The DeLeon Insight May 2017 by DeLeon Realty

THE DELEON INSIGHT Silicon Valley Real Estate MAY 2017

• MICHAEL & KEN GO TO COLLEGE • PLAYING THE ODDS • NEIGHBORHOOD SPOTLIGHTS: STANFORD, LADERA

ACTIVE SPRING MARKET • COLOR TRENDS • www.DELEONREALTY.com 100% APPRECIATION IN 5 YEARS • SAN FRANCISCO - AMERICA’S SECOND CITY •

• DELEON REALTY’S MOST SIGNIFICANT INNOVATION YET! • DELEON INSIGHT

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MARKET TRENDS Average Sales Price

Average sales price for single-family homes from 10/2015 to 3/2016 compared to 10/2016 to 3/2017.

10/2015 -3/2016 10/2016 -3/2017

Price/Square Foot Ratio

Price per square foot ratio for single-family homes from 10/2015 to 3/2016 compared to 10/2016 to 3/2017.

10/2015 -3/2016 10/2016 -3/2017

*Data gathered from the Multiple Listing Service on 4/4/2017

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DELEON INSIGHT

To learn more about how we are reinventing real estate, go to page...

DELEON INSIGHT

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FEATURES 7 PLAYING THE ODDS Calculating risk with multiple offers

DELEON INSIGHT Re a l E st a t e – L ifest yl e – K nowledge

8 SAN FRANCISCO AMERICA’S SECOND CITY Economic strength grows throughout the Bay Area

PUBLISHER

EDITOR - AT - LARGE BRAND MANAGER

SR. GRAPHIC DESIGNER

PHOTO EDITOR

MARKETING SPECIALIST

CHINESE MARKETING SPECIALIST DIGITAL MARKETING SPECIALIST COPYWRITER

11 UNUSUALLY ACTIVE SPRING MARKET Many factors lead to optimism in the current real estate market

CONTRIBUTING WRITERS BUYER TEAM

DESIGN TEAM

NEIGHBORHOOD SPOTLIGHT 12 Stanford 19 Ladera

LISTING TEAM

17 COLOR TRENDS New color trends for 2017 bring a completely different sense of life to your home

Ken DeLeon - Founder Michael Repka - CEO & General Counsel Caroline Wong Darrell Martin David Hall Huy Vu John DeOliviera Lauryn Varnum Tilu Arora Sigrid Waggener Alex Seroff Kim Heng

OUR OFFICES ARE LOCATED AT: 1717 EMBARCADERO ROAD - PALO ALTO, CA 94303 WE CAN BE REACHED AT: GENERAL INFORMATION ON THE WEB

20 MICHAEL & KEN GO TO COLLEGE Paying forward a debt of gratitude

14 DELEON REALTY’S MOST SIGNIFICANT INNOVATION YET How a new ethical standard will rock the real estate industry

Miguel Erkelens Seth Faulk Shasta Krasniewicz Charles Sanchez Anthony Halawa MyMy Trieu Melanie Yu Mike Ran Sara Last

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DELEON INSIGHT

650.543.8500 www.deleonrealty.com

DELEON INSIGHT

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BE YOND SIMPLE SE A SONALIT Y BY:

ALEX SEROFF, ESQ. LISTING SPECIALIST

ith local real estate being one of the favorite topics of conversation in Silicon Valley, it is no surprise that sellers are well aware of the seasonality of the market and optimal timing. However, when working with sellers to determine the listing date for their home, DeLeon Realty does not stop strategizing there.

two listings located very close by. The idea is that the first house will be the one that is most likely to have a homerun result, thus generating the most offers and setting a strong comparable for the second home. Since only one set of buyers wins the home, the rest can be easily redirected to the similar second home nearby.

Due to the unique position of having a large market share coupled with a team approach—where information is shared, not carefully guarded—DeLeon Realty is able to utilize knowledge of upcoming listings in order to ensure all come on the market at the optimal time.

Not all of these buyers would have been initially interested in the second home; however, due to their offers on the first home, they have now developed emotional attachments to that location, and thus are much more likely to make offers on the second property. The result is a higher number of offers than would be expected on the second home, and thus a higher sales price.

While some listing agents just put a home on the market almost immediately after they obtain a listing to get that commission as soon as possible, other agents will develop a timeline with their sellers as to when is ideal to put a home on the market. DeLeon Realty considers many factors in determining when to list a home, including how long it will take to prepare the home, develop marketing materials, and when the sellers need to have their proceeds. One final and important consideration to be made is when other similar homes are going to be listed. Only a company with a team approach that encourages information sharing is able to offer a large enough database of upcoming listings to be useful. DeLeon Realty is that company. There are several large brokerages in the area, but all others consist of independent contractors who are not motivated to share information amongst each other. With the knowledge of a large percentage of upcoming listings, DeLeon Realty can easily determine which home should go first on the market when it has 6

Less intuitively, this approach is also beneficial for the more desirable first home as well because the second home would set a lower comparable, which would hold down the bidding on the more desirable home. DeLeon Realty has two homes coming soon on the same street in the South of El Monte neighborhood of Los Altos, and we encourage readers to watch if these properties will prove this idea true once again. In regard to market timing, optimization of when to list similar homes within close proximity is the most important strategic advantage gained by listing with DeLeon Realty. However, a large market share also allows the firm to drive more traffic to a home by listing many homes that are different in characteristics, statistics, and pricing— but are within the same city—all on the same week.

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DELEON INSIGHT

This creates a lot of buzz for DeLeon Realty’s open houses that weekend, which essentially become stops along an informal tour of the city. The additional visitors themselves will likely not be in the market for every home they visit, but they may realize it could be a perfect fit for a relative, friend, or coworker. If just one of those people makes an offer, as a result of capitalizing on this advantage unique to DeLeon Realty, that offer can help push the sales price higher than it otherwise would have been. Perhaps the largest benefit sellers gain from DeLeon Realty’s size and business model is our ability to redirect buyers from other, more expensive areas. For example, imagine a couple who wants to buy a four-bedroom home in Midtown of Palo Alto, and they find a perfect home listed by DeLeon Realty. Unfortunately, the price gets bid up to over $4 million, which is their limit. These buyers may be the perfect candidates for an equally nice home in Los Altos or Menlo Park that may sell for only $3.5 million, and we can redirect them to this alternative. The optimization of market timing is an advantage one can obtain effectively only from DeLeon Realty. With our firm’s newest innovation being implemented shortly (see Michael Repka’s “DeLeon Realty’s Most Significant Innovation Yet!” on p. 14 of this issue), the benefit of this optimization is poised to increase greatly as DeLeon Realty gains market share. This growth will allow a larger database of upcoming listings to be considered when determining the best day to put otherwise competing homes on the market.

PLAYING THE ODDS

pring has arrived, and prospective buyers are out in force throughout Silicon Valley, looking for the perfect place to call home. Springtime is typically the time of year when there are more buyers than homes for sale, and sellers can therefore expect multiple offers. Most buyers are aware of the limited housing supply, and some buyers may feel anxious about the prospect of losing out on an opportunity to get into their desired neighborhood. Faced with these competitive market conditions, buyers may decide to submit simultaneous offers on multiple properties to increase the odds of getting an offer accepted. However, it is unclear whether buyers who take the multiple-offer gamble have fully considered the possible consequences of this approach. Let’s assume that Buyer A is looking for a home in the Flood Park neighborhood of Menlo Park. Buyer A has made multiple, unsuccessful offers on homes in the neighborhood and grows increasingly frustrated. Buyer A checks the Menlo Park listings daily and sees two newly listed properties: Property 1 and Property 2. Both properties have

BY:

SIGRID WAGGENER, ESQ. |

similar offer deadlines. Buyer A tours both properties, and, although he likes Property A more than Property B, he submits offers on both properties. Both offers are non-contingent so that the offers are competitive with offers submitted by other buyers. While nothing prevents a buyer from submitting multiple offers, the buyer must understand that this approach may result in two or more of the offers being accepted. Unless the buyer has the funds and the desire to close on two homes instead of one, the buyer must now somehow be extricated from a fully executed purchase agreement. This is no simple task. The buyer’s desire to close on the preferred home does not constitute a valid basis for cancelling the purchase agreement for the second-choice home. A buyer would typically have to pay liquidated damages to the seller in order to cancel the agreement. This is a less-thansatisfactory outcome for both the buyer and the seller of the second-choice home. So, how can buyers submit multiple offers while avoiding the outcome described above?

DELEON INSIGHT

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LISTING SPECIALIST

First, buyers should not conceal the fact that they are submitting multiple offers. Instead, the buyer should submit an offer on Property 1 with a relatively tight response time and explain the situation to the listing agent of Property 1. The buyer’s offer on Property 2 should include a one-day contingency addressing the outstanding offer on Property 1. If the buyer learns that the offer on Property 1 was not accepted, the buyer should immediately cancel that offer and remove the contingency in the offer on Property 2. As you may have guessed, careful drafting of the offer is required. Buyers can set themselves up for success by partnering with a broker capable of customizing the terms of the offer. It should be noted that this situation requires a strong grasp of the contractual rights and responsibilities that buyers face. Therefore, buyers should speak with an attorney, whether provided by the brokerage or retained by the buyers. DeLeon Realty provides this type of legal guidance to our clients at no additional expense.

SAN FRANCISCO BAY AREA BY:

KEN DELEON, ESQ. |

A M E R I C A’ S S E C O N D C I T Y

FOUNDER

New York City is consistently viewed as the preeminent city in America, and arguably the world. However, the title of “Second City” has been more fluid, in flux from as early as 1890. Chicago was originally dubbed the Second City to illustrate its status in America. When Los Angeles surpassed Chicago in population in 1984, the informal title of Second City transferred to Los Angeles. While Los Angeles may be the second most populated city, there are a number of reasons that the second region of greatest import in America should not be determined by a population census, but instead by a broad array of critical factors. Given this premise, there are now strong arguments that the San Francisco Bay Area has rightfully wrested this title from both Los Angeles and Chicago, despite their larger populations. This is true if one compares the four metropolitan regions of New York, the San Francisco Bay Area, Los Angeles, and Chicago across several metrics that measure the strength of each region in innovation, education, culture, and wealth. EDUCATION The presence of world-class universities was the genesis of Silicon Valley’s birth, and has propelled the San Francisco Bay Area into prominence in education and innovation. The strength of our local universities is true not only nationally, but also internationally. The Bay Area is the only region in America with three of the top 20 universities in the world, according to the 2017 US News & World Report’s rankings of global universities. SF BAY AREA

STANFORD (#3) BERKELEY (#4) UCSF (#16)

COLUMBIA (#9) NYU (#27)

LOS ANGELES

U. OF CHICAGO (#13) NORTHWESTERN (#25)

UCLA (#10)

NEW YORK

WEALTH This educational excellence has translated into economic exceptionalism. This is best demonstrated by the fact that the Bay Area has more billionaires than either Los Angeles or Chicago.* In the 2016 Forbes article entitled “The Cities with the Most Billionaires,” the San Francisco Bay Area has more billionaires who are worth more money than either LA or Chicago. Of particular note, small Palo Alto, with a population of just 66,642, has as many billionaires as Chicago. Even more impressive, the net worth of these elite Palo Alto residents is greater than the net worth of the billionaires of LA and Chicago combined! *Please review chart on right-hand side INNOVATION As the epicenter of world innovation, it is not a coincidence that Silicon Valley has the only branch of the US Patent and Trademark Office outside of Washington, DC. The “US Patent & Trademark Office: Distribution of Issued Patents by US Region for 2015” illustrated that Silicon Valley dominated the country by the number of patents issued.

# of patents issued/rank SANTA CLARA COUNTY

NEW YORK

LOS ANGELES

CHICAGO

14,571 (#1)

3,625 (#3)

CHICAGO

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DELEON INSIGHT

1,112 (#22)

1,636 (#11)

The future for the Bay Area is also very bright. A disproportionately large amount of the world’s venture capital funding is managed in Silicon Valley, as discussed in The Atlantic’s “The Global Cities Where Tech Venture Capital Is Concentrated.”

SF BAY AREA

NEW YORK

LOS ANGELES

CHICAGO

25.3%

3.4%

1.6%

The Bay Area has more top 10 US companies by market cap headquartered here than any other region in America (market cap data provided by dogsofthedow.com).

SF BAY AREA

NEW YORK

Apple (#1)

JP Morgan (#9)

Alphabet - Google (#2)

LOS ANGELES --CHICAGO ---

Facebook (#6) Wells Fargo (#10)

While the Bay Area is known for its educational excellence, tech savvy, and financial affluence, it is also a rising star in cultural measures. New York had always had the most threestar restaurants in America, until 2016. In the latest Michelin

# OF BILLIONAIRES WORLDWIDE/RANK COMBINED NET WORTH

guide, both New York and the Bay Area had six restaurants that garnered the prestigious three-star ranking. While Michelin stopped rating Los Angeles a few years ago, there were no threestar restaurants then, and that would likely be the case now. I am not the only one to recognize the growing stature and economic strength of the Bay Area. In the Milken Institute’s “2015 Best Performing Cities,” the top two cities in the nation were #1 San Jose/Sunnyvale and #2 San Francisco/Redwood City. The index was created by measuring growth in jobs, wages, salaries, and technology over five years. San Jose had the highest job growth in the nation (4.6 percent) amongst larger cities, and had the second highest wage growth, only behind San Francisco. The study stated that the “economy of the San Jose metro division has been red-hot, demonstrating how an innovation-fueled ecosystem can overcome high costs of doing business and a restrictive regulatory environment.” San Francisco, very close behind, ranked #2 because of the low unemployment rate of 3.4 percent, and had a labor participation rate that is 10 percent higher than the national average. This allows it to easily absorb the many new residents drawn to what is arguably the nation’s strongest economy. A final illustration of the strength of the Bay Area is that, since 2001, per government data, the gross domestic product of the region has gone up by over 76 percent, compared to 54 percent growth in Chicago, 64.9 percent in New York, and 71 percent in Los Angeles. The San Francisco Bay area is a special place in the world, and is a top-tier region in so many aspects. DeLeon Realty is honored to be the top team in one of the top two regions of America.

SAN FRANCISCO

PALO ALTO

NEW YORK

LOS ANGELES

CHICAGO

28 (10TH)

13 (25TH)

79 (1ST)

20 (14TH)

13 (25TH)

$74.5 B

$124.9 B

$364.6 B

$70.7 B

$36.6 B

DELEON INSIGHT

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EXPERIENCE THE DELEON DIFFERENCE IN PALO ALTO 1425 Harker Avenue Listed at $5,988,000 Sold for $7,060,000 Over $1,000,000 above list price

After expiring in 2016 under another agent, this exceptional listing in Community Center was just sold by DeLeon Platinum—for over $1,000,000 above list price Let DeLeon Platinum achieve the best results for your home. Contact Michael Repka at 650.488.7325

6 5 0 . 4 8 8 . 7 3 2 5 | i n f o @ d e l e o n r e a l t y. c o m | w w w. d e l e o n r e a l t y . c o m | C a l B R E # 0 1 9 0 3 2 2 4

WHY IS THE SPRING MARKET UNUSUALLY ACTIVE IN 2017? BY:

fter a 2016 that was plagued by uncertainty, trepidation, and general lethargy on the part of buyers, the 2017 spring season is off to a strong start. While there are a number of different factors that contribute to the newfound surge of the buyer pool, two causes seem to be the most prevalent. First, there is a general optimism that seems to abound. The uncertainty associated with the election season in 2016 has given way to surprising optimism. Just like investors in the stock market, many buyers are optimistic that taxes and excess regulations on businesses will come down, and investments in businesses will increase. Given that Silicon Valley is so heavily influenced by investors’ sentiments, this has resulted in many people feeling optimistic while also obtaining a sense of urgency to buy in before prices increase. The second reason is equally surprising. Over the course of the last six months, the Fed has increased the federal funds rate, which results in

KIM HENG, MBA |

increased mortgage rates. The general expectation is that the rates will increase in the next 18 to 24 months. Federal Reserve Chair Janet Yellen has given clear indication that she anticipates that rates will increase by at least two percent, which should have a profound impact on mortgage rates and an indirect impact on the real estate market as well. Interestingly, the increase in rates we have seen so far has stimulated the economy. Because virtually everyone is confident that rates are going to go up significantly, the early rate increases have made homes slightly less affordable, but they have also caused a lot of people who have been sitting on the fence for the last year to finally make a move. Most feel that they should buy a home before the rate goes up too much. This is particularly important in Silicon Valley because, unlike other parts of the country, we don’t see a direct corresponding decrease in real estate prices associated with the increase in mortgage rates.

DELEON INSIGHT

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LISTING SPECIALIST

The main reason for this is that Silicon Valley has a significant amount of cash buyers when compared to other parts of the country. Although mortgage rate increases may make homes less affordable for those who need mortgages, this will not be a concern for people who are coming from overseas who have cash, or for people who have substantial cash either from previous highly appreciated real estate sales or stock options. Therefore, many people who need mortgages feel now is the time to act, before prices continue to increase and rates make homes more unaffordable. Although there is certainly reason for optimism, there are also some concerns out there regarding the likelihood of the various tax decreases going through. If President Trump’s proposals never come to fruition, we could see the market come back towards a softer sellers’ market, or even a softer buyers’ market. However, if the economy continues to increase like the past four or five months, we expect to see continued growth in the real estate market.

STANFORD UNIVERSITY 1/4

HOUSING, HISTORY, AND ARCHITECTURE BY:

DAVID HALL, ESQ. |

tanford University is one of the largest employers in Silicon Valley, with over 12,000 faculty and staff members. There are also 1,600 faculty physicians and more than 1,100 residents and fellows working for Stanford Medicine (including Stanford School of Medicine, Stanford Health Care, and the Lucile Packard Children’s Hospital). One of the most difficult challenges Stanford faces in the recruitment process is finding housing for new faculty. The same is true for Stanford Medicine recruits who do not qualify for on-campus housing. In April 1991, before the runaway success of Silicon Valley and the consequential upsurge in housing prices, there were approximately 90 Stanford campus homes on the market, and the median price was around $700,000. Fast forward to 2016 when only 19 on-campus homes were sold, ranging in price from $840,000 for a condo to $3,300,000 for a single-family residence. The skyrocketing housing prices in surrounding communities further exacerbate the Stanford recruiting process. Fortunately, the Stanford campus is over 8,000 acres, and the university owns other land, so the university can develop new housing— albeit in an environment that is growing increasingly resistant to more development and the consequential increases in traffic and other congestion. Ironically, there was a time in Stanford’s history when the faculty resisted the idea of living on-campus,

SENIOR BUYER SPECIALIST - MENLO PARK & STANFORD

preferring instead to live in Palo Alto where they could purchase land rather than lease it. Eventually, as new homes were built south of the main quad along Alvarado Row, Mayfield Avenue, and Lasuen Street, faculty started moving onto the campus. The San Juan Hill neighborhood, developed by the university towards the middle of the twentieth century, was named by former President David Starr Jordan after Mission San Juan Capistrano. This subdivision reflected an exciting mix of architectural designs ranging from English Tudor to Spanish Colonial to early Bay Area Modern. Notable architects that designed homes here include Arthur Clark, Bakewell and Brown, John K. Branner (son of Stanford President Branner), and Charles Sumner. Frank Lloyd Wright’s acclaimed Hanna House is also near San Juan Hill, and was designed in 1936 for Stanford Professor Paul Hanna and his wife, Jean, who were specialists in childhood education. Despite the challenging housing market, Stanford continues to attract some of the best scholars and medical innovators in the world who continue to shape Stanford’s future. The university is preparing to expand the campus by 2.28 million square feet over the next 17 years, in order to both accommodate the anticipated growth of its undergraduate population and to facilitate academic research in emerging and expanding disciplines.

Student housing will also be added, and Stanford’s real estate planning and development team is committed to meeting the challenge of developing the university without adding to commuter traffic. This will include utilizing, among other things, a transportation demand management program that has succeeded in reducing the rate of solo car-commuters to campus from 78 percent to 50 percent. Later in 2017, Stanford will open the University Terrace Community, built on the edge of Stanford’s Research Park, to faculty who are members of the Academic Council and who meet other qualifications. The community consists of 68 single-family homes and 112 condominiums. In February 2017, Stanford submitted updated plans to the city of Menlo Park for its 8.4-acre Middle Plaza mixed-use development at 500 El Camino Real. The development will run north on El Camino from the Stanford Park Hotel and will contain 215 rental housing units, 144,000 square feet of office space, and 10,000 square feet of retail space. The housing units in this development will be open to the public. In the next articles of this series, we will review the innovative housing programs Stanford has developed to support its faculty and staff, including housing lotteries and purchase programs with acronyms like MAP, HAP, RIP, DIP, and ZIP, while also exploring the rich history of the Stanford campus.

BIRGE

CLARK

BY:

PA LO A LTO’ S A R C H I T E C T

HUY VU, ESQ.

SENIOR BUYER SPECIALIST - PALO ALTO

here are few architects who have had a more profound impact on any city than Birge Clark had on Palo Alto. From the homes scattered around the city to the iconic post office on Hamilton Avenue, Mr. Clark certainly left his mark, which is why he is loved to this day.

Born at the end of the 19th century, Birge Clark was able to watch Palo Alto transform from the quiet town it once was to the early stages of the technology center it is today. By the time of his passing in 1989, Palo Alto had already become, thanks in part to Stanford University, one of the most influential cities in the tech world. Palo Alto sprang to life during the construction of Stanford University in the 1890s, the same decade that Birge Clark sprang to life. The son of a Stanford art and architecture professor, Clark received his architectural training at Columbia University, only to return to Palo Alto to begin his illustrious career. He was Palo Alto’s only architect for much of its early history, and he remains, arguably, its most influential architect. While his contemporary peer Joseph Eichler may have built more structures in and around Palo Alto, Birge Clark was responsible for designing over 450 residences, commercial buildings, and civic structures throughout Palo Alto from the 1920s through the 1960s. Much of Palo Alto’s character and charm is defined by Clark’s work. Without question, many of Clark’s most iconic works share Spanish Colonial Revival elements, also referred to as California Colonial style. It is closely related to the Mission Revival style, which draws from California’s early history and the Catholic missions which dot the California coast. Hallmarks of the style are stucco walls, arched doorways and windows, low-pitched clay-tile roofs, and decorative iron trim. DELEON INSIGHT

However, Clark liked to branch out and experiment with some alternate architectural styles. Most notably, he created some very interesting Mid-Century Modern homes that are reminiscent of Eichler’s work, but with a little more of a whimsical style. Clark did not shy away from adding a splash of color or interesting details to capture the hearts and minds of the homeowners. Examples of Clark’s most famous works include the Lucie Stern Community Center, Lou Henry Hoover House, the President Hotel, the Palo Alto Post Office, and the Palo Alto Medical Center. Most of the 500 block of Ramona Street in downtown Palo Alto consist of Clark’s work. He also designed many famous residences in Palo Alto, such as 1247 Cowper Street (Norris House), 420 Maple Street (Dunker House), and 1990 Cowper Street (Lucie Stern House). Most homes on the 400 block of Coleridge Avenue in Old Palo Alto are also credited to Clark’s designs. The next time you take a stroll down University Avenue or a drive through Old Palo Alto, there’s a good chance you’ve passed right by a cherished piece of local history influenced by Clark. In addition to being a great architect, Clark was also, by all accounts, a great family man and a dynamic person. He loved Palo Alto, but he also loved his family and made sure to spend as much time as he could with them. He also loved camping, the outdoors, roller-coasters, and travel. Additionally, he was a war hero, having won the Silver Star in World War 1, one of the nation’s highest military honors. If you would be interested in seeing some of Birge Clark’s greatest works, please reach out to me, and we will schedule a tour in the DeLeon bus (unfortunately, we cannot extend this offer to real estate agents or people who are working with nonDeLeon agents).

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BY:

MICHAEL REPKA, ESQ.

CEO & GENERAL COUNSEL

We formed DeLeon Realty with the belief that there was a better way to sell real estate and, in doing so, a better way to build a real estate company. We have raised the client experience through offering significantly elevated marketing for our listings; employing exceptionally well-educated and well-trained agents; fostering specialization and collaboration; better aligning incentives by eliminating the commissionbased, independent-contractor model that is used at Alain Pinel, Coldwell Banker, Intero, Keller Williams, and most other traditional brokerages; and constantly striving to innovate and improve. We are proud to announce our most stunning innovation yet: going forward, DeLeon Realty will not take commission from both sides of the same transaction. If any DeLeon Realty agent represents a buyer on any DeLeon Realty listing, then we will waive 100 percent of the buyer-side commission. This policy does not merely apply to agents representing buyers on their own listings, which we still prohibit. Rather, it is companywide and applies to any offer submitted by any DeLeon Realty agent on any DeLeon Realty listing. Most attorneys would cringe at the idea of representing both the plaintiff and the defendant in the same case, nor would they prosecute AND defend someone accused of a crime. Yet the real estate industry argues that it is acceptable for the same individual agent to make money from both the buyer and the seller on the same transaction. Surprisingly, many clients seem to accept this conflict of interest, likely due to a belief that everything is going to go smoothly 14 M AY with 2017 | their transactions.

It is my opinion that this should be illegal and/or banned by all brokerages. Even when an agent agrees not to represent buyers on their own listings, most brokerages do not prohibit the listing agent from having another agent in their office write up the offer in the straw-agent’s name and pay the listing agent a very hefty (and generally non-disclosed) referral fee. In many ways, these non-disclosed referral fees are even worse than listing agents writing offers in their own names, because the listing agent is still getting paid more if one particular offer is accepted, yet the seller does not recognize the need for extra vigilance. Unlike the other large brokerages in the area, DeLeon Realty has separated the buyer side of the company from the listing side in order to prevent conflicts of interest. Thus, the listing agent is paid the same irrespective of which offer the seller accepts. We felt that this was far better than the conventional system employed at almost all other brokerages whereby the listing agent could receive compensation from both sides of the same transaction. However, it was not perfect because DeLeon Realty still benefited from having DeLeon agents—albeit different people—on both sides of the transaction. We have fixed that! Now, all new DeLeon Realty listing agreements will include a clause that says: “In the event that the Property is sold to buyers that are represented by DeLeon Realty as the cooperating broker (buyer’s agent), then the commission shall be reduced to 3%. In other words, there will be no compensation (0% commission) going to DeLeon Realty as the cooperating broker (buyer’s agent).” It is important to note that the individual DeLeon Realty

Dagent ELEO N I whom NSIGH T clients are working will not be advising with the

the other side, and we expect that clients will be comforted by the knowledge that the listing agent’s compensation is not being received from both sides. Unrepresented Buyers Many buyers search for homes on their own or come across one of our listings from our TV commercials, radio promotions, our company website, the DeLeon Insight newsletter, newspaper or magazine ads, direct mail, or open houses. Once they find the desired property, they often look for an agent who can write it up. This creates a windfall for the lucky agent, but it contributes to the very high transaction costs sellers face when they sell. Therefore, we encourage these unrepresented clients to contact us directly because it will result in a full 2.5-percent reduction in the commission rate we charge the seller, thus making the buyer’s offer even more compelling. Our aggressive marketing expands the buyer pool and increases the likelihood that we will attract unrepresented buyers. For example, our direct mail, TV commercials, and marketing to the Chinese community reach a far larger geographic area than the more common MLS-based marketing, which may result in attracting offers from a number of buyers who are not actively looking. Thus, these buyers are less likely to already be working with an agent, motivating a large number of potential buyers to approach DeLeon agents. At DeLeon Realty, we respect relationships that potential buyers have with their agents. Therefore, this offer does not apply if another agent initially showed the buyer the house, or if the buyer signed an exclusive buyer representation agreement (a.k.a. a “Buyer-Broker Agreement”). While we hope that all brokerages follow our lead, it is

DELEON INSIGHT

unlikely that they will do so. In addition to the sizable financial impact associated with the lower commission, most brokerages are handicapped by the independent-contractor, commissionbased structure. Fortunately, it is likely that some agents will adopt this more client-friendly approach on an individual basis, which will be a step in the right direction. However, the benefit will be very limited because the policy will not apply companywide, and it could be undermined completely if the listing agent is still permitted to accept referral fees from other agents on their listings. Another significant advantage that sellers will gain from listing with DeLeon Realty stems from the fact that all of our buyer agents are on salary, not commission. Therefore, the DeLeon buyer agents will still be incentivized to sell our listings, whereas commission-based agents would not. There are a lot of good people that sell real estate. However, we believe the entire industry has to take steps to eliminate conflicts of interest and reduce temptation. It is certainly reasonable for sellers to wonder if all of these good agents can resist the temptation to put their thumbs on the scale, especially when advising clients in situations where they are getting paid more, generally double, if one offer wins over another. We believe that our new policy is a major step in the right direction and will benefit both sellers and buyers represented by DeLeon Realty. T h i s of fer do e s not apply to a ny prop er t y t h at i s a l re ady i n cont r ac t or s old a s of 4 /2 8 /2 0 1 7. It do e s not apply i f t he D eL e on l i st i n g wa s or i g i n a l ly brought to t he at t ent ion of t he buyer by a non-D eL e on a gent , or i f a ny ot her a gent wa s t he “pro c u r i n g c au s e” of t he t r a n s ac t ion , nor do e s t h i s of fer apply i f t he buyer ent ere d i nto a n e xc lu sive a genc y rel at ion sh ip (e . g ., a “ Buyer-Broker A g re ement ” ) w it h a not her a gent .

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L O S A LT O S H I L L S JOINING THE BUILDING BLOOM

BY:

CAROLINE WONG, ESQ.

SENIOR BUYER SPECIALIST - LOS ALTOS & LOS ALTOS HILLS

From developers building speculation homes to residents designing their custom dream homes, Los Altos Hills has seen a significant increase in new development over the years. In 2015 and 2016, the building department at the town of Los Altos Hills issued 76 permits to build new residences and secondary dwellings. That is over a 30-percent increase from previous years! Once again, Los Altos Hills has been ranked as one of America’s most expensive zip codes by Forbes. This is for good reason: the most expensive 2016 sale in Los Altos Hills was for $16,500,000 (the DeLeon Team represented the buyer). Many of Silicon Valley’s elite are looking for scenic custom estates that offer both convenient access and private living, and Los Altos Hills is ripe for the picking. A famous, Silicon Valley CEO recently bought a property in the area for over $6 million and plans to build an estate home of over 10,000 square feet. On the other end, developers have been investing in the Ranch-style homes that once populated the area and are rebuilding brandnew homes for wealthy tech buyers. With a large, standard lot size of an acre and an accessible building and review process, Los Altos Hills is enticing more and more people to build along its rolling landscape, which showcases prime features like a convenient location, privacy, and spacious properties. Not many people realize the relative access to building and the actual deals to be had in Los Altos Hills. With the median

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sales price at $3.5 million and typical building costs in the range of $300 to $500 per square foot, an owner can invest less than $2 million to build a custom home worth $7 million or more. The town actually has a fast-track design review process for plans that conform within design guidelines, and adhere to the local development philosophy of preserving the town’s semi-rural character and natural atmosphere. Now would be an ideal time to take action if you are looking to buy and build a custom home, for Los Altos Hills currently has an overflow of unsold inventory. The Los Altos Hills real estate market took a turn when the international and domestic stock markets fluctuated in late 2015. Buyers were hesitant to pull large sums of money to buy homes and, as a result, many new listings sat on the market unsold. Between the months of January and April of 2016, 72 new listings came on the market, yet sales were less than half that number. Over 40 homes from 2016 remain unsold. New homes coming on the market are in competition with unsold homes sitting on the market. Consequently, buyers will be facing less competition and potentially better values than that of neighboring cities. Bargains will be had when the expired listings come back on the market to compete with the new listings of this year. DeLeon Realty forecasts that Los Altos Hills will continue to have new development over the years, resulting in good appreciation.

DELEON INSIGHT

COLOR TRENDS 2017 BY: LAURYN VARNUM

very year, new trends emerge for color schemes in home design. The majority of previously popular schemes have included muted palettes with soothing, understated colors, such as cool greys, mossy hues, slate, and neutral shades throughout the entirety of a home. It was common to see an entire home painted with colors such as San Francisco Fog, Frost, and Great White. These shades allowed for a calm, uniform scheme oriented towards transitional styles, creating a soft, blank slate capable of appealing to a wide audience. Rather than giving specific rooms a personalized feel, the desire was to create a color scheme which allowed décor to fit as easily within a living area as within an office space or a more formal room. In order to maintain this ability to change easily between themes, accent walls fell out of style. All walls were painted the same shade with the ceilings colored the same as the trim and doors, rather than using a 50-percent gradation of the wall color, which was previously favored. The final details for previous schemes were the colors of finishes and fixtures. All cabinet and drawer pulls were brushed nickel, and all lighting fixtures were also brushed nickel pieces featuring cool, clean lines. It was common to see pendant lights that displayed frosted glass or neutral-colored shades. This overwhelmingly understated

palette was popular for creating generic spaces. However, it led owners to desire a freshened look, which has resulted in new trends of warmer, more personalized color schemes. 2017 has brought a completely different approach to color schemes in the home. In order to stray from the previously favored, ubiquitous trends, details like accent walls, pops of color, and mixed finishes are coming into their own. The easiest update is with the return of the accent wall. A deep chocolate wall behind a fireplace brings a sense of life to a room painted entirely warm taupe. A clean white color scheme becomes sophisticated when a silvery grey color becomes a backdrop for a gallery wall. For those just beginning to dip their toes into the idea of mixing color palettes within the same design scheme, try selecting a wall and utilizing a 50-percent gradation of the selected color. Areas such as bathrooms and kitchens can be updated with varying expressions of the same color. Using a warm cream as a base, color schemes can range from the crisp ivory of a subway-style backsplash, the sandy brown of a vein within a marble countertop, and the milky white of Swiss Coffee cabinets. The combined effect from variations of the same overreaching color can create a sophisticated palette without being stark.

DELEON INSIGHT

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INTERIOR DESIGNER

Updating the colors of finish choices can bring a drastic update to an existing design. Swapping out brushed nickel drawer pulls and faucets for chrome accents can modernize the look of a room. With brushed bronze beginning to resurface in design, luxurious elements can be added to a casual, creamy beige scheme or a hard, grey color plan. A simple living room can transform into an elegant drawing room with the introduction of black sconces or gold-and-glass pendant lighting. The new year has brought a fresh perspective on the décor of interiors. Owners shouldn’t be afraid to mix up their color schemes and breathe life into the previous trend of monochromatic palettes. A home’s interior can be dramatically livened up by some simple changes—even something as easy as a newly painted wall. Starting off the year with a different look can amend the entire personality of a home. While a fresh coat of paint comes at a low price-point, it can have an enormous impact on both the perceived value of a home and the first impression people will receive when they enter. Don’t be nervous; be bold about a whole new look for your spaces.

Selling your home? First, meet with Michael Repka.

Meet with Michael today for tax and legal advice before listing your home.

Unlike most real estate agents, Michael holds two law degrees, including an LL.M in taxation from NYU School of Law, and has years of experience as a real estate and tax attorney. This gives his clients a unique advantage as most other brokerages do not provide an in-house attorney to help clients. In addition, the expertise and marketing available through the team at DeLeon Realty are the very best in the business. Meet with Michael to discuss any preliminary tax and legal questions about selling your home and let him tell you more about what makes DeLeon Realtyâ&#x20AC;&#x2122;s innovative approach to real estate so successful. There is no cost or obligation for this consultation. However, homeowners who have a current listing contract with another agent are excluded. M AY 2 0 1 7

DELEON INSIGHT

NEIGHBORHOOD SPOTLIGHT LADERA OF PORTOLA VALLEY BY:

JOHN DEOLIVIERA

SENIOR BUYER SPECIALIST ATHERTON / WOODSIDE / PORTOLA VALLEY

The enclave of Ladera was named to reflect the rich Spanish history of the area; “ladera” is Spanish for hillside. This idyllic community was the brainchild of the Peninsula Housing Association, which was formed in 1944 with the goal of developing a housing cooperative. Today, Ladera is a prosperous, unincorporated district that blends the ambience of rural living with urban convenience. Geographically, Ladera is located adjacent to Portola Valley proper, lying at the bottom of the eastern slope of the Peninsula range of the Santa Cruz Mountains. It is bordered on the west by Jasper Ridge Biological Preserve (operated by Stanford University), on the east by Alpine Road, and on the north by Webb Ranch. Though located just a quarter-mile off the freeway, most of the homes in the area do not get much freeway noise due to the rolling, hillladen topography. Of the roughly 545 homes in Ladera, less than half remain original. Many of the homes are situated on lots ranging

RECAP

STATISTICS

from a quarter-acre to an acre. Residents are assigned to the excellent elementary and middle schools of the Menlo Park School District. Most people don’t identify Ladera as a full-service community, but the neighborhood enjoys the convenience of the Ladera Country Shopper, an outdoor mall that offers a full array of amenities from groceries to restaurants to banking. The restaurants alone are worth a visit; to name a few, these include Portola Valley Kitchen, Amigo’s Grill, Bonsai Japanese Restaurant, and Old Port Lobster Shack. The local grocery store of Bianchini’s Market harks back to the golden days of casual, local markets filled with fresh produce. Many other businesses are also located within the center, including a coffeehouse, a drycleaner, and mail services. Also in the area are two automotive repair shops which offer the convenience of any major dealer. Residents have access to both Portola Valley Garage and my favorite, Ramies Automotive. Ron Ramies is a close friend of mine, and I recommend him to anyone who needs car repair or services that you would receive from a local dealer.

2016 NEIGHBORHOOD RECAP AVERAGE SALES PRICE AVERAGE PRICE PER SQUARE FOOT AVERAGE DAYS ON MARKET NUMBER OF SALES 2016 LISTING STATISTICS AVERAGE LOT SIZE NUMBER OF HOUSEHOLDS MEDIAN HOUSEHOLD INCOME

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Residents also enjoy the benefits of local trails, parks, equestrian centers, and private fitness clubs, such as Ladera Oaks and the Ladera Recreation District (LRD). These clubs form hallmarks of this rustic neighborhood, and their closeknit patrons establish an intimate sense of community that is increasingly rare within Silicon Valley. The LRD facilities offer a seasonal aquatics program, May through October, as well as year-round tennis fitness programs. Special social events and holiday celebrations are planned for the enjoyment of the entire Ladera community. Ladera in Numbers Since the market bubble between 2008 and 2009, Ladera has seen appreciation rise for single-family residences. The median sales price for these homes has risen nearly 35 percent, from $1.62 million to $2.46 million (all stats per the MLS). With the median sales in Portola Valley at nearly $4.2 million, Ladera continues to be an attractive option for families who are yearning for a countrylike escape at a relative bargain. Recent trends indicate that the community of Ladera will continue an upward rise with its low inventory and increasing demand.

$2,492,000 $995 52 21

16,500 SQ. FT. 483 $250,000

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MICHAEL & KEN GO TO COLLEGE BY:

MICHAEL REPKA, ESQ. CEO & GENERAL COUNSEL

Over the years, a number of fantastic teachers and professors have inspired me to push myself, explore varied interests, and maintain a thirst for knowledge. To this day, I owe a debt of gratitude to all of them for the time they devoted to helping me learn and, more importantly, for helping me appreciate the process of learning.

That is why I was both humbled and honored when Menlo College asked me to be an adjunct professor teaching a course on real estate economics and taxation. When I was a young law student, I found some of my classes with adjunct professors particularly interesting because of the “real-life” experience brought into the classroom. Seeing the same excitement in my students’ eyes was truly remarkable. As the semester progressed, the students seemed to transform from young people looking to fulfil a requirement of the real estate program into professionals intent on building foundations for careers in real estate. More recently, Dr. Leslie Sekerka, the director of the Ethics in Action Research and Education Center at Menlo College, was searching for a Realtor® to present three classes on ethics in real estate. Once again, I was honored that Professor Harold Justman, a real estate attorney and expert witness on the subject of real estate broker ethics and the standard of care for whom I have tremendous respect, recommended that Dr. Sekerka interview me. After a couple of conversations, she asked me to address this important topic. The time that I spent with Dr. Sekerka’s students was every bit as exciting as the time I spent with my own class. In fact, there were some aspects that I found even more rewarding—most notably, the subject matter. All too often, people view ethics as rules that interfere with their ability to make money, whereas Ken DeLeon and I have found the exact opposite to be true. The rules of ethics, be they those that apply to Realtors® or the more stringent rules that apply to attorneys, are really

just enumerated lists of the ways clients and fellow professionals want to be treated. It is no surprise that treating clients the way they want—and deserve—to be treated actually attracts more clients. In fact, I believe that the very strict policies we follow with regard to conflicts of interest and transparency directly contribute to the phenomenal growth we have experienced over the five years since forming DeLeon Realty. Before introducing me to her class, Dr. Sekerka shared some of her past experiences with Realtors® which were less than favorable. Her encounters left her with the sense that certain Realtors® thought of the rules of ethics as an impediment that needed to be “gotten around.” While these types of stories always make me cringe, I am comforted to know there are many good people out there in real estate. Unfortunately, I believe the system is flawed, and key elements of the business model commonly followed do little to discourage unethical behavior. In fact, the commission-based oneman-band model creates incentive for some agents to push past the rules of ethics in an effort to close the deal. My presentation started with a description of the way we have structured our business: why we divided the company into a listing division and a buyer division to prevent conflicts of interest, how we eliminated commission, and what we have done to transform the traditional real estate model into one with better aligned incentives. After laying this foundation, I explained why I don’t think it is enough for office managers to tell agents that they have to behave

ethically. Rather, as leaders in the industry, we have to eliminate the systemic flaws that encourage bad behavior. If salespeople only get paid if their deals close, and they need the commissions to pay their bills or feed their families, then there will be always be temptation. Similarly, if agents get paid twice as much if their buyers get the house, irrespective of whether this payment comes in the form of commission or a referral fee from someone in his or her office, can we really expect them to be unbiased? While these were rhetorical questions, I could see students perk up. Once I explained how well buyers and sellers have responded to our model, and how this interest directly contributes to our bottom line, they were hooked. It turns out that treating clients and other agents fairly and ethically is really good for business. While I was dying to tell them about our most significant innovation to date, we decided to hold the announcement about waiving the buyer-side commission when DeLeon Realty is on both sides of the transaction until April 28th. (see “DeLeon Realty’s Most Significant Innovation Yet!” on p. 14 of this issue). Menlo College has a fantastic program for people interested in developing a strong foundation for a career in real estate. Like much of the business curriculum, this program is made considerably stronger from Dr. Sekerka’s pragmatic and compelling approach to interweaving ethics into the curriculum. My first foray into academia was so rewarding that Ken DeLeon decided to follow suit. He is now Professor Kenneth DeLeon!

MIXING METALS THROUGHOUT YOUR INTERIOR

ome people remain convinced that mixing metals is a recipe for disaster. One of the most popular recent trends has been to utilize monochromatic design schemes in which silver, nickel, or chrome was the dominant metal. However, that preference is quickly changing as designers are beginning to play with the looks of different metals— including brass, bronze, silver, and rose gold—all within a single space. Not only does a clever cocktail of metallic influences draw attention to the beauty of the individual materials (rather than having them simply become uninteresting design elements), but it also brings with it somewhat of a daring attitude that will carry throughout the interior of your home. Whether you want to employ a copper-and-glass coffee table in a room dominated by a silver chandelier, or juxtapose gold hardware with brass accessories, you can be sure that the final effect will be sophisticated and eye-catching. After all, if you can mix patterns, textures, and colors, then why not metals? Select One Dominant Metal To avoid visual chaos, you should pick

BY:

TILU ARORA |

one dominant metal to ground a room and build the rest of the décor around it. For example, if you pick gold, you can add some silver and copper accents to the interior but be sure that the gold is still prevailing. The dominant metal will visually establish the space while other shades will add some variety and visual interest. Combine Tones When mixing metals, you shouldn’t limit yourself to using just cold or warm tones. Contrasting shades of metals complement each other and mutually bring out the best in them. There are virtually no rules as to which kind of metal goes best with another kind, so you can feel free to combine iron with copper, brass and silver with gold, and so on. Cool metallic tones (such as silver, nickel, and steel) bring a slick, modern aesthetic to a space, whilst warmer tones (gold, rose gold, bronze, and brass, among others) are inviting, flattering, and subtly glamorous. A mixture of both cold and warm tones can offer a very unique look, perhaps producing modern flair with a touch of glamour, or minimalism with an inviting appeal that signifies refined rawness.

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INTERIOR DESIGNER

Get Creative Don’t save your metal-mixing for just your hardware and finishes. Textiles, artwork, picture frames, and wallpaper are all tools with which you can practice metallic combinations. You can also play with contrasting the different textures of metals. Combining matte, polished, and hammered touches on your assorted metals will make the space look chic while providing a custom feeling. However, if you are using a lot of different metals within a space, you may want to limit the variety of the finishes to preserve a sense of unity. As a design coordinator with DeLeon Realty, I work with homes that may have spaces featuring both brass hardware and chrome fixtures. Since we strive to keep each space as original as possible, this design trend helps us in many ways, but especially in saving money and time for our sellers during their renovation processes. We can use the dollars wisely where they matter the most, tying everything in together to form a great end result that stays true to the style of each home.

DELEON INSIGHT

HOMEOWNERSHIP

FOR MILLENNIALS

BY:

DARRELL MARTIN

SENIOR BUYER SPECIALIST SUNNYVALE & MOUNTAIN VIEW

his article is written for the benefit of those Silicon Valley millennials who have not yet purchased their first home. Would you like to transform your housing cost from a monthly expense into a monthly investment? Buying your own home can do just that. Your first question may be: “But how do I come up with the 20-percent down payment required to buy a home?” That is a great question, and this article will briefly describe four options for you to consider if you do not currently have that 20-percent down payment readily available. The first option to consider for your down payment is selling any of your employer’s company stock that you may already own. In the event you may be concerned about missing out on the future growth of that stock, please consider the following scenario. If a married couple had sold Google stock in 2007 to purchase a townhome in Mountain View, they would have netted more money by selling that townhome in 2017 than if they had kept the original Google stock and sold it in 2017. What makes this especially noteworthy is that,

during this ten-year period, Google stock appreciated at an average rate of 14.1 percent per year while Mountain View townhomes appreciated at an average rate of 5.8 percent per year. Two primary reasons the townhome investment was more profitable than keeping the Google stock are the power of leverage and capital gains tax exemptions. The power of leverage means that, when the married couple purchased the townhome with a 20-percent down payment, the appreciation they earned was based on 100 percent of the value of the townhome. Generally, the capital gains tax exemption allows a married couple to earn up to $500,000, or a single person to earn up to $250,000, tax-free on the sale of a home, as long as they lived in the home for two of the five years prior to selling it. A second option to consider is using an FHA loan to purchase your home. The main benefit of using an FHA loan is that you can purchase a home with a down payment as low as 3.5 percent. The main limitation of an FHA loan is that the maximum loan amount here in the Silicon Valley is $636,150. A third option to consider if you do not have enough money for a down payment is an “equity share” arrangement with

DELEON INSIGHT

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someone you know well, like your parents or another family member who happens to have the funds available. This investor may be much better off by investing money in your home as the down payment and splitting the increased equity 50/50 when you sell the home in the future. Your equity investor would benefit from the power of leverage being applied to a Silicon Valley home. Based on a 20-percent down payment and the power of leverage, if the home appreciated at just five percent per year, that would work out to an average annual pre-tax return of roughly 12.5 percent for your investor. Many investors would be very happy with that type of return. A fourth option to consider if you do not have enough money for a 20-percent down payment is partnering with one or more friends to purchase a property together, after reaching an agreement to sell in the future at a mutually agreeable time and split the proceeds. This would require each of you to come up with much less for the down payment. There you have it, Silicon Valley millennials. These four options can help you transform your housing cost from a monthly expense into a monthly investment.

BY:

KEN DELEON, ESQ.

FOUNDER

100-PERCENT APPRECIATION IN JUS T OVER FIVE YE ARS

Due to the very strong Silicon Valley housing market, I find that most firsttime buyers cannot purchase their dream home immediately. Since it is likely they would have to settle to some degree when purchasing their first home, some buyers consider delaying their purchase and saving to eventually purchase their dream home in the future. Other buyers consider acquiring a spacious townhome instead of a modest single-family home, even though they may see a lower level of appreciation when selling it. The strategic recommendation that I give to my clients is that, if you have to compromise on your first home and cannot yet buy your dream home, focus primarily on making an exceptional investment that will allow you the highest rate of appreciation to maximize your profit. With this high profit, you can then focus on soon purchasing your forever home.

Some great clients who completely listened to my advice made over 100-percent appreciation in just over five years. The made this extraordinary profit of over one million dollars by following my guidance on what city and neighborhood to focus upon and on what home to put forth an offer. After enjoying their home for five years, my clients moved out and again completely followed our recommendations when selling to maximize profit to fund the purchase of their dream home. There is a specific chronology to follow in order to optimize your home purchase and sale to maximize profit. Buy in the City with the Most Appreciation Due to my quantitative background in mathematics and economics and having been a college professor of real estate economics, I have the analytical tools necessary to always be analyzing

market trends. Additionally, since the DeLeon Team works with more Silicon Valley buyers than any other agents or teams, we know first-hand how buyersâ&#x20AC;&#x2122; preferences are always evolving. With this insight, I provide all of our buyers with detailed analyses and even videos on what cities and neighborhoods I project will have the most appreciation. In 2011, the city I was most bullish on was Palo Alto, while I had appreciation concerns for Woodside, since it is very hard to develop an estate home there. Since 2011, Palo Alto has appreciated at more than four times the rate of Woodside. My analyses and conclusions are always evolving, and now I am more bullish on Woodside and up-and-coming cities like Redwood City and Mountain View, which have stronger upsides than ever before. But in 2011, when my clients asked me what city to buy in for the most appreciation, I directed them to Palo Alto.

Buy in the Neighborhood with the Most New Construction The rate of appreciation for a neighborhood is accelerated when it has the right ingredients for redevelopment and improvement. A relative ease of building requirements and no environmental issues provide an ideal environment for new homes being built in a neighborhood, adding to the areaâ&#x20AC;&#x2122;s rate of appreciation. When my clients asked what neighborhood had the most upside in Palo Alto, I told them that I was most optimistic on Midtownâ&#x20AC;&#x2122;s continued upward growth. This is because Midtown is out of the flood zone and does not have any historical restrictions or prohibitions against twostory homes. I projected that this neighborhood would see a lot of newer homes being built in the future. One of my clients was a little dubious since there were not yet any new homes on her street. Yet, as projected, several new custom homes were built on her block in the last five years, and the neighborhood now has more architectural variety and uniqueness. Of all the neighborhoods in Palo Alto, Midtown has appreciated more than any other neighborhood since 2011. Buy the Best Deal Using data science and my background in econometrics, I have created an algorithm that spots what variables correlate most heavily with homes that sell for below market value. Price drops and inexperienced agents are two of these variables. I directed my buyers to a home that already had three price drops and was listed by an agent who sells very

few homes. I personally knew the seller due to us both being attorneys at Wilson Sonsini together and, when we came in even below the reduced list price, the seller accepted our offer since she liked me from when we worked together. Do the Most Strategic Remodeling When my clients asked me about improving the home, they asked which upgrades will provide the greatest return on investment. I recommended that they focus on their kitchen, as busy Silicon Valley homebuyers appreciate a remodeled kitchen above all other upgrades. Thus, these upgrades will

get the best profit while improving the clientsâ&#x20AC;&#x2122; quality of life. Optimize Selling the Home Through Perfect Timing and Pricing After living in their home for five years, my clients called me up, excited to sell their home. When our listing team met with our client in December to discuss selling the property, we recommended that we list their home in March to optimize market timing, selling during the strong spring market with the highest demand and lowest supply of homes.

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To further optimize selling their home, the clients moved out for a short period, allowing us to make strategic improvements and then letting DeLeon Realty stage their home at our expense. With these improvements, the home showed beautifully and, through being vacant and staged, it was very easy for agents to show the home to buyers. In addition, our clients took our advice on pricing their home at just below market value, allowing us to generate multiple offers and create an auction dynamic. Through completely following our advice, our clients received ten

offers. Our negotiations resulted in an outcome that was both beyond their hopes and approximately double the rate of appreciation of alternative neighborhoods or cities where they could have bought. With this exceptional investment and making well over a million-dollar profit from their first home (nearly half of it tax-exempt due to the tax advantages of homeownership), these clients were then able to purchase their dream home.

Work with the innovator! List your home with

DeLeon Realty

DeLeon Realty will cover all of the following at no additional charge: Staging* | Property Inspection | Pest Inspection *Includes: Design, Installation, 1 Month of Furniture Rental and Removal Our clients love the personal attention they receive from Michael Repka, from beginning to end. Additionally you will receive a suite of free services from the DeLeon Team, including interior design, construction consulting, handyman work, and dedicated marketing to local and foreign buyers.

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DELEON LISTINGS Exclusive Off-MLS Opportunity

1 2 45 Ha milton Av enue, Palo Alto O ff ered a t $7,988,000

Exquisite Luxury in Crescent Park

Captivating gardens trim this recently remodeled 5 bedroom, 4.5 bath residence of over 4,100 sq. ft. (per plans) that provides a poolhouse and delightful grounds of 12,000 sq. ft. (per city). Enjoy a flexible, walk-out lower level and soothing, sun-lit spaces, including an elegant gourmet kitchen, bursting with classic charm and modern amenities. An upper patio overlooks the poolside retreat, while a variety of fruit trees are found throughout the wraparound gardens. Sky-lit and versatile, the poolhouse offers a wet bar and a wall-bed. Stroll to popular University Avenue, Eleanor Pardee Park, and Duveneck Elementary (API 956) (buyer to verify eligibility).

For video tour & more photos, please visit:

ww w.1245Hamilton .com

DELEON INSIGHT

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DELEON LISTINGS

8 4 No ra Wa y, Atherton O ffe re d a t $ 7,858,620

Sprawling Villa Echoes Opulence

Enter ornately wrought doors to bask in this palatial estate home of over 6,500 sq. ft. (per county) that offers 6 bedrooms, 6.5 baths, and generous gated grounds of nearly one acre (per county). Faced by an extensive paver driveway, these elegant spaces thoughtfully integrate soaring ceilings and lavish details, while surround sound, dual staircases, and abundant French doors extend the homeâ&#x20AC;&#x2122;s luxurious character. Truly exceptional features include an additional three-car garage, a library with a fireplace, a versatile home theater, and spacious, immaculate gardens displaying fountains and a heated pool. Prestigious private institutions such as Sacred Heart and Menlo School are within mere moments. For video tour & more photos, please visit:

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DELEON INSIGHT

DELEON LISTINGS

595 A lmo n d Avenue, Los Altos Offe re d a t $ 2,488,000

Striking Remodel Allows Stylish Living

Showcasing an extensive remodel completed in 2017, this 5 bedroom, 2.5 bath residence of approx. 3,100 sq. ft. (per project data) occupies private, centrally located grounds of over 16,000 sq. ft. (per project data) and was designed by prolific architect Claude Oakland. The reimagined Mid-Century Modern concept embraces light-filled spaces that exhibit elegant minimalism. New skylights, flooring, and LED lighting lend up-to-the-minute flair to the interior, which includes pine cathedral ceilings, a dreamy island kitchen, and a versatile, sky-lit atrium. Outdoors, enjoy upgraded landscaping, fruit trees, and a free-form swimming pool. Within steps of sought-after Los Altos schools, you can also easily reach popular parks, shopping centers, and charming downtown Los Altos. For video tour & more photos, please visit:

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DELEON INSIGHT

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DELEON LISTINGS

147 A lm en dral Av enue, Atherton Off ered a t $6,988,000

Unparalleled Opportunity in West Atherton

Towering redwoods surround this jewel of a property, creating an expansive woodland sanctuary of nearly one acre (per county) within this highly exclusive address. Tucked inside one of the most distinguished neighborhoods in Silicon Valley, this setting is within mere moments of the celebrated Menlo Circus Club, alluring downtown Menlo Park, and illustrious private schools. Brimming with exciting potential, the spacious premises reveal an enchanting 4 bedroom, 3 bath home of approx. 2,500 sq. ft. (per county) that emanates custom Mid-Century Modern style. The immense size of the grounds and the flexibility of the homeâ&#x20AC;&#x2122;s floorplan can easily accommodate remodeling and even expansion. For video tour & more photos, please visit:

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DELEON INSIGHT

DELEON LISTINGS

7 4 0 Vera C ruz Avenue, Los Altos O ffe re d a t $ 4,998,000

Must-Have Modern Farmhouse

Sunny farmhouse character merges with contemporary luxury in this single-story 6 bedroom, 4.5 bath residence of approx. 4,300 sq. ft. (per plans), including garage, on a corner lot of over 15,500 sq. ft. (per survey). Built in 2016, the home is extravagantly finished with clerestory windows, wide-plank hardwood floors, and a dazzling chef â&#x20AC;&#x2122;s kitchen, yet the open, centralized layout allows casual warmth and easy indoor-outdoor living. Flexibly designed bedrooms include an in-law suite, while the spacious living areas glide outwards to a sprawling, freshly landscaped backyard. Nestled between San Antonio Center and downtown Los Altos, you will enjoy quick access to highly desired Los Altos schools. For video tour & more photos, please visit:

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DELEON INSIGHT

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DELEON LISTINGS

6 5 9 Ten nyson Av enue, Palo Alto O ffe re d a t $ 4,488,000

Distinguished Home in Prestigious Old Palo Alto

Recently updated and nestled within Old Palo Alto, Palo Altoâ&#x20AC;&#x2122;s most exclusive neighborhood, this dignified 4 bedroom, 3 bath residence of approx. 2,800 sq. ft. (per county) occupies alluring grounds of 7,500 sq. ft. (per county). Features such as wainscoting, French doors, and hardwood flooring proudly display the homeâ&#x20AC;&#x2122;s timeless charm, while modern amenities keep the spaces functional and luxurious. Large, sunny rooms provide plenty of entertaining and living space, and the outdoor retreats are private and inviting. Easily reach Caltrain, Stanford University, Palo Alto High (API 905), and premier shopping districts, and stroll to fabulous parks and other top-performing schools like Walter Hays Elementary (API 934) and Jordan Middle (API 934) (buyer to verify eligibility). For video tour & more photos, please visit:

w w w.659Te n n ys on .com

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DELEON INSIGHT

DELEON LISTINGS

3 7 5 Wa lsh Road, Atherton O ffe re d a t $4 ,488,000

Woodland Retreat in Exclusive Atherton

Tucked within leafy grounds of over an acre (per county) that establish natural privacy, this treehouse-like 4 bedroom residence of 3,120 sq. ft. (per county) with an additional lower level provides 3 full and 2 half baths, and an adjacent parcel of almost an acre (per county) is also available for development. The breezy floorplan ideal for entertaining accesses an elevator and a garage with a studio. Alluring outdoor areas include a pool and multiple decks. Unusual for elite Atherton, the property offers hillside living, yet retains excellent proximity to prestigious clubs and private schools. For video tour & more photos, please visit:

w w w.375Wals h .com

DELEON INSIGHT

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DELEON LISTINGS

1 2 7 P in o n Dr ive, Portola Valley O ffe re d a t $ 16,988,000

Lavish Woodland Sanctuary

Flaunting elevated views of the Santa Cruz Mountains, this trophy residence designed by Michael Moyer celebrates natural privacy and one-of-a-kind amenities. Holding 3 bedrooms and 3 full and 3 half baths, the home also offers a 2 bedroom, 2 bath guesthouse and an interior clad with walnut and French limestone. Extraordinary highlights include a tri-stop elevator, a jaw-dropping wine cellar, and a palatial master retreat. A floating staircase leads to gardens offering waterfalls, a spa, and a fully functional guesthouse. Undevelopable open space surrounds the two parcels of nearly 18 acres (per county) that form this property, ensuring continuous privacy and unspoiled panoramas. For video tour & more photos, please visit:

w w w.127Pin on .com

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DELEON INSIGHT

DELEON LISTINGS

1 5 A ra p a ho e Court, Portola Vall ey Off ered a t $4,788,000

Stylish Refuge with Exciting Outdoors

Thick, wooded surroundings provide a screen of natural privacy around this lavishly upgraded 5 bedroom, 3 bath residence of nearly 4,000 sq. ft. (per county). Set along a serene cul-de-sac, this exquisite property of just over one acre (per county) is loaded with outdoor features like an alluring pool, a putting green, and a sport court, while flexible interior spaces blend contemporary comforts with understated elegance. Two fireplaces, soaring ceilings, multiple French doors and skylights, immense storage, and extravagantly remodeled bathrooms are just a few of the multitude of delightful amenities. Live within moments of shopping, dining, and outdoor recreation, and easily access sought-after public and private schools. For video tour & more photos, please visit:

w w w.15Arapah oe .com

DELEON INSIGHT

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DELEON LISTINGS

1 2008 A d o be Creek Lodge Road, L o s Alt o s H ills O ff ered a t $5,988,000

Rich Living, Alluring Serenity

Located along an exclusive cul-de-sac, this regal, gated 6 bedroom estate of 6,480 sq. ft. (per county) includes 6 full and 2 half baths, and exudes peace and privacy on premises of approx. 1.67 acres (per county). Reached by an extensive paver driveway, the mansion includes a four-car garage, three fireplaces, a library, a summer kitchen, and numerous rooms designed for versatility. Marble finishes and columned living spaces underscore the luxurious ambience, while the immense grounds offer a heated pool. Stroll to trails leading into Rancho San Antonio Open Space Preserve, quickly bike to Hidden Villa, and enjoy easy access to prime Los Altos schools.

For video tour & more photos, please visit:

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DELEON INSIGHT

DELEON LISTINGS

2 3 7 Ma pa c he D rive, Portola Valley O ffe re d a t $ 7,988,000

Fabulous Resort-Like Compound

Immersed in natural privacy, this gated, creek-side property of 3.33 acres (per county) forms one of the largest flat lots in Portola Valley. The luxuriously upgraded estate is every entertainerâ&#x20AC;&#x2122;s dream, and includes a guesthouse, a poolhouse, and a studio for a total of 5 bedrooms, 7.5 bathrooms, and a living area of approx. 8,100 sq. ft. (per drawings). Excellent amenities include six-car garage parking, a sauna, and a heated pool and spa. Stroll to trails throughout the surrounding woodland paradise while easily accessing local shopping and scenic open spaces.

For video tour & more photos, please visit:

ww w.237M apach e .com

DELEON INSIGHT

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DELEON LISTINGS 7 5 5 P a rtridge Av enue, Menlo Par k O ffered a t $2,188,000

Illuminated Spaces

Extensive windows and a vast central skylight flood natural light into this beautiful and sophisticated 3 bedroom, 2.5 bath home of approx. 1,800 sq. ft. (per county) on over 4,000 sq. ft. (per county) of property. Soaring ceilings and classic crown molding offer original character throughout, while French doors open to private gardens for elegant indoor-outdoor entertaining. The central location places this home within strolling distance of the Allied Arts Guild and Nealon Park, while Stanford Shopping Center lies nearby for convenient fine dining and shopping. Exceptional schools are also within close proximity, including Oak Knoll Elementary (API 961), Hillview Middle (API 950), and MenloAtherton High (buyer to verify eligibility). For video tour & more photos, please visit:

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8 8 1 U n iversity Avenue, Los Altos O ffe re d a t $2 ,788,000

Ideally Located and Inviting

Alongside a calm cul-de-sac, this appealing home provides a fireplace, comfortable gathering areas, and hardwood floors. The bedrooms are designed for flexibility, while the outdoors provide an inviting front porch and a spacious backyard with patios. Within moments of downtown Los Altos, you can stroll to Covington Elementary (API 975), and quickly access Pinewood School campuses, Blach Intermediate (API 958), and Los Altos High (API 895) (buyer to verify eligibility).

SOLD

For video tour & more photos, please visit:

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DELEON INSIGHT

DELEON LISTINGS 8 1 0 Mira nda Green Street, Palo Alt o O ffered a t $2,988,000

Zen Gardens and Eclectic Charm

Flanked by serene zen gardens, this bi-level 4 bedroom, 4 bath residence of approx. 3,000 sq. ft. (per appraisal) enjoys open, versatile spaces on a property of approx. 8,300 sq. ft. (per appraisal). Large windows and multiple skylights suffuse the interior with natural light, while welcoming outdoor areas are shaded by mature trees for private, peaceful leisure. The fully functional lower level can easily convert to private living quarters. This gracious setting is within a quick drive of San Antonio Center and downtown Los Altos, and mere moments to highly desired schools like Briones Elementary (API 941), Terman Middle (API 968), and Gunn High (API 917) (buyer to verify eligibility). For video tour & more photos, please visit:

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4 6 1 Bedf o rd Loop, Mountain V iew O ffe re d a t $1 ,288,000

SOLD

Charming Townhome

Impeccably blending modern style with high-end function is this beautiful 2 bed, 2.5 bath townhouse of approx. 1,600 sq. ft. (per county) with a flexible den. Incredible amenities such as dual-zone heating and cooling, customizable lighting, and surround sound provide state-of-the-art luxury, while extensive windows flood thoughtfully designed and open-concept spaces with abundant natural light, showcasing accessibility throughout. This exclusive yet central community enjoys a pool while also being within a stroll of Magnolia and Chetwood Parks. Popular Castro Street and fine schools like Landels Elementary, Crittenden Middle, and Mountain View High are also within close proximity (buyer to verify eligibility). For video tour & more photos, please visit:

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DELEON INSIGHT

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DELEON LISTINGS 3 1 9 0 E me rso n Street, Palo Alto O ffered a t $2,988,000

Sun-Bathed Spaces Exude Timeless Sophistication

Abounding with elegance and charm is this beautiful 4 bedroom, 2.5 bath home of 2,370 sq. ft. (per county) on 6,250 sq. ft. (per county) of property. Large windows and skylights f lood the interior with sunlight, while new colors, a grand chef â&#x20AC;&#x2122;s kitchen, and a luxurious master suite truly capture the homeâ&#x20AC;&#x2122;s opulence. Located in the South Palo Alto neighborhood, this home enjoys close proximity to Mitchell and Ramos Parks, plus fine dining and shopping on El Camino Real. Exceptional schools such as El Carmelo Elementary (API 944), JLS Middle (API 943), and Gunn High (API 917) are also located nearby (buyer to verify eligibility). For video tour & more photos, please visit:

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2 7 1 1 Kip ling Street, Palo Alto O ffe re d a t $2 ,488,000

Distinguished Luxury

Updated spaces shine in this incredible 4 bedroom, 2 bathroom home of approx. 1,700 sq. ft. (per county) on approx. 5,900 sq. ft. of property (per county). An exquisite secondlevel addition, new colors, and a remodeled fireplace emit distinguished elegance, while spacious rooms are filled with natural light from extensive windows throughout. This home also enjoys a central location within strolling distance of Hoover Park, nearby dining and shopping at Midtown Shopping Center, and El Carmelo Elementary (API 944). Other excellent schools are also close, including JLS Middle (API 943) and Palo Alto High (API 905) (buyer to verify eligibility).

SOLD

For video tour & more photos, please visit:

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DELEON INSIGHT

DELEON LISTINGS 2 063 Go rd o n Avenue, M enlo Park O ff ered a t $2,788,000

Desirable Location, Designer Luxury

Extravagant yet practical living defines this 4 bedroom, 3 bathroom home of 2,550 sq. ft. (per county) that occupies a fabulously convenient lot of 5,000 sq. ft. (per county). Thoroughly refinished by a well-respected local designer, this like-new home presents breezy, flexible gathering areas centered by a breathtaking kitchen finished with chic marble and quartzite surfaces. Delightful amenities include two fireplaces, an enticing backyard retreat, stunning custom touches, and must-have features like high-end appliances and Sonos sound. Enjoy strolling to local dining, everyday conveniences, Sharon Hills Park, and terrific Las Lomitas schools (buyer to verify eligibility). For video tour & more photos, please visit:

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3 2 1 7 L o s P rados Street, San Mate o O ffe re d a t $1 ,888,000

Waterfront Property

Seamlessly blending modern living with stunning architectural details, this 4 bedroom, 3.5 bath home of approx. 2,300 sq. ft. (per county) rests on an exclusive waterfront property of over 7,000 sq. ft. (per county). Exposed wood beams elegantly frame open-concept spaces outfitted with stone accents, Nest climate control, Lutron lighting, surround sound, and a central vacuum system, while the terrace basks in serene majesty with waterfront views. This prime location puts amenities such as Los Prados Park and Marine Plaza Shopping Center within strolling distance, and fine schools such as Parkside Elementary, Bayside STEM Middle, and Hillsdale High are also near (buyer to verify eligibility). For video tour & more photos, please visit:

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DELEON INSIGHT

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DELEON LISTINGS 1 3 415 C o u ntry Way, Los Altos H il ls O ffe re d a t $3,988,000

Victorian-Inspired with Endless Charm Sporting a white picket fence and wraparound porches, this Victorian-inspired home of approx. 3,700 sq. ft. (per county) exudes timeless beauty and enjoys 4 bedrooms, 3.5 baths, and an additional 1 bedroom, 1 bath guesthouse of nearly 700 sq. ft. (per plans), all on a lot of approx. one acre (per county). Open gathering areas provide a highly livable layout, while two fireplaces, crown molding, and oak floors lend refinement. The island kitchen has been masterfully remodeled, and the fully functional guesthouse showcases a large kitchenette. Also included are a threecar garage and alluring outdoor spaces featuring fruit trees and a spa. Enjoy easy access to gorgeous Foothills Park, Palo Alto Hills Country Club, and sought-after Palo Alto schools (buyer to verify eligibility).

SOLD

For video tour & more photos, please visit:

www.13415CountryWay.com

9 19 C h a nn in g Avenue, Palo Alto O ff ered a t $3,698,000

Timeless Charm in Prestigious Suburban Setting

Fresh updates enhance the original character of this 5 bedroom, 2.5 bath home of approx. 2,800 sq. ft. (per county) which resides on a lot of nearly 8,500 sq. ft. (per county) in prime North Palo Alto. Spacious rooms are flooded with natural light which highlights crown molding and gorgeous hardwood floors, while new colors and renovated baths showcase style. This centrally located home is within convenient strolling distance of Eleanor Pardee Park, Palo Alto Childrenâ&#x20AC;&#x2122;s Library, and Addison Elementary (API 947), while other excellent schools such as Jordan Middle (API 934) and Palo Alto High (API 905) are also within close proximity (buyer to verify eligibility). For video tour & more photos, please visit:

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DELEON INSIGHT

DELEON LISTINGS 5 2 1 C o lo ra d o Av enue, Palo Alto O ffered a t $2,998,000

Welcoming Spaces Capture Distinct Elegance

Warm and distinguished spaces seamlessly blend classic features with high-end amenities in this 5 bedroom, 3 bathroom home of over 2,500 sq. ft. (per county) on a lot of over 7,300 sq. ft. (per county). Sun-lit rooms emphasize indoor-outdoor living with extensive windows, while features like hardwood floors, skylights, and high-end kitchen appliances grant luxury. The prime location puts this home within convenient strolling distance to Hoover Park, Midtown Shopping Center, and El Carmelo Elementary (API 944), while other excellent schools, such as JLS Middle (API 943) and Palo Alto High (API 905) are also nearby (buyer to verify eligibility). For video tour & more photos, please visit:

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3 8 0 9 L a gu na Avenue, Palo Alto O ffe re d a t $1 ,988,000

Leisurely Living in a Central Location

Enjoy a peaceful yet accessible lifestyle within this thoughtfully designed 3 bed, 2.5 bath home of approx. 2,400 sq. ft. (per county) on almost 5,500 sq. ft. (per county) of property. The spacious interior is airy and bright with vaulted ceilings and extensive windows and skylights, and offers potential for entertaining with a functional layout. Touting a desirable suburban setting, this home is within strolling distance of Cornelis BOL Park, while Stanford University and El Camino Real are also nearby. Exceptional schools like Barron Park Elementary, Terman Middle (API 968), and Gunn High (API 917) are within close proximity as well (buyer to verify eligibility).

SOLD

For video tour & more photos, please visit:

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DELEON INSIGHT

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DELEON LISTINGS 3 428 So u th Court, Palo Alto O ff ered a t $3,498,000

Stunning Home Boasts Custom Style

This custom-designed 4 bed, 3 bath home of almost 2,400 sq. ft. (per appraisal) rests on almost 6,300 sq. ft. of property (per county). Sky-lit and stylish spaces establish indoor-outdoor living with multiple points of outdoor access while stainless-steel accents and high-end amenities showcase chic style. Intriguing outdoor retreats include a courtyard with a fireplace. A desirable location puts this home within strolling distance of Robles and Mitchell Parks and excellent schools like Fairmeadow Elementary (API 953) and JLS Middle (API 943), while Charleston Shopping Center and Gunn High (API 917) are within close proximity (buyer to verify eligibility). For video tour & more photos, please visit:

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9 Sylvia n Wa y, Los Altos O ffe re d a t $3 ,288,000

Palatial Abode Showcases Elegant Character

Illuminated with abundant natural light is this tri-level 5 bedroom, 4 bathroom home of approx. 4,100 sq. ft. (per county) residing on almost 9,800 sq. ft. (per county) of property. Features such as classic crown molding, gorgeous hardwood floors, and built-in shelving establish character, while an exciting lower level offers a wet bar and a home theater. The homeâ&#x20AC;&#x2122;s central location puts it within strolling distance of Los Altos Library, Hillview Park and Community Center, and fine dining and shopping in downtown Los Altos. Excellent schools are also nearby, such as Santa Rita Elementary (API 941), Egan Junior High (API 976), and Los Altos High (API 895) (buyer to verify eligibility). For video tour & more photos, please visit:

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DELEON INSIGHT

DELEON LISTINGS 1 8 3 2 C h a nn ing Avenue, Palo Alto O ffered a t $3,288,000

New Home Reveals Glamorous Sophistication

Bright and airy spaces resound with contemporary splendor throughout this brand-new 4 bedroom, 3.5 bath home of approx. 2,500 sq. ft. (per plans) on nearly 6,000 sq. ft. of property (per city). High-end amenities blend with the stucco-and-Brazilianhardwood exterior, dramatic dormers, and automated clerestory windows to create a highly sustainable yet luxurious design. The open-concept layout inspires elegance while encouraging indoor-outdoor living with a folding glass wall to allow easy backyard access. This prime location grants convenient proximity to parks, libraries, and excellent schools like Duveneck Elementary (API 956), Jordan Middle (API 934), and Palo Alto High (API 905) (buyer to verify eligibility). For video tour & more photos, please visit:

www.1832Channing.com

7 0 S ta d le r Driv e, Woods ide O ffe re d a t $2 ,988,000

Woodland Retreat with Glorious Views

Tucked away on a quiet, hilltop property of 1.1 acres (per county), this gorgeous, solarequipped 4 bedroom, 4 bath home of over 4,000 sq. ft. (per plans) offers an additional garage of 750 sq. ft. (per plans) and showcases outdoor living, dazzling bay views, and contemporary upgrades. Natural light cascades throughout the interior, and the rooms are flexibly designed to fit a variety of uses. Featuring a hot tub, a counter-current pool, and private access to the trail system of Wunderlich Park, this home is every athleteâ&#x20AC;&#x2122;s dream, and the grounds are even zoned for equestrian use. Enjoy access to exceptional schools like Ormondale Elementary (API 923), Corte Madera Middle (API 937), and Woodside High (buyer to verify eligibility). For video tour & more photos, please visit:

www.70Stadler.com

DELEON INSIGHT

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When buying or selling a home, it has always been important to select the right Realtor®. However, the home itself usually remains the same, irrespective of which agent represented the property. That has all changed with the introduction of the DeLeon Realty/HomeSmiles maintenance program, which will be offered on all DeLeon listings. Naturally, we haven’t forgotten DeLeon buyers, either. When the DeLeon Team represents a buyer of any property in 2017, we will provide the same three-year maintenance plan. Our DeLeon Realty/HomeSmiles home care program includes

ONE LESS THING TO WORRY ABOUT

these items and many more: • Gutter and downspout cleaning • Tree branch removal • Exterior window/sill cleaning • Dryer exhaust vent cleaning • HVAC filter replacement • Refrigerator coil cleaning • Driveway pressure-washing • Garage door lubrication • Smoke detector inspection/test/lithium battery change and carbon monoxide inspection/test/ lithium battery change All major components of your home, including roofs, gutters, water heaters, furnaces, and appliances, are expensive and costly to repair or replace. The cost of doing no maintenance is simply too high. Deferred home maintenance is cumulative, and its effects can be wide-ranging. At DeLeon Realty, we play offense, not defense. We believe a proactive annual home maintenance plan is key to preventing small problems from becoming big issues.

Disclaimer: This is a limited-time offer. This promotion only applies to homes originally listed by the DeLeon Team between the dates of January 1, 2017 and June 30, 2017. The home must be in contract by July 31, 2017. This service will be issued in the buyers’ names and is non-transferable. Please visit deleonrealty.com/homesmiles for further details.

ANATOMY OF AMERICA’S #1 REAL ESTATE TEAM* LEADER SHARP MIND

* #1 team in America ranking is per rankings published in 2012 & 2015 The Wall Street Journal.

U.C. Berkeley Law (Boalt) – High Honors Former Wilson Sonsini Attorney

RIGHT BRAIN

LEFT BRAIN

Analytical math & economic background

Creative solutions

GOOD HEARING

SHARP VISION

Listening to your goals

Spotting great deals for clients

HANDS

HEART

Over $2.5 billion in sales since 2011

Belongs to my clients. Putting your interests first

STRONG ENDURANCE

Walking clients through the long home-buying and selling process

FLEET OF FOOT

Running clients to excellent opportunities

DELEON INSIGHT

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MARKET CONDITIONS

ATHERTON Atherton Median Sales Price & Price/Sq. Ft. Ratio

Sale Price, Median

Atherton Inventory # of New Listings

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LOS ALTOS Los Altos Median Sales Price & Price/Sq. Ft. Ratio

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LOS ALTOS HILLS Los Altos Hills Median Sales Price & Price/Sq. Ft. Ratio

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Los Altos Hills Inventory # of New Listings

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DELEON INSIGHT

MARKET CONDITIONS

MENLO PARK Menlo Park Median Sales Price & Price/Sq. Ft. Ratio

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Menlo Park Inventory # of New Listings

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MOUNTAIN VIEW Mountain View Median Sales Price & Price/Sq. Ft. Ratio

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PALO ALTO Palo Alto Median Sales Price & Price/Sq. Ft. Ratio

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DELEON INSIGHT

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MARKET CONDITIONS

PORTOLA VALLEY Portola Valley Median Sales Price & Price/Sq. Ft. Ratio

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Portola Valley Inventory # of New Listings

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REDWOOD CITY Redwood City Median Sales Price & Price/Sq. Ft. Ratio

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We donâ&#x20AC;&#x2122;t get great listings. We make great listings.

DeLeon Realty

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DELEON INSIGHT

MARKET CONDITIONS

SUNNYVALE Sunnyvale Median Sales Price & Price/Sq. Ft. Ratio

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Sunnyvale Inventory # of New Listings

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WOODSIDE Woodside Median Sales Price & Price/Sq. Ft. Ratio

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Â®

At DeLeon Realty, we are not limited to accepting only turn-key, luxury-grade listings. Our innovative team of specialists enables us to transform every one of our listings into a truly must-have home. Let us show you what we can do for your home. www.DELEONREALTY.com DELEON INSIGHT

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COMMUNITY CALENDAR Pathways Run/Walk and a 1-Mile Fun Run. WHEN: Saturday, May 13th | 9am-noon WHERE: Westwind Community Barn, Los Altos Hill MORE INFO: www.lahpathwaysrun.org

ATHERTON SATURDAY, MAY 27 th A BBQ to Rebuild A Legendary BBQ

SATURDAY, MAY 20TH Los Altos Kiwanis Pet Parade

KC’s BBQ approached its 50th anniversary. Pat had taken over the restaurant from his parents and continued the tradition of great food and great feelings. Then suddenly KC’s caught fire and burned to the ground on February 17th, 2017, potentially ending a great history and tradition. But we can’t let that happen. We must rebuild “the pit.” Join us for a Benefit BBQ to rebuild KC’s BBQ! WHEN: May 27th | 1-4pm WHERE: Available to registered guests MORE INFO: https://www.eventbrite.com/e/a-bbq-torebuild-a-legendary-bbq-tickets-32992523526

A beloved community tradition since 1948, the Los Altos Kiwanis Pet Parade is a celebration that attracts thousands of people every year. Bring your pets (dogs, cats, birds, chickens, reptiles, and amphibians) to march in a parade with live music and vintage cars. Online registration between March 1- May 12. WHEN: Saturday, May 20 th | 10am-noon WHERE: Downtown Los Altos, State Street, Los Altos MORE INFO: http://www.losaltoskiwanis.org/Page/21428

WEEKEND OF MAY 20-21ST

LOS ALTOS - LOS ALTOS HILLS

Fine Art in the Park

SUMMER FARMER’S MARKET Farmer’s Market

The Downtown Farmer’s Market runs each Thursday from May through September 2017 on State Street between Second and Fourth Streets. Fare includes fresh local fruits and vegetables, ranch eggs, cut flowers and live plants, bakery items, prepared foods, locally caught fish, and live music and crafts. WHEN: Thursdays, May - September | 4-8pm WHERE: Downtown Los Altos, State Street, Los Altos MORE INFO: http://www.downtownlosaltos.org

FIRST FRIDAYS Los Altos First Fridays

A community-building event held during the evenings of the first Friday of the month in Downtown Los Altos. First Fridays are meant to be a fun, social evening for residents of Los Altos, Los Altos Hills, and neighboring communities. It is a great opportunity to shop, dine, and explore what Downtown has to offer. Special promotions on local businesses and live entertainment and food provided. WHEN: May 5th and every first Friday of the month | 6-8pm WHERE: Downtown Los Altos, State Street, Los Altos MORE INFO: http://losaltosfirstfriday.org

SATURDAY, MAY 13th 16th Annual Pathways Run/Walk

Come out for the 16th Annual Los Altos Hills Pathways Run/Walk, and “Color My Run” by coloring your own Pathways run shirt. This annual event begins at the Westwind Community Barn, runs through the Byrne Preserve, and extends into the Los Altos Hills Pathways system. The run features a hilly and challenging 5K and 10K

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Each year, the Los Altos Rotary Club presents Fine Art in the Park – one of the Bay Area’s premier open-air art shows, featuring works by some 170 artists. Fine art pieces range from paintings and sculpture to ceramics, jewelry, and unique gifts. Entertainment, food, and beverages make this an ideal occasion for shopping and family fun. WHEN: Weekend of May 20th-21st | 10am-5:30pm WHERE: Lincoln Park, 199 University Avenue, Los Altos MORE INFO: http://rotaryartshow.com/

SUNDAY, JUNE 4th 20th Annual Town Picnic

A Los Altos Hills tradition since 1998, the family-friendly picnic features live entertainment, classic and modern cars, and delicious prepared food. All town residents are invited to this free, fun-filled afternoon. A reservation flier will be mailed to residents in early May and reservations are required. WHEN: Sunday, June 4th | 12:30-4:30pm WHERE: TBD (must be Los Altos Hills resident) MORE INFO: http://www.losaltoshills.ca.gov

SATURDAY, JULY 8th 38th Annual Los Altos Arts & Wine Festival

The highly-rated Arts & Wine Festival showcases the distinctive works of artists and craftspeople from over a dozen states. The Festival also features select vintages by the glass from local wineries as well as a wide variety of foods and live entertainment. WHEN: Saturday, July 8th | 10am-5:30pm WHERE: Downtown Los Altos MORE INFO: http://www.downtownlosaltos.org/events/ aw_main.html

DELEON INSIGHT

COMMUNITY CALENDAR MENLO PARK

MOUNTAIN VIEW

SATURDAY, MAY 6TH Kite Day

Since our first Kite Day in 1988 there has been no better place to fly a kite in Menlo Park, then Bedwell Bayfront Park. Come enjoy kite flying, a hot dog lunch, jump houses, face-painters, and cool down with an ice cold snow cone. If the wind is just right, you’ll catch a glimpse of “Mega Fish”, a 46-foot giant kite. Kite Day is held in conjunction with San Mateo County’s Streets Alive! Parks Alive! and is cosponsored by the Menlo Park Kiwanis. WHEN: Saturday, May 6th | Noon to 3:00 pm WHERE: Bedwell Bayfront Park MORE INFO: http://www.menlopark.org/241/Special-events

SUMMER CONCERT SERIES - FREMONT PARK Summer Concert Series

Join us at Fremont Park to listen to some of the best local bands. The Summer Concert Series features a variety of musical styles from Jazz to Country to hits of today and yesterday. Bring your picnic blanket and dinner, and of course there is always room for dancing. No concert on Wednesday, July 5th, 2017. WHEN: Wednesdays, June 14th to August 9th | 6:30-8:00 pm WHERE: Fremont Park MORE INFO: http://www.menlopark.org/241/Special-events

TUESDAY JULY 4th Fourth of July Parade and Celebration

This is the Fourth of July Parade and Celebration you have heard so much about. Decorate your bike, tricycle, or wagon and parade with us down Santa Cruz Avenue from the downtown Paseo (corner of Curtis Street and Santa Cruz Avenue) to Burgess Park. The Parade starts promptly at 11:45 am. Once at Burgess Park, you and your family will enjoy music, games, and food. WHEN: Tuesday, July 4th, 2017 | 11:45 am to 2:30 pm WHERE: Burgess Park MORE INFO: http://www.menlopark.org/241/Special-events

DELEON INSIGHT

YEAR-ROUND Mountain View Farmer’s Market

Seasonal fruits and vegetables fresh from the farm. 600 W. Evelyn Avenue, between Hope and View Streets | 1-800-806-3276 WHEN: Every Sunday year-round 9:00AM – 1:00PM WHERE: CalTrain Station Parking Lot MORE INFO: 1-800-806-3276

WEEKEND OF MAY 6-7 th, 2017 Ala Carte & Art Festival

This family-oriented festival features music, car show, arts & crafts, food, and fun! WHEN: The Weekend of May 6-7th, 2017 | 10am-6PM WHERE: Castro Street MORE INFO: 1-650-964-3395

WEEKEND OF MAY 13-14th, 2017 4th Annual Silicon Valley Irish Fleadh

The word Fleadh is pronounced “Fla” and is the Gaelic word for Festival. It is a gathering and celebration of culture. This two-day event will feature Irish performers both traditional and modern, Irish dancers, Irish arts & crafts, Irish food vendors, and a Kids’ Zone. WHEN: The Weekend of May 13-14th, 2017 | 12AM-8PM WHERE: Hope Street between Villa and Dana MORE INFO: http://svirishfleadh.com/

THURSDAY NIGHT LIVE Thursday Night Live

Castro Street will be closed to traffic so folks can walk the street to enjoy restaurant dining, shopping, kids’ activities, farmer’s market, live music, and custom/ classic cars on display. WHEN: June 15th & 29th, 2017 | July 13th & 27th, 2017 5:30-8:30PM WHERE: Castro Street MORE INFO: http://www.mountainview.gov/depts/cs/ events/thursdaynightlive.asp

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COMMUNITY CALENDAR PALO ALTO

STANFORD SATURDAY, MAY 13th Red Barn Festival

SATURDAY, MAY 6th 95th Annual May Fete Parade & Fair

The May Fete Parade starts at 10 am – rain or shine! The parade will travel down University Avenue, turn right onto Waverley, and end at Heritage Park. WHEN: Saturday, May, 6th | 10am WHERE: Palo Alto Baylands Athletic Center, located at 1900 Geng Road, Palo Alto. - Register by 8am MORE INFO: http://www.cityofpaloalto.org/

The Stanford Red Barn Festival is an annual event that funds the Stanford Student Equestrian Fund, which includes the Stanford Equestrian Team, high school and middle school teams, non-profit leadership programs, and the Red Barn facility. The funds raised at the Festival are used to support Stanford student athletes (travel, uniforms, showing), the Stanford Horse Health Fund (providing for Stanford’s 30 horses’ veterinary care), as well as for Facility maintenance and improvement. WHEN: Saturday, May 13th | 4:00 – 6:30 pm WHERE: Stanford Red Barn Equestrian Center, 100 Electioneer Road in Stanford, CA MORE INFO: https://web.stanford.edu/group/set/cgi-bin/ wordpress/red-barn-festival-2017/

SUNDAY, JUNE 4th Buoyancy Teen Art & Music Festival

WHEN: Sunday, June, 4th WHERE: Mitchell Park - 600 E. Meadow Drive, Palo Alto MORE INFO: http://www.cityofpaloalto.org/

SUNDAY (FATHER’S DAY), JUNE 18TH Palo Alto World Music Day

WEDNESDAY, MAY 24th Architecture & Landscape - Spring Lecture Series Ma Yansong from MAD Architects

Palo Alto World Music Day is a music festival that takes place every year on Father’s Day. It will be celebrated for the 9th time in Palo Alto on Sunday, June 18th, 2017 from 3:00 pm to 7:30 pm, on University Avenue. WHEN: Sunday, June 18th, 2017 from 3:00 pm to 7:30 pm WHERE: University Avenue MORE INFO: http://www.pamusicday.org/

The lectures provide the Bay Area architectural and design communities an opportunity to hear nationally and internationally renowned experts in the field. The lectures are free of charge and open to the public. WHEN: Wednesday, May 24th | 6:30 pm WHERE: Lathrop Library 518 Memorial Way, Stanford, CA 94305 First Floor, Bishop Auditorium MORE INFO: https://events.stanford.edu/events/672/67241/

TUESDAY, JULY 4th Palo Alto Chili Cook-off & Summer Festival

Chili lovers... pull out your best recipe and get ready to compete in the heated competition of the city of Palo Alto’s 36th annual chili cook off & Summer Festival on 4th of July! WHEN: July 4th | noon-8 pm WHERE: Mitchell Park, 600 E Meadow Dr, Palo Alto MORE INFO: https://paloaltochilicookoff.com

WEEKEND OF JULY 8-9th Palo Alto Clay and Glass Festival

The prestigious and popular 25th Annual Palo Alto Clay & Glass Festival is a free, fun-filled two-day celebration of Clay and Glass Art. WHEN: The Weekend of July 8-9th WHERE: 1313 Newell Rd, Palo Alto MORE INFO: http://acgaweb.com/?event=palo-alto-clayand-glass-festival-2016

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THURSDAY, JUNE 8th Architecture & Landscape - 2017 Spring Lecture Series - Gregg Pasquarelli from SHoP Architects

The lectures provide the Bay Area architectural and design communities an opportunity to hear nationally and internationally renowned experts in the field. The lectures are free of charge and open to the public. WHEN: Thursday, June 8th | 6:30 pm WHERE: Lathrop Library 518 Memorial Way, Stanford, CA 94305 First Floor, Bishop Auditorium MORE INFO: https://events.stanford.edu/events/672/67241/

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COMMUNITY CALENDAR PORTOLA VALLEY SATURDAY, JUNE 3rd Town Picinic

Mark your calendars for the annual Portola Valley Town Picnic! Town Picnic sponsored by the Town for residents. Boy Scouts, Cub Scouts, and Girl Scouts will provide food and games. WHEN: Saturday, June 3rd | 9am-3pm WHERE: Town Center, 765 Portola Road, Portola Valley MORE INFO: http://www.portolavalley.net/Home/ Components/Calendar/Event/25346

SUNNYVALE YEAR-ROUND Sunnyvale Farmer’s Market

Enjoy fresh fruits, vegetables, and arts & crafts from local growers and artisans. WHEN: Every Saturday year-round | 9:00am – 1:00pm WHERE: Downtown Sunnyvale on Historic Murphy Ave MORE INFO: http://uvfm.org/sunnyvale-saturday/

SATURDAY, MAY13TH The Magic of Sunnyvale Wine Stroll – Two Events in One

Local magician performances and wine tasting from 20 local wineries WHEN: Saturday, May 13th | 2:30 - 5:30pm WHERE: Downtown Sunnyvale on Historic Murphy Ave MORE INFO: http://www.sunnyvaledowntown.com/magicof-sunnyvale--wine-stroll.html

WEEKEND OF JUNE 3rd-4th Sunnyvale Art & Wine Festival

Long-standing Sunnyvale event with something for everyone WHEN: Saturday & Sunday | 10:00am – 6:00pm WHERE: Downtown Sunnyvale on Historic Murphy Ave MORE INFO: http://www.svcoc.org/ Art&Wine2017/2017SunnyvaleArtandWineFestival.html

JUNE 21st – AUGUST 30th Summer Series Music + Music Entertainment

Sunnyvale’s favorite dish among many ... music is the entree with a side of artisans. WHEN: Wednesdays | 5:30 – 8:30pm

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WHERE: Downtown Sunnyvale on Historic Murphy Ave (June 21st- August 23rd) Plaza Del Sol at Evelyn and S. Frances (August 30th) MORE INFO: http://www.svcoc.org/http://www. sunnyvaledowntown.com/summer-series-music--market. html

JULY 8th – AUGUST 26th Jazz and Beyond Series

Murphy Avenue transforms into one big street cafe where you can enjoy a sit-down dinner with over 20 restaurants to choose from. WHEN: Saturdays | 5:30 – 8:30pm WHERE: Downtown Sunnyvale on Historic Murphy Ave (June 21st- August 23rd) Plaza Del Sol at Evelyn and S. Frances (August 30th) MORE INFO: http://www.sunnyvaledowntown.com/jazz-beyond.html

WOODSIDE SATURDAY, MAY 6th 26th Annual May Day Fun Run & Walk

Come join us for the 26th Annual May Day Fun Run & Walk. Precedes the Woodside May Day Parade. Registration is from 7:30-8:15 | Race starts at 8:30. This 2.25 mile Fun Run & Walk course rambles along the country roads of Woodside, ending at the perfect vantage point to watch the Woodside May Day Parade. T-Shirts, muffins, fruit & refreshments for all registered participants. Prizes include medals to first three finishers in each category. Trophies to first man and first woman overall. Ribbons to all children 14 and under. WHEN: Saturday, May 6th | 7:30-10am WHERE: Woodside Library 3140 Woodside Rd MORE INFO: http://www.woodsidetown.org/ recreation/26th-annual-may-day-fun-run-walk

SUNDAY, MAY 7 th 3rd Annual Soap Box Derby

This year we have a completely redesigned car with a sporty new look. It’s going to be simple to build! We are planning on building 60 cars this year, and they’ll go fast. So buy your soapbox car kit today! WHEN: Saturday, May 7th | 10am-12pm WHERE: Parking lot in front of Independence Hall, 2955 Woodside Rd MORE INFO: http://www.woodsidetown.org/recreation/3rdannual-soap-box-derby

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PRSRT STD ECRWSS U.S. POSTAGE PAID SAN JOSE, CA PERMIT #2196

DeLeon Realty 1717 Embarcadero Road Palo Alto, CA 94303

LOCAL POSTAL CUSTOMER

FINDING A SILICON VALLEY HOME & PRESENTING A WINNING OFFER

Thursday, June 15, 2017 6:00 - 8:00 p.m.

VENUE:

Palo Alto Hills Golf & Country Club, Grand Ballroom 3000 Alexis Drive, Palo Alto Please join DeLeon Realty at our June Seminar. Gain insight from our talented buyer team into various strategies and techniques for finding a Silicon Valley home and presenting a winning offer. Also, hear the latest market updates from Ken DeLeon, the most successful real estate broker in Silicon Valley. To RSVP, please contact 650.543.8500 or by email: RSVP@deleonrealty.com

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650.488.7325

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