Brittan Heights Home Sales vs. New Listings

The majority of communities in the Peninsula have been experiencing historically low inventories. Overall, annual inventory is down about 35% from 10 years ago. Besides the economy doing well and interest rates being very low, one of the driving factors for rising home prices has been the lack of inventory.

Brittan Heights has also been experiencing the same phenomena. About 10 years ago it was typical to have 35 to 40 condos put on the market each year for sale. For the past few years the numbers have been more in the mid-20s. This is a significant decline in the percentage of available inventory at Brittan Heights – inline with the 35% decline seen in San Mateo County. Whereas before you typically had more homes put on the market each year than were sold, today almost every single property that is put up for sale is sold relatively quickly.

It remains a great to time be to be a seller, but tough days for buyers!

 

Would Your Smoke Detector Save Your Life?

A few weeks before this was written on January 12, 2015 there was a unit that caught fire at Brittan Heights and this made me think about the importance smoke detectors and that the majority of people have the wrong type in their homes. There are two types, ionization smoke detection and photoelectric smoke detection.

Ionization is what 90% of people have in their homes. Its older technology that reacts well to hot flames, but is also more likely to falsely trip which often results in people yanking out the batteries and just leaving the thing hanging useless on the ceiling.

Photoelectric detectors react better to smoldering fires, which typically provide occupants a better advance warning about the fire and prevents them some succumbing to dangerous fumes.

Statistics show that flame fires account only for 15% of deaths while smoldering fires account for 61%. While an ionization detector may give occupants a 15-20 second advantage in a flame fire, it may not trip altogether in a smoldering fire. There are detectors out there now that include both technologies, but if you have to choose just one, it would seem that the photoelectric would be the better choice.

Remember that you should have smoke detectors in all bedrooms and the hallway plus add a CO detector in the hallway – near the furnace.

Stay safe and healthy in 2015.

 

2014 Brittan Heights Sales

2014 was another banner year for Bay Area real estate and certainly Brittan Heights saw some new records too. Some of these new records included:

  • 1/1 Condo sold for $598,000
  • 3/2 Condo sold for $850,000
  • 3/2 Townhouse sold for $851,000

Overall 2/2 condos are now selling in the mid $600K range while 3/2’s are selling in the low to mid $700Ks. The 20 units sold in 2014 included:

  • 2:   1/1 Condo
  • 11: 2/2 Condos
  • 6:   3/2 Condos
  • 1:   3/2 Townhouse

It will be interesting to see what 2015 brings!

 

2014 Sales

Of course the day after I finished the chart one more closed and that was a 1/1 which sold for $519,000.

Hidden Costs behind an HOA Lawsuit

There was a recent lawsuit filed by a Brittan Heights resident against the HOA, its Board members and various contractors involved in the retaining walls project. So what is the cost of such a lawsuit to Brittan Heights’ residents? Well, there is the obvious legal costs plus any damages the plaintiff may win. It appears from the letter sent out by the HOA that its insurance will not cover this suit, so I guess that it must then come out of the reserves created from the HOA fees paid by residents.

But what about the not so obvious costs to Brittan Heights’ residents? One obvious cost is to sellers. Most banks do not like to lend money for condos whose associations are in the midst of litigation. The condo is the collateral for the loan and a big lawsuit could diminish its value if residents are forced to pay higher HOA fees to cover the costs of a big payout to a plaintiff. This is a real concern, having recently taken a listing there, the lawsuit question has come up. Agents representing buyers have expressed uncertainty regarding whether the mortgage lender for their clients would approve a loan because of the lawsuit.

There is also the fact that some real estate agents will discourage their buyers from purchasing a condo where the HOA is involved in a lawsuit. The agent is of course afraid they could later be sued by their buyer if the lawsuit results in some big assessment or raise in fees on their client.

I must also admit that I also wonder if the person filing the suit could themselves be at risk should a court determine the suit is without merit? One of the items the plaintiffs are suing for is diminution in value to their property. But what about the loss of value to other resident’s property due to the lawsuit? Imagine if condos are selling at a nice steady and reasonably predictable price. Then the lawsuit is filed and the prices go down while the overall real estate market continues unchanged or is even appreciating in value? Could a seller who had to accept a lower price then sue the people who filed a frivolous lawsuit? That’s a question of course for a lawyer and possibly a jury to answer! Let’s see how all this plays out!

UPDATE: well things played out well. My listing closed, but the lender for the buyers did require copies of the lawsuit complaint and really wanted the plaintiff to state the actual damages they sought against the HOA. However, this information was never disclosed, but the lender acquiesced and approved the loan.

Don’t let Thieves take your Stuff!!!

At the November 2014 HOA Board meeting the Board invited the local sheriff to discuss crime at Brittan Heights. The good news is that San Carlos remains a relatively safe community and that Brittan Heights seems to be even safer then San Carlos overall. The bad news is that while crime is not at historical highs in either San Carlos or Brittan Heights, it has risen. The crimes we are discussing are thefts at night – specifically people breaking into cars or stealing items like bikes hanging in the car ports. Apparently these things happen in waves and we are experiencing one now.

The sheriff cautioned residents to lock their cars, do not to leave valuable items visible in their cars, and also to secure bikes stored outside. When residents see someone suspicious, they should call the sheriff’s department immediately, let the sheriff investigate. Meantime the Board is also looking at changing its security service to better monitor the complex.

Stay safe!

Resistance is Futile – You Shall Comply!

First, sorry for the photo but I’m a geeky Star Trek fan so I could not help the Borg reference. That said, back in June I wrote a post about how the HOA now performs a presale inspection on all condos. My warning to sellers was to get this pre-sale inspection done as far ahead of time as possible because there may be noncompliant features to your home – that you don’t even know about!

Well, I am currently representing a seller that fell into this trap. She bought her condominium several years ago, when there was no HOA presale inspection, she was not aware that some of the features in her condo would be noncompliant. I urged the seller to order the presale inspection ASAP. The HOA came back with 3 noncompliant items which of course require her to complete an architectural application, which then must be submitted about two weeks before the next board meeting. It will then be reviewed at the monthly board meeting and hopefully a variance or other resolution will be forthcoming.

Depending on when you order the inspection and whether the board meeting provides you conclusive results, a seller could experience a delay in selling their home of a couple months if they are noncompliant and the buyer wants all issues resolved before close of escrow. However, the HOA will typically not stand in the way or stop close of escrow, they will simply only demand that the buyer assume liability to the issues raised.

Moral of the story is to get that pre-sale inspection ASAP. The HOA may require that your agent has already purchased the HOA docs before scheduling the inspection.

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UPDATE: so we went up before the Board and fortunately they approved everything. I think mostly because the work had been done so long ago by other residents. The Board did however make the current and future residents of the unit responsible for maintaining the deck. I think this could have gone very differently had the current resident been the one to make all the changes without the Board’s approval.

All About the Views – Top Level 3/2 sold for $850,000!!!

Wow, look at the little green marker all the way to the top right of the chart – that’s an incredible $850,000 sale price for a 3/2 condo – not a townhouse, but a top level condo! This 3/2 top level condo certainly had great canyon views (see picture below), but while it had some decent updates, it was not what I would call the best remodel I’ve seen. It lacked the open kitchen concept that so many buyers desire, the kitchen is simple with white cabinets, and both bathrooms were nice, but not luxurious.

It’s interesting that while the price pattern for the 2/2s seems to have flattened out for over a year now at around $650K, the 3/2s have just kept taking off. Meantime, we still have a 2/2 listed for $629,000 that has been for sale for 37 days now. It’s a nice downstairs unit, which if I recall correctly, overlooks one of the pool areas. This market is weird sometimes…

Views

Great Brittan Heights 3/2 with Open Kitchen For Sale

[SOLD]
This new 3/2 Brittan Heights listing offers residents an open concept kitchen with some great lush views of neighboring trees and the canyons across the way. The kitchen and baths have been updated. The kitchen has mostly new stainless steel appliances. There is a marvelous stone fireplace and hardwood floors. The patio has the unique feature of being wood planks instead of the typical aggregate slab; this is a nice rich feature. Great place to call home. For more pictures visit https://brittanheights.com/featured-listing/

The Price Insanity Continues!!!

Alright, so last week we had a 1-bedroom condo close escrow for $598,000, which is a pretty rare unit. Even more rare at Brittan Heights is a 3 bedroom townhouse. Today one closed escrow for an amazing $851,000. What’s incredible here is that the 1-bedroom condo was as fixed up as any condo could be – the owners did an incredible job. However, the townhouse, while nice, was nowhere as impressive as the condo in terms of updates and quality of materials. I wonder if it could have gone even higher had it been luxuriously upgraded? It boggles the mind!

All this while a 2/2 bottom condo has been on the market now for 90 days. It started at $629,000 and has been reduced to $599,000. Weird.

OMG! $598,000 for 1/1 Brittan Heights Condo

No doubt that 3311 La Mesa Drive #11 was a really well upgraded 1 bedroom. It was a fantastic blend of elegance and practicality. It had a gorgeous stone fireplace, vaulted ceilings, frosted glass doors throughout, a cool kitchen, and a luxurious bath. But it was still just 741 Sqft of condo next to Hillcrest. The last 1/1 sold for $385,000 back in February 2013. However, in retrospect, it can be justified since historically 1/1s sold for about $100K less then the 2/2s. Most 2/2s are now selling in the $600-650K range and this was an incredible unit deserving a premium. I had been curious what the next Brittan Heights 1/1 condo would sell for and I was surprised.

August Starts with Two Rare offerings!

August 2014 starts off with two rare offering at Brittan Heights. First, we have a 3/2 Townhouse – a real single story townhouse. In the 430 units at Brittan Heights, I think there are only 4 or 5 of these units. This rare gem was listed for $764,950. I have yet to see the interior, but considering a 3/2 top unit just sold for $765,000 this price seems reasonable if its interior is in good condition.

Then we have a 1/1 unit listed for $569,000. There are only 18 units total that are 1/1’s. This will be an interesting one to watch too. We had three units amazingly also sell within two months of each other at the start of 2013, then nothing. Their sale prices ranged from $310,000 to $385,000. While the list price may seem like a huge jump, this is a gorgeous unit inside and historically 1/1 prices were about $100,000 below the 2/2’s. With 2/2’s now selling in the mid $600K range, it seems fitting that this fully updated 1/1 condo should fetch top dollar, but the market will determine that for us.

3/2 sold for $765,000 – Wow!!!

This beautifully remodeled top floor 3/2 unit sold in May 2014 for $765,000. That is incredible. The previous highest price was $711,000 in September 2013, also for a 3/2. Keep in mind that while this is a great 3/2 with a total remodel reflecting a modern flair, it does not have true canyon views (see photo below from balcony).

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Welcome to the Updated Brittan Heights Website

Welcome to the reformatted Brittan Heights website. I wanted to create a more interactive experience for visitors while still maintaining much of the static information about this great condominium complex. I hope you enjoy the new format and I’m always open to feedback on how to best improve this website.

It’s Not Easy being Green

The HOA is looking at installing solar panels to heat up the water for the large pool next to the clubhouse. According to the panel installation contractor, the most logical place to install such panels is on top of some of the adjacent carports. Some residents are unhappy with the project. Some who will park in such carports are concerned about water dripping on their cars while others expressed concerns that the panels will unsightly and detract from the views they currently enjoy. The HOA claims the installation would save $4,700 per year in energy costs. http://www.amspcam.com/hoa12/main/hoa_docs/pdfs/The%20News%20at%20Brittan%20Heights-%20July%202012.pdf

As Kermit the Frog said it’s not easy being green.

What Pre-sale Inspection?

Gone are the days where a seller could make non-permitted modifications to his condo unit at Brittan Heights and then sell his home to a buyer without the HOA learning anything about it. Anytime there is a sale in Brittan Heights, there has always been a requirement that the HOA signoff on the transaction. However, what is new is that the management company for Brittan Heights also performs a visual inspection of the interior to determine whether the seller is conforming to the HOA’s rules.

While it would be a rare instance for the HOA to deny the property closing escrow on time, it could still impact the seller because the HOA would notify the potential buyer that they could be liable for repairs to bring the home into compliance with the HOA rules. Since this is a new rule, there may be future sellers out there who are not even aware that they are noncompliant. For this reason, I highly recommend that anyone thinking about selling get this presale inspection done as far ahead of time as possible. This will allow you time to make any repairs you deem necessary or at least to ask for a variance from the HOA board which only meets once per month.

Reaching for new Heights?

June2014b

Brittan Heights home prices have risen about 50% in value since 2011. Although the market continues to do well recently, it almost seems like prices peaked out late in 2013. In 2013 we saw three 2/2 units sell for in excess of $650,000 while in 2014 we’ve only had one unit to date. It appears that the market is settling, the 2/2 units are selling for between $600,000-$650,000 depending on their condition and location. The 3/2 units are selling for closer to between $650,000-$700,000; also depending on their condition and location.

There is currently a 2/2 unit that was priced at $669,000 which took 38 days to go the contract and here’s another one still for sale at the same price that is been on the market for 22 days.  It will be interesting to see the resulting sales prices on these units. However, the fact that it took so long to find the buyer for the first and the second one is still on the market, tells us something about this market. There are also three other units currently for sale, the results of these units I think will give us some real insight into the direction that this market is heading.

The Bronze Age – Windows

When the condominium complex was built back in the early 70s, double pane windows were almost unheard of. Today for energy and noise considerations, many Brittan Heights residents are installing double pane windows. As Henry Ford said, “give them any color car they want, as long as it’s black!” At Brittan Heights, the color of the window frame must be bronze and it may not have any dividers separating the window pane in two different sections. Furthermore, old windows must be replaced with retrofit windows, the HOA does not want any the exterior siding or trim to have to be removed in order to install the new window. As always, you must get approval from the architectural committee and HOA Board for such a project.

Hardwood Floors & Urban Legends

Today, hardwood floors may not be installed in the hall area near the Hall bathroom or in the bedrooms of a Brittan Heights condo. Urban legend had it that you could install hardwood floors throughout the entire house if you lived in a downstairs unit. However, in 2006 new rules regarding hardwood floors were implemented which restricted such installations. Today, the board will not allow such installations, but if you can prove that you installed hardwood floors in the bedrooms prior to 2006 and there have been no complaints from neighbors, then it’s unlikely that the board will require carpet be installed in such areas.