I'd like to take a minute to translate (in my words) what is happening with lenders right now. The long and the short of it is that there is a normal economic adjustment being made, which was predictable, and should lead to a more stable market for the near future's expectations. It is a great time to sell in our area. It is a great time to buy. Let me explain why. Please read on.
If you were someone who knew that you could lend someone $10.00 and get back $18.25 would you lend them the money? What if you did it 100 times? You would have lent out $1,000.00 and received $1,825.00 in return, right? That's a profit of $825.00 on a $1,000.00 investment.
Well, what if seven of the 100 loans did not pay you back? You would still receive $1,697.25 for putting out $1,000.00. So even if someone told you that seven out of 100 of your loans might not pay you back, would you make the loans anyway? I probably would. That's over 69% return on my money. I would especially do it if I could make money like that in a short period of time...like say 9 years. (Keep reading.)
Let's take the Los Altos homes market and do a little comparison to my above example, starting from the bottom with $10.00, and also with $750,000, which was very close to the average sale price of a home in 1997 in Los Altos ($743,358 actually).
Year Real Appreciation If were $10.00 If were $750,000
2006 2.97% $ 18.25 $ 1,368,694
2005 14.68% $ 17.73 $ 1,329,216
2004 13.71% $ 15.46 $ 1,159,066
2003 -0.64% $ 13.59 $ 1,019,317
2002 2.31% $ 13.68 $ 1,025,883
2001 -24.30% $ 13.37 $ 1,002,720
2000 34.24% $ 17.66 $ 1,324,597
1999 17.70% $ 13.56 $ 986,738
1998 11.78% $ 11.18 $ 838,350
1997 $ 10.00 $ 750,000
As you can see, $10.00 truly would become $18.25 in 9 years. $750,000 would truly become $1,398,000. The "Real Appreciation" column reflects the actual appreciation realized in Los Altos during those specific years.
Now, what if you knew that after a while, you would be getting back only $14.50 for the same $10.00 loan for which you used to get $18.25 back? Would you be willing to lose those seven out of 100? That would net you a total profit of $348.50, for which you were earning $697.25?
I'm thinking you may reconsider who those seven people are and try to weed them out of your loan making process.
That is my interpretation of what happened recently with lending. As prices were going up so consistently lately, banks loosened their loan qualification criteria so they could make more loans. They knew there was certain risk. They calculated the risk versus the return, and took the risk.
Because the market forecasts are more conservative than they have been over the past decade, banks are readjusting their qualification guidelines so they have to absorb less risk. Of course, this means they would then be able to forecast better profits.
Some of the little banks that came in as a temporary lender to capitalize on such sure profit, may not have had the experience that larger, more established banks have. Those banks are going away. Those banks are making lots of news.
It is fair to say that double digit percentage increases in price cannot be sustained over long periods of time. Five out of the last nine years in our example of Los Altos, showed growth of double digits. It is prudent that banks not expect that much longer.
Our county has sustained more like 7% per year average appreciation over the last 30 years. A 30 year sample is much safer to rely on than the shorter time period.
Remember LOCAL market information means more to us than any other news. Locally, here is a little more information to keep you in the know. These are for closed sales since August 1, 2007. "DOM" = Days on market. "% over ask" is percentage of homes listed that sold over asking price.
City Average DOM Homes sold over ask % over ask
Los Altos 25 17 out of 24 70.83%
Los Altos Hills 48 1 out of 7 14.29%
Menlo Park 34 14 out of 28 50.00%
Mountain View 20 17 out of 24 70.83%
Palo Alto 18 26 out of 36 72.22%
Portola Valley 68 0 out of 3 0.00%
Sunnyvale 32 38 out of 87 43.68%
As long as we continue to average around 7% appreciation in our area (which is fair to expect) while adding to it the tax benefits of homeownership, it is still a great place and time to own real estate.
Thursday, August 30, 2007
Sunday, July 1, 2007
How to Gauge Price for a Multiple Offer
by Deniece Watkins
Often times I hear other agents asking me, "What do I tell my clients to offer? There are five other offers on the property they want!"
I even hear my own clients asking, "What do you think we should offer?"
Being a real estate buyer is not easy in our area (Silicon Valley). We have a huge demand for houses and not enough inventory. We have very qualified buyers. When a home is priced right, presented well (don't even think about not staging), and in a good location, you can almost guarantee there will be more than one offer on the home. So how does a buyer know what to offer?
Typically, a buyer has seen lots of property. Hopefully, his/her knowlegeable Realtor has informed the buyer of the closing price of most of those homes. Closing price means the price it actually sold for, never to be confused with asking price. After seeing enough homes and learning what they sold for, there is a definite pattern which will give the buyer a very good idea of a ballpark figure to pay. However, ballpark doesn't always mean an accepted contract.
There are two values for a property, 1) the logical value, and 2) the emotional value.
The logical value is a value that is clearly justifiable to a bank using other properties within a very close proximity that have comparable features as the one in which a buyer has interest. Meaning, if the home down the street with the same numbers of bedrooms and baths, close to the same square footage, and in the same general condition sold for $900,000, a clearly justifiable value of another just like it is $900,000. A good Realtor will take every property that is close to the one in which a buyer shows interest and research all of the closed sales, in a close vicinity, within a short time, and give those numbers to the buyer. The buyer then has the responsibility of studying those numbers as much or as little as s/he wants.
The emotional value is the value that only the buyer can put on a property. Is it a home they must have to put their parents in, who are not well, and happens to be around the corner from where they live? Is it a home that, if they can get for a certain price, makes sense to fix up? Is it a property when rented out will give just the right amount of return and tax write-off to be beneficial to that buyer for a tax circumstance? This value is not easy to quantify. A Realtor cannot do this for a client.
Take a good consideration of the logical value, balanced with the emotional value, and offer the price and terms that if you don't get, you won't lose sleep over.
Often times I hear other agents asking me, "What do I tell my clients to offer? There are five other offers on the property they want!"
I even hear my own clients asking, "What do you think we should offer?"
Being a real estate buyer is not easy in our area (Silicon Valley). We have a huge demand for houses and not enough inventory. We have very qualified buyers. When a home is priced right, presented well (don't even think about not staging), and in a good location, you can almost guarantee there will be more than one offer on the home. So how does a buyer know what to offer?
Typically, a buyer has seen lots of property. Hopefully, his/her knowlegeable Realtor has informed the buyer of the closing price of most of those homes. Closing price means the price it actually sold for, never to be confused with asking price. After seeing enough homes and learning what they sold for, there is a definite pattern which will give the buyer a very good idea of a ballpark figure to pay. However, ballpark doesn't always mean an accepted contract.
There are two values for a property, 1) the logical value, and 2) the emotional value.
The logical value is a value that is clearly justifiable to a bank using other properties within a very close proximity that have comparable features as the one in which a buyer has interest. Meaning, if the home down the street with the same numbers of bedrooms and baths, close to the same square footage, and in the same general condition sold for $900,000, a clearly justifiable value of another just like it is $900,000. A good Realtor will take every property that is close to the one in which a buyer shows interest and research all of the closed sales, in a close vicinity, within a short time, and give those numbers to the buyer. The buyer then has the responsibility of studying those numbers as much or as little as s/he wants.
The emotional value is the value that only the buyer can put on a property. Is it a home they must have to put their parents in, who are not well, and happens to be around the corner from where they live? Is it a home that, if they can get for a certain price, makes sense to fix up? Is it a property when rented out will give just the right amount of return and tax write-off to be beneficial to that buyer for a tax circumstance? This value is not easy to quantify. A Realtor cannot do this for a client.
Take a good consideration of the logical value, balanced with the emotional value, and offer the price and terms that if you don't get, you won't lose sleep over.
Monday, May 14, 2007
Mountain View, The Job Hub!
By Deniece Watkins, Realtor
Recently, I was on an airplane and met a woman who had moved to California from Ohio. She told me she was renting a condominium in Los Gatos with her husband. She was in property management; he was starting a web based company about personal health care. When I mentioned that I sold real estate in the Los Altos/Mountain View areas, her comment was very interesting. "Mountain View is awesome. Wish we could live there. What a job hub!"
“Job hub?,” I thought.
Having grown up in the Bay Area, I have seen close to 40 years of the South Peninsula's transformation into Silicon Valley. In choosing to make Los Altos my office location and Mountain View my home location, I have seen, for the last 10 years, the transformation of Mountain View from coal to diamond in the rough, and anticipate nothing less than further shine and sparkle of this terrific little city.
When I first decided to sell in the Mountain View area, I researched a bit of Mountain View’s history. I was happy to learn that, since inception, Mountain View was built on the principle of including everyone. This meant every economic class, every culture, every gender, and every religion. As I drive down the streets in downtown Mountain View, I see what Realtors refer to as “single family homes” (which soon enough will be inappropriate, if not already), duplexes, triplexes, various other small multi-unit properties, and apartment buildings all mixed together. When I go downtown to eat, I choose from an extensive array of cultural foods (read more in the restaurant section of this article). Consistently, I hear from neighbors of nearby cities saying they come to Mountain View for entertainment, night life, good food, and more and more..for business.I wanted to understand the perspective of the general public, not just my own. So as I have been working at open homes, or meeting people in general, I have asked what is it about Mountain View? The answers are consistently:
1) The downtown is exciting, with multi-cultural restaurants.
2) The weather is great.
3) The diversity is more desirable than other close by homogeneous cities.
4) Public transportation is easily accessible and takes you straight into San Francisco or San Jose.
5) They have a good nightlife.
6) Jobs, jobs, jobs!
So here are the details I learned after looking into this gem with a jeweler’s loupe.
Restaurants
There are 115 restaurants that are listed on Google Earth. They are American (Steak Houses and Seafood), Chinese, Coffee Houses, Fast Food, French, Greek, Indian, Irish, Italian, Japanese, Mediterranean, Mexican, Middle Eastern, Mongolian, Spanish, Thai, Vegetarian, Vietnamese and more. What a smorgasbord!!
Weather (from www.weather.com)
The local weather in Mountain View averages 79°F in the summer and 58°F in winter with approximately 16 inches of rain annually.
Demographics (from www.Wikipedia.com)
As of the censusGR2 of 2000, there were 70,708 people, 31,242 households, and 15,902 families residing in the city. The population density was 2,263.7/km² (5,861.4/mi²). There were 32,432 housing units at an average density of 1,038.3/km² (2,688.5/mi²). The racial makeup of the city was 63.77% White, 2.53% African American, 0.39% Native American, 20.67% Asian, 0.26% Pacific Islander, 8.32% from other races, and 4.07% from two or more races. Hispanic or Latino of any race were 18.26% of the population.
There were 31,242 households out of which 23.3% had children under the age of 18 living with them, 40.0% were married couples living together, 7.3% had a female householder with no husband present, and 49.1% were non-families. 35.6% of all households were made up of individuals and 7.0% had someone living alone who was 65 years of age or older. The average household size was 2.25 and the average family size was 2.97.
In the city the population was spread out with 18.0% under the age of 18, 8.3% from 18 to 24, 43.4% from 25 to 44, 19.8% from 45 to 64, and 10.5% who were 65 years of age or older. The median age was 35 years. For every 100 females there were 106.8 males. For every 100 females age 18 and over, there were 106.9 males.
Location and Transportation (from Google Maps)
Mountain View is conveniently located 40 miles South of San Francisco (Go Giants!) and 12 miles North of San Jose (Go Sharks!). The beach in Half Moon Bay is 31 miles away. Santa Cruz Beach is 35 miles away. There are plenty of golf courses right by, including one in Mountain View. There is a 16 theatre movie complex and parks galore.
There are both a train station and a light rail station that stop in the heart of downtown Mountain View. Busses run conveniently up and down El Camino Real, again right at the heart of the city.
Night Life (from www.MetroActive.com)
Mountain View offers some fun night life, from coffee houses to breweries, to hole-in-the-wall bars, to swanky restaurants where you can sit outside and sip your mango mint margarita. There is dancing and billiards and people watching everywhere you look.
Alberto's Salsa Studio & Nightclub
736 W. Dana St 650.968.3007
Buddha Lounge
251 Castro St 650.965.7665
Cascal
400 Castro St 650.940.9500
Fred's Place
2534 Old Middlefield Way 650.940.9838
Kapp's Pizza Bar and Grill
191 Castro St 650.961.1491
King of Clubs
893 Leong Dr 650.968.6366
Molly Magee's Irish Pub
241 Castro St 650.961.0108
Monte Carlo
241 Castro St 650.998.1500
Office Bar
820 El Camino Real 650.969.2098
Shoreline Billiards
1400 N. Shoreline Blvd #C-1 650.964.0780
Sports Page
1431 Plymouth St 650.961.1992
St. Stephen's Green Irish Pub and Restaurant
223 Castro St 650.964.9151
Tied House Café and Brewery
954 Villa St 650.965.2739
Ugly's
1313 El Camino Real 650.965.8255
Zucca Ristorante
186 Castro St 650.864.9940
Jobs
I asked some locals who have grown up here their opinion of Mountain View as a job hub. Everyone refers back to the restaurants and thriving downtown, but more in a way of entertainment than jobs. They all mention Google.
Yes, we locals are very familiar with Google. However, even when you travel out of the city, out of the state, out of the country, people know that Google’s headquarters are in Mountain View and that the company has done extremely well. What surprised me when researching them on the internet today, was how many positions they are still hiring. My goodness! Can you say growth?!
Although Google is huge and dynamic and amazing, I have learned that there is so much more than Google in Mountain View. The detailed list below of other mentionable companies who have bases, if not headquarters, in Mountain View is astonishing! I have included a link to each company’s main page, a link to their “contact us” page, revenue information and employee information (from www.zoominfo.com) for each. The information is about the whole company, not just their Mountain View location.
Notice that if one were to total the revenues of these companies who have a large presence in Mountain View, it would be a whopping $63.7 Billion!!! In fact, when I search “Mountain View, 94043” on http://www.zoominfo.com/ without any revenue limit, 865 businesses are listed. When I change criteria to $5 Million or more in revenues, there are 94 companies. The outcome of companies when changing revenue criteria to $10 Million or more is below with some editing to make sure the company, in fact, is still in Mountain View. Behold!
(HQ Indicates the company has headquarters in Mountain View)
Major Business/Technology
Microsoft
Software, Services, Solutions
Revenues $44.3 Billion
Employees 71,000
1065 La Avenida
(650) 693-4000
Google (NASDAQ GOOG)
Innovative Search Technology
Revenues $6.1 Billion
Employees 5,696
Google Map HQ
1600 Amphitheatre Pkwy(650) 253-0000
KPMG
Accounting and Tax Consulting Services
Revenues $4.1 Billion
Employees 18,165
500 E Middlefield Rd
(888) 528-4222
Wipro Technologies
Software Services
Revenues $2.4 Billion
Employees 58,371
Wipro Technologies map
1300 Crittenden Ln(650) 316-1042
Intuit Inc.
Business Management Software
Revenues $2.3 Billion
Employees 7,500
2632 Marine Way HQ
(650) 944-6000
VeriSign (NASDAQ VRSN)
Voice and Data Networking
Revenues $1.6 Billion
Employees 4,076
Verisign Inc. HQ
487 E Middlefield Rd(650) 426-5555
Synopsys, Inc.
Semiconductor Design Software
Revenues $1.1 Billion
Employees 5,130
700 E Middlefield Rd HQ
(800) 843-5669
HP Mercury (NASDAQ MERQ)
Business Technology Software
Revenues $843 Million
Employees 2,659
379 North Whisman Road
(650) 603-5200
Netscape Communications
Software Development and Design
Revenues $244.7 Million
Employees 2,400
501 East Middlefield Road
(415) 528-2600
Alvarion Ltd. (NASDAQ ALVR)
Computer & Network Equipment
Revenues $191 Million
Employees 600
2495 Leghorn Street HQ
(650) 314-2500
Actel Corporation (NASDAQ ACTL)
Single Chip FGPA Solutions
Revenues $179.4 Million
Employees 565
2061 Stierlin Ct HQ(650) 318-4200
Optonics, Inc.
Semiconductor Products
Revenues $137.2 Million
Employees 1,631
2593 Coast Avenue, #100
(650) 605-0082
NetLogic Microsystems, Inc. NASDAQ NETL
Semiconductor Processors
Revenues $81.8 Million
Employees 110
1875 Charleston Road HQ
(650) 961-6676
Pinnacle Systems (A division of AVID Technology, Inc. (NASDAQ PCLE)
Digital Video Broadcast and Production
Revenues $72.6 Million
Employees 851
280 North Bernardo Avenue HQ
(650) 526-1600
MIPS Technologies, Inc. NASDAQ MIPS
Processor Architecture Provider
Revenues $61.2 Million
Employees 150
1225 Charleston Road HQ
(650) 567-5000
MMR Technologies
Micro Miniature Refrigerators
Revenues $51.8 Million
Employees 95
1400 N Shoreline Blvd, Suite A5 HQ
(650) 962-9620
CyberSource Corporation NASDAQ CYBS
Electronic Payment Processing
Revenues $50.5 Million
Employees 168
1295 Charleston Road HQ
(650) 965-6000
Elance, Inc
Business Marketing
Revenues $46.4 Million
Employees 100
510 Logue Avenue HQ
(650) 316-7500
KCE America, Inc.
Circuitboard Production
Revenues $41.7 Million
Employees n/a
954 San Rafael Avenue HQ
(650) 934-3700
HALO Electronics
Magnetic Components
Revenues $40 Million
Employees 11
1861 Landings Drive HQ
(650) 903-3800
LaserCard Corporation, Formerly Drexler Technology (NASDAQ LCRD)
Optical Security ID Cards
Revenues $39.9 Million
Employees 164
1875 N. Shoreline Blvd.
(650) 969-4428
Azul Systems, Inc.
Server Appliances
Revenues $23.4 Million
Employees 200
1600 Plymouth Street HQ
(650) 230-6500
Optibase, Ltd. (NASDAQ OBAS)
Video Server Upload and Streaming
Revenues $21.8 Million
Employees 170
880 Maude Avenue HQ
(650) 230-2400
Integral Development Corp
Software for Automated FX Trading
Revenues $19.3 Million
Employees 150
2027 Stierlin Court HQ
(650) 919-1000
Barracuda Networks
Spam Filters and Firewalls
Revenues $18.1 Million
Employees 200
385 Ravendale Drive HQ
(408) 342-5400
Xora, Inc.
Products to Improve Mobile Employees
Revenues $17.7 Million
Employees 50
501 Ellis Street HQ
(650) 314-6460
CSA Engineering, Inc.
Vibration Suppression
Revenues $14.9 Million
Employees 53
2565 Leghorn Street HQ
(650) 210-9000
Teledyne Microwave
DRO’s, Frequency Synthesizers, Transceivers
Revenues $14.5 Million
Employees 250
1274 Terra Bella Avenue
(650) 962-6944
Encover, Inc.
Service Contract Software
Revenues $12.7 Million
Employees 1001975 El Camino Real West, Suite 205 HQ(650) 417-9000
Narus, Inc.
Real-time Traffic IP Services
Revenues $11.5 Million
Employees 80
500 Logue Avenue HQ
(650) 230-9300
CustomerSat, Inc.
Customer Feedback Software
Revenues $10 Million
Employees 40
500 Ellis Street HQ
(650) 237-3300
Major Life Science Companies
ALZA Corporation/Johnson & Johnson (NYSE AZA)
Drug Delivery Solutions
Revenues $139.1 Million
Employees 1,845
1900 Charleston Road HQ
(800) 506-2826
Omni Cell (NASDAQ OMCL)
Revenues $121.5 Million
Employees 514
1201 Charleston Road HQ
(650) 251-6445
eHealth, Inc. (NASDAQ EHTH)
Individual Health Insurance
Revenues $41.8 Million
Employees 319
440 East Middlefield Road HQ
(877) 456-7180
Perlegen Sciences (NASDAQ AFFX)
Genetic scan for medical benefit
Revenues $40.5 Million
Employees 105
2021 Stierlin Court HQ
(650) 625-4500
Iridex Corporation
Medical lasers for eyes and aesthetics
Revenues $37 Million
Employees 114
1212 Terra Bella Ave
(650) 940-4700
Hitachi Chemical Diagnostics, Inc.
In Vitro Allergy Test
Revenues $21.5 Million
Employees 190
630 Clyde Court
(650) 961-5501
Medimmune Vaccines
Nasal Flu Vaccine
Revenues $20.6 Million
Employees 340
319 N. Bernardo Avenue
(650) 919-6500
Clontech Laboratories, Inc.
Biological products for life science
Revenues $17 Million
Employees 175
1290 Terra Bella Avenue
(800) 662-2566
Telecommunications
Tellme Networks, Inc.
Voice Query for Information
Revenues $100 Million
Employees 330
1310 Villa Street HQ
(650) 930-9000
OpenTV, Inc. (NASDAQ OPTV)
Delivery Solutions for Digital Interactive TV
Revenues $87.4 Million
Employees 325
1215 Terra Bella Avenue(650) 962-2100
Ditech Networks (NASDAQ DITC)
Telecom Equipment Supplier
Revenues $54.9 Million
Employees 216
Ditech Communications Corp. HQ
825 E. Middlefield Road
(650) 623-1300
Bytemobile, Inc.
Simplified Deployment of IP Services
Revenues $23.2 Million
Employees 145
2025 Stierlin Court HQ
(650) 641-7700
Trades
Caliper Technologies Corporation
Construction Consultants
Revenues $87 Million
Employees 443
665 Clyde Ave(650) 254-1909
Coulter Construction
Commercial and Residential Construction
Revenues $52.7 Million
Employees 527
1961 Old Middlefield Way HQ
(650) 964-8229
O’Grady Paving, Inc.
Asphalt and Paving
Revenues $14.8
Employees n/a
2513 Wyandotte Street
(650) 966-1926
Vivus, Inc. (NASDAQ VVUS)
Pharmaceutical focusing on obesity and sexual health
Revenues $14.7 Million
Employees 114
1172 Castro Street HQ
(650) 934-5200
Downer-Gruman Architects
Architects
Revenues $13.6 Million
Employees n/a
550 Ellis Street HQ
(650) 943-1600
When adding the number of employees working for only the companies with their (HQ) Headquarters in Mountain View, there are 25,283 positions. Remember, this is in companies with revenues of over $10 Million. So, taking into consideration the other companies with fewer revenues and the service jobs needed to support these employees in Mountain View, I think it is fair to say that there are plenty of jobs here.
Going back to the fact that I am a Realtor, let me show you a few more Mountain View pluses from the investment real estate side of things. It still costs a lot less to buy a home in Mountain View than the two nearest and most desirable cities, Los Altos, or Palo Alto. The average price of a single family home in Mountain View (from reil.com annual statistics for 2006) is $990,795. In Los Altos it is $1,782,975 and Palo Alto $1,516,037.
A huge factor for our local areas not losing home value as much as other markets locally and statewide is excellent schools. Below I have compared public school API scores (from http://www.greatschools.net/) in Mountain View with Palo Alto, and Los Altos. Mountain View has not been haled as the great schools city..yet. As you can see their high school scores are higher than nearby Los Altos High School. Huff Elementary ranked 911 on the API scores, making it one of the best elementary schools in all of California.
School Level
Mountain View
High School Avg. API 827 Highest 827
Middle School Avg. API 757 Highest 787
Elementary Avg. API 800 Highest 911
Palo Alto
High School Avg. API 886 Highest 887
Middle School Avg. API 924 Highest 935
Elementary School Avg. API 928 Highest 983
Los Altos
High School Avg. API 797 Highest 797
Middle School Avg. API 957 Highest 961
Elementary School Avg. API 962 Highest 982
In 2003, I happened upon residency in Mountain View more by taking advantage of an opportunity, than by choosing it as my most desirable place to purchase. However, day after day, I thank goodness that I did happen upon that opportunity.
Working here I meet dynamic people who consist of the twenty-five percent of folks in California who can afford a home. I show them what I believe to be the best buy for what they want. I prepare their homes for the best marketing they could ever have. I negotiate a purchase or sale for some of the most dynamic, savvy and intelligent people I've ever met.
I have a nice garden in my backyard that grows well because of the weather. I take the train into San Francisco now and then for a Giants game. When I want a little evening entertainment, I stroll downtown for an adult beverage with my sweater on, and can walk right back home. The only difficulty with living here is choosing which cuisine to eat when I’m hungry. Could be worse!
Recently, I was on an airplane and met a woman who had moved to California from Ohio. She told me she was renting a condominium in Los Gatos with her husband. She was in property management; he was starting a web based company about personal health care. When I mentioned that I sold real estate in the Los Altos/Mountain View areas, her comment was very interesting. "Mountain View is awesome. Wish we could live there. What a job hub!"
“Job hub?,” I thought.
Having grown up in the Bay Area, I have seen close to 40 years of the South Peninsula's transformation into Silicon Valley. In choosing to make Los Altos my office location and Mountain View my home location, I have seen, for the last 10 years, the transformation of Mountain View from coal to diamond in the rough, and anticipate nothing less than further shine and sparkle of this terrific little city.
When I first decided to sell in the Mountain View area, I researched a bit of Mountain View’s history. I was happy to learn that, since inception, Mountain View was built on the principle of including everyone. This meant every economic class, every culture, every gender, and every religion. As I drive down the streets in downtown Mountain View, I see what Realtors refer to as “single family homes” (which soon enough will be inappropriate, if not already), duplexes, triplexes, various other small multi-unit properties, and apartment buildings all mixed together. When I go downtown to eat, I choose from an extensive array of cultural foods (read more in the restaurant section of this article). Consistently, I hear from neighbors of nearby cities saying they come to Mountain View for entertainment, night life, good food, and more and more..for business.I wanted to understand the perspective of the general public, not just my own. So as I have been working at open homes, or meeting people in general, I have asked what is it about Mountain View? The answers are consistently:
1) The downtown is exciting, with multi-cultural restaurants.
2) The weather is great.
3) The diversity is more desirable than other close by homogeneous cities.
4) Public transportation is easily accessible and takes you straight into San Francisco or San Jose.
5) They have a good nightlife.
6) Jobs, jobs, jobs!
So here are the details I learned after looking into this gem with a jeweler’s loupe.
Restaurants
There are 115 restaurants that are listed on Google Earth. They are American (Steak Houses and Seafood), Chinese, Coffee Houses, Fast Food, French, Greek, Indian, Irish, Italian, Japanese, Mediterranean, Mexican, Middle Eastern, Mongolian, Spanish, Thai, Vegetarian, Vietnamese and more. What a smorgasbord!!
Weather (from www.weather.com)
The local weather in Mountain View averages 79°F in the summer and 58°F in winter with approximately 16 inches of rain annually.
Demographics (from www.Wikipedia.com)
As of the censusGR2 of 2000, there were 70,708 people, 31,242 households, and 15,902 families residing in the city. The population density was 2,263.7/km² (5,861.4/mi²). There were 32,432 housing units at an average density of 1,038.3/km² (2,688.5/mi²). The racial makeup of the city was 63.77% White, 2.53% African American, 0.39% Native American, 20.67% Asian, 0.26% Pacific Islander, 8.32% from other races, and 4.07% from two or more races. Hispanic or Latino of any race were 18.26% of the population.
There were 31,242 households out of which 23.3% had children under the age of 18 living with them, 40.0% were married couples living together, 7.3% had a female householder with no husband present, and 49.1% were non-families. 35.6% of all households were made up of individuals and 7.0% had someone living alone who was 65 years of age or older. The average household size was 2.25 and the average family size was 2.97.
In the city the population was spread out with 18.0% under the age of 18, 8.3% from 18 to 24, 43.4% from 25 to 44, 19.8% from 45 to 64, and 10.5% who were 65 years of age or older. The median age was 35 years. For every 100 females there were 106.8 males. For every 100 females age 18 and over, there were 106.9 males.
Location and Transportation (from Google Maps)
Mountain View is conveniently located 40 miles South of San Francisco (Go Giants!) and 12 miles North of San Jose (Go Sharks!). The beach in Half Moon Bay is 31 miles away. Santa Cruz Beach is 35 miles away. There are plenty of golf courses right by, including one in Mountain View. There is a 16 theatre movie complex and parks galore.
There are both a train station and a light rail station that stop in the heart of downtown Mountain View. Busses run conveniently up and down El Camino Real, again right at the heart of the city.
Night Life (from www.MetroActive.com)
Mountain View offers some fun night life, from coffee houses to breweries, to hole-in-the-wall bars, to swanky restaurants where you can sit outside and sip your mango mint margarita. There is dancing and billiards and people watching everywhere you look.
Alberto's Salsa Studio & Nightclub
736 W. Dana St 650.968.3007
Buddha Lounge
251 Castro St 650.965.7665
Cascal
400 Castro St 650.940.9500
Fred's Place
2534 Old Middlefield Way 650.940.9838
Kapp's Pizza Bar and Grill
191 Castro St 650.961.1491
King of Clubs
893 Leong Dr 650.968.6366
Molly Magee's Irish Pub
241 Castro St 650.961.0108
Monte Carlo
241 Castro St 650.998.1500
Office Bar
820 El Camino Real 650.969.2098
Shoreline Billiards
1400 N. Shoreline Blvd #C-1 650.964.0780
Sports Page
1431 Plymouth St 650.961.1992
St. Stephen's Green Irish Pub and Restaurant
223 Castro St 650.964.9151
Tied House Café and Brewery
954 Villa St 650.965.2739
Ugly's
1313 El Camino Real 650.965.8255
Zucca Ristorante
186 Castro St 650.864.9940
Jobs
I asked some locals who have grown up here their opinion of Mountain View as a job hub. Everyone refers back to the restaurants and thriving downtown, but more in a way of entertainment than jobs. They all mention Google.
Yes, we locals are very familiar with Google. However, even when you travel out of the city, out of the state, out of the country, people know that Google’s headquarters are in Mountain View and that the company has done extremely well. What surprised me when researching them on the internet today, was how many positions they are still hiring. My goodness! Can you say growth?!
Although Google is huge and dynamic and amazing, I have learned that there is so much more than Google in Mountain View. The detailed list below of other mentionable companies who have bases, if not headquarters, in Mountain View is astonishing! I have included a link to each company’s main page, a link to their “contact us” page, revenue information and employee information (from www.zoominfo.com) for each. The information is about the whole company, not just their Mountain View location.
Notice that if one were to total the revenues of these companies who have a large presence in Mountain View, it would be a whopping $63.7 Billion!!! In fact, when I search “Mountain View, 94043” on http://www.zoominfo.com/ without any revenue limit, 865 businesses are listed. When I change criteria to $5 Million or more in revenues, there are 94 companies. The outcome of companies when changing revenue criteria to $10 Million or more is below with some editing to make sure the company, in fact, is still in Mountain View. Behold!
(HQ Indicates the company has headquarters in Mountain View)
Major Business/Technology
Microsoft
Software, Services, Solutions
Revenues $44.3 Billion
Employees 71,000
1065 La Avenida
(650) 693-4000
Google (NASDAQ GOOG)
Innovative Search Technology
Revenues $6.1 Billion
Employees 5,696
Google Map HQ
1600 Amphitheatre Pkwy(650) 253-0000
KPMG
Accounting and Tax Consulting Services
Revenues $4.1 Billion
Employees 18,165
500 E Middlefield Rd
(888) 528-4222
Wipro Technologies
Software Services
Revenues $2.4 Billion
Employees 58,371
Wipro Technologies map
1300 Crittenden Ln(650) 316-1042
Intuit Inc.
Business Management Software
Revenues $2.3 Billion
Employees 7,500
2632 Marine Way HQ
(650) 944-6000
VeriSign (NASDAQ VRSN)
Voice and Data Networking
Revenues $1.6 Billion
Employees 4,076
Verisign Inc. HQ
487 E Middlefield Rd(650) 426-5555
Synopsys, Inc.
Semiconductor Design Software
Revenues $1.1 Billion
Employees 5,130
700 E Middlefield Rd HQ
(800) 843-5669
HP Mercury (NASDAQ MERQ)
Business Technology Software
Revenues $843 Million
Employees 2,659
379 North Whisman Road
(650) 603-5200
Netscape Communications
Software Development and Design
Revenues $244.7 Million
Employees 2,400
501 East Middlefield Road
(415) 528-2600
Alvarion Ltd. (NASDAQ ALVR)
Computer & Network Equipment
Revenues $191 Million
Employees 600
2495 Leghorn Street HQ
(650) 314-2500
Actel Corporation (NASDAQ ACTL)
Single Chip FGPA Solutions
Revenues $179.4 Million
Employees 565
2061 Stierlin Ct HQ(650) 318-4200
Optonics, Inc.
Semiconductor Products
Revenues $137.2 Million
Employees 1,631
2593 Coast Avenue, #100
(650) 605-0082
NetLogic Microsystems, Inc. NASDAQ NETL
Semiconductor Processors
Revenues $81.8 Million
Employees 110
1875 Charleston Road HQ
(650) 961-6676
Pinnacle Systems (A division of AVID Technology, Inc. (NASDAQ PCLE)
Digital Video Broadcast and Production
Revenues $72.6 Million
Employees 851
280 North Bernardo Avenue HQ
(650) 526-1600
MIPS Technologies, Inc. NASDAQ MIPS
Processor Architecture Provider
Revenues $61.2 Million
Employees 150
1225 Charleston Road HQ
(650) 567-5000
MMR Technologies
Micro Miniature Refrigerators
Revenues $51.8 Million
Employees 95
1400 N Shoreline Blvd, Suite A5 HQ
(650) 962-9620
CyberSource Corporation NASDAQ CYBS
Electronic Payment Processing
Revenues $50.5 Million
Employees 168
1295 Charleston Road HQ
(650) 965-6000
Elance, Inc
Business Marketing
Revenues $46.4 Million
Employees 100
510 Logue Avenue HQ
(650) 316-7500
KCE America, Inc.
Circuitboard Production
Revenues $41.7 Million
Employees n/a
954 San Rafael Avenue HQ
(650) 934-3700
HALO Electronics
Magnetic Components
Revenues $40 Million
Employees 11
1861 Landings Drive HQ
(650) 903-3800
LaserCard Corporation, Formerly Drexler Technology (NASDAQ LCRD)
Optical Security ID Cards
Revenues $39.9 Million
Employees 164
1875 N. Shoreline Blvd.
(650) 969-4428
Azul Systems, Inc.
Server Appliances
Revenues $23.4 Million
Employees 200
1600 Plymouth Street HQ
(650) 230-6500
Optibase, Ltd. (NASDAQ OBAS)
Video Server Upload and Streaming
Revenues $21.8 Million
Employees 170
880 Maude Avenue HQ
(650) 230-2400
Integral Development Corp
Software for Automated FX Trading
Revenues $19.3 Million
Employees 150
2027 Stierlin Court HQ
(650) 919-1000
Barracuda Networks
Spam Filters and Firewalls
Revenues $18.1 Million
Employees 200
385 Ravendale Drive HQ
(408) 342-5400
Xora, Inc.
Products to Improve Mobile Employees
Revenues $17.7 Million
Employees 50
501 Ellis Street HQ
(650) 314-6460
CSA Engineering, Inc.
Vibration Suppression
Revenues $14.9 Million
Employees 53
2565 Leghorn Street HQ
(650) 210-9000
Teledyne Microwave
DRO’s, Frequency Synthesizers, Transceivers
Revenues $14.5 Million
Employees 250
1274 Terra Bella Avenue
(650) 962-6944
Encover, Inc.
Service Contract Software
Revenues $12.7 Million
Employees 1001975 El Camino Real West, Suite 205 HQ(650) 417-9000
Narus, Inc.
Real-time Traffic IP Services
Revenues $11.5 Million
Employees 80
500 Logue Avenue HQ
(650) 230-9300
CustomerSat, Inc.
Customer Feedback Software
Revenues $10 Million
Employees 40
500 Ellis Street HQ
(650) 237-3300
Major Life Science Companies
ALZA Corporation/Johnson & Johnson (NYSE AZA)
Drug Delivery Solutions
Revenues $139.1 Million
Employees 1,845
1900 Charleston Road HQ
(800) 506-2826
Omni Cell (NASDAQ OMCL)
Revenues $121.5 Million
Employees 514
1201 Charleston Road HQ
(650) 251-6445
eHealth, Inc. (NASDAQ EHTH)
Individual Health Insurance
Revenues $41.8 Million
Employees 319
440 East Middlefield Road HQ
(877) 456-7180
Perlegen Sciences (NASDAQ AFFX)
Genetic scan for medical benefit
Revenues $40.5 Million
Employees 105
2021 Stierlin Court HQ
(650) 625-4500
Iridex Corporation
Medical lasers for eyes and aesthetics
Revenues $37 Million
Employees 114
1212 Terra Bella Ave
(650) 940-4700
Hitachi Chemical Diagnostics, Inc.
In Vitro Allergy Test
Revenues $21.5 Million
Employees 190
630 Clyde Court
(650) 961-5501
Medimmune Vaccines
Nasal Flu Vaccine
Revenues $20.6 Million
Employees 340
319 N. Bernardo Avenue
(650) 919-6500
Clontech Laboratories, Inc.
Biological products for life science
Revenues $17 Million
Employees 175
1290 Terra Bella Avenue
(800) 662-2566
Telecommunications
Tellme Networks, Inc.
Voice Query for Information
Revenues $100 Million
Employees 330
1310 Villa Street HQ
(650) 930-9000
OpenTV, Inc. (NASDAQ OPTV)
Delivery Solutions for Digital Interactive TV
Revenues $87.4 Million
Employees 325
1215 Terra Bella Avenue(650) 962-2100
Ditech Networks (NASDAQ DITC)
Telecom Equipment Supplier
Revenues $54.9 Million
Employees 216
Ditech Communications Corp. HQ
825 E. Middlefield Road
(650) 623-1300
Bytemobile, Inc.
Simplified Deployment of IP Services
Revenues $23.2 Million
Employees 145
2025 Stierlin Court HQ
(650) 641-7700
Trades
Caliper Technologies Corporation
Construction Consultants
Revenues $87 Million
Employees 443
665 Clyde Ave(650) 254-1909
Coulter Construction
Commercial and Residential Construction
Revenues $52.7 Million
Employees 527
1961 Old Middlefield Way HQ
(650) 964-8229
O’Grady Paving, Inc.
Asphalt and Paving
Revenues $14.8
Employees n/a
2513 Wyandotte Street
(650) 966-1926
Vivus, Inc. (NASDAQ VVUS)
Pharmaceutical focusing on obesity and sexual health
Revenues $14.7 Million
Employees 114
1172 Castro Street HQ
(650) 934-5200
Downer-Gruman Architects
Architects
Revenues $13.6 Million
Employees n/a
550 Ellis Street HQ
(650) 943-1600
When adding the number of employees working for only the companies with their (HQ) Headquarters in Mountain View, there are 25,283 positions. Remember, this is in companies with revenues of over $10 Million. So, taking into consideration the other companies with fewer revenues and the service jobs needed to support these employees in Mountain View, I think it is fair to say that there are plenty of jobs here.
Going back to the fact that I am a Realtor, let me show you a few more Mountain View pluses from the investment real estate side of things. It still costs a lot less to buy a home in Mountain View than the two nearest and most desirable cities, Los Altos, or Palo Alto. The average price of a single family home in Mountain View (from reil.com annual statistics for 2006) is $990,795. In Los Altos it is $1,782,975 and Palo Alto $1,516,037.
A huge factor for our local areas not losing home value as much as other markets locally and statewide is excellent schools. Below I have compared public school API scores (from http://www.greatschools.net/) in Mountain View with Palo Alto, and Los Altos. Mountain View has not been haled as the great schools city..yet. As you can see their high school scores are higher than nearby Los Altos High School. Huff Elementary ranked 911 on the API scores, making it one of the best elementary schools in all of California.
School Level
Mountain View
High School Avg. API 827 Highest 827
Middle School Avg. API 757 Highest 787
Elementary Avg. API 800 Highest 911
Palo Alto
High School Avg. API 886 Highest 887
Middle School Avg. API 924 Highest 935
Elementary School Avg. API 928 Highest 983
Los Altos
High School Avg. API 797 Highest 797
Middle School Avg. API 957 Highest 961
Elementary School Avg. API 962 Highest 982
In 2003, I happened upon residency in Mountain View more by taking advantage of an opportunity, than by choosing it as my most desirable place to purchase. However, day after day, I thank goodness that I did happen upon that opportunity.
Working here I meet dynamic people who consist of the twenty-five percent of folks in California who can afford a home. I show them what I believe to be the best buy for what they want. I prepare their homes for the best marketing they could ever have. I negotiate a purchase or sale for some of the most dynamic, savvy and intelligent people I've ever met.
I have a nice garden in my backyard that grows well because of the weather. I take the train into San Francisco now and then for a Giants game. When I want a little evening entertainment, I stroll downtown for an adult beverage with my sweater on, and can walk right back home. The only difficulty with living here is choosing which cuisine to eat when I’m hungry. Could be worse!
Saturday, April 28, 2007
The Value of Being Prepared, By Deniece Watkins
I once saw a book sitting on the passenger seat of a vehicle parked next to mine that was titled "Who You Are is Where You Were When." Although I have not read the book, the title was poignant enough to stay with me for over 20 years.
The "Where You Were When" part rings particularly clear over and over in my career, Residential Real Estate Sales in Silicon Valley.
Here locally, we have a market different than many others. We are in an area boasting the best public schools in all of California, with amazing weather, good job opportunities, excellent universities, and a pool of technological talent unparalleled anywhere in the world.
Our local real estate market has remained strong through national droughts. Even through the sub-prime loan implosion, we are experiencing a multiple offer market. For anyone reading this from Detroit, this means that when a home goes on the market prepared well, listed at the right price, more than one Buyer presents an offer on the home. The home frequently sells over the asking price.
I have seen Realtors be told that "offers are on Tuesday" and literally wait until Tuesday to do anything about contacting the listing agent to learn about the Sellers' situation and the home. I sold that home to my Buyers on Sunday evening.
I have watched Realtors, who know they are in a multiple offer situation, lose out on a transaction because their client was not available to them during the negotiations. One was actually at church praying while the competing client was there signing the final contract.
As I navigate the ever changing world of residential real estate sales in Silicon Valley, I realize that so many of my transactions have been successful because of an understanding of "Where You Were When." If my client is there when I am negotiating for them, I can make things happen. Better yet, if my client and their lender is there, the other Realtor knows I mean business.
By having a real estate license, you are NOT a true Real Estate Agent. By belonging to the California Association of Realtors or the National Association of Realtors, you have the title "Realtor". However, to be a true Real Estate Agent, you must know the contract inside and out. You must know your competition. You must know your clients. You must actually sell homes. Whoa! That's worth repeating, don't you think?! You must actually sell homes!
With statistics taken from 2006, something close to 50% of all Realtors in Silicon Valley had not sold one home in that year. Something like 25% more had only sold one home. So imagine that three out of four Realtors that you meet have virtually no experience actually BEING a Real Estate Agent.
How can they be current with the new Real Estate technology? How can they be up to date with the new Real Estate Laws? How can they make sure your foot gets in the door when it is barely open, but the time is right? They can't! They can hold you back from one of the greatest investments of your life.
Once recently, while helping an elderly couple interview a listing agent for their out of town home sale, I asked the other "licensed agent" who was on his team. He literally answered, "Susan, Monica, Rebbecca and Mary."
I had no choice but to ask, "Other than first names, who are those people to me, or your potential clients?"
If you would believe it, there are some homeowners out there who believe that first names without titles really mean that the "licensed agent" has a team.
Any good, licensed, practicing Realtor has a team that makes transactions go seamlessly over and over again. That team consists of a Title Company with a specific Escrow Officer, a reliable Termite Company who stands behind their work and has an individual high enough to be accountable for mistakes. The team consists of several licensed contractors to paint, landscape, fix plumbing, repair and replace a roof or chimney. It consists of window washers, house cleaners, and stagers to prepare the home. It consists of marketing experts who are extremely technologically savvy, who know how to expose a property to every market possible. Without an extremely knowledgeable lender who not only knows their loan products, but who can assure that lending is certain and will be delivered on time, your Buyer has half the chance of getting the home. There are insurance agents, financial consultants, accountants, real estate attorneys, and more. The team is huge! When they know you mean business, they mean business for you, always!
"Where You Are When", complimented by having support from an incredible team, lead by a competent Realtor who actually sells homes...it's like a dream!
The "Where You Were When" part rings particularly clear over and over in my career, Residential Real Estate Sales in Silicon Valley.
Here locally, we have a market different than many others. We are in an area boasting the best public schools in all of California, with amazing weather, good job opportunities, excellent universities, and a pool of technological talent unparalleled anywhere in the world.
Our local real estate market has remained strong through national droughts. Even through the sub-prime loan implosion, we are experiencing a multiple offer market. For anyone reading this from Detroit, this means that when a home goes on the market prepared well, listed at the right price, more than one Buyer presents an offer on the home. The home frequently sells over the asking price.
I have seen Realtors be told that "offers are on Tuesday" and literally wait until Tuesday to do anything about contacting the listing agent to learn about the Sellers' situation and the home. I sold that home to my Buyers on Sunday evening.
I have watched Realtors, who know they are in a multiple offer situation, lose out on a transaction because their client was not available to them during the negotiations. One was actually at church praying while the competing client was there signing the final contract.
As I navigate the ever changing world of residential real estate sales in Silicon Valley, I realize that so many of my transactions have been successful because of an understanding of "Where You Were When." If my client is there when I am negotiating for them, I can make things happen. Better yet, if my client and their lender is there, the other Realtor knows I mean business.
By having a real estate license, you are NOT a true Real Estate Agent. By belonging to the California Association of Realtors or the National Association of Realtors, you have the title "Realtor". However, to be a true Real Estate Agent, you must know the contract inside and out. You must know your competition. You must know your clients. You must actually sell homes. Whoa! That's worth repeating, don't you think?! You must actually sell homes!
With statistics taken from 2006, something close to 50% of all Realtors in Silicon Valley had not sold one home in that year. Something like 25% more had only sold one home. So imagine that three out of four Realtors that you meet have virtually no experience actually BEING a Real Estate Agent.
How can they be current with the new Real Estate technology? How can they be up to date with the new Real Estate Laws? How can they make sure your foot gets in the door when it is barely open, but the time is right? They can't! They can hold you back from one of the greatest investments of your life.
Once recently, while helping an elderly couple interview a listing agent for their out of town home sale, I asked the other "licensed agent" who was on his team. He literally answered, "Susan, Monica, Rebbecca and Mary."
I had no choice but to ask, "Other than first names, who are those people to me, or your potential clients?"
If you would believe it, there are some homeowners out there who believe that first names without titles really mean that the "licensed agent" has a team.
Any good, licensed, practicing Realtor has a team that makes transactions go seamlessly over and over again. That team consists of a Title Company with a specific Escrow Officer, a reliable Termite Company who stands behind their work and has an individual high enough to be accountable for mistakes. The team consists of several licensed contractors to paint, landscape, fix plumbing, repair and replace a roof or chimney. It consists of window washers, house cleaners, and stagers to prepare the home. It consists of marketing experts who are extremely technologically savvy, who know how to expose a property to every market possible. Without an extremely knowledgeable lender who not only knows their loan products, but who can assure that lending is certain and will be delivered on time, your Buyer has half the chance of getting the home. There are insurance agents, financial consultants, accountants, real estate attorneys, and more. The team is huge! When they know you mean business, they mean business for you, always!
"Where You Are When", complimented by having support from an incredible team, lead by a competent Realtor who actually sells homes...it's like a dream!
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