A Danville Art Gallery In Disguise

Danville California is a town that loves to support the local arts.  Take a stroll along Hartz Avenue, and you will pass quaint boutiques and galleries, and depending on the time of year, you may encounter an art fair or two.

The art does not stop there.  Danville?s neatest gallery is incognito, operating under more utilitarian guises.  The next time you visit downtown Danville, take a closer look at the garbage before you throw away the paper vessel that carried your precious Starbucks Caramel Macchiato.  You might be surprised to see colorful tile art adorning the garbage can enclosure.  Now take a few steps down the street and check out the next garbage.  You?ll discover another one-of-a-kind piece.

Danville?s most public gallery of unique art is its collection of trash containers throughout the town?s downtown.  The Public Tile Art Enclosure Project began in 1996 in an attempt to replace and beautify the town?s old wine barrel garbage containers.  Each piece is unique, submitted by local artists and community groups, and displays themes representing the quintessential way of life in Danville.  There are tile art pieces on the local bird life, the historic train station, and even events such as Danville?s Hot Summer Nights.

What a wonderful way for the town and the community to work together to beautify even the most mundane and pragmatic objects.  It?s those little details that really make Danville a beautiful place to live.

March 09, 2010

Pleasanton Valley/Birdland Pleasanton Market Update Mar 2010

The real estate market in the Pleasanton Valley/Birdland neighborhood of Pleasanton actually slowed considerably during the past six months. There were 13 closed sales during the past six months and there are another 3 sales currently pending, while there were 32 closed sales during the previous six month period. With only one active listing, there isn?t much inventory currently available to sell.

The active listing on Raven Road is listed for $769,950, which equates to $380 per square foot. It has been listed for five days. It is not distressed (REO or short sale).

The three pending sales are listed for $751,283, on average. That is $332 per square foot. They were listed for an average 12 days. The Shearwater Ct. home is a short sale and the property on Starling Ct. is REO.

There have been approximately two closed sales a month in Pleasanton Valley/Birdland. On average, the 13 closed deals were sold for an average price of $642,100, or $345 per square foot, which was 97% of the asking price. The homes sold, on average, in 46 days.

Located in the geographic heart of Pleasanton, Pleasanton Valley and Birdland have easy access to schools, parks, freeways and just about everything in Pleasanton. They include one and two story homes with two and three car garages. “Birdland” is so named because the streets are named after common birds.

March 09, 2010

The Loan Contingency - Why it Matters

There are several contingencies in a standard Real Estate Purchase Agreement. One of the main contingencies is the loan contingency. Basically, the buyer will specify the terms of the purchase on the first page of the purchase agreement, including the loan amount, as well as the terms of the financing the buyer is attempting to obtain. The intention is for the transaction to be contingent upon the buyer’s ability to obtain financing at the rate and terms indicated in the purchase agreement, as well as the loan amount. So why does it matter?

The loan contingency and stated terms of the financing section protects the buyer against sharp increases in interest rates or unanticipated changes in loan terms. For example, the buyer may have stipulated a loan amount of $900,000 at a rate not to exceed 5.5% fixed with 0 points. If the buyer is not able to obtain a $900,000 loan at the stipulated rate and terms, then the buyer may cancel the agreement. For example, if rates shoot up and the market rate becomes 6% for this loan, the buyer will not be obligated to proceed. Obviously, the buyer can still elect to move forward in this situation, but they are not obligated to.

As a seller, you should insist on a pre-qualification letter, or better yet, a pre-approval letter from a lender indicating that the stipulated rate and terms are obtainable at the time the buyer submits the offer. It is also important for sellers to pay attention to the financing terms specified. If the buyer stipulates an interest rate or terms that are not available today, you might be in essence giving the buyer a free option on the property, as they can indicate prior to contingency removal that they are unable to obtain this rate and terms, and thereby cancel the agreement. Make sure the rates and terms are achievable.

There is another side to this. Implied in any contract is the covenant of good faith and fair dealing. If a buyer purposely derails the loan process by not providing information to the lender, or instructing the lender not to order the appraisal, or otherwise sabotaging the process so they can claim that they were not able to obtain the loan, one could make a strong argument that the seller might be entitled to the buyer’s deposit on the basis that they acted in bad faith. Obviously, other factors outside the buyer’s control can also derail the loan contingency, such as a job transfer, loss of a job, or other financial catastrophe that makes it impossible for the buyer to obtain a loan. In these cases, the buyer can cancel the agreement if they have not removed their loan contingency.

Sometimes, Realtors do not stipulate the buyers rate and terms, and instead the buyer’s agent will add “buyer to obtain the best possible rate and terms available”. This can be dangerous, however, if rates shoot up or the lender the buyer was planning on using suddenly decides to discontinue the loan program the buyer was counting on. Strictly from a contractual perspective, that kind of language may obligate the buyer to get any loan available, regardless of the rate and terms, in order to fulfill the contract.

Lastly, the buyer should definitely lock in their loan rates and terms as soon as possible to prevent a situation where the rate goes up and they no longer qualify, especially if they have removed their loan contingency.

Like many clauses in the contract, the loan contingency is there to protect the buyer against unanticipated changes that might impact their capability or willingness to proceed with the purchase. Buyers should carefully consider the impact of this contingency, and (as always) consult with an attorney for advice relating to their specific situation.

March 09, 2010

Pleasanton Hills Pleasanton Market Update Mar 2010

With only about one sale every three months on average, the real estate market in the Pleasanton Hills neighborhood of Pleasanton remains very quite. There have been only five sales dating back to June 2008 and there are no current listings or pending sales.

The closed sales sold for an average price of $960,250 or $313 per square foot, which was 92% of the asking price. Most neighborhoods in the Tri-Valley have been seeing sales prices of 95% - 100% of the asking price. The homes were on the market, on average for 70 days. Only one of the homes (4931 Monaco Dr.) was distressed (it was bank owned).

Built in the mid-1980s, these Victorian inspired homes are located close to downtown Pleasanton near the intersection of Bernal Ave and First St. Several of the homes in this desirable neighborhood have fabulous views of the Pleasanton Ridge and downtown.

March 09, 2010

Don?t Cry For Me ? I?m in Argentina

Well, not really. But it looks pretty tempting, especially after looking at Cafayate, Argentina, a new 1300 acre luxury home enclave that will ultimately have 360 homes built. It?s a bit remote though. After flying to Buenos Aires, you are still another two hour flight and three and a half hour drive away.

Estancia de Cafayate is the brainchild of the American financial author and investor Doug Casey, who calls himself an ?anarcho-capitalist? and was a classmate of former President Bill Clinton at Georgetown University in Washington.

?Here we have fresh air, wonderful hiking, fine wines and great food, and Argentina generally offers an ideal combination of culture and climate at a low cost,? he added. ?Think 10 percent of the value of anything comparable in Europe, for example.?

The development covers 1,360 acres, in a district where tourism and winemaking (midrange whites from the torrontés grape in particular) ? not to mention subdivision preparation and golf course landscaping ? are bringing evident prosperity. Some 500 of the 12,000 residents from the nearby town of Cafayate have worked at the development over the last three years. For the moment, only a handful of hacienda-style properties have been built, but when the foundations of more homes are dug, and residents are ready to hire staff, that number is set to rise.

Mr. Casey expects that, when the shared facilities are completed in 2014, the Estancia de Cafayate will have around 50 of its projected total of 360 homes. Plots are being sold for an average of a little more than $6 per square foot, and range in size from 16,145 square feet to 18,300 square feet. In Argentina, land for luxury residences is routinely priced in U.S. dollars. Building costs, meanwhile, are averaging about $400 per square foot.

With a climate similar to the western United States, this might become the next big thing. I just gotta brush up on my Spanish!

Source: NY Times

March 09, 2010