Thinking of jumping into the Silicon Valley real estate market this year, before the conforming loan limits rise up again at the end of 2008? It is a buyers market in Santa Clara County, just like in most of the country, so if you are dealing with increasing rents, this may be the opportunity you've been waiting for.

Something to factor in, though, if you are looking at a condominium, townhome, or other property in a "planned unit development", is the monthly Homeowner Association Fees.

What do they usually cost?

How much do they go up each year?

What are the odds of getting stuck with a "special assessment"?

These are a few of the questions you should ask and areas you must investigate if you decide to buy a condo or townhouse.

Part of the answer will depend on location. Fees for lavish condos or townhomes in Saratoga, Monte Sereno, Los Gatos, Almaden, Los Altos, and Palo Alto will tend to be more than in downtown San Jose, Morgan Hill, Berryessa, Alviso, or more affordable areas.

This is all the more true if the community sits on an earthquake fault or is so close to it that the complex has earthquake insurance. Such is the case with Saratoga Oaks in downtown Saratoga. The earthquake and blanket insurance policies for Saratoga Oaks are not part of the monthly assessment - but there are several months a year in which there are additional payments due to cover these two types of insurance, and they add up to a large chunk of change over the course of 12 months. (And it will not be evident on the MLS printout - that only shows the "regular" payment amount will show there. So for instance, a 2 bedroom unit there might run $385 per month for the normal assessment, but on some months there will also be an earthquake assessment of nearly $450 and other months there will be blanket insurance assessments too. It all adds up.)

Most of the answer, though, will depend on amenities and what's covered. Communities with pools, rec rooms, tennis courts, playgrounds, etc. will always run more than those with the bare bones. Which sells better? Many people want a pool, but many others don't - and don't want to pay for it either!

In most communities, front yard landscaping, the roof, exteriors of the homes and paving are included. But not always!  Last year I sold a home in West San Jose and while the roof was covered, exterior walls were not - so the seller had to pay for termite damage that was discovered there. That's unusual, though.

What are the typical costs for an HOA?  For a condo complex or townhouse complex in Silicon Valley, it's not unusual to see $300 or so per month due for a community without a pool or other special features. In places like The Villages (a retirement community in the east foothills of San Jose), some condos, townhomes, and houses do not have golf course privlidges, and their dues are not too steep. But those which do support the golf course may have dues close to $500 per month.

Finally, it should be remembered that unlike mortgage interest, the cost of the monthly homeowners association fee cannot be deducted from your income taxes, unfortunately. Talk with your lender or financial planner for input on a budget for HOA dues that makes sense for you. Or consider stretching a little and get into a single family home, if possible!

Whether you are looking to buy a condo, townhome, patio home, or single family home in Silicon Valley, it's imperative that you revisit the neighborhood multiple times before deciding to buy (or to complete the purchase). This is an important part of your "due diligance" as a home buyer.

Why revisit so many times? Because certain key things may differ from hour to hour or workday to weekend day:

• - noise levels
• - the number of parked cars on the street (few is good, many suggests overcrowding)
• - neighborhood activity (good or bad: people strolling, walking dogs is a good sign - too many yard sales or other activity may not be a plus)

If you visit on a weekday morning or afternoon, the street could be relatively free of cars and other vehicles, but it might be entirely different on a Friday night or Saturday afternoon.

Conversely, if the neighborhood appears consistently appealing, quiet, well kept, and not overcrowded or loud, that's something to appreciate as you factor in which home to buy. You can usually remodel your own home, but it's very difficult to do a makeover on the street where you live - so investigate throroughly before you buy, whether it's in San Jose, Campbell, Saratoga, or Los Gatos. You will be more sure of your decision and happier with the results if you do your neighborhood homework upfront.

The Los Gatos real estate market seems to be improving as more homes are selling now than in recent months. The "absorption rate" has been declining and is now well under the 6 months that differentiates a buyers vs a sellers market. Many are thinking that the worst is behind us.

And if that is the case, now really is the "best time to buy" in Los Gatos, San Jose, Saratoga, or anywhere in Silicon Valley.

Recently I listed a great, sunny home and it will be held open this weekend for the first time. If you are looking to buy a house in Los Gatos, with the schools and close to shops, stores, banks and restaurants, you will want to know about this home and see it ASAP!

120 Magneson Terrace (off Magneson Loop and Los Gatos Blvd), Los Gatos, CA 95032

Offered at $1,359,000 - New Roof  as of late June!!

• 3 Bedrooms
• 2.5 Bathrooms
• Living Room, Dining Room, Study (or Music Room or Library)
• Lovely Hardwood Floors Throughout (all but bathrooms)
• Appx 1800 SF
• Lot Size appx 8700 SF
• Los Gatos Schools very close by
• Home situated on a quiet cul-de-sac
• Air Conditioning & Extra Insulation
• Laundry Room
• Attached 2 Car Garage
• So close to the schools and shops that it's "walk to", "bike to", "scooter to" and for driving, "less than 2 minutes to" - no matter how you get around, this home is close to schools and shops!

Virtual Tour of 120 Magneson Terrace, Los Gatos, CA 95032

Santa Clara County Parks 

Here, please find links and a little info on the wonderful county parks in and near Silicon Valley.

A word of caution: in the grassy, hilly areas especially, please hike or jog with friends and pay attention as you walk or run the trails. Rattlesnakes tend to sun themselves in the clearings - which means on the path!  Mountain lions, also known as pumas, are not commonly seen but they are indigenous to the area, as are ferrel pigs, bobcats and coyotes. Any of these could ruin your day with a wrong encounter, so please go in groups and pay attention to your surroundings!

Almaden Quicksilver  this was once the largest mercury mine in the world, named after a similar mine in Spain. The mine shafts extended all the way into what is now Los Gatos (off Hicks Road) This is a great spot for field trips. Don't miss the split graveyard on Bertram Road- and look the grave for just Bert's arm (nope, I'm not kidding).

Alviso Marina they stopped dredging this years ago but it is now a park. Eventually there will be a trail ringing the bay. Awesome place to birdwatch and take photos.

Anderson Lake waterskiing destination in the east foothills over Morgan Hill

Calero south of Almaden toward Morgan Hill.

Chesbro Reservoir west of Morgan Hill - fishing & non-power-boating. No trails yet.

Chitactac Adams Heritage County Park  now this is cool - it's a 4 acre site just outside Gilroy and Morgan Hill which is all about the Ohlones who used to inhabit this beautiful valley of ours. Free park. Open from 8am til sunset. Self-guided tours available.

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There are oodles of fun things for kids and the young-at-heart to do in San Jose and the greater Silicon Valley area. Here are a few of the more dramatic highlights!

In San Jose and Santa Clara

Happy Hollow Zoo and Park This is a great place for younger kids. It features a petting zoo, non-scary rides, and places to run off steam. Happy Hollow is undergoing a giant renovation and will be closed for part or all of the summer of 2008. Please double check the website or phone the park prior to visiting to make sure it's open! Tel 408 277-3000.

The Tech Museum of Innovation Recommended for kids ages 7 and up, but especially for kids 10 and up. There's an IMAX theater as well - fantastic shows! Great downtown location.

Paramount's Great America in Santa Clara. Suitable for all ages but teens will like this best! This park does offer some water play areas and some little kid areas (but it's expensive for that). Shows in air conditioned theaters will be welcome on warm days. Check out the Wow Card (or VIP Pass if you want to park close) if you'll be back again in the same season.
Information on season passes & free return trips to Great America 

The Winchester Mystery House This is a beyond-unique 160 year old Victorian Mansion build by Sara Winchester with the thought that if she never stopped building, she would never die. Interesting but odd architectural accents throughtout the home!

This historic landmark sits near the lovely Santana Row shopping center, just off 280 and near Stevens Creek Blvd. (It is a "half exit" from 280 - you can exit 280 southbound to get to Winchester and you can enter 280 northbound from Winchester, but not vice versa.)

List of Attractions Throughout Santa Clara County and Beyond

Gilroy (south of San Jose)

Bonfante Gardens in Gilroy Want to make a bigger trip of it to The Garlic Capital of the World? Gilroy offers great shopping to dress up those kids (or yourself)! Outlet Mall - List of Shops. And maybe when that's all done, do some wine tasting. If you can take a tour, the kids may not even get bored. List of wineries (and breweries) in and near Gilroy. And lastly, don't forget the Garlic Festival! It happens in late July every year. Yes, it's hot. Yes, they do really serve Garlic Ice Cream. You need to try it at least once! The Gilroy Garlic Festival - information, recipes, calendar, fun stuff for kids. 

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A quick introduction to downtown San Jose via YouTube. Downtown San Jose is Sharks Territory (NHL team), home to a diverse number of theaters and museums (including a quilting museum) and a huge variety of shops and restaurants. When the Sharks arent playing at the Arena, the Shark Tank becomes a musical venue too.

In summer, fireworks and many events draw large crowds downtown.

In winter, downtown offers Christmas in the Park and a palm tree encircled ice rink as wonderful ways to enjoy the sunny, cool days downtown. The Catholic Cathedral features free musical concerts for all from many groups around Silicon Valley, with each concert performed twice in many of the evenings leading up to Christmas.

Theres loads to do in downtown San Jose!

 

Many Silicon Valley home sellers want to sell their homes As Is. In the case of short sales, it is likely that the sale will be As Is, and with foreclosed or bank-owned properties, you can be fairly sure that it will be an As Is sale.

But what does that mean, exactly?

As Is means that the home will be conveyed to the buyer at the end of the transaction in the same general condition it was in on the day that the buyers wrote the offer. If the roof has leaks, the crawl space is full of termites, and the appliances do not work, that is how it will be on the day escrow closes.

What it does not mean is that the seller can let the property condition deteriorate. The seller must continue to maintain the home and land in the same general condition. So if the lawn was green and well trimmed, the seller cannot suddenly let the grass die and neglect to mow it.  If a baseball breaks a window after the buyer and seller have a ratified contract, the seller must repair it. The condition will not have to be better, but it should not be worse, either, than on the day the buyer and seller agreed on the price and terms of the sale.

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