The DeLeon Insight January 2016 by DeLeon Realty

The DeLeon Insight Silicon Valley Real Estate Newsletter Local Specialization

Global Reach

Integrated Approach Jan uar y 2016

A New Option for Real Estate Commissions

• 2015: The Year in Review

The DeLeon Update: Market Trends

Average Sales Price 2014 & 2015

01/2014 - 12/31/2014

01/2015 - 12/16/2015

Average sales price for single-family homes from 1/1/2015 to 12/16/2015 compared to a similar period in 2014.

Average Price/Square Foot 2014 & 2015

01/2014 - 12/31/2014

01/2015 - 12/16/2015

Average price per square foot for single-family homes from1/1/2015 to 12/16/2015 compared to a similar period in 2014. *Data gathered from the Multiple Listing Service on 12/16/2015

2â&#x20AC;&#x201A; DeLeon Insight January 2016 - ÂŠ 2016 DeLeon Realty

A Study in Appreciation: Palo Alto’s High-End Neighborhoods By: Ken DeLeon, Esq. DeLeon Founder

hile a rising tide may lift all boats, not all boats are suitable for a long-term voyage. Over the past few years the Silicon Valley has enjoyed a rapidly appreciating real estate market. However, the ease at which some have made money in real estate may have made them complacent in what they buy or how much they pay. Over my career in real estate, I have gained immense pleasure in getting homes for my clients at a price less than they were willing to pay. I love it when my negotiation acumen and market knowledge saves my clients tens of thousands of dollars. However, my true genius lies in micro-market forecasting—probably a product of my math/economics undergrad work before attending law school at Berkeley. Pointing my clients to the right cities, neighborhoods, or even the right style of home, has made many of them hundreds of thousands of dollars. Although many brokerages train their agents not to provide this type of forecasting because of the potential for liability if they are wrong, I founded DeLeon Realty with the believe that clients deserve more. For that reason I provide this analysis of Palo Alto’s most exclusive neighborhoods. Palo Alto has outpaced all other cities since 2002, the earliest period from which good data is available. Its combination of great schools, a vibrant downtown, proximity to Stanford, and world-class tech companies makes Palo Alto appealing to almost all buyers. Palo Alto’s desirability can be empirically illustrated through its appreciation since

2002 at more than triple the rate of nearby Silicon Valley communities, such as Woodside and Portola Valley, which are now relatively good values. Within each city that DeLeon Realty serves, our neighborhood guides forecast appreciation across the micro-markets that reside in each city. Yet, within Palo Alto, there are micro-markets with distinct trends, market forces, and city regulations that will result in some neighborhoods appreciating much more than others. Palo Alto’s three most beautiful and prestigious neighborhoods—Old Palo Alto, Crescent Park, and Professorville—all offer stunning aesthetics with beautiful homes and landscaping. However, their appreciation rates vary greatly, just as I had forecast. Old Palo Alto was not always Palo Alto’s most prestigious neighborhood; that honor previously belonged to Crescent Park. However, over the last 13 years, a wave of gentrification and rebuilding has swept over Old Palo Alto. I jokingly call the neighborhood “New Palo Alto” due to all the new construction occurring on every block. Since it is out of the flood zone, one can build a basement in Old Palo Alto. This greatly increases the size of a home that can be built since basement square footage does not count under the restrictive building formula used by Palo Alto. This is logical because what is constructed below ground level does not negatively impact any neighbors. Builders who are developing for profit and families who are building their dream homes can all take advantage of this rule and maximize their homes

by building a basement that spans the entire footprint of the first floor. Consequently, demand has been much stronger in neighborhoods like Old Palo Alto that are outside of the flood zone than neighborhoods within the flood zone, such as Crescent Park, where basements are generally not allowed. Therefore, we are much more bullish on Palo Alto neighborhoods outside of the flood zone. Professorville has seen less redevelopment and appreciation than Old Palo Alto because it is a registered historic district. Consequently, homes in Professorville generally cannot be torn down and any major modifications are strictly limited. All major projects must be approved by a subjective historic resources board. Having personally lived in and remodeled an iconic 1893 Victorian in Palo Alto, I can tell you that it is more expensive to remodel and restore an older home than it is to build anew. Generally, when an area has such impediments to redevelopment, it will see less appreciation as evidenced by the chart below. Given these neighborhood trends, I continue to forecast that Old Palo Alto will experience more new construction and resulting appreciation than other high-end neighborhoods in Palo Alto. There are many variables for you to consider when purchasing a home, and there is no universal equation to determine which area will be the best for you and your needs. However, a full awareness of the micro-trends that drive local appreciation is a valuable tool that will help you make a fully informed buying decision.

- DeLeon Insight January 2016 3

Real Property Tax Breaks under the Williamson Act By: Michael Repka Esq., LLM (Taxation) DeLeon CEO/General Counsel

or most California homeowners, their annual property tax is based on one percent of the amount they paid for the property, and increased by up to two percent per year. Additionally, they pay for debt service on bonds issued to benefit the property, provided that this amount does not exceed 0.25 percent of the value of the property. There is, however, an often overlooked way for people to reduce the amount of property tax. Much like the Mills Act encourages people to preserve historic structures (see “Real Property Tax Breaks Under the Mills Act,” The DeLeon Insight, November 2015), the Williamson Act encourages landowners to maintain land for agricultural or related open-space use. In return for the landowner’s commitment to maintain the property as agricultural land or open space for a 10-year period, the landowner receives substantially reduced property tax assessments that are based upon generated income rather than potential market value of the property. The Williamson Act, which is technically titled the California Land Conservation Act (the “Act”), was enacted to deal with California’s problems with population growth, and the resultant surge in building, that occurred after GIs returned from World War II. The fear was that the California building boom would eliminate valuable farmland and open space that so many people love. Although there are many

nuances that must be considered, the Act basically enables private landowners to contract with local governments to voluntarily restrict their land to agricultural and compatible open-space uses in return for lower property taxes. The minimum term for a contract is 10 years, but some jurisdictions extend the term up to 20 years. The contract term automatically renews every year on each anniversary date of the contract. If either the landowner or local government wants out of the contract, they may exit by initiating the process of nonrenewal. Under this process, the remaining term of the contract is allowed to lapse while the property taxes on that property gradually increase until the property tax reaches normal (i.e., non-restricted) levels upon termination of the contract. Additionally, under some circumstances, a contract may be cancelled (“Contract Cancellation”) without going

through the nonrenewal process. Contract Cancellation involves a comprehensive review and approval process. When approved, the landowner must pay a onetime fee of 12.5 percent of the full market value of the property. Like the Mills Act, the Williamson Act provides taxpayers with significant benefits, but with equally significant restrictions. The key is to discuss your intended use of the property, as well as your holding horizon, with a qualified real estate agent or tax attorney so as to develop the right strategy for your situation.

The team at DeLeon Realty is celebrating our 4th birthday! We thank our dedicated clients for another year of success, and here’s to many, many more!

650.488.7325 | info@deleonrealty.com | www.deleonrealty.com | CalBRE #01903224

- DeLeon Insight January 2016 5

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Make Any Space Modern By: Brittney Andrews, Allied ASID DeLeon Interior Designer

o you love modern style but live in a not-so-modern home? To achieve a modern vibe in your home, you don’t have to make very large adjustments. By using these easy guidelines, you can quickly bring modern touches to any space. Scheme a New Scheme Color is trendy, and when you introduce a current color pallet into your home, it will give a contemporary lift to any space. You can take your cues from countless sources of inspiration, like a favorite blog or magazine, or even your fall wardrobe. To prolong the longevity of your décor, more permanent and expensive materials like tile, countertops, or flooring should be selected in neutral colors. After all, neutrals age slowly compared to bolder hues. Also, lower-cost accessories are perfect for experimentation, so consider replacing lamp shades, window treatments, and/or artwork for quick but impactful updates. Freshen Up Finishes and Fabrics Discoloration and fading can happen over time and be nearly imperceptible, but even slight traces of dinginess can indicate age. Like-new condition lends a modern flavor to any style. Touch up scratched wooden table legs or cabinetry with a matching wood-stain pen, and have existing draperies

and upholstered furniture professionally steam-cleaned. Existing paint can be used for wall touch-ups, especially around corners, stairs, and high-traffic areas. For more dramatic changes, paint can be used to update almost any surface, including cabinetry, stairs, garage floors, tile, old appliances, and brick fireplaces. Alternatively, if selecting new finishes, opt for trendier options. Instead of glossy flooring, select matte; instead of polished countertops, select honed or leathered; instead of cherry-stained cabinetry, select oak. Sometimes, updating only one surface can make a dramatic difference, like refacing a green marble fireplace surround with neutral limestone tiles. Fix Up Fixtures New finishes are a quick way to invigorate details throughout the rooms of your home. A dingy faucet, old doorknobs, and other fixtures fashioned from dated metals like brass can easily be updated. Try replacing these accessories with counterparts finished in chrome or brushed nickel for a trendier look. Keep a cohesive appearance by matching—not mixing—metal finishes. Light fixtures provide an opportunity to really make a statement, so consider changing out a mounted ceiling light with something more personal yet modernized, whether a classic drum shade or something with an industrial flavor.

Sometimes, the details are small but impactful. Because fluorescent light bulbs will dull over time, changing the bulbs will help brighten a space. Switches, electrical sockets, and plate covers can discolor and wear from use, so ensuring that these details all look new and are matching will keep your home looking fresh. Rehabilitate Furnishings Though the architecture of a space influences the interior’s style, this influence can be interpreted by using furniture that represents the space’s innate style, but with a modern twist. Or, you may choose to keep your furniture and replace only key statement pieces; for example, you could swap a worn armchair for a more contemporary edition. When shopping for furniture, take your cues from trendsetters like Restoration Hardware or Pottery Barn. You may even consider modernizing your current furniture. Tasks like painting old dining chairs and updating distressed upholstery and accent cushions with trendy designer fabrics are practical ploys that will easily lend a modern effect to your spaces. Even if you aren’t planning on extensive remodeling, by following these guidelines and making a few minor changes in each room, you can easily make an impact while consequently transforming your home into a modern haven.

- DeLeon Insight January 2016 7

2015: The Year in Review By: Michael Repka, Esq. DeLeon CEO/General Counsel

015 was a tale of two years. The year started off tremendously well with a surge of prices and activity very early in the spring. Not surprisingly, given its recent performance, the Palo Alto market was particularly strong. From March 2014 to March 2015, the price per square foot for Palo Alto shot up by 29.55 percent. However, as the year progressed, we saw a gradual yet distinct slowdown in sales and appreciation, which was particularly noteworthy in some of the areas that experienced the strongest gains over the last three years. The reason for this slowdown can be attributed to the following three factors: (1) the price differentials between the most sought-after Silicon Valley neighborhoods and other alternatives, (2) the turmoil in the Asian stock market and the devaluation of the Chinese currency, and (3) general concerns about the likelihood of future appreciation, especially in light of more anticipated mortgage rate increases. (1) The Price Differentials Between the Most Sought-After Silicon Valley Neighborhoods and Other Alternatives Over the course of the past three years,

we saw remarkable appreciation in Silicon Valley real estate prices. For example, between October 2012 and October 2015, Palo Alto median sales prices rose 49.76 percent, and the price per square foot rose 53.76 percent. While this certainly was tremendously beneficial to homeowners in prime parts of the Peninsula, it also resulted in price disparities that were far more than the historical norms. For example, Palo Alto and Los Altos home prices have long been more expensive than those of surrounding communities like San Jose, Santa Clara, and Redwood City. However, in 2015, the delta between comparable homes in Palo Alto and in San Jose was roughly double historical norms. As a result, more and more buyers began to consider the possibility of living outside of the traditionally sought-after neighborhoods at the core of the Peninsula. As recently as three years ago, buyers tended to focus on particular cities that interested them, but we have noted that more buyers are beginning their home searches with a more open mind. Oftentimes, they now ask to extensively tour other communities to understand the price differentials between Palo Alto and outlying areas. While many of these buyers still long to live in places like Palo Alto and Los Altos, economic realities compel the consideration

of other alternatives. As a result, we expect to see a relative flattening of Palo Alto prices, especially when compared to outlying communities that haven’t fully rebounded from their 2008 lows. (2) The Asian Stock Market Turmoil and the Chinese Currency Devaluation The Asian stock markets, most notably in China, have been on an exhilarating, albeit scary roller-coaster ride over the past couple of years. By way of example, the Shanghai Stock Exchange Composite Index was at 2,083 on January 3, 2014, soared to 5,166 by June 12, 2015, and rapidly descended to 3,052 by September 28, 2015. Although it has since recovered to 3,579 as of December 18, 2015, many riders are feeling a bit nauseated. Despite the net increase of over 50 percent in less than two years, many people are focused on the huge drop from its heights. The significant drop in China’s stock market in July 2015 led to concerns that Silicon Valley’s real estate market would subsequently suffer. The impact of the instability in China resulted in a bifurcated market. Homes valued at over $5 million still received a lot of attention from affluent Chinese buyers, whereas there was a decrease in interest from

Chinese buyers for homes valued at less than $2 million. Casual discussions with many Chinese buyers revealed that the merely-rich in China were reluctant to buy properties overseas after seeing a material drop in their net worth. On the other hand, the uberrich’s increased desire for diversification as a result of the perceived instability actually increased their demand for higher-priced properties. However, the recent slowdown in the local real estate market seems to have gone far beyond the actual slowdown from Chinese buyers. The mere concern that foreign buyers were going to stop buying caused many other buyers to put aside their purchasing plans. In other words, the fear of a market correction began to induce an actual market correction. Looking back, we believe this concern was exaggerated in the minds of many buyers. Typically, the local real estate market is relatively slow to respond to global events, and there is often a tendency to overreact. The Asian stock market has started to rebound from where it was in July, and Asian buyers are returning to the market

at all price-points. Nevertheless, many real estate agents and buyers still retain their concerns. We expect that the local real estate market will reenergize over the next few months as it begins to realize that these concerns were exaggerated. (3) General Concerns About the Likelihood of Future Appreciation Despite the fact that Silicon Valley’s economy has been doing quite well, many couples with strong incomes still find prices unaffordable. As a result, there has been a shift in market dynamics, and some buyers have begun to consider long-term rentals rather than aspiring to own. In 2015, we saw this trend continue to intensify. This trend also was consistent with the mindsets of many young professionals who enjoy the flexibility of moving without worrying about selling their homes or incurring additional transaction costs. On December 16, Federal Reserve Chairperson Janet Yellen announced a long-anticipated 25 basis point increase to the Federal Funds Rate. This was the first increase in almost a decade and it raised the Fed’s benchmark interest rate

from near zero, where it hovered for the past seven years. Perhaps more importantly, Ms. Yellen expressed an expectation of an additional one percent increase over the coming year. While the broader market saw this move as a sign of a strengthening economy, the actual impact on monthly mortgage payments may have a cooling effect for some home purchasers. Although there is certainly concern in the marketplace, we expect to see relative stability because many homeowners are reluctant to sell due to onerous capital gains taxes they would have to pay (see “Tax Concerns Contribute to Housing Inventory Shortage,” The DeLeon Insight, May 2015). Additionally, many foreign buyers tend to hold properties for longer periods of time. The combination of these two factors should continue to result in a relatively low inventory going forward. Any economist will tell you the relatively low supply and the high demand for homes in this prime part of the country should create an environment of stability, despite the abovementioned bumps in the road.

- DeLeon Insight January 2016 9

A New Option for Real Estate Commissions that Further Aligns Incentives By: Ken DeLeon, Esq. DeLeon Founder

eal estate commissions have traditionally been based on a transaction-based model as opposed to a performance-based model. When the time comes to resell, regardless of whether the home doubles in value or declines by half, the real estate agent who helped the buyer purchase the home expects to be paid the same percentage when selling the home. Even when the homebuyer loses money, the agent still expects to be paid at the same rate. The marginal decline in commission due to a drop in the home’s value is trivial when compared to the economic impact on the sellers. In continuing efforts to fully align incentives between the firm and its clients, DeLeon Realty introduces a new, optional, performance-based model in which commission is only charged on the increase in the home’s value, not on the entire sales price. Thus, DeLeon Realty only benefits from the profit that was generated for the client! This new model has many great advantages for the homebuyer, including: 1) Aligned incentives between the client and the agent. In many other industries, an agent’s compensation is tied to performance. The advantage of this is that the bad ethics encouraged by the current model, which causes buyers to worry that their agent is only looking for a quick sale and not a good deal, are eliminated. With aligned incentives, the agent only wins when the client wins. 2) Ethical and economic fairness. Under the current transaction-based model, the client can lose a lot of money while the agent still makes a nice profit from the sale of the home, so the unfortunate client bears the full brunt of any loss. With our new model, we do not make money if the client does not

make money. If the client does not realize a profit, then DeLeon Realty sells the home with no profit. When the client makes a great return, DeLeon Realty receives a share of that success, and everyone wins. 3) Trust is built into the model. Under the current system, homebuyers often question if their agent is on their side. While there are some good buyers’ agents who seek to find their clients a good value, this is due to their good ethics and not a result of the model. Under the transaction-based model, the more the client pays, the higher the agent’s commission. Not only are incentives not aligned, but they are inversely aligned! Consequently, buyers rightly fear that their agent will make them overpay just to win the deal. By overpaying and closing quickly, the agent both receives a larger commission and saves time, but does not make the most of the clients’ money. Conversely, if both parties have the same goal and desire to maximize profit, then the clients can trust DeLeon Realty to direct them to, and then advise them to purchase, the home with the greatest profit potential. 4) The illustration of our belief in the continued appreciation of Silicon Valley real estate.

DeLeon Realty has analyzed the market and the fundamental trends driving the supply and demand of homes in Silicon Valley. We continue to project strong appreciation. I rely upon my mathematics and economics background to direct clients to the neighborhoods providing the greatest potential profit. The goal is for us to be trusted advisors, putting skin in the game and happily placing our bets right next to those of our clients. Would you not want a real estate brokerage that is willing to stand behind its performance? It is disconcerting to buy through agents who are not willing to share in both the potential risk and gain of the communities in which they sell. 5) A hedge against a falling market. Money matters much more in a down market. This performance-based model has an added benefit: if you lose money on the sale of your home and need as much capital as possible, the cost of selling your home will be much lower. 6) The role of the agent turns from facilitator to consultant. Much like a venture capitalist, who is also paid for performance and provides the best advice to his/her clients, your agent becomes a true fiduciary through this model. A

performance-based model incentivizes your agent to give you the best insight and analysis for a winning strategy. 7) A long-term, synergistic relationship is formed. Any major improvements, such as remodeling a kitchen or bathroom, will be added to the basis of the home and will not be considered as part of the profit. DeLeon Realty is incentivized to provide the client with the best contractors who will do excellent cost-effective work to increase the return on the investment of the remodel, resulting in a greater sales price and ultimately profit when the home is sold. DeLeon Realty will utilize our complimentary construction consultant to provide the best team and work to minimize costs to the client so that both the client and DeLeon Realty ultimately profit from the remodel when it comes time to sell. This optional new model is available to DeLeon Realty homebuyers who purchase a single-family home in one of the cities that DeLeon Realty serves. Further, my team and I will provide you with a confidential “not to exceed” price. This functions as a limit to the amount you should pay for a particular home. You are free to pay more than this amount, but you will do so with full knowledge that you are overpaying. This is a tremendous advantage that lessens the likelihood of your overpaying and is unique to DeLeon Realty.

agent when you decide it is time to sell your home. There is no team more motivated to get you the most profit on your home than the team with a shared, vested interest in getting you the highest price possible. Details on this model are available during a client consultation. Note that this is just an option. You can certainly choose to not go with this alternative business model if you also anticipate continued strong appreciation in pricing for Silicon Valley homes. Even if you do not choose this option, would you not want to work with a team that is willing to assume some risk and tangibly illustrate that it has clients’ goals and returns on investment as its top priority? There are additional benefits to this innovative new model when it is time to list your home, including: 1) Motivation for the listing agent to get the highest price possible. With this new model, the listing agent is more motivated, getting a larger percentage of the total profit versus a smaller percentage of the total sales price. Each extra dollar obtained results in more profit for both you and the agent. While the alignment of interests is better when listing a home than buying, this model provides even more incentive for the listing agent to obtain the

greatest profit possible for you. Consequently, the agent will likely increase marketing efforts since the agent will get a larger percentage of the marginal gain. 2) Your listing agent becomes a trusted advisor. Often, homes will be listed for sale during terrible times like the summer doldrums or around the winter holidays. This may be the result of a listing agent’s financial needs or a lack of concern for optimizing the sales price of a client’s home. With the increased motivation from this new model, an agent is most likely to direct clients to the optimal selling seasons of spring or early fall. When you create a proper alignment of interests on both the purchase and the sale of a home, good ethics are built into the model. Under this model, there is less need to monitor the agent when buying and selling your home, as the agent is already incentivized to ensure you both win together. Call DeLeon Realty now at 650-543-8501 or email ken@deleonrealty.com to discuss the option of aligned interests and partnering with a real estate brokerage focused on maximizing the return on your investment. DeLeon Realty — the only brokerage in the nation willing to stand with our clients!

How Does It Work? Within 30 days of purchasing a home, you sign an agreement with DeLeon Realty that sets future commission when selling your home through DeLeon Realty to a percentage of the profit based on the home’s appreciation, rather than the sales price. This aligns incentives, provides you with more confidence during the buying process, and ensures that DeLeon Realty is focused on your goals and needs. When purchasing your home, the commission is paid for by the seller, so no fee is due upon purchase. If you make the selection at the time of your purchase, DeLeon Realty will be the listing

- DeLeon Insight January 2016 11

Common Staging Mistakes and How to Fix Them

By: Margie Fontanilla DeLeon Design Coordinator

well-staged home shows better and has a better chance of selling faster than an unstaged home. Many buyers have difficulty seeing beyond the room in front of them, so you cannot rely on their imaginations to help them grasp the best features of your home. To successfully stage your home, here are four common staging mistakes, plus a few remedies that will enhance your home. Mistake #1: Furniture pushed against the walls. Pushing all furniture against the walls of a room is a common staging mistake. In a large room, the space actually looks smaller when pieces are pushed away from the middle. The room will not feel cozy since the main conversation area has been spread apart. Of course, some rooms are so small that there is no other option for the furniture placement except against the walls. However, more often than not, I will see a large room with a sofa stuck against a wall and chairs shoved away from it. Fixes: Form a floating arrangement with your furniture, or choose a layout that emphasizes the function and natural flow of

the room. Anchor the layout with an area rug, side tables, and/or a coffee table. If you are using two chairs to balance the sofa, pull them away from the walls to create a comfortable conversation area. Mistake #2: Not enough lamps. If you only have one overhead light fixture in a room, then you don’t have enough light. Ceiling lights do not replace the need for lamps. Every room should have both ambient and accent (or task) lighting. Ambient lighting is lighting for the overall room, while accent lighting is designed for highlighting a space for a specific task, like working at a countertop or reading in a sofa. Both ambient and accent lighting add to the overall feeling of the house. Fixes: Lamps are needed to bring more light into a room, light up a dark corner, or make a room cozier. Using lamps will also make a room appear larger. Add table lamps, reading lamps, and accent lighting, and even consider putting overhead lights on a dimmer. You will be amazed at how quickly lighting can transform a room. Mistake # 3: Decorating with too many or too few accent pieces. Too few accent pieces will make a room look small, uninviting, and emotionless, which is not the feeling

you want buyers to have when walking through your home. Conversely, decorating with a lot of small objects will make a room feel cluttered and unorganized. Fixes: Purchase one large object to decorate a room. Large objects have a better design impact and will keep a room feeling clean. If you have a collection of items, then showcase up to three of them and put the rest away. You may even switch out the displayed objects each month; just avoid putting them all out at once. Mistake # 4: Using dark paint. Paint can enhance a home. However, the wrong paint can become a home a buyer’s worst nightmare. Dark colors will absorb light, making a room seem smaller. For example, if your kitchen has dark cabinets and doesn’t have any windows, using a dark wall paint will make your kitchen unwelcoming and cold. Fixes: Using neutral or pastel colors will help buyers to mentally move in, while also giving the feeling of space and airiness. By avoiding these common errors while staging your home, you can maximize the use of each room in your home while forming attractive spaces that will be sure to appeal to prospective buyers.

Fence Disputes and Good Neighbor Fences By: Michael Repka, Esq. DeLeon CEO/General Counsel

1) Notice that the neighbors are presumed equally responsible for the cost,

2) A description of the nature of the problem facing the shared fence,

e have all heard the expression, “Good fences make good neighbors.” Nevertheless, there are countless bitter disputes between neighbors over the location, construction, and maintenance of fences. Fortunately, the original California Civil Code §841, which was enacted in 1872 and vaguely stated that landowners were “mutually bound to maintain” fences, has been updated and clarified by the Good Neighbor Fence Act of 2013 (the “Fence Act”). Under the Fence Act, which retains codification at California Civil Code §841, the California Legislature laid out specific rules regarding notice, construction, and maintenance of fences constructed on property lines. Under the Fence Act, adjoining landowners are “presumed to share an equal benefit from any fence dividing their properties and, unless otherwise agreed to by the parties in a written agreement, shall be presumed to be equally responsible for the reasonable costs of construction, maintenance, or necessary replacement of the fence.” While the language seems straightforward and clear, the words “presumed” and “reasonable” provide a lot of wiggle room for attorneys. In fact, the statute goes on to explain what the litigant has to prove to rebut the presumption. The Basic Operation of the Fence Act When a property owner intends to incur costs related to the construction or repair of a fence that runs on a property line shared by a neighbor, the property owner must provide written notice to each of the adjoining neighbors at least 30 days in advance of the work. The notice must include:

3) The proposed solution for the problem, including estimated costs, 4) The proposed cost-sharing approach, and 5) The proposed timeline. If the neighbors disagree, they can overcome the presumption by showing, by a preponderance of the evidence, that such allocation of responsibility would be “unjust,” such as when the financial burden on the neighbors is substantially disproportionate to the benefit conferred, or if costs of the project are unreasonable. If the neighbors are successful, the court will allocate the costs as it deems appropriate. So, what does this all mean? It means that, if handled poorly, a common fence issue can result in very unhappy neighbors and very happy lawyers. It is important to note that this rule of shared responsibility only applies to “division fences,” which is to say fences that are located precisely on the coterminous boundary. If the fence is located entirely on one of the properties, then these rules do not apply, even if there is some benefit derived by the adjacent landowner. As a practical matter, before undertaking any project on a division fence, a homeowner should reach out to the impacted neighbors and begin a dialogue. Some potential issues can be resolved if both parties understand their individual responsibilities and the related procedures imposed by the Fence Act.

Spite Fences Last year Ken DeLeon and I were in Russia meeting with a leading real estate agent in Moscow. As we drove through a beautiful area just outside of the city, we came upon a large residential compound which was surrounded by a massive metal wall that appeared to be about 20 feet tall. We were told that was Mr. Putin’s home. While it is clear that this wall would prevent one of Mr. Putin’s neighbors from encroaching on his land, and him on theirs, this could be a violation of spite fence rules if the wall was located in California—not to mention a really long commute to the Kremlin. California Civil Code §841.4 declares that any fence exceeding 10 feet in height that was “maliciously erected or maintained for the purpose of annoying the owner or occupant of adjoining property is a private nuisance.” In many parts of Silicon Valley, the local ordinances provide even more restrictive limitations on the heights of many fences. Nevertheless, it is interesting that many local homeowners and real estate salespeople have heard that there is a spite fence statute. Unfortunately, they assume that any fence that is constructed in a way that annoys them should be considered a spite fence, and they fail to consider the height of the fence or the intent of the adjacent landowner. As with most potentially contentious situations, it is important for homeowners to understand the actual law that applies to the situation. Unfortunately, a lot of issues come to a head when someone decides to sell. Some neighbors see this as an opportunity to get “leverage” and others would rather battle with someone who they know is leaving. Either way, it is important that a potential seller speaks with a qualified residential real estate attorney prior to responding to any correspondence from an adjacent homeowner.

- DeLeon Insight January 2016 13

Breathing Life into an Expired Listing By: Michael Repka, Esq. DeLeon CEO/General Counsel

nyone who has ever walked down a café-lined street in an unfamiliar foreign city understands the draw of a crowd. Whether a packed restaurant or a bustling store, interest reflects desirability. A few years ago, my wife and I were in Tokyo looking for some good sushi. We had already enjoyed the guidebook’s suggestions and a couple of recommendations from our hotel, but this night we wanted to try something “local.” We walked past several seemingly nice choices, which had plenty of space available, only to get in line with people who we assumed to be “in the know.” Although we had never heard of the restaurant, we knew we had found something desirable. It turns out the sushi was delicious, and I would later find myself with a useful anecdote for a newsletter article. The same phenomenon occurs with real estate every week. Otherwise rational buyers get into bidding wars over a hot new listing despite other similar choices languishing on the market at prices significantly lower than the ultimate selling price of the well-priced and well-marketed property. That is why it is so important for sellers and listing agents to hit the market strong. That leads us to the topic of expired listings. What can be done to make a home that has been on the market for months seem appealing? Put another way, how can you make a buyer want a home that no one else wanted? Although there is no single right answer to these questions, it is safe to say that doing the same thing and expecting a

different result is, well, illogical. Consider Changing Listing Agents It is natural that the prior listing agent will want the seller to extend the listing. Typically, agents will ask for an extension, promising that they will do more marketing or implying that there is a promising buyer circling around. Neither of these arguments ring true. Ask yourself, “If they were capable of doing better marketing, why haven’t they done it?” Leopards don’t change their spots. As for the “lurking buyer” argument, under the PRDS listing agreement, all the listing agent has to do is identify that particular buyer and the agent will get paid if that buyer does get into contract within 90 days after termination of the listing agreement. Thus, do not let these sweet promises fool you. Termination of a listing agreement is a good time to interview new agents. A new agent will bring a different perspective to the marketing and “vibe” to the property. Of course, if a seller is completely satisfied with the service and marketing materials received from the current listing agent, then extending the listing agreement may be a reasonable decision. However, in a close call, a seller should switch to a different agent. Make Changes to the Appearance Taking steps to change the look of the property can pay big dividends. Whether it is something as simple as painting an accent wall, or as significant as updating an aging bathroom, sellers need to make the property look different. Also, landscaping can make a significant impact on curb appeal at a relatively low cost. At a minimum, sellers

should require the listing agent, at the agent’s cost, to update the staging so as to create a different look. Increase Marketing Perhaps the most important thing to keep in mind is that expired listings require even more marketing than a typical listing. Many agents are reluctant to invest too much money in marketing an expired listing for fear of suffering the same fate as the previous listing—expiration without commission. Before relisting with the same agent, or engaging a new agent, the seller should require the agent to include a comprehensive addendum laying out, with specificity, what marketing the agent will do. Reach New Buyers Finally, it is important that the listing agent reaches new buyers who have not watched as the property withered on the vine. Strategies such as marketing the property to buyers in different cities or in different venues have shown to be quite effective. For example, we have had significant success in marketing expired listings as value opportunities to buyers in more expensive nearby areas, such as Palo Alto. Additionally, we have received a good bit of interest from potential buyers (who were not actively looking for a home) after seeing ads for our listings on TV or hearing about them on the radio. In short, some strategic changes and an aggressive marketing campaign can breathe new life into expired listings—especially if the property was poorly marketed the first time through.

What Exactly Is DeLeon? A Man? A Team? A Brokerage? By: Michael Repka, Esq. DeLeon CEO/General Counsel

here is a bit of a controversy in the real estate community. Many wonder whether it is fair to compare the DeLeon Team to the individual agents or small teams of two or three agents and a couple of assistants. Simply put, the DeLeon Team is unique unto itself! The first time we mailed out our Strategic Selling brochure, which outlines our business model and details all of the marketing and other services we offer to our clients, I received a call from the office manager of a local real estate office that follows the old-fashioned 100 percent commission-based independent contractor business model. He was irate that we would publish so much information about our approach and the services we provide. Further, he felt it was unfair to compare our team of specialized agents, attorneys, licensed contractors, handymen, interior designers, graphic designers, international marketing personnel, and online marketing

people to his individual agents. He was right! When the Wall Street Journal published the Realtor® rankings that named us number one in the nation, the same questions reemerged. Although our collaborative model in which we all work together in our own areas of specialization perfectly fits REAL Trends, Inc.’s definition of a “team,” many local agents wonder whether it is possible for one agent or a small team to do the same quality or quantity of work as the DeLeon Team? It isn’t possible. Ken DeLeon and I crafted our industryleading business model based on a belief that no one person can be good at everything. Instead, we have hired the best people in the industry to do only that which they are passionate about. No one is on commission, and the company pays all of the marketing costs. Further, we believe in aligned incentives and economies of scale. Ken DeLeon is a fantastic individual agent. In fact, he transformed himself from a brand new agent, to the number one individual agent in the entire country in

less than 10 years. Nevertheless, he realized that no individual agent, not even he, could compete with a well-staffed, well-funded team that is comprised of top professionals doing only what they love. So what is the answer? Is DeLeon a man, a team, or a brokerage? The answer is, “All three.” The better question is, “Why does it matter?” We have developed an innovative approach to real estate that is agile and flexible, yet powerful and customized for each of our clients. Our key focuses are to enhance our clients’ experience with expanded services and to elevating the real estate industry through aligned incentives and empowering the public with knowledge. Our phenomenal growth over the four years since we opened and our glowing client reviews, not to mention the sales prices of our listings, show that our approach works. Clients deserve more from real estate agents, and we are committed to continuing to raise the bar for the entire industry. Talk to us if you are interested in buying or selling in Silicon Valley to see whether our unique approach is right for you.

- DeLeon Insight January 2016 15

Why People Set Up Revocable or “Family” Trusts By: Michael Repka Esq., LLM (Taxation) DeLeon CEO/General Counsel

quick perusal of county records reveals a large number of homes are owned in trusts. Typically these trusts are creatively named something like the “John and Jane Doe Family Trust.” Almost everyone who is even the slightest bit affluent, including just about anyone who owns real property in Silicon Valley, has heard that they should have a trust, but many can’t really articulate why. This article will touch upon the what and delve into the why. What Is a Living Trust? A trust is a written legal document that performs many of the same functions as a Will. In other words, it spells out the rules set by the maker of the trust for assets held in the trust for the beneficiaries. However, a trust does much more than a Will. Conceptually, a trust is also similar to a corporation in that its existence is separate from the person who created it (the “trustor”), and it outlives the trustor. There are different types of trusts (e.g., revocable trust, irrevocable trust, testamentary trust, and charitable trust), and their existence depends upon the trustor’s purpose. One of the most common and flexible types of trusts is a “revocable living trust” or “family trust” as it enables the trustor to retain the power to change or revoke the trust during the trustor’s lifetime. Following the creation of a living trust, the trustor transfers all assets into the trust. The trust property is managed and

administered by the trustees, who also carry out the terms of the revocable trust and hold legal title to the trust property. Most individuals who establish living trusts name themselves as the trustees. Oftentimes, a married couple serves as the initial co-trustees of the trust, and they retain virtually unfettered control over the trust assets as long as they both live. They can change the trust, move assets into and out of the trust and even terminate the trust as they see fit. When one of the spouses dies, then there are often substantial limitations on what the surviving spouse can do with the decedent spouse’s share of the assets. Why Do People Set Up a Living Trust? Generally, many people set up living trusts to avoid probate costs and to manage and control the distribution of assets. While trusts can be used to reduce estate taxes in some circumstances (e.g., people with combined gross assets above $5 million), nowadays this is rarely the driving force for most families. 1. To Avoid Probate Costs California probate costs remain a significant reason for people to establish trusts. Probate costs are related to the cost of administering the transfer of the decedent’s assets to their heirs, whether those transfers are pursuant to a will or according to a statutory distribution that applies to people who die without a will (i.e., intestate). It is important to note that probate costs are calculated on the gross value of assets that the decedent owned on the date of death, which is

very unfortunate for people who own expensive real estate that is subject to a large loan (like most of us). Put another way, to determine the amount that is subject to probate costs, the gross value of all assets is added up with no deduction for debt. For an estate with a gross value of $3 million, the probate costs would be in excess of $40,000. A living trust avoids probate costs because property that was transferred into a living trust before the trustor’s death is no longer deemed owned by the trustor. The successor trustee – the person appointed to handle the trust after the trustor’s death – immediately steps in to handle the trust property in accordance with the instructions set forth in the trust (e.g., transfers the trust property to the beneficiaries and pays the estate’s debts). Unlike a Will, the trust property can be transferred within days or weeks (not months or years) with no court intervention or probate costs. 2. To Manage Asset Distribution Another key benefit to a trust is the flexibility of distribution of assets that it affords. Many people would like to provide for their surviving spouses for the remainder of their lives and then have the assets go to their children. However, if assets are left outright to a surviving spouse, there is no guarantee that the surviving spouse will leave all of the assets to the kids upon the surviving spouse’s subsequent passing. Remarriages complicate things further! With a family trust, the spouse can provide that the surviving spouse can use the decedent spouse’s portion of the assets as long as the

spouse is alive, but whatever is left over at the survivor spouse’s death goes to the children. Additionally, distributions to the children can be delayed until they reach certain ages. 3. Estate Tax Estate tax is invoked upon the transfer of property of a deceased person. “Property” includes everything the deceased owns or has certain interest in at the date of death. The fair market value of these items is used in calculating estate taxes, not what the decedent paid for them. Federal estate taxes are expensive, with the top federal tax rate currently 40 percent, must be paid in cash, and are usually due within nine months after the decedent passes away. Because few estates have sufficient ready cash,

some of the assets within these estates must be liquidated to pay the estate taxes. While every U.S. citizen is subject to the federal estate tax system, not every estate has to pay the tax. The federal government gives each citizen a certain exemption amount that can be applied against the value of the net estate. This exempt amount has varied over the years. For example, estate tax is due for estates with combined gross assets and prior taxable gifts exceeding $5.34 million in 2014, $5.43 million in 2015, and $5.45 million in 2016. Further, beginning January 1, 2011, the concept of “portability” was introduced, allowing a surviving spouse to use a decedent spouse’s unused estate tax exclusion, which effectively doubles the exemption amount to

almost $11 million for the couple. With the high estate tax exemption amount and the portability rule, many families may not be exposed to the estate tax unless their total assets exceed $10.86 million (i.e., $5.43 million per spouse in 2015). For more affluent families, there are ways to mitigate the estate tax exposure with efficient planning, but such discussion goes beyond the scope of this article. Overall, revocable trusts provide a great number of benefits, with relatively few restrictions. I would be happy to meet with any DeLeon Realty clients to discuss how these rules impact their purchase or sale. Naturally, there is no additional charge for this service.

- DeLeon Insight January 2016 17

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8 Questions to Ask Your Listing Agent By: Michael Repka, Esq. DeLeon CEO/General Counsel

he successful sale of a home requires a listing agent who employs a strong team and a comprehensive marketing approach. The seller will rely upon the listing agent for market expertise, negotiation acumen, and reliable advice regarding various procedural and legal issues associated with the transaction. Without question, listing agents must be able to assume many roles. Unlike working with a buyer agent, home sellers will generally select an agent and sign a binding contract to list their home. Before making this selection, the sellers should interview several listing agents to get a sense of what these agents have to offer and to understand all of the associated costs. As discussed in our last newsletter (see “Structuring Listing Agreements,” The DeLeon Insight, November 2015), it is very important that listing agreement include a comprehensive addendum that spells out all of the agent’s commitments with specificity. This addendum should include a detailed description of all home preparation and marketing that the agent will provide. Further, it should be signed by the listing agent’s managing broker, not just the agent. Keep in mind that the majority of real estate agents are merely independent contractors “associated” with a brokerage, not employees of that brokerage. Although there are many important questions to ask your listing agent, this article will address eight that may have universal interest. 1. What is included in your marketing approach? Virtually all marketing expenses are (or should be) borne by the listing agent. This may include expenses for brochures, newspaper ads, magazine ads (some agents include ads in foreign language newspapers), catering, photography, videography, and in some cases, TV commercials and radio ads.

Sellers should ask for a comprehensive list of what will be included in the listing agent’s marketing approach—asking for a written schedule will eliminate misunderstandings. Similarly, sellers should ask their listing agents how they plan to effectively execute this advertising strategy and who will be involved in the process.

listing agent should be able to list the steps the agent will take to help you prepare your home for the market.

The DeLeon Team has created our Strategic Home Selling brochure, which lays out our entire approach in great detail. Please contact our office if you would like a copy. Additionally, we include a comprehensive addendum as part of every listing agreement.

3. Can you provide staging assistance? Once the home is properly prepared, the sellers will have to make decisions regarding the staging of the house. If you elect to have your home staged, your listing agent may be able to help you coordinate staging or may refer you to a staging company. Nowadays, many of the best listing agents will pay for the home’s staging, including design, delivery, and removal of all staging items, as well as some period of furniture rental. This should be addressed in the listing agreement with your agent and included in the abovementioned addendum.

2. How will you assist with repairs and home preparation? Successful sellers often make repairs and renovations prior to listing their home for sale on the market. Home preparation can vary from repainting, replacing light fixtures, or refinishing floors to more significant projects such as bathroom renovations, installing new countertops, or landscaping. While some listing agents have a team that can help you coordinate this effort, other agents merely put you in contact with third-party contractors. Your

The DeLeon Team has a dedicated design team, which includes interior designers, a licensed contractor, and handymen, to oversee the process.

The DeLeon Team pays for the design, delivery, and removal of all staging, as well as the first 30 days of furniture rental.

- DeLeon Insight January 2016 19

4. What kind of experience do you have in selling local real estate? Experience certainly helps agents in identifying the most effective strategies to achieve a high sales price. Generally, agents have access to all of their transaction records through the Multiple Listings Service. You may consider asking prospective agents to bring a list of all the local homes they have sold over the last three years. This list will provide significant insight into the amount of experience they have in selling real estate in or near your area. The DeLeon Team is the number one real estate team in the United States. We sell more real estate than any other local real estate agent or team. Every June, the Wall Street Journal publishes the authoritative list of agent rankings, which is compiled by REAL Trends, Inc. For the complete list, see: http://www. realtrends.com/rankings/real-trends-1000teams-by-volume15. 5. What are your statistics? Your listing agent should also be able to provide transaction statistics. These statistics include average days on the market for listings, the average price per square foot, and the average list-price-to-sales-price ratio. Reviewing these statistics will provide great insight into an agent’s pricing strategy, the effectiveness of the agent’s marketing campaigns, and the agent’s general success with negotiating real estate transactions.

refer potential buyers to another agent to write up while retaining a significant portion of the commission. Also, consider including a prohibition on all “referral fees” paid to your agent. At a minimum, the agent should agree, in writing, to disclose any referral fees (generally these are not referred to as “kick-backs”) or other remuneration that the agent will get if any particular offer is the winning offer. This is one of our greatest points of distinction. I handle all DeLeon Team listings, and I will never personally represent a buyer on one of our listings. Although other DeLeon Team buyer agents may represent buyers, we maintain a strict ethical wall between the buyer team and the listing team. Further, I am on salary and I receive no additional compensation based on which buyer gets the home. 7. How long is your contract term? Sellers should consider the duration of the listing contract. Most sellers find it favorable to sign an agreement for a shorter term because they have the option to extend the contract if they are satisfied with the agent’s performance. Some sellers may find longer term listing agreements to be too binding because these contracts obligate the sellers to continue listing their home even if the agent has performed poorly. Our listing agreements expire a mere 39

The DeLeon Team is very proud of our sales statistics. We are happy to provide unbiased, third-party stats showing our performance in your city. Additionally, we are happy to provide the stats for up to five additional agents or teams for comparison purposes. 6. Are there any conflicts of interest? It may surprise some sellers to learn that the California Bureau of Real Estate permits the same individual to represent both the buyer and the seller on the same transaction. Many sellers find that this creates an untenable conflict of interest. You should ask prospective listing agents if they also represent the buyers or if they

days after the home is listed on the MLS. We believe that it is wrong to hold a seller hostage by an agreement that is 90 or 180 days long. 8. What was your professional background before entering real estate sales? Real estate agents come from all walks of life. Some agents were very successful in other professions and possess skills that are readily transferable. Other agents get into real estate sales because they are lured by the idea of easy money. There is a big difference. I have two law degrees, a JD from Rutgers University School of Law, and an LLM in Taxation from NYU School of Law. I have extensive experience in real estate and tax law, and I currently teach Real Estate Economics and Taxation at Menlo College. Additionally, my full-time in-house listing team includes interior designers, a licensed contractor, handymen, graphic artists, a copywriter, and an online marketing manager. Further, we have a very robust team that handles our international marketing efforts. Sellers will find that asking very specific and detailed questions will greatly enhance their ability to understand the agent’s listing approach. Additionally, when a client asks potential agents for this information prior to signing a listing agreement, the sense of competition will often encourage the agents to offer a more favorable deal for the seller.

The top destination for Silicon Valley luxury homes 65 0 . 4 8 8 . 7 3 25

The #1 Team in America w w w.de le o nre a lty.co m

C a lB R E # 0 190 3224

- DeLeon Insight January 2016 21

2015 Neighborhood Summaries - Palo Alto -Alexander Ve n t ur a The Ventura neighborhood is an excellent entry point for those seeking Palo Alto homeownership. After all, a typical home in this neighborhood sells for under $2 million. As of early December 2015, the median sales price was $1.973 million, an almost 40 percent increase from the 2014 median sales price of $1.425 million. Buyers took advantage of the value in this neighborhood, contributing to the significant jump in median sales price between 2014 and 2015. In 2015, only 12 new listings came on the market here, with an average of just one new listing per month. This was a dramatic decrease of 25 percent from 2014, when 16 new listings came on the market. Of the eight sales made by October 2015, six homes sold for under $2 million. The highest sales price in Ventura, $2.776 million, was for 390 Margarita Avenue, a new, Spanish Revival 4 bedroom, 3 bath home with 2,412 square feet of interior space on a lot of 6,098 square feet. The lowest sale, $1.55 million, was for 231 Lambert Avenue, a Cottage-style 2 bedroom, 1 bath home of 1,049 square feet on a lot of 5,700 square feet. Builders are starting to redevelop Ventura, and quaint cottages are being replaced with large, new homes. This trend of redevelopment coupled with the relatively lower purchase price of homes here will contribute to the revitalization of this neighborhood. DeLeon Realty is confident that Ventura will offer a great value option for those who purchase here soon.

Midtown Midtown, a high-demand neighborhood in Palo Alto, maintained strong appreciation throughout 2015, as new homes continued to spring up throughout this area. By early December, the median sales price for a home in Midtown had increased from 2014, jumping to over $2.533 million. The amount of new listings peaked in the months of April and May, with eight new listings each month. There was strong inventory in March and June as well, with five and six new listings respectively. During these four months, 18 homes were sold, a figure that accounts for more than half of the total sales volume during the 10-month span from January through October. Similar to other neighborhoods in Palo Alto, there was a 19 percent decrease in inventory compared to the year before as high capital gains prevented sellers from listing their homes. In 2015, the highest sales price in Midtown was for 2941 South Court, a 5 bedroom, 5 bath home of 4,626 square feet on a lot of 7,504 square feet, which sold for over $5 million. This eight-year-old Mediterranean-style home, situated on one of the most desirable streets in the neighborhood, featured a full basement complete with a theater, an office, and a wine cellar. The lowest sale, at $1.95 million, was 3433 Cowper Street, a 3 bedroom, 1 bath home of 990 square feet on a lot of 6,131 square feet, which was suited for a substantial renovation or a rebuild. In 2016, DeLeon Realty remains confident that Midtown will continue to see strong demand, above-average appreciation, and continued redevelopment.

22â&#x20AC;&#x201A; DeLeon Insight January 2016 - ÂŠ 2016 DeLeon Realty

- DeLeon Insight January 2016 23

2015 Neighborhood Summaries - Palo Alto -Alexander

O l d P a lo Alt o In 2015, Old Palo Alto, arguably the most prestigious neighborhood in Silicon Valley, continued to command the highest price-point for homes in the city. As of early December 2015, the median sales price for a home in Old Palo Alto was $3.8 million, an increase of 17 percent from the 2014 median sales price of $3.25 million. Inventory here stayed fairly consistent between February and October, averaging roughly four new listings per month. There were only two new listings in May, with inventory peaks of seven new listings in both April and October. Generally, the transaction volume was four to five sales per month, with February, May, and September each showing a slightly lower volume of two to three sales per month. Palo Alto saw the highest-priced sale in the history of the city in 2015 in the form of a historic 3 bedroom, 4.5 bath home on a lot of 35,284 square feet that sold for $30 million off-market. Barring this outlier, the highest-priced sale went to a new 6 bedroom, 5.5 bath home located at 1935 Webster Street, which sold for $8.55 million. A home that represented a typical sale in Old Palo Alto was 2291 Cowper Street, a 3 bedroom, 3 bath home on a lot of 6,000 square feet, which sold for $3.8 million. Old Palo Alto still retains its title as one of the most desirable neighborhoods in Silicon Valley, and we project home values will continue to be higher here than in any other neighborhood.

So u t h P alo Alt o South Palo Alto, the largest neighborhood in Palo Alto, continues to appreciate as demand remains strong. As of early December 2015, the median sales price for a Midtown home had increased about 11 percent since 2014, rising from $2.125 million to $2.35 million. A total of 103 new listings had been brought on the market, with the months of March, June, August, and September accounting for over 57 percent of the new inventory. The number of sales steadily rose throughout the year and peaked in July, August, and October with double-digit sales during each month. Due to the large transaction volume in South Palo Alto, the price per square foot remained relatively stable; most months registered between $1,300 and $1,450 per square foot, with a low point in June of $1,258 per square foot. By early December, the highest sales price in South Palo Alto for the year was for a new 5 bedroom, 5 bath Mediterranean-style home at 2593 Marshall Street, which was on the market for only eight days. The lowest-priced sale was for an updated 3 bedroom, 1 bath Eichler-designed home at 4133 Park Boulevard. This home sold for less than a typical Palo Alto teardown because it backed to the railroad tracks. Due to its size and price-point, South Palo Alto is projected to remain the highest-volume neighborhood within Palo Alto in 2016. This high volume will continue to be higher here than in any other Palo Alto neighborhood.

ÂŠ 2016 DeLeon Realty

- DeLeon Insight January 2016 25â&#x20AC;&#x201A;

2015 Neighborhood Summaries - Menlo Park - Ta b i t h a S ha ron Heigh t s Sharon Heights had a strong year in 2015, starting off with a slow market but picking up steam in May. Neighborhood homes rose substantially in popularity, a conclusion supported by the lower numbers of days on the market for listings and the considerable jumps of sales prices above list prices. This increasing desirability was driven by the shift in local demographics to younger families who were seeking the highly coveted Las Lomitas Elementary School District, the disproportionate supply-to-demand ratio, the appeal of the area’s quarter-acre lots to builders, and the beautiful foliage and breathtaking views unique to Sharon Heights. The lowest sale of 2015 here was $2 million, with the highest being $4.998 million, the third-highest sale in all of Sharon Heights’ history. August saw the most sales, whereas the characteristically busy months of September and October saw a reduced inventory that contributed to Sharon Heights having significantly higher sales prices. Also of note was the average increase of $200 per square foot from the previous year. The price per square foot for a typical Ranch-style home peaked with the DeLeon Realty sale of 950 Continental Drive at $1,432 per square foot, nearly half a million above its list price. This home was appealing due to its flatter lot, expandable floorplan, and location on a more private street. For 2016, DeLeon Realty is bullish on appreciation in Sharon Heights as this neighborhood continues to reach new heights while attracting buyers with its excellent school district, aesthetic appeal, and exciting potential for new construction projects.

T h e W illow s The Willows had a strong year in 2015 from start to finish and, along with West Menlo, boasted the highest number of newly constructed homes. Homes in the Willows appreciated approximately 19 percent in 2015, a solid increase from their appreciation of 12 percent in 2014. The growth in appreciation corresponded with the rising numbers of new builds and remodels throughout the neighborhood, a trend we anticipate to continue throughout 2016. 2015 was also quite the busy year for this neighborhood with respect to volume in sales transactions—40 single-family residence sales—, trailing only slightly behind 41 sales in both West Menlo and Central Menlo. Homes within this neighborhood appeal to a broad spectrum of buyers since the Willows offers a wide price range of $1.275 million to $3.8 million, as well as substantial variations in lot sizes. Not surprisingly, the homes with the highest sales primarily consisted of new constructions, and sales reached a new pinnacle of $3.8 million for this neighborhood. The specific listing that achieved this benchmark sat on an oversized lot of 9,830 square feet, offering 3,246 square feet of living space, an open floorplan spanning two stories, and high-end modern finishes throughout. DeLeon Realty continues to be bullish about the appeal of homes in the Willows due to several positive drivers. These include convenient accessibility to the highway, close proximity to downtown Palo Alto, relative affordability for younger Silicon Valley families, and attractive school districts.

- DeLeon Insight January 2016 27

2015 Neighborhood Summaries - Menlo Park - Ta b i t h a

C e nt ral Men lo Central Menlo continued to lead in 2015 by having the highest sales in Menlo Park. This comes as no surprise as Central Menlo is widely regarded as the most prestigious neighborhood in the city and has a somewhat similar feel to neighboring Atherton, where homes have oversized lots ranging from a quarter acre to a half acre. Nine of the 10 top sales in 2015 belonged to Central Menlo and ranged from $5.35 million to $6.65 million. The top sale in Central Menlo was a close second to Menlo Park’s all-time recordbreaking sale of $7.625 million, which also not so coincidentally happened to be in Central Menlo. Not only did Central Menlo have the leading sale in Menlo Park in 2015, but it was also the top contender with respect to price per square foot which, at $1,301, was a marked increase from 2014’s price per square foot of $1,135. Central Menlo saw a decrease in inventory from the previous year, dipping from 47 listings to 41 listings, accompanied by a solid increase in appreciation of 26 percent. February’s sale of 940 Cotton Avenue at $6.65 million was the record sale for Menlo Park in 2015. Built in 2005 with high-end finishes throughout, this relatively new home provided an interior of 4,133 square feet and a lot of approximately a half acre with a generous backyard and mature surrounding foliage. DeLeon Realty anticipates that Central Menlo will continue to see appreciation in 2016, continuing to attract buyers due to its prestige and beautifully landscaped surroundings.

F l o o d P ar k The Flood Park neighborhood was the unexpected winner of Menlo Park in 2015 when it saw one of the highest appreciation rates of approximately 19 percent. This neighborhood is comprised of three sub-areas—Lorelei Manor, Suburban Park, and Flood Park—and all belong to the Menlo Park City School District, which offers outstanding schools with API scores above 925. The homes in this neighborhood typically sit on lots of 6,000 square feet and consist of three bedrooms and one bathroom, with floorplans that have been subsequently updated and expanded with second bathrooms. In the Flood Park area, a popular option is to buy project homes to rebuild or renovate, since these homes tend to be more reasonably priced than their counterparts in other Menlo Park neighborhoods like West Menlo. A benchmark for this neighborhood was set with 383 Hedge Road, a home built in 2005 with 2,410 square feet of living space on a lot of 5,400 square feet. This home is located in Suburban Park and backs up to the parking lot of Flood Park, which gives the neighborhood its name. In 2011 for $1.525 million, this home was sold in 2015 just four years later, at an astounding $2.8 million, the highest sale in the Flood Park neighborhood to date. Due to local affordability, convenient access to Highway 101, and the popular public school options available to families residing here, DeLeon Realty anticipates appreciation in the Flood Park neighborhood in 2016.

- DeLeon Insight January 2016 29

2015 Neighborhood Summaries - Atherton -Rob W e st At h er t on West Atherton, the most exclusive neighborhood in Atherton, had another stellar year of appreciation during 2015. The average price of a property here rose by 77 percent during the past two years. Year Average Sales Price 2013 $4,817,172 2014 $6,947,267 2015 (December) $8,850,667 The driving force for this appreciation was the value of the land itself, which peaked in May and June of 2015. Two spectacular sales underscored this trend. On a prime cul-de-sac near the Circus Club, a tear-down on one acre achieved $8.725 million. Similarly, two adjoining parcels on Tuscaloosa Avenue that totaled approximately 3.25 acres sold in 17 days for $21 million. Notwithstanding these incredible purchase prices, the minute a buyer receives the key to a newly purchased property, the key is often passed to a building contractor. A compelling premium will be achieved by the discerning buyer/builder willing to invest 2.5 years in careful planning and construction. A solid example is 119 Tuscaloosa Avenue, a phenomenal, new estate home of 20,000+ square feet on 1.88 acres, which sold for over $35 million. A recent call to Atherton’s building department revealed that there are currently 803 active building permits in town. While many of these permits are certainly for small projects, it is impossible to drive down Atherton’s wide avenues without spotting convoys of construction vehicles surrounding various properties. Although projections are harder to quantify here because of the customized nature of the properties, DeLeon Realty predicts that West Atherton will continue to have above-average appreciation through the 2016 elections.

2015 Neighborhood Summaries - Woodside -Rob Wo o dside Hills Due to the strong desire among younger buyers to live near local downtowns, schools, and transportation corridors, the cities of the Platinum Core saw double-digit appreciation over the past few years while the hillside communities languished. However, the trend started to reverse as savvy buyers realized the incredible values available in the hills. Woodside Hills provided a great case in point. The average price of a property here rose by 88 percent over the past three years. Year Average Sales Price 2012 $2,289,444 2013 $2,982,529 2014 $3,006,500 2015 (December) $4,196,444 While the 2015 average sales price was certainly helped by the $12.875 million sale in July of 240 Cinnabar Road, a compound of 12,938 square feet on over three acres with sweeping bay views, the average price per square foot for the neighborhood was $989 per square foot. Updated homes in great locations easily exceeded this benchmark, while un-remodeled homes with poor floorplans or distinct traffic noise sold at a discount. Another factor also contributed to regional price appreciation: the declining number of homes coming to market. In 2013, 17 homes were sold in Woodside Hills. By early December 2015, there had been only nine annual sales here, plus another four active listings. While several issues contributed to this trend, two major components were the high capital gains tax rate and overseas investorsâ&#x20AC;&#x2122; preference for a buy-and-hold strategy. For 2016, DeLeon Realty predicts that Woodside Hills will continue to enjoy above-average appreciation relative to Woodside as a whole.

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2015 Neighborhood Summaries - Los Altos -Ashley N o rt h Los Alt os Between January and early December of 2015, 105 single-family homes were sold in North Los Altos, the most exclusive neighborhood of Los Altos. The lowest recorded sale here was $1.8 million, while the highest was priced at $7.345 million, causing the median price to top $3.1 million. Back in 2014, North Los Altos experienced tremendous appreciation, boasting an average of $1,162 per square foot and 103 single-family homes sold. In 2015, the average rose even higher to $1,351 per square foot. The overarching theme for North Los Altos home sales in 2015 pertained to the values of the locations and the lot sizes. Homebuyers were willing to pay high prices for lots so they could tear down the existing homes. While average Ranch-style homes here sell for up to $1,244 per square foot, a small tear-down will fetch a premium per square foot. For example, a tear-down on Palm Avenue, with a single-family home of 819 square feet on a sub-dividable lot of 17,852 square feet, earned the highest local recorded price per square foot at $4,884. Additionally, 595 Jay Street, a tear-down with a lot of 19,900 square feet, was sold at $2,676 per square foot. 2015 was a ground-breaking year for North Los Altos, and DeLeon Realty expects the value of North Los Altos properties to climb even higher in 2016. Offering top-ranked schools like Almond Elementary, Santa Rita Elementary, Egan Junior, and Los Altos High, in addition to its increasingly vibrant downtown, North Los Altos remains a highly desirable Silicon Valley community.

Co u n t r y C lu b The Country Club neighborhood is a unique area of Los Altos that surrounds the prestigious Los Altos Hills Golf and Country Club. This neighborhood offers a more rural setting than traditional Los Altos neighborhoods, is a commuter paradise with easy access to freeways, and is a convenient walk to Rancho Shopping Center. Unlike the rest of Los Altos, this area is regulated by Santa Clara County instead of the city of Los Altos. The county has relatively lenient building codes and restrictions, allowing homeowners to get more expedited approval process and get more creative with their home designs. Homes in Country Club are more diverse and eclectic than most in Los Altos, yet they manage to maintain charm and prestige. Country Club remains one of the most desirable areas in Los Altos, boasting large homes, spacious lots, and winding streets. In addition, this neighborhood is one of the most affordable areas of Los Altos based on the price per square foot. From January 2015 through early December of the same year, 39 homes were sold in the area with an average price per square foot of $1,013, and an average of 3,039 square feet per home. Furthermore, homes here sit on large lots; the average lot size in Country Club is about 16,800 square feet. Additionally, this fine neighborhood offers exceptional schools. Loyola Elementary and Blach Middle are some of the highestranking schools in California. Considering the beautiful setting and the convenient location of Country Club, DeLeon Realty predicts that this area will continue to appreciate in value.

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2015 Neighborhood Summaries - Los Altos -Ashley

Th e H igh lan ds Nestled close to the Rancho San Antonio Open Space Preserve is the Los Altos Highlands neighborhood. Residents in this neighborhood have access to prominent Cupertino schools, and the neighborhood presents a lovely, quiet setting that is positioned between Foothill Expressway and Interstate 280. A significant advantage of buying within this area is that a buyer can get a larger lot with more square footage for less money per square foot. In 2015, the Highlands neighborhood proved to be one of the most affordable areas of Los Altos. Between January and late October 2015, only 13 homes sold in the area, which had a median sales price of $2.39 million. Additionally, the average price per square foot was $1,025, compared to $1,354 price per square foot in North Los Altos. Remarkably, all of the homes that sold stayed on the market for an average of only 10 days, showing that this neighborhood still enjoyed a competitive market. The Highlands neighborhood boasts a family-friendly setting mixed with active, energetic seniors, and also offers tremendous proximity to major highways, shopping destinations, hiking trails, and vibrant Silicon Valley companies. Additionally, the schools accessed by residents in this neighborhood tout excellent ratings. In 2013, Montclair Elementary School earned an API score of 969, Cupertino Middle School earned an API score of 934, and Homestead High School earned an API score of 873. DeLeon Realty predicts that this area will appreciate nicely in 2016 due to its excellent location, fine schools, and desirable community.

So u t h Los Alt os The South Los Altos neighborhood includes the area between Fremont Avenue, Homestead, Grant Road, and Highway 85. With treelined streets, a quiet sense of community, and easy access to highways and shopping, South Los Altos is an idyllic neighborhood that embraces family-oriented block parties. Once home to the late Steve Jobs, the strong community of South Los Altos is complemented by Grant Park, which is located on Holt Avenue. This gracious park serves as a meeting-place for family functions and boasts 4.5 sprawling acres, as well as a large community center. In 2015, only 17 homes had sold here by the end of October, and all except two went over the asking price. Like most of Los Altos, the South Los Altos neighborhood experienced low housing inventory and an impressive increase in prices. In 2014, the average price per square foot was nearly $904. However, the average price per square foot jumped to $1,200 in 2015, demonstrating the incredible appreciation that South Los Altos enjoyed just over the past year. Additionally, South Los Altos feeds into the Cupertino Union School District, which includes fantastic schools like Montclaire Elementary (API 969) and Cupertino Middle (API 934). Residents here also send students to Homestead High (API 873). Given the neighborhood’s excellent attributes, including its exceptional schools, DeLeon Realty expects South Los Altos to continue to appreciate.

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2015 Neighborhood Summaries - Los Altos Hills -Rob Th e Redw oods The Redwoods neighborhood in Los Altos Hills had an incredibly robust market in 2015 as savvy buyers realized the terrific values and relative convenience available in this area. The average price of a property here rose 32 percent over the past three years. The bellwether of change was the sale of 26307 Esperanza Drive. Designed in the style of a French manor house with a stucco façade, a slate-tile roof, and 5,713 square feet of living space, this property of 1.19 acres was exquisitely landscaped to create a resortlike setting and was located a couple of blocks from the town hall, yet within the boundaries of the Palo Alto Unified School District. This home was listed for $6.998 million, or $1,224 per square foot, on March 3rd. Eight days later, the property received eight offers and sold for $8.5 million, or $1,487 per square foot. Immediately thereafter, seller expectations were reset and the market adjusted. Indeed, the average price per square foot for the neighborhood rose from $977 per square foot in 2013 to $1,261 per square foot in 2015, yet updated homes in quiet locations that offered either great views or large, level lots easily exceeded this benchmark. Of the 26 homes that came on the market in 2015, eight had selling prices in excess of $5 million. Since the inventory of active listings has risen to meet demand, DeLeon Realty predicts that the Redwoods neighborhood will have average appreciation in 2016.

2015 Neighborhood Summaries - Portola Valley -Rob L a d e ra Ladera, which is Spanish for “hillside,” is an apt name for this enclave of 535 homes that is situated on 284 acres of rolling hills nestled between Portola Valley and I-280. The average selling price of properties here rose 40 percent over the past two years. Year Average Sales Price 2013 $1,756,071 2014 $2,081,783 2015 (December) $2,474,667 For the first time, all 18 homes that entered the market in 2015 sold for $2 million or more. The reasons for the rising demand of this neighborhood were threefold: the premier Las Lomitas Elementary School District, the gorgeous sylvan setting of the neighborhood with easy accessibility to both Silicon Valley and San Francisco, and the relative affordability of homes here compared to properties in Menlo Park and Palo Alto. The most expensive 2015 sale here provided a compelling example. 700 La Mesa Drive was a thoroughly remodeled, expanded twostory home with 3,245 square feet of living space and hillside views on a parcel of 15,000 square feet. The property came to market in August and received a preemptive offer within seven days for $2.85 million. In contrast, a similarly sized, finished property on a smaller lot in Central Menlo Park came to market in July for $4.75 million. For the discerning buyer willing to add 10 more minutes to the daily commute, the relative value of Ladera is very appealing. DeLeon Realty predicts that Ladera will continue to have above-average appreciation through 2016.

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2015 Neighborhood Summaries - Mountain View -Alex B l o ssom Valley With 24 properties sold, Blossom Valley was one of the more active neighborhoods in Mountain View in 2015. Considering its continuing popularity, the median sales price started at $1.95 million in February and reached $2.56 million in the heat of the buying season in May. Following traditional seasonality, this figure declined as the summer progressed, but jumped in September to $2.46 million, just off from the high earlier in the year, before declining as winter approached. This proved true for the price per square foot, further illustrating the market activity in Blossom Valley. Homes sold for $1,086 per square foot in February before hitting a high of $1,364 per square foot in April, declining until another peak occurred at $1,356 in September. Taking into consideration this seasonality, buyers had potential deals available the further they were from April and September. The strength of Blossom Valley’s market in 2015 was evidenced by several notable sales. 1823 Van Buren Circle achieved the highest price at $3 million for 2,852 square feet on an oversized lot of 12,531 square feet. Nicely remodeled homes of over 2,100 square feet, such as 1168 Barbara Avenue and 1909 Fordham, sold for the going rate of about $2.7 million. Even 853 Sladky Avenue, an older home of 1,280 square feet on a lot of 6,098 square feet with a death in the house, sold for $2.05 million. Due to its continued desirability, strong schools, and larger lots, Blossom Valley is projected to have above-average appreciation in 2016.

D o w nt ow n Mou nta i n V i ew Owners in Downtown Mountain View decided to hold onto their properties during 2015, creating a substantial lack of inventory. The spring selling season saw just 14 new listings and seven sales, while from July through October there were nine new listings and only 10 sales. With so little activity, the price per square foot ranged from $973 to $1,411, and the median sales price fluctuated between $1.55 million and $2.2 million. Offering historic homes alongside new row homes, Downtown’s varied housing typically causes a wider variance in pricing. However, the lack of consistent data during the year furthered unstable pricing trends in Downtown because agents did not have many comparable sales to utilize when determining value. In 2015, one could have bought the third most expensive home ever sold in Downtown for $2.282 million, a home of 2,497 square feet in excellent condition on a lot of 7,000 square feet just three blocks from Castro Street. For about $1.9 million, a buyer could have acquired either a like-new home of 1,525 square feet fairly close to Caltrain or an older, remodeled home of the same size in a prime location. If buyers were looking for a project and had time to wait for a trust sale, they could have purchased the lowest-priced property in 2015, a lot of 5,000 square feet with an aged cottage for $1.4 million. DeLeon Realty projects inventory will continue to decrease and dining and boutique shopping options will increase in dynamic Downtown Mountain View, resulting in continued above-average appreciation for this neighborhood.

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2015 Neighborhood Summaries - Mountain View -Alex

R e x M an or Rex Manor followed the overall trend of Silicon Valley with declining inventory in 2015. Rex Manor saw just 15 sales in 2015 as of November, a notable drop when compared to the 20 sales that had closed by November in 2014. Boasting one of the lowest costs to get into the market, Rex Manor was popular with first-time homebuyers and investors. Investors were particularly attracted to four tear-down properties selling from $840,000 to $1.06 million. With a new home at 1772 Vassar Avenue of 1,798 square feet selling for $1.928 million, these lots allowed builders a large profit margin, assuming $500,000 to $600,000 to build a new home of around the same size. Excluding these lots and the new home, there were 10 sales of existing homes in varying conditions and locations. Still, the median home price each month ranged on either side of $1.4 million, peaking at $1.474 million when home sales negotiated in the prime months of the spring buying season closed. Considering the average starting salaries of employees at Google, LinkedIn, and other nearby high-tech companies, this neighborhood was within easy reach of younger couples and families. These lower price-points will continue to attract young buyers and lead to more resources being invested in both the community and Theuerkauf Elementary, thus driving values up over the long term. Therefore, DeLeon Realty projects above-average appreciation for Rex Manor in 2016.

W a v er ly P ar k Waverly Park, the most sought-after neighborhood in Mountain View, had a year that followed the market trends of Silicon Valley. In 2015, Waverly Park started off slow with no transactions until March, but then heated up. After starting at $999 per square foot in March, Waverly Park peaked at $1,171 per square foot in April, maintaining $1,000 per square foot through June. The prime selling season saw 19 sales, but the summer and fall did not see significantly reduced inventory. What did decline was the price per square foot, which dropped to about $950 on average over the summer and through October, but picked up in November and December. This resulted in the summer and fall being excellent opportunities for buyers to get homes cheaper, but with nearly the same inventory to choose from. Notably, in 2015 Waverly Park also saw the most expensive homes sold in Mountain View’s history. For example, 135 Waverly Place, a home of 3,030 square feet on a lot of 8,276 square feet, sold for $3.45 million. Built in 2002, the home featured only aboveaverage finishes. Part of the reason for the high price was that the home was in a small pocket served by Los Altos schools, which continue to demand a premium. Following Waverly Park’s strong 2015, DeLeon Realty remains confident of the neighborhood continuing to see above-average appreciation in 2016 due to its strong schools, its multitude of significant remodels nearing completion, and the increasing desirability of the city as a whole.

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2015 Neighborhood Summaries - Cupertino -Lin Lin J o l l yman /Far ia The Jollyman/Faria neighborhood realized the highest appreciation of all nine neighborhoods in Cupertino with a 17.9 percent gain between 2014 and 2015. In 2014, the median sales price of a single-family home was $1.67 million and reached $1.969 million in 2015. Towards the end of 2015, a total of 26 homes had been sold in this neighborhood, despite the fact that zero homes were sold in January. Six homes here were sold in June, but homes stayed longer on the market during the summer while residents left for summer vacations. The median days on the market ranged from six in May to 19 days in July. Even with the high rate of appreciation between 2014 and 2015, there was also some slowing during the fall of 2015. The sale-tolist-price ratio dropped from 125.6 percent in February to 101.2 percent in September. The price per square foot of a single-family home dropped from $1,117 in February to $1,084 in September. However, since many larger homes close to Jollyman Park and William Faria Elementary School were sold for over $2 million, the neighborhood still managed to have a higher annual median sales price. Due to its easy access to De Anza College, top-ranking William Faria Elementary School, grocery and retail shopping, and other convenient businesses, this central Cupertino neighborhood is projected to continue to be in demand, resulting in steady appreciation.

R a nc h o R in con ad a By late 2015, the Rancho Rinconada neighborhood had 41 homes sold, the area with the third-highest number of units traded in Cupertino. The highest number of units sold, 83, was in the Monta Vista area, and Lynbrook was second with 75 homes, but both of these areas are much larger than Rancho Rinconada. The median sales price of a single-family home climbed from $1.3 million in 2014 to $1.46 million in 2015, showing 12.31 percent appreciation. The price per foot jumped from $902 per square foot in January 2015 to $934 per square foot by September. The 41 homes sold were mostly east of Finch and Hyde Avenues. The highest-priced home sold was 10351 S. Tantau Avenue, a three-year-old home that sold for $2.53 million. Considered large for this neighborhood, this home had 3,628 square feet on a lot of 9,583 square feet. The lowest-priced home was a 63-year-old tear-down, 10330 Menhart Lane, which sold for $1 million. Seven of the 41 homes sold for over $2 million while the remaining majority sold for under $2 million. Tear-down and fixer-upper Eichlers continued to be popular amongst developers, investors, and even first-time homebuyers who were willing to dedicate their efforts and time to build dream homes. Newer constructions also continued to do well, even with locational challenges. 2016 will see many changes occur within walking distance of this neighborhood. The well-anticipated Main Street project and the new Apple Campus 2 will both have grand openings next year, leading to high levels of projected appreciation.

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2015 Neighborhood Summaries - Cupertino -Lin Lin

Ly nb r ook Though it includes a West San Jose address, the Lynbrook neighborhood provides residents access to Cupertino schools. While Lynbrook High, housed in this neighborhood, is the second-highest performing high school in the Fremont Union High School District, similarly the median home price here is also the second-highest in the area. Median home prices climbed from $1.54 million in 2014 to over $1.7 million in 2015. There were a total of 79 homes sold in this neighborhood between January and late October of 2015, with the least homes sold in January and the most sold in May. In 2015, the price per square foot shot up from $923 per square foot to $1,055 per square foot towards the end of the year. The highest-priced home sold was a new construction at 1039 Avondale Street, but though the home was sold for $3.25 million, the price per square foot of $720 was low for the neighborhood. This home also had a lot of 10,365 square feet that was larger than typical. The least expensive home sold was $1.3 million at 5591 Kimberly Street, which sold for $1,186 per square foot. This Ranchstyle home, which had basic updates and backed up to busy Bollinger Road, sold for the same price as a tear-down Eichler in the Rancho Rinconada neighborhood. Additionally, eight of the 79 sold properties here went for over $2 million. As land development in Lynbrook has maxed out, steady appreciation is projected as demand for this area continues to grow.

M o n t a Vist a Monta Vista had more homes sold than any other Cupertino neighborhood in 2015. There were 88 single-family homes sold in this neighborhood out of 230 single-family homes sold throughout Cupertino. In 2014, the median sales price of a single-family home was $1.85 million, yet jumped to $1.969 million in 2015. However, this area realized a lower amount of appreciation than other Cupertino neighborhoods that enjoyed high home sales. January and February had the least number of homes sold, while April and May had the most. The price per square foot climbed from $856 in January to $919 in September. The highest-priced home sold within Monta Vista in 2015 was 13220 Peacock Court, which listed for $3.988 million but sold for about $3.638 million. This home, which offered great views of the city, 5,685 square feet of living space, and a lot of 5.92 acres located right outside of Cupertino’s boundaries, was also on the market the longest. The lowest-priced home sold was 21675 Olive Avenue, a 4 bedroom, 3 bath home that closed in February for $1.35 million. Surprisingly, no condominiums sold in this neighborhood, yet 18 townhomes sold here. The lowest-priced one, 10172 Firwood Drive, was a 2 bedroom, 2 bath unit of 1,009 square feet for nearly $842,000, while the highest price, $1.57 million, belonged to a 3 bedroom, 2.5 bath home of 2,253 square feet at 10744 Stevens Creek Canyon Road. Prices in the Monta Vista neighborhood are projected to steady in 2016.

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2015 Neighborhood Summaries - Redwood City -Chris E d g e wood P ar k Edgewood Park, arguably the most desirable neighborhood in Redwood City, started off with a slow first quarter in 2015. However, activity quickly picked up during the spring season. Due to the attractive mix of homes in the area, sales prices ranged from approximately $1.2 million to nearly $4 million, and many of these sales occurred between March and May. Towards the end of 2015, all but two homes sold well over their list prices, and all but one listing had sold within 15 days of entering the market. Over the previous five years, the number of transactions in Edgewood Park remained low, below 25 transactions annually, representing less than four percent of Redwood City’s total annual transactions. Consistently low inventory created demand, which also resulted in strong appreciation. With its close proximity to downtown Redwood City and downtown San Carlos, Edgewood Park allows its residents to enjoy the many amenities offered by both downtown areas, including fine shops and eclectic restaurants. While strolling along the treelined streets, you will see many homes that have gone through major renovations yet still maintain their early-1900s charm. Newly constructed homes are sprinkled throughout the neighborhood, and the graceful architecture has inspired many new Craftsman-style designs that fit well within the community. DeLeon Realty is confident that properties in this neighborhood will continue to appreciate due to the high-placing API scores of the local schools, along with Edgewood Park’s close proximity to two large downtown areas, two freeways, and public transportation.

M o u n t C ar mel Mount Carmel’s idyllic charm and close proximity to desirable downtown Redwood City is no longer a secret to savvy buyers. The Mount Carmel neighborhood appreciated nearly 20 percent in value compared to 2014 and, over the past four years, this neighborhood has had annual double-digit appreciation from 11 to 19 percent. Out of over 80 transactions, all but seven homes sold at or over the list price, and all but eight sold within 15 days of entering the market. Residents here enjoy access to up-and-coming schools. Clifford Elementary (K-8) has an API score of 817 and enrolls students living north of Hopkins Avenue, while John Gill Elementary, with an API score of 699, enrolls students living south of Hopkins Avenue and feeds into John F. Kennedy Middle, which has an API score of 745. All schools feed into Sequoia High, which has an API score of 801. Although John Gill Elementary has performed below expectations, it is transforming its academic program, which includes the new Mandarin Immersion Program that launched at the beginning of the 2015/2016 school year. Residents and homebuyers alike appreciate the appeal of the neighborhood’s leafy streets and the diversity of the inventory, which ranges from charming designs from the early 1900s to new constructions. Most of Mount Carmel is walkable to downtown Redwood City, and its location is excellent for commuters as it accesses public transportation and sits between two major freeways. These factors combine to establish Mount Carmel as a steady buyer favorite.

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2015 Neighborhood Summaries - Redwood City -Chris

F a rm Hills Located on the west side of Redwood City is the highly coveted neighborhood of Farm Hills. Known for its rolling hills, this neighborhood also features many properties that possess gorgeous views of the bay. Farm Hills is an excellent choice for buyers looking for a suburban lifestyle within a 10-minute drive of the many attractive amenities of the downtown area. In 2015, a historical high was set for the median sales price of a home here. Farm Hills saw nearly 30 percent appreciation compared to 2014. With a median sales price of $1.7 million, as opposed to $1.308 million in 2014, sales in this neighborhood represented approximately 11 percent of the number of transactions in Redwood City, translating to 14 percent of the city’s total sales volume due to this high median price. Supply over the previous 10 years has consistently remained low, which has resulted in elevated demand. Between 2006 and 2011, the number of annual transactions was less than 50 per year. Since 2012, this area has seen a slight increase in the number of transactions per year; however, the number of transactions has remained less than 60. Two nearby schools, Roy Cloud Elementary (K–8) and Roosevelt Elementary (K–8), both feed into Sequoia High. All three schools have earned API scores over 800. These high-performing schools, in conjunction with the neighborhood’s excellent location, will contribute to a continued increase in demand and appreciation. DeLeon Realty projects Farm Hills will set a new benchmark in 2016.

Eme ra ld Hills During 2015, Emerald Hills, the unincorporated neighborhood located northwest of Redwood City, had double-digit appreciation for the third year in a row. Known for its hills and winding roads, this neighborhood lets residents enjoy large lots, many of which offer views of the mountains and the bay. Its tranquil setting gives the area a country-like ambience, yet it is less than a 15-minute drive from the downtown areas of Redwood City and San Carlos. The median price for a single-family residence in 2015 was $1.75 million, which was an increase of over 16 percent from the previous year and a historical high for this neighborhood. Additionally, Emerald Hills was home to the highest sale of the year in Redwood City—a home that listed at $3.198 million but sold for $4.35 million—which was also the largest sale in the history of both Emerald Hills and Redwood City. With over 80 transactions, Emerald Hills represented approximately 23 percent of the total sales volume of Redwood City and its surrounding unincorporated communities. Glenloch Way, Sylvan Way, and Oak Knoll Drive serve as the boundaries of the two fine elementary schools assigned to this neighborhood. Residents north of those streets send their children to Clifford Elementary (K–8) while residents south of those streets send their children to Roy Cloud Elementary (K–8). Both elementary schools have API scores over 800, and both feed into Woodside High School. These attractive schools supplement the increasing appeal of Emerald Hills.

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2015 Neighborhood Summaries - Hillsborough -Ethan Ho meplace Located south of Burlingame Country Club and west of San Mateo Park, Homeplace is unquestionably one of the most attractive neighborhoods in Lower Hillsborough. We normally do not see many listings here, and 2015 was not much different. With 15 of 20 listed homes in Homeplace being sold and only one expired listing by the fourth quarter of 2015, the real estate market in Homeplace still remained very strong compared to other neighborhoods. In 2015, home sales in Homeplace started quietly with no transactions until March. The price per square foot stayed around $1,000 for the first half of the year but jumped to over $1,300 per square foot during June and July. From August to October, things cooled down slightly as the price per square foot dropped back to $1,000. This slowing illustrated that late summer and early fall are excellent times for interested buyers to buy into Homeplace. As of December 2015, the average sales price for Homeplace was $5.218 million, whereas the median was $4.35 million. 828 Seabury Road had the highest price tag of $9.87 million and was only on the market for 12 days. Conversely, the least expensive house here sold for $2.4 million at $987 per square foot. During 2015, we saw healthy appreciation and reduced inventory in Homeplace. Given the relatively strong, healthy macro-economy in the Bay Area, plus Homeplace’s proximity to downtown Burlingame, DeLeon Realty remains bullish of the market here and expects to continue seeing above-average appreciation in 2016.

B re w e r Su bdiv isi on/U p l a nd In recent years, the appeal of the prestigious neighborhood of Brewer Subdivision/Upland has driven the median home price of the neighborhood up to approximately $4 million. Prices in this neighborhood vary from $2 million for older Ranch-style homes to over $10 million for newer luxury homes. In 2015, we saw strong appreciation in Brewer Subdivision/Upland as this neighborhood enjoyed an average sales price of over $5.3 million and a median sales price of just about $5 million. Buyers preferred this area because of its prestigious Lower Hillsborough location and its short distance to El Camino and downtown San Mateo businesses. By the end of 2015, there were nine closed transactions out of 12 new listings that year, with July featuring the most. Real estate in this area did not sit very long on the market as most homes here were sold at or above list price in less than 20 days. Price per square foot skyrocketed to almost $1,600 in January. 96 Crystal Springs Road, an exceptional mansion of 5,300 square feet that sat on a lot of approximately three acres on the southeastern edge of the neighborhood, was sold in January for $9.2 million, at $1,588 per square foot, and set the tone for the rest of the year. Considering the neighborhood’s central location and many newly constructed homes, DeLeon Realty is bullish on continuing long-term price appreciation within the Brewer Subdivision/Upland neighborhood.

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2015 Neighborhood Summaries - Hillsborough -Ethan

Hi l l s bor ou gh P ark Hillsborough Park is recognized as one of the high-end districts of Hillsborough. In such a low-inventory neighborhood as this one, prospective buyers do not have many options nor much time to wait as the average time on market for 2015 was only 25 days. By December 2015, 17 new listings had entered the market and 14 of them had already been sold. The first quarter was fairly quiet with only one transaction in January. April and June each had three transactions as new buyers began to seize the opportunity to deposit money into Hillsborough Park. Many local older homes are worth around $2-3 million in the current market. However, newly constructed homes normally start with prices around $5-6 million, and a great number of new buyers are willing to pay premium prices to enjoy move-in ready luxury. In 2015, pricing was fairly flat as most listed homes were sold around the asking price. The average sales price in 2015 was $3.3 million and the median was $3 million. By October of 2015, 1035 Whitwell Road, a newly renovated home, had delivered the most impressive sale, earning over $1,300 per square foot while being on the market for less than a week. Meanwhile, the best deal was 1005 Black Mountain Road; the buyer paid only $3 million for this home of 6,300 square feet at less than $500 per square foot. Going into 2016, DeLeon Realty is confident about the continued appeal of Hillsborough Park and predicts above-average appreciation for this neighborhood.

R ya n Tr act Home to Hillsborough’s most notable, original homes and also boasting convenient access to downtown Burlingame’s shops and restaurants, Ryan Tract is one of the most desirable neighborhoods in Hillsborough. Home prices in Ryan Tract have been strong, and we have seen healthy appreciation here in recent years. Throughout 2015, we did not see many homes here change hands, and the home supply remained consistently limited. Prospective homebuyers did not really have a lot of options. There were only six closed transactions by October, and most of them were sold at parity. Also, the cost of entering the neighborhood was very high, as the average sales price in Ryan Tract was $6.73 million, and the median sales price was nearly the same at $6.74 million. By October, homes here had averaged 69 days on the market. Homes selling between $4 million and $6 million are normally much easier to sell here, compared to more elite homes that list above $8 million. For example, 808 Eucalyptus Avenue, a home of 10,000 square feet, sold for $9.55 million, or $955 per square foot, after sitting on the market for more than nine months and receiving a $1.3 million price reduction. However, 1751 Manor Drive was sold at its $4 million listing price off-market. For 2016, DeLeon Realty remains confident of Ryan Tract continuing to see above-average appreciation due to its Lower Hillsborough location, strong public schools, and desirability.

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2015 Neighbor hood Summaries - Condos/Townhomes -Mei P a l o A lt o Palo Alto, one of the most desirable and most expensive cities in the United States, had an average of about 20 percent appreciation for condos and townhomes in 2015. The year started off strong as many condos and townhomes sold within seven days of being on the market in February. During the busy spring season, there were 10 sales in March, lower numbers of sales in April and May, and then a peak of 14 sales in June, resulting in the highest price per square foot of the entire year at $1,116 in August. More sales during the summer came with new listings and consequently higher inventory between June and August, which led to as many as 13 active listings on the market in August. This created an excellent opportunity for buyers during the early fall as the price per square foot dropped to $881 in September. By October, condos and townhomes took an average of 36 days to sell, and there was still a good amount of inventory for buyers to choose from. Downtown Palo Alto and South Palo Alto were the two areas with the most activity for condos and townhomes. In 2015, a penthouse unit in Downtown Palo Alto sold for $1,526 per square foot. Palo Alto condos and townhomes are projected to continue to have high appreciation in 2016 due to the strong local schools, the areaâ&#x20AC;&#x2122;s convenient location near high-tech companies, and generally low inventory.

Su n n y v ale Sunnyvale, the second largest city in Silicon Valley, had an average of about 20 percent appreciation for condos and townhomes in 2015, a percentage comparable to appreciation in Palo Alto. The market experienced waves in 2015, starting January off with a low $592 per square foot, skipping up to $671 per square foot in May, and dipping before jumping back up in October. July was prime selling season with 32 sales, while a consistently good amount of inventory came on the market throughout the summer. For buyers, the best time was April, when 43 new listings entered the market and the price per square foot was still low. By the end of October, Sunnyvale had 251 condos and townhomes sold, slightly more than Mountain View. In the Las Palmas complex by SummerHill Homes, a newer 3 bedroom, 2.5 bath townhome with 1,851 square feet of living space sold for $1.488 million, setting a record-high sales price in Sunnyvale. Sunnyvale is proximate to many large tech companies, and the downtown area has been redeveloped with businesses, mixed-use developments, and new apartment complexes. Additionally, Cherry Chase (API 952) and Cumberland (API 947) are both outstanding local elementary schools that are considerable magnets for first-time homebuyers. While prices in Sunnyvale are still much more affordable compared to prices in cities like Mountain View, Palo Alto, and Los Altos, the ideal location, attractive schools, and diverse amenities will help the city continue to appreciate in 2016.

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2015 Neighbor hood Summaries - Condos/Townhomes -Mei

M o u n t ain View Mountain View, home to some of the most renowned high-tech companies in the world, had an average of about 17 percent appreciation for condos and townhomes during 2015. In January, the price per square foot started off at $687 and jumped to $790 per square foot later in the year. For sellers, the best time to sell occurred during the busy spring season between February and March, when the average market time was only eight days. For buyers, there was a flood of new inventory that hit the market in both June and July, which diluted the interest level and thus created many great buying opportunities for buyers. The average market time almost doubled in September, with homes averaging 15 days on the market before selling. This slower market followed the typical market trend as the slow winter season approached, which usually brings less inventory and therefore allows buyers who are not too picky to find some great deals. The Mountain View neighborhoods with the most activity for condos and townhomes were Whisman Station, the Crossings, and Castro City. The highest sales price was 1126 Boranda Avenue, a 4 bedroom, 3 bath townhome of 2,112 square feet in Cuesta Park which sold for $1.6 million. There were also a lot of new local townhome developments being built and sold. In 2016, Mountain View condos and townhomes are projected to continue to have solid appreciation based on the townâ&#x20AC;&#x2122;s lively downtown area, convenient location, and high-performing and improving schools.

L o s A lt os Los Altos, historically an agricultural town with orchards, vineyards, and ranches, has grown into a charming city with a quaint downtown. It had about four percent appreciation for condos and townhomes up through October 2015, with a total of 37 sales. The average sales price for a condo or townhome in Los Altos was $1.405 million as of October 2015. The year started off with $790 per square foot, which shot all the way up to $1,073 per square foot in November and December. While inventory for condos and townhomes in Los Altos was low compared to surrounding cities, the average market time was still fairly long at 23 days. This may have been due to the large amount of clientele who were downsizing from single-family homes in areas like Atherton, Woodside, and Portola Valley to smaller condos within this nice, quiet town. Most condos and townhomes here are located in North Los Altos, with a few in the Highlands neighborhood. There are more condos than townhomes for sale in Los Altos, especially near the downtown area, where there tend to be older condos with secured gates for safety and convenient walkability to the Village. In addition, there are two newer condo complexes on El Camino Real that may appeal more to first-time homebuyers. Our projection for condos and townhomes in Los Altos during 2016 is below-average appreciation, due to the majority of downsizing buyers for condos in this area, the rustic environment, and the older styles of most available condos.

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S p r i n g 2 0 16 Pr o p e r t y S h owc a s e

THE DELEON TEAM IS PROUD TO PRESENT THESE WONDERFUL

UPCOMING LISTINGS. MANY OF THESE HOMES ARE NOT YET ON THE MLS; HOWEVER, YOU CAN VISIT WWW.DELEONREALTY.COM FOR

MORE INFORMATION ON THESE AND SEVERAL OTHER PROPERTIES.

DeLeon Listings 28500 Matadero Creek Ln., Los Altos Hills O ff er ed at $11,998,000

Dreamy Custom-Built Tuscan Estate Custom-built on a stunning property of 4.4 acres (per county) overlooking the bay, this 6 bedroom estate of approx. 9,000 sq. ft. (per MLS) includes 5 full and 3 half bathrooms, plus a cabana with 1 full bath. Blending Italianate beauty with modern luxuries, this welcoming home offers outstanding living spaces. The immaculately landscaped grounds provide a designer play fort, an infinity pool, and a scenic hilltop awaiting further development. Palo Alto Hills Country Club and top Palo Alto schools are easily accessible (buyer to verify eligibility).

For video tour & more photos, please visit: www.28500Matadero.com

83 5 P au lson Ci rc l e, Menl o Pa rk O ff er ed at $2,488,000

Stylish Home in Desirable Community Tucked within the sought-after community of Lane Woods, this 4 bedroom, 2.5 bathroom home of 2,300 sq. ft. (per county) comes with a lot of 4,594 sq. ft. (per county). Soaring ceilings and plantation shutters lend quiet luxury to the large, stylish interior spaces, and the home also includes an attached two-car garage and an inviting backyard retreat. Within a short drive of exciting downtown Palo Alto, this home is near beautiful Burgess Park and is also moments from Stanford University, Sand Hill Road, and excellent Menlo Park schools.

For video tour & more photos, please visit: www.835Paulson.com

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DeLeon Listings 1 08 Av on Te rra ce, Sunnyval e O ff er ed a t $1,488,000

Pristine Home in Perfect Location Built in 2013, this 4 bedroom, 2.5 bath home of 1,831 sq. ft. (per county) has a lot of 3,095 sq. ft. (per county) and enjoys a location moments away from local shopping, dining, and recreation. Presenting a breezy, open floorplan and fine finishes like plantation shutters and hardwood floors, the home includes a private setting, a luxurious kitchen, an attached two-car garage, and a drought-tolerant backyard. Sunnyvale Community Center, local parks, and exceptional Cupertino schools are all nearby (buyer to verify eligibility).

For video tour & more photos, please visit: www.108Avon.com

14303 Saddle Mountain Drive, Los Altos Hills

O ff er ed at $4,498,000

Handsome Home with Views Delivering breathtaking bay views, this 4 bedroom, 3.5 bathroom home of 4,895 sq. ft. (per county) sits on a hillside lot of 1.14 acres (per county) and offers an elegant interior, new interior colors and carpets, and spacious living areas. The main gallery opens to a sunken living room, a formal dining room with a butler’s pantry, and a family room adjoining an island kitchen with a large breakfast area. Upstairs, one bedroom may easily convert to an office, while the master suite connects to a patio overlooking the gorgeous grounds. Within moments of Palo Alto Hills Golf and Country Club, this home is also near Stanford University and Ladera Country Shopper.

For video tour & more photos, please visit: www.14303SaddleMountain.com

DeLeon Listings 11860 Francemont Drive, Los Altos Hills O ff er ed at $4,888,000

Luxurious Old World Villa Meticulous craftsmanship and beautiful details infuse high style into this 6 bedroom, 6 bath home of 5,565 sq. ft. (per appraisal) that occupies a private lot of 1 acre (per county). Bamboo floors and soaring ceilings grace the sensational interior, which presents three fireplaces, stone-clad bathrooms, and a lower level with a rec room. Filled with gracious entertaining areas, this fine home also includes an attached three-car garage and offers easy access to hiking trails and top Los Altos schools.

For video tour & more photos, please visit: www.11860Francemont.com

1 24 44 R obleda Roa d , Los A l to s H i l l s O ff er ed at $3,988,000

Stylishly Updated Home with Poolhouse Be enchanted by this terrific gated property of approx. 0.81 acres (per county), which features an extensively updated 5 bedroom, 3.5 bath home and a 1 bedroom, 1 bath poolhouse with a combined living area of approx. 5,000 sq. ft. (per county). Exciting features like randomplank oak floors, LED lighting, cathedral ceilings, two wet bars, and three fireplaces add exuberant luxury to this home. The property also provides a paver motor court, a three-car garage, and a pool, and is just moments from downtown Los Altos and excellent Los Altos schools (buyer to verify eligibility).

For video tour & more photos, please visit: www.12444RobledaRoad.com

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DeLeon Listings 97 2 Addison Ave nue, Pa l o A l to O ff er ed a t $5,988,000

Crescent Park Jewel This wonderful 6 bedroom, 5 bath home of 4,831 sq. ft. (per county) occupies a tree-shaded lot of 12,433 sq. ft. (per city) within walking distance of exciting University Avenue. In addition to its prestigious Crescent Park setting, this stately home offers an array of luxurious amenities and includes a tandem three-car garage. Eleanor Pardee Park is just steps away, and downtown shopping and dining attractions and terrific Palo Alto schools are all easily accessible.

For video tour & more photos, please visit: www.972Addison.com

2300 + 2308 Amherst Street, Palo Alto O ff er ed at $3,488,000

Two Fine Homes in College Terrace These two homes occupy a peaceful lot of 6,000 sq. ft. (per city) in distinguished College Terrace. One is a 3 bedroom, 3 bath multi-level home of 2,827 sq. ft. (per county) that enjoys a walk-out lower level, while the other 2 bedroom, 1 bath home of 974 sq. ft. (per county) offers a private lawn and a deck. The property backs up to a trail leading to scenic Kite Hill, and California Avenue and excellent Palo Alto schools are moments away.

For video tour & more photos, please visit: www.2308Amherst.com

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DeLeon Listings 2 8 A rast r ader o Ro a d , Porto l a V a l l ey O ff er ed a t $6,798,000

Elite Country Estate and Vineyards Bursting with European grandeur, this richly updated 4 bedroom, 4.5 bath home of approx. 5,800 sq. ft. (per county) boasts a gated estate of approx. 5.8 acres (per county). Features like three fireplaces, gold-plated fixtures, onyx countertops, and floors of limestone and Dutch white oak embellish the multi-level interior, while the property includes three vineyards, a three-car garage, a stable, a wine-making cellar, and a custom pool with a spa. The estate’s elite setting is minutes from prestigious Woodside Priory and exceptional Palo Alto schools (buyer to verify eligibility).

For video tour & more photos, please visit: www.28Arastradero.com

28001 Arastradero Road, Los Altos Hills O ff er ed at $4,998,000

Spacious and Convenient Custom Residence Grand spaces with thoughtful details define this private property, which includes a custom-built 5 bedroom, 5.5 bathroom home of 6,025 sq. ft. (per county) and a lot of 1.07 acres (per county). Rich elements like plantation shutters, intricate skylights, and oak hardwood floors will impress your guests, while a central vacuum system, multi-zoned heating and cooling, and considerable storage enable convenient everyday living. The open layout includes a two-story great room and a spacious dining room, while the immense island kitchen opens to the family room. Terrific spaces like a home office, an extensive master suite, and two lofts enhance the home, which also provides two staircases, two wet bars, three fireplaces, and an attached three-car garage. The sizable gated grounds offer a fenced tennis court and a heated lap pool with a spa.

For video tour & more photos, please visit: www.28001Arastradero.com

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DeLeon Listings 1 85 Fair O aks Lane, A the rto n O ff er ed a t $7,988,000

Romantic French Estate Transport your guests to the south of France within this magnificent custom home of 5,494 sq. ft. (per plans) with 5 bedrooms and 5 full and 2 half bathrooms. Formal gardens join a garage with an additional guest suite with 1 bathroom on these gated grounds of 1.05 acres (per county). Only two years old, this breathtaking construction blends Old World charm with modern luxuries. Hickory floors, frieze molding, and intricate wall and ceiling treatments mingle with chandeliers, antique doors, and marble mantelpieces imported from France. The interior includes formal living and dining rooms, four fireplaces, a wine cellar, and a sumptuous kitchen. A family room opens to a columned loggia, while a gorgeous master suite awaits upstairs.

For video tour & more photos, please visit: www.185FairOaks.com

280 Nathhorst Avenue, Portola Valley O ff er ed at $5,988,000

Gorgeous Home for Entertaining Seamless transitions between indoor and outdoor living areas define this pristine 5 bedroom, 5 bathroom home of 5,700 sq. ft. (per county), which occupies a lush lot of approx. 1.28 acres (per county). Solar-equipped and custom-designed, this residence boasts a home automation system, mahogany doors and woodwork, and multi-zoned radiant heating. Centered by an island kitchen that opens to breezy living and dining areas, the interior provides a wall of folding windows that reveals the wide slate terrace. The lower level exhibits a gym, a media room, and a wine cellar, while fine additional features include a seductive master suite, a three-car garage, and a scullery.

For video tour & more photos, please visit: www.280Nathhorst.com

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DeLeon Listings 11 7 Middlefiel d Ro a d , A the rto n O ff er ed a t $1,945,000

Perfect Entry Point into Atherton Thoughtfully updated and carefully maintained, this 2 bedroom, 1.5 bath home of 1,590 sq. ft. (per county) on a gated lot of 10,360 sq. ft. (per county) offers the perfect opportunity for securing a prestigious Atherton address. This lovely home features handsomely remodeled kitchen and bathroom spaces and a lower level, ideal for expansion. Boasting mature fruit trees and a detached two-car garage, this property also enjoys close proximity to Holbrook-Palmer Park and Encinal Elementary (API 930) (buyer to verify eligibility).

For video tour & more photos, please visit: www.117Middlefield.com

1 60 Hedge Ro a d , Menl o Pa rk O ff er ed at $1,498,000

Updated Home Enjoys Backyard Retreat Warm and welcoming, this substantially remodeled 3 bedroom, 2.5 bath home of 2,184 sq. ft. (per plans) offers a lot of 5,610 sq. ft. (per county). Fine features like oak floors and sound speakers enhance the open gathering areas, while the inviting backyard retreat provides fruit trees and a fire-pit. Other highlights include dual-zone heating, a custom stained-glass window, an attached two-car garage, and a kitchen with custom cabinetry and stainless-steel appliances. This delightful home is near Flood Park and exceptional Menlo Park schools.

For video tour & more photos, please visit: www.160Hedge.com

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DeLeon Listings 4 0 9 P r at t Lane, Pa l o A l to O ff er ed a t $1,498,000

Convenient and Captivating Detached Home Modern luxuries and a central, well-manicured neighborhood enhance this multi-level 4 bedroom, 3.5 bathroom home of 2,423 sq. ft. (per county). Engineered hardwood floors, tinted windows, solar panels, and LED lighting are just a few of the home’s many fine amenities, and the interior includes a luxurious kitchen, a gracious master suite, and a spacious loft. Complete with an attached two-car garage, this home is moments from popular shopping and dining attractions along El Camino Real and also near sought-after Palo Alto schools.

For video tour & more photos, please visit: www.409Pratt.com

1 Homs C ourt, H i l l sb oroug h O ff er ed at $9,888,000

Old World Charm, Modern Luxuries Be enchanted by the Old World elegance of this sprawling 7 bedroom, 7.5 bathroom mansion of 11,425 sq. ft. (per appraiser) that occupies majestic gated grounds of 1.42 acres (per county) in one of the most desirable pockets of Hillsborough. Designed by George H. Howard and built circa 1904, this historic estate boasts formal common rooms, hardwood floors, leaded-glass windows, a wine cellar, and seven fireplaces, alongside luxurious updates like multi-zone heating and cooling and a one-of-a-kind island kitchen. Balconies, period mantelpieces, and a staggering array of authentic features enhance the flexible floorplan, while the immaculate grounds provide a tennis court, a solar-heated pool and spa, expansive lawns, a rear gate, and a detached 2-car garage with 1 additional bathroom.

For video tour & more photos, please visit: www.1Homs.com

DeLeon Listings 15 19 5 B eck y Lane, Monte Sereno O ff er ed a t $3,988,000

Country Charm and High-Tech Features Blending rustic charm with luxurious technology, this gorgeous 4 bedroom, 3.5 bath home of 5,147 sq. ft. (per appraisal) features a lot of over 1 acre (per county). Ideal for entertaining, the home offers a great room that can double as a home theater, and spectacular outdoor spaces that include a manicured backyard with a breathtaking pool and waterfalls. Other highlights include a home automation system, a 450-gallon aquarium, and an attached four-car garage. La Rinconada Country Club and top Campbell schools are moments away.

For video tour & more photos, please visit: www.15195Becky.com

20 1 Mou n t ain Wood La ne, Wood si d e O f f er ed at $14,988,000

Premier Opportunity to Build Equestrian Estate Surrounded by illustrious Woodside properties, a private road leads to this oak-lined property of over 8 acres (per entitlements summary). Architect Michael G. Imber and landscape architect Robert E. Truskowski collaborated on preapproved plans that ensure these private grounds, which host the historic stables of Champagne Paddocks, retain their timeless charm while balancing a luxurious country estate that includes a poolhouse and a subterranean garage. Despite this property’s rustic environment, you will be minutes from the center of affluent Woodside and near prestigious Phillips Brooks School and Woodside Priory.

For video tour & more photos, please visit: www.201MountainWood.com

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DeLeon Listings 23 99 1 Spaldin g A venue, Los A l to s O ff er ed a t $1,998,000

Delightful Home in Excellent Location Ideally located near commuter routes and local necessities, this updated 4 bedroom, 3 bath home of 2,400 sq. ft. (per plans) offers a lot of 7,800 sq. ft. (per county). The light-infused interior provides open living and dining areas and a spacious kitchen with a home office. Highlights include a fireplace, a lower-level guest suite, a potential wine cellar, and a two-car garage, while the fine backyard features multiple decks and a hot tub. Top-performing schools and Los Altos Golf and Country Club are moments away.

For video tour & more photos, please visit: www.23991Spalding.com

27860 Via Corita Way, Los Altos Hills O ff er ed at $4,888,000

Stylishly Updated Home with Chic Poolhouse Sleek, modern spaces accent this 4 bedroom, 3.5 bath home, which includes a poolhouse with 1 bathroom and a combined living area of 4,997 sq. ft. (per plans), all on a lot of 1.03 acres (per county). Boasting an extensive remodel finished in 2014, this solar-equipped home showcases sophisticated features, while the state-of-theart poolhouse provides a media lounge with a bar. The grounds display a garden, terraces, and a pool with a spa, and trails and excellent Palo Alto schools are close by.

For video tour & more photos, please visit: www.27860ViaCorita.com

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DeLeon Listings 1 89 55 McFar land A venue, Sa ra to g a O ff er ed a t $1,798,000

Modernized, Spacious, and in Prime Location Located a quick stroll from local shopping and dining, this updated 4 bedroom, 2 bath home of 2,094 sq. ft. (per plan records) enjoys a lot of 10,004 sq. ft. (per county). Tasteful details accent the interior, which presents open living and dining areas with a fireplace and a graciously remodeled kitchen. Other features include a two-car garage and a wonderful backyard offering outdoor living areas and fruit trees. El Quito Park and excellent Campbell Union schools are nearby (buyer to verify eligibility).

For video tour & more photos, please visit: www.18955McFarland.com

5 O ak For est Co urt, Po rto l a V a l l ey O ff er ed at $3,488,000

Private Woodland Paradise Lofty ceilings and oversized picture windows emphasize the airy, welcoming floorplan of this 4 bedroom, 4.5 bath home of 4,210 sq. ft. (per county) on a wooded lot of approx. 1.52 acres (per county). Surrounded by undevelopable common area to ensure privacy, this beautifully maintained home presents spacious living areas designed for entertaining, an office, a luxuriously remodeled Tuscan-inspired master bathroom, and an attached three-car garage. This nature-lover’s haven is a quick stroll from numerous trails and easily accesses local attractions.

For video tour & more photos, please visit: www.5OakForest.com

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DeLeon Listings Woodsi d e H o me O ff er ed a t $6,488,000

Privacy, Comfort, and Prestige Beautifully manicured grounds surround this 4 bedroom, 4.5 bath home of 4,830 sq. ft. (per county) with a lot of approx. 1.25 acres (per county). Built in the 1920s, this elegantly updated manor blends fine craftsmanship and luxurious elements. The home includes a three-car garage, a flexible fifth bedroom, and a wine cellar with a tasting room, while the grounds offer a rose garden and a pool with a spa. Located off prestigious Mountain Home Road, this Woodside manor balances peaceful seclusion with local convenience.

For video tour & more photos, please visit: website upon request

961 Ormonde Drive, Mountain View O ff er ed at $1,488,000

Lovely, Updated Home in Perfect Location Occupying a corner lot of 7,128 sq. ft. (per county) along a quiet street, this 4 bedroom, 2 bath home of 1,576 sq. ft. (per county) exudes warmth and convenience. This charming residence showcases hardwood floors, a tastefully remodeled kitchen, and a family room with a fireplace, and also provides an attached two-car garage and a private backyard with a covered patio. Granting easy access to Google, this home also features walkability to local shopping, Stevenson Park, and Theuerkauf Elementary (buyer to verify eligibility).

For video tour & more photos, please visit: www.961Ormonde.com

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DeLeon Listings 4 9 5 C u est a D ri ve, Los A l to s O ff er ed a t $2,298,000

Remodeled Home with Backyard Paradise Luxurious updates define this 3 bedroom, 2 bath home of 2,420 sq. ft. (per county) which sits on a lot of 12,226 sq. ft. (per county). Spacious living areas, a sky-lit kitchen, and a sizable master suite are found inside, while the stunning backyard retreat includes fruit trees and a large koi pond. The property also provides a detached two-car garage and a bonus room, and is near downtown Los Altos and walking distance from Covington Elementary (API 975) (buyer to verify eligibility).

For video tour & more photos, please visit: www.495Cuesta.com

4 14 0 O ld Adobe Ro a d , Pa l o A l to O ff er ed at $7,388,000

Executive Masterpiece in Palo Alto Hills Built in 2014, this 5 bedroom, 5.5 bath mansion of 5,552 sq. ft. (per county) occupies a lot of approx. 1 acre (per county) in peaceful, prestigious Palo Alto Hills. Glamorous details like intricate mosaics, four indoor fireplaces, and a home automation system accent the jaw-dropping spaces, which include a home theater, a library, and a dining room with a wine cellar. Boasting approx. 2,100 sq. ft. of terraces, balconies, and a loggia, this showstopper sits on newly landscaped grounds near top-ranking Palo Alto schools and major Silicon Valley companies.

For video tour & more photos, please visit: www.4140OldAdobe.com

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- DeLeon Insight January 2016 71â&#x20AC;&#x201A;

DeLeon Market Conditions Atherton Snapshot

Cupertino Snapshot

Hillsborough Snapshot

DeLeon Market Conditions Los Altos Snapshot

Los Altos Hills Snapshot

Menlo Park Snapshot

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DeLeon Market Conditions Mountain View Snapshot

Palo Alto Snapshot

Portola Valley Snapshot

DeLeon Market Conditions Sunnyvale Snapshot

Redwood City Snapshot

Woodside Snapshot

- DeLeon Insight January 2016 75

PRSRT STD ECRWSS U. S. Postage Paid Palo Alto, CA Permit No. 1

DeLeon Realty 2600 El Camino Real, Suite 110 Palo Alto, CA 94306

LOCAL POSTAL CUSTOMER

Selling Your Home in Silicon Valley for Top Dollar Thursday, February 18th, 2016 6:00 - 8:00 p.m.

Please join DeLeon Realty at our February Seminar. Gain insight from Michael Repka, the Managing Broker and General Counsel of DeLeon Realty, into how you can best prepare and market your home to achieve the maximum sales price. Also hear the latest market updates from Ken DeLeon, the most successful real estate broker in Silicon Valley.

Venue: Palo Alto Hills Golf & Country Club, Grand Ballroom 3000 Alexis Drive, Palo Alto

To RSVP, please contact Kimberly Vigil at 650.543.8500 or by email: RSVP@deleonrealty.com ®

650.488.7325 | www.deleonrealty.com | CalBRE #01903224