 days acivity new listings 2 sale pending 1 sold 0 expired 0 withdrawn 0
new listing(s) 128 Vineyard Circle, $849,000, 2 br, 2 ba, 1,154 SF
1978 Adams Street, $1,445,000, 4 br, 3 ba, 2,683 SF
new pending(s) 6600 Oak Leaf Court, $449,000, 2 br, 1 ba, 957 SF
Facts, numbers, SF from BAREIS and/or Napa County tax records, not guaranteed
current active listings for sale 22 average price $1,136,948 average days on market 85
current sale pendings 1 average price $375,000 average days on market 70
sold in last 6 months 10 average price $672,000 average days on market 161
FACTS ETC
I am digressing from Yountville today to bring you what I consider the best buy in the Napa Valley. The property is located in St. Helena, 9 miles north of Yountville. St. Helena
1242 Madronna Avenue
and its surrounds have the highest priced properties in the Napa Valley. 1242 Madrona Avenue is one of those quintessential older homes, the tax records say 1935, on the West side (that’s imortant to the locals) with many original features and touches that give these homes their charm. Besides the old vintage appeal, the lot is on a corner and over 10,000 SF, again per tax records. The only drawback, the remodel kitchen and family room add-on was not done with the same charm and grace as the remainder of the home and needs the right person/architect to correct the look and make it right.
fireplace in living room
bathroom
The reason I call this the best buy in the Valley, the price $895,000. This home which was originally price at $1,299,000 about 6 months ago and once the kitchen area is done right would have brought around $1.5M at the height of the market 3 years ago. As many of you know who read this blog, the Napa Valley is a true enclave and has weathered this down turn well. There is always a demand for homes with that special look and feel here and “if Madrona was done right”, it will shine bright once more and command a much higher price.
family room area
rear yard
Purchasing Real Estate South of the Border by Valarie Brown-Coon
Posted by Curtis Van Carter on July 27th, 2008 filed in From Valarie, San Miguel de Allende
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- San Miguel de Allende rooftop shot from our home
Series #2 Making An Offer
If you’ve journeyed with me to my second segment on purchasing real estate south of the border, you too must be a paradise seeker. If you’re like me, you have a million questions so let’s get right down to business?
How easy/or difficult is it to purchase and own property in Mexico?
Is your property/investment in any way at risk in this 3rd world country?
What do you need to know before making an offer?
How do you get started?
First let me say that our leap into unchartered Mexican real estate waters–while somewhat intimating–was a positive experience. But that isn’t always the case. We’ve heard of friends purchasing homes with clouded titles resulting in endless legal fees and delayed construction. So it’s important you work with an experienced real estate agent or someone you know. Look for realtors who are certified members of the National Association of Realtors (NAR) or Mexican Association of Professional Realtors (AMPI).
In our case we asked for a referral from a fellow Napan who previously purchased property here and that referral served as one of our real estate agents. We had two; an English speaking Canadian gal named Trish and a bi-lingual Mexican hombre called Roberto who presented our offer to the seller and managed our transaction. We agreed on an opening purchase price of $100,000—not the best news for our real estate team–and set out in search of that perfect property.
Valarie and Michael discussing their purchase price
Because SMA has become such a popular holiday and vacation destination, prices vary significantly according to location. Properties near the jardin (our heart of the city) can range from $500,000 to several million US dollars. So given our budget, we began our search just outside of Centro in a neighborhood called Colonial San Antonio. Two hours and three properties later, we traveled to the end of a dead in street and fell in love with an artistically built Mexican home with good bones and good views. My husband and I knew this was the one because we were weak kneed, our hearts were racing and we were already considering how to get this done without even speaking a word to each other.
Valarie talking with her agent
Our agent was astonished that we didn’t want to look further. After all, this was the first day of our search and we’d only seen three properties. Not batting an eye, my husband simply said let’s find a coffee shop and discuss how to purchase a home in Mexico. We weren’t the first to make such an impetuous decision. Countless before us recounted similar experiences…you just know when a place is right.
Besides where else can you buy a home for $100,000.00 pesos or $93,000 USD? The 155.00 m2 (meters squared) 3 bedroom home we were interested in was part of a four parcel compound that was being divided among family members and sold off separately as each property gained a clear title. Adjacent to the 3 bedroom was a small 95.00 m2 parcel with a garden and several ruins. The other two properties were not yet ready for sale. We made an offer of $100,000.00 USD for the 3 bedroom home and the adjacent ruin and the offer was accepted. A meeting of the buyers and sellers was scheduled for 6pm that evening at a respected Notario’s (Mexican Lawyer) office where the contract would be signed and 10% of the purchase price or earnest money would be paid directly to the sellers. As buyers, we were then given 30 days to either rescind our offer and forfeit our deposit or come up with the remaining funds to ratify the contract. Bear in mind that at the time, home loans and mortgages were not available in SMA—and for the most part, still aren’t—so cash or wire transfers were our only option. Everything went according to plan until we told the Notario our purchase price. Between the time we made our offer and the time we arrived at the Notario’s office the sellers decided to up the price for the combined parcels. Instead of $100,000 USD they now wanted $111,000. We could have–and certainly wanted to–walk out the door, but we had come too far in the last 6 hours setting the financial wheels in motion and mentally designing our south of the border home to let the dream get away. Instead we accepted the fact that we were rookies and dove in.
Counting out the cash deposit at the Notario
At this juncture, there are a few things you need to know about what you can and cannot own in Mexico. As individuals, foreigners—with some exceptions–cannot directly own property within roughly 30 miles of the shoreline or 60 miles of the border. All other properties like those in SMA that are 100s of miles from the coast are fair game. As for those exceptions, you can legally own Mexican real estate in restricted coastline areas if it is set up through a bank trust or fideicomiso where the bank owns the property but you as trustee have total control of the real estate, or if you form a Mexican corporation. Bank trusts are good for 50 years and are renewable and transferable. Setup fees run around $500 and annual fees are about the same. Costs to form a Mexican corporation are several times higher than bank trusts and require corporate tax reports and the like.
Another thing you need to be prepared for is having cash for your earnest money deposit. If you are like my husband and I, we didn’t have $11,000.00 with us because we hadn’t planned on buying a home on our vacation. Fortunately for us, our real estate agent happily cashed our $11,000 check using our property as collateral until the funds cleared her bank.
When hiring a lawyer, make sure they are actually licensed to practice law in Mexico. Ask to see their cedula professional, an official license provided by the Ministry of Education. Your Notario will then check to see that the seller holds title and is legally able to sell the property. The seller must be able to provide a copy of the public deed (escritura publica) stating legal title of the property. Your Notario will also review all conditions, identify any problems, give advice and formalize the transaction. When making an offer, it should be in written form and is best when transcribed into both Spanish and English. This contract is known as a Promise to Buy (Oferta) and begins when the seller accepts the offer made by the buyer and both parties sign the contract. Once the seller accepts the offer, the buyer is expected to deposit 5-10% deposit of the purchase price and half the closing costs. Make sure that all deposits are made through the public notary or closing agent and not directly to the seller.
As I mentioned earlier, it typically takes 30-45 days to close the transaction. In the states we would call this our investigation period. But in our experience you simply have this amount of time to raise the rest of your funds or change your mind. If you do decide to bail regardless of the condition of the seller’s property, the seller keeps your deposit. If the seller on the other hand gets cold feet, he/she can terminate the contract but is required to return the buyers deposit.
Everything necessary for a successful negotiation
In our case, after 5 days in SMA we headed home a little poorer but a whole lot happier. Instead of returning to SMA 30 days later for our closing, we gave our Canadian real estate agent power of attorney to close for us. We decided since we had taken such a leap of faith in just 5 short days, why break with tradition. After all what could go wrong……?
Links for licensed realtors: www.ampisanmigueldeallende.com
Some very interesting real estate statistics
Posted by Curtis Van Carter on July 26th, 2008 filed in From Curtis, Real Estate current info
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I read in this mornings San Francisco Chronicle an article, State’s home sales have a baffling 17.5% jump, that the number of homes sales had a surprising jump of 17.5% when comparing June 2008 to June 2007 according to the California Association of Realtors (CAR). Reading deeper, the article went on to say despite this gain in numbers, there has been a continuing annual decline in values of 37.7% to $368,250 for all home types. The article also pointed out how CAR’s statistics didn’t jive with those of DataQuick which showed an 8.1% decline in statewide sales for the same period. However further on in the article is what I found the most interesting:
Among the California homes sold in June, 41.9 percent were foreclosure resales, compared with 6.6 percent a year earlier, DataQuick said. The Realtors group noted that sales of homes priced under $500,000 represented 67 percent of all sales, up from 40 percent.
This is consistent with everything I am experiencing in my effort to continue on with my real estate sales during these times. Just read my The $64 question post on July 18th to get a true sense of what is happening to real estate values here in the Napa Valley.
As those who read my blog regularly know, there are always two sides to every story and now that we have the YIN, let us have the YANG (excuse the obvious pun based on upcoming events). In another newspaper I was reading this morning, my local Napa Valley Register, there was an ad from my own company with this graph, again from CAR.
What many of us do forget during these tough times, especially those currently hurt by foreclosures, short sales and all having to sell their home during these down market times, California home ownership has been a true pot of gold over the long haul. I do feel the pain of many of my clients who I am in contact with quite often these days and do hope all of them are among the lucky who can wait out this down period. I am certain past down-turns were as bleak for all those caught up in each but somehow managed to get through them. Hopefully you are among the fortunate and will remember this as another such cycle in the continuing saga of the ups and downs of all things, especially real estate values. This is the third such I have been through in my 25 years selling real estate and I too sometimes overlook the big picture, the 40 Year Average Appreciation 7.87%. Just wait till next year, maybe the year after, but it will change.
