East Bay Real Estate

Realtors are sometimes referring to “short sales” as fake listings!

So, we have two “short sale” listings in our inventory.  The only reason why we agreed to take on these two projects is because the owners are friends of ours. And, because I had managed “short sales” as a Realtor when the worst recession in California history started in late 1989 and lasted for about four years.  Boy, has the “short sale” world changed since 1989!

The economic condition of the mortgage meltdown this time is not just in the East Bay and California, it is a national experience.  A “short sale” refers to a seller who does not have enough money to pay off their mortgage given the price of the home in today’s real estate market, and they don’t have the money to even make the monthly mortgage payments.  There are several keys for Buyers to consider if they are going to submit a purchase offer on a property listed as a “short sale”.

1. 1.  A “short sale” is only possible if the mortgage holders are willing to sell it for less than is owned to them.  The banks are the ultimate decision maker, not the current owner.
2. 2.  It is critical for a Buyer to know as much as possible about the ability of the Seller to actually have the mortgage holder agree to the “short sale”.  The current statistics show that only about one out of 20 “short sale” purchase offers ever make it to closing because the banks will not approve a “short sale” if the borrower still has money stashed in other places, such as savings.
3. It is also important for the Buyer to check out the experience the Realtor has who is representing the “short sale”.  Do the Realtors involved know what they are doing?
4. Has the process with the mortgage holder progressed to having an appraisal done on the home?  If the process hasn’t progressed to this stage it could be months for this step to be completed, if it ever is.
5. 4. The Buyer needs to understand the poor odds of closing escrow, and the amount of time it will take to work through the process - typically months.  5.  If the Buyer is able to make it through the “mine field” of the mortgage holder’s decision process they may get the deal of their life.  But remember the statistics that only 5% of them ever close.
6. A Buyer also will need to typically sign bank agreements letting the Buyer know the bank is selling the home in an “as is” condition, and the bank will not be doing any repairs that may be discovered in a home inspection.

The Buyers also need to be aware of the difference between a “short sale” and an “upside down” Seller.  The difference is BIG!  If an “upside down” Seller must sell their home, the mortgage holder will expect the Seller to take every last cent they have in their savings, 401(k), and even see if they can borrow money from their friends and family to make up the difference of the loss that the mortgage holder will be taking.  The bank won’t approve it if the Seller has cash available anywhere! ( One of the lenders on the “short sale” that we represent even asked ME to consider contributing money to them AFTER the close of escrow in order to minimize their losses!  This was a first for me - a demonstration of what type of desperate measures lenders are taking to see if it makes sense for them to take a BIG loss.)

 An added hurdle is when a property has a second deed of trust holder as part of the mortgage package.  The second deed of trust holder can nix the deal because of not agreeing to have their portion of the mortgage wiped out. ( Usually, the second deed of trust is the one that takes the biggest hit on a “short sale”.)  Also, a bank may want to take the risk of just foreclosing on the property and see if they can get some of their losses back from private mortgage insurance. 

 As you can see, it is very risky for a Buyer to enter into a “short sale” mess and come out the other end of a completed home purchase.  If you are one of these Buyers who are even considering the purchase of a “short sale”, make sure you select the most experienced Realtor you can, and then cross your fingers and pray a lot.  Until next time…your East Bay real estate detective is on duty.

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June 20, 2008 was the official date of the start of the California fire season, and Jim Walberg found himself right in the middle of the mess. 

“If I told you that 526,707 acres have burned in California since June 20th would you believe me?  Well, believe me.  Here are some further sobering stats regarding our fire season that is just three weeks old with over $350 million spent so far with a State budget for fighting fires this year at about $100 million!  Yikes!!!”

1. Number of California fires: 1,783 with 332 fires still burning.
2. Over 20,260 people have been assigned to fight the California fires.
3. There are 1,641 fire engines in service; 531 fire crews; 331 dozers; 429 water tenders; and, 118 helicopters on duty.

Last Wednesday my wife and I took our daughter down to Santa Barbara City College so she could register for the Fall semester - one of the most beautiful California college campuses we have ever seen.  It slopes right down to the Pacific Ocean.  While we were there we also assisted our middle son to move from one of his college housing to another one.  We anticipated a fun family weekend, with our oldest son driving up from Loyola-Marymount University to join us in the celebration of his 22^nd birthday since we were already in Santa Barbara.

Well, it didn’t work out the way we planned.  We left about 5:30AM on Wednesday morning in order to be at SBCC before noon so our daughter could participate with her counselor in organizing her class schedule.  As we came down Highway 101 entering Goleta, we noticed a few puffs of smoke trails coming from the coastal mountains with Goleta at their base.  In the car we noted that we were sad to see another small fire given there has been over 1,750 California fires since June 20, 2008!!!  What started out as a few puffs of smoke on just a few acres of land turned into a State disaster over the next three days!  Now, close to 9,000 acres have burned with Governor Schwaszenegger proclaiming a state of emergency in Santa Barbara County as a result of what they are now calling the Gap Fire.

Governor Schwarzenegger said. “California has the best firefighters in the world, and I also want to commend them for their dedication under such difficult circumstances. Thanks to their hard work, we are making progress in containing the more than 1,000 current fires, and through our local, state and federal coordination and resources, we will put these fires out and help our affected communities recover as quickly as possible.”  One of the keys to having only a few structured burned in the Gap Fire was the work of homeowners in these Santa Barbara foothills complying with the “100′ Defensible Space law”… keeping burnable debris at least a 100 feet from all sides of your home and property.

So, we were staying at a very nice hotel in Goleta with the sky turning dark during the day as if it was dusk.  Ash was raining down on everyone, and the fire burned through several power stations which had all of the electricity in Goleta do down.  There were over a 1,000 people evacuated to shelters such as the Goleta High School gym.  We were not prepared for being in a hotel with nothing but our cell phones working - not even a candle.  I remembered we had an earthquake survival kit in my car.  What I didn’t remember is that it was over 15 years old.  When I opened it up everything had spoiled or evaporated.  So, one of the benefits of our experience was to immediately create a shopping list at Home Depot the next day for five complete emergency kits that would sustain two people for three days in any emergency.  I went to Home Depot on Friday morning and put the kits together for each of our three kid’s cars and one each for my wife’s and my car.  If you don’t have an emergency kit in your car, put one together today.  Obviously, they call them “emergency kits” because you never know when you will need them.  We were unprepared.  Are you?  If not, take care of it this weekend.  Until next time…a bit singed and still coughing.  (The photos on this posting are from AP News, and SBCC website.)

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Jim Walberg had the Nissan GT-R show up at his house last week!

OK, so, you remember my article late last year about the San Francisco Auto Show at the Moscone Center when the Nissan GT-R road ready race car was unveiled by Wally Burchfield - the Western U.S. Vice President for Nissan.  Well, Wally showed up at my house last week and asked if I would like to go for a ride.  I let him know that I was about to sit down for dinner, and maybe we could go for a ride the next day.  He said, “No, I think you will want to go for a ride right now because I drove up to your house with the Nissan GT-R and I would like to have you enjoy a test drive.”  So, dinner was immediately postponed.  In spite of oil prices people are standing in BIG lines to buy this car!

I walked out to my driveway and I was blown away that this amazing race car that Nissan has now built for consumers was sitting right in front of my house.  You need to promise not to tell the police, but I suggested we drive out to Highland Road, off Camino Tassajara and see what it could do on this road of curves and bumps.  Oh, my gosh, what a ride we had.  The GT-R never had it’s rear end loosen up, it never left the road in spite of the bumps, and we never got out of 4^th gear with two more gears to go.  Wally let me know that the car actually tops out at 198 MPH, and goes from 0 to 60 in 3.2 seconds!  Holy Moly, what a car they have built for the road!!!

Wally had the car because of the annual Z Rally that was at Blackhawk Plaza.  He parked it at the Blackhawk Car Museum for the day and then brought it out for the Z Rally - sponsored by Z Owners Of Northern California.  So, I stopped by the Z Rally on Saturday, took some photos and spoke with several of the ZONC members - Stuart and Sandra Gates, and Lee Woolfolk, to see what their impressions were of the race car that is now available for street driving - at a minimum cost of $70,000 with only 2,000 being sold in the U.S this year.  Because of the small amount of cars being delivered to the U.S. the price is rising over the $100,000 mark.  Wally took some of them for test drives.  Here is one of the quotes of the passengers - Lee Woolfolk, “Hi Wally, I was very impressed by the way the GTR launched when the accelerator petal is floored.  The rear tires gave a little hint of wheel spin and we were off. The computer does a fantastic job of channeling the excess power to the front wheels. Stuart and I both drive Twin Turbo 300 ZX’s, mine is modified with slightly larger turbo’s and when they come on boost I get instant wheel spin in the lower gears making it harder to control. This car seems so much easier to drive at the limit and anywhere in between.  Handling and engine info is in a league all its own. Very impressive car and well worth the money. Nissan scored a home run! Now how can I put one in my garage!!!

Wally also gave me the marketing memo on the GT-R, “Nissan created the all-new Nissan GT-R, which offers advanced high performance for secure and enjoyable driving by minimizing the effects of climatic, road condition or driving technique limitations. The Nissan GT-R offers ultimate performance for virtually every driving situation - whether it be the Nurburgring circuit, to snow, rain or urban areas - all manageable by the GT-R driver through advanced technology and driving dynamics.

“The Nissan GT-R’s unique characteristics are instilled not just in the vehicle’s design, but also through a specialized production process. Carbon fiber, aluminum and steel components are assembled with a special high-precision process, which includes a series of vibration tests. Engines and transmissions are assembled by a single craftsman in a “clean room” environment and upon completion, every GT-R undergoes a battery of comprehensive tests to ensure the proper operation of all vehicle components.”

You also may remember that Wally was the one that gave me the scoop on the Nissan Rogue that came out last year.  It is so fun to have clients who are involved in fun companies.  Nissan is on a roll with it’s amazing high performance, fuel efficient, and just plain fun cars.  Check out your local Nissan dealers for more information.

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Ilya Moshensky is one of the finest real estate photographers that I have met!

I first met Ilya at the Luxury Real Estate conference in Del Mar, California several months ago.  He seemed to be everywhere during the conference taking photos of the participants and various events.  I final asked one of the Luxury Real Estate staff people who was this guy!  She smiled and said that he is the finest photographer they had found for capturing the essence of luxury real estate homes and estates.  I began some homework after the conference to see some examples of this work since we always need a top photographer’s services for the luxury properties we represent - both in the San Francisco Bay Area and the Caribbean.  Boy, was I impressed with what I discovered.

My experience is that Ilya’s Photography sets one of the highest standards for quality in the industry with over 30 years of experience. Ilya is the principal photographer of Ilya’s Photography, and he has enjoyed a lifelong passion his work with the camera.  His reputation for excellence has spread both in the U.S. and internationally.  Ilya has shot luxury estates in France, Spain, Switzerland, Costa Rica, Miami, Chicago, the Seattle area, plus many other locations in the States and the world.  After checking out his work, my next question was, “How much does this type of quality photography cost for shooting a luxury home or estate?”  Well, I discovered that he has VERY competitive rates that are negotiated flat-rate prices for any project.  He is even willing to offer long-term budgeted photo-shoot contracts.  His flat-rate policy is greatly appreciated within our industry because it is THE rate no matter how much time it takes to complete the project.  Again, I don’t think you will find a better value for your marketing dollar if you decide on Ilya’s photo services.

 In further discussions with the staff at Luxury Real Estate their consensus was that Ilya consistently produces quality work and can make a home or an estate look amazing.  They said he has the ability to capture on digital film the best aspects of the luxury property.  As promised, I am always on the look out for the best professional services I can find, whether it is a photographer or a painter.  It takes a “village” to sell and buy a home - from the preparation of the marketing program to the signing of the closing documents, hiring a professional real estate company is critical.  Until next time….fair winds!

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No matter what you may think, home pricing will change because of the length of one’s commute with today’s oil prices - $4+ a gallon for the first time in history!  There is an OIL CRISIS!

 I am a non-stop student as to what is happening within the local and global economies. I am reading or I am on the internet everyday regarding world wide economic issues.  (I do have a booboo on my head from a sailing accident.) They impact all aspects of real estate - from the Golden Gate to the Caribbean. What happens in London DOES effect what happens in the East Bay Real Estate market.  One of the economists that I read each week is Bob Doll from BlackRock.  They are a premier provider of global investment advisory services. Bob writes a weekly perspective as to his take on current economic events.  Here are some of his thoughts last week that focus on the impact of oil prices.  Some of you will ignore this article because of the word “economist” next to Mr. Doll’s name, but it does have some good stuff in it.

 Bob Doll - BlackRock: ( Mr. Doll is also the Global Chief Executive Officer For Equities, and was the President and Chief Investment Officer of Merrill Lynch Investment Managers.  BlackRock has $1.36 trillion in assets under management as of 3/30/08.)

The surge in oil prices comes at a bad time for the U.S. and world economies.  Consumer spending is already stretched, the housing market remains weak nationally, and the employment picture continues to soften.  High oil prices will no doubt detract from overall economic growth, but we would also note that aggressive monetary and fiscal stimuli should provide some offset.  Our overall forecast for the economy calls for continued weak, but positive growth.  The labor market remains under pressure, but unemployment claims have not increased as much as they typically would prior to a recession, and remain consistent with modestly positive economic growth levels.

To us, the critical oil-related issue is whether higher prices will trigger other inflationary problems, chiefly, accelerating wage growth.  To date, there has been no evidence of that, which is one of the reasons we maintain our belief that inflation will behave itself.  Headline inflation ( which includes energy and food prices ) continues to be boosted by surging commodity prices, yet core consumer inflation ( which excludes energy and food prices ) remains tame and labor costs have been easing.  Looking ahead, we expect that the weak economy could cause inflation pressures to moderate and that headline numbers could come back down to core levels.  The long-term case for higher oil prices is still intact.  Rising demand in China and other developing markets such as India, coupled with shrinking global supply, means that the ear of cheap oil is, unfortunately, over.  We do, however, continue to believe that oil is due for a near - term correction or consolidation.

Putting this all together, we believe that energy prices will correct at some point, that the the U.S. economy will slowly heat over the next 12 months and that inflation will eventually drift lower.  Ironically, a muddling economy is probably the best environment for stocks at present.  Slow growth will prevent inflation from becoming a problem, while also keeping the economy out of deflationary territory.  Markets are benefiting from some other tailwinds as well.  Earnings estimates, continue to fall for financial companies, but non-financial earnings remain sound.  Valuations remain attractive, and there is still a great deal of cash on the side lines that should eventually move back into the world markets.  Our view remains that the S&P 500 low of 1,270 (touched a couple of months ago) marked the bottom for the current cycle, but we also believe tha the S&P hit a temporary ceiling of 1,425 before last week (roughly corresponding to a Dow Jones level of 13,000).  At some point, we believe the positive factors we described will allow markets to break through these levels, but predicting exactly when that will happen is, of course, an impossibility.

After a minute or two of reading Mr. Doll’s economic thoughts, remember that the East Bay real estate markets are STRONG, and interest rates are GREAT!  We may be seeing higher housing prices closer to employment centers like Bishop Ranch and Hacienda Business Park.  Let me know your comments on the experience you are having with current economic conditions where you live.  Until next time.

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Jim Walberg reminds us that hunger doesn’t take a Summer vacation!

The Summer months are the most critical time for food needs in the Bay Area.  Click on Summer Food Drive TODAY, and go shopping for those less fortunate than you.  With kids about to get out of school for the Summer, there will be thousands of them who will not have a meal because of not being in school.  The Food Bank is the one at the front lines of providing these meals to our needy kids.

According to the Nation wide report on hunger and food insecurity from The Center on Hunger and Poverty entitled, “Hunger and Food Insecurity in the Fifty States: 1998-2000.” California has grown to be the 5th largest economy in the world and yet, in spite of our amazing agricultural abundance, over a million people are hungry and 5 million live in fear of hunger.  In fact, California ranks as the 15th worst state for food insecurity with hunger by the US Department of Agriculture. California is actually above the national average in percentage of households living under these conditions.

About half of food stamp eligible people in California DO NOT receive food stamps. In fact, in the last five years the number of food stamp participants dropped 40% from over 3 million to less than 2 million.  Three million children in California are eligible to receive free or reduced priced school meals, and though the National School Lunch Program feeds many of them, 70% of these children do not receive school breakfast. About 2 million children receive free or reduced price school lunches but during the Summer,  less than half received lunch.

FACT: In Contra Costa and Solano counties more and more retired or disabled people on fixed incomes are being forced to choose between food, rent, medical care, or prescription drugs.

FACT: 33 percent of the people receiving emergency food in Contra Costa and Solano counties are children and 21.4 percent are over 50 years old.

FACT: While the Federal Poverty Level is $20,650 for a family of four, a startling 65.9 percent have incomes under $15,000, while 73.1 percent of the clients of emergency food programs have an income less than 130% of poverty.

FACT: 78.5 percent of families who use emergency food programs in Contra Costa and Solano counties report that the food they bought just didn’t last and 41 percent of adults reported they did not eat for a whole day because there wasn’t enough money to buy food.

FACT: 26.4 percent of residents using emergency food services in Contra Costa and Solano counties are homeless, or in shelters or transitional housing.

Today is the day to make a difference in the lives of those less fortunate in the Bay Area.  Again, all you have to do is click on Summer Food Drive.  No excuses,  just do it.  Thanks for your kind assistance during this time of great need.  Until next time…

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The Realtors Marketing Association welcomed Mayor Wilson to a packed house as he updated the membership on the issues of San Ramon.

Mayor Wilson has been the mayor of San Ramon for almost six years, and a member of the San Ramon City Council for nine years.  His leadership and direction of the future of San Ramon was recognized this year with the recognition of being named the 2008 “Citizen of the Year” by the East Bay Leadership Foundation.  At the weekly RMA meeting today he updated the audience on the quality of life issues facing the city of San Ramon and the Tri-Valley region.  Here is an outline of some of his remarks as written by Jim Walberg.

1. The Tri-Valley Realtors are the banner carriers of this community because they have their ear to ground as to what is happening on a daily basis within their communities. They are the “Yes We Can” community resource centers for the consumers.
2. Regarding budget issues; “Romance without the finances doesn’t make it!” He updated us that the San Ramon budget for up coming fiscal year was passed last Tuesday for $93.8 million. He also let us know that San Ramon has set aside a reserve fund of over 50% of the budget for any fiscal issues that show in the future. Most cities have a 5% to 10% reserve, but San Ramon’s fiscal responsibility to the citizens for to make sure when “rainy days” show up there are reserves to cover any deficits.
3. The two critical issues for San Ramon are: Safety and quality of education. San Ramon now has their own city police force instead of contracting those services with the County Sheriff’s office. Regarding the quality of education in our Valley, it is one of the best in the country. We are all so blessed to be a part of a community that has such high standards in all aspects of community life.
4. The San Ramon City Center Plan: WOW! Mayor Wilson dazzled the audience with the plans for the City Center; Theater Arts Center; 5-star hotel; shops; restaurants and cafes; living lofts, and much more. It will be a 2.1 million square feet of mixed use commercial and residential living. His opinion, and from what he showed us today, it will rival Rodeo Drive in Beverly Hills as a place to spend time in an elegant atmosphere. He even let us know that the fountain area will become an outdoor ice rink during the winter months as one now finds at the Rockefeller Center in New York City. ( I did ask him how one gets on the waiting list for one of the live-in lofts.)
5. The future management of the build-out of the City Center was discussed because Mayor Wilson is running for the State Legislature. Mayor Wilson assured us that Sunset Development and Alex Mehran - the developers of Bishop Ranch, are the developers of this project. Mr. Mehran will be investing more than $800 million into this project so be assured the project will completed with Mr. Mehran at the helm.
6. Tassajara Valley sphere of influence area from Finley Road to the Alameda County Line; San Ramon is positioning itself to be the city influencing this section of a very sensitive development area in our region. Mayor Abram’s vision for this area is to have it focus on vineyards, country inns/restaurants, and spas - similar to what has unfolded in the Napa Valley/Livermore Valleys.
7. Future development behind Home Depot; It was very interesting to learn that there are 830 homes planned for this northeast corner of San Ramon by 2011. It is being developed by Art Lorenzini. That was all the information Mayor Wilson had on this project.

We are all so blessed to live in a region that has such a high quality of life, world class education for our kids, and safe communities in which to live - plus, having community leaders like Mayor Wilson.

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Diablo Black Mens Group knocked them dead with the “Cobbler Shack” today!

OK, so I am the “rookie” with the Diablo Black Mens Group.  But, what I didn’t know is that their annual food booth at the San Ramon Wind Festival was selling peach cobbler and ice cream.  The “rookie” gets to be the ice cream scooper.  I am 60 years old and do you have any idea what scooping ice cream does to one’s tennis elbow and carple tunnel syndrome?  Well, I am at home tonight with ice on my right arm, a glass of wine in my left hand, and I have already taken three Advil.  Who would have even imagined that there would be such an action packed fund raiser within two weeks of joining this group.  And, I just completed the 18th Annual Blackhawk Food, Wine & Film Faire at the Blackhawk Car Museum for my Rotary club last week, which was another over the top event from an effort and planning standpoint.  You will find me down at Body Works in Danville this week for a serious deep tissue massage.

All kidding aside, there was a ton of money raised by the DBMG for their scholorship fund the past two days at the San Ramon Wind Festival!  It was a lot of hard work, but it will contribute a significant amount of funds to scholorships to young African-American men starting college. We even sold out of the cobbler and ice cream by 3:30PM today because of the crowds that kept lining up for this great treat at the Festival.

So, I am through with the breakdown of the booth, loading the truck, and high-fiving the DBMG crew, and I am walking to my car.  I run in to lots of friends attending the event asking how it went with our fundraiser.  And, who should I run into is Dr. Brent Waterman - the doctor that assisted me with completing so many high endurance sporting events over the past 20+ years.  He is my chiropractor, and he is the past president of the Danville Lions Club and the past Lions Club member of the year!  Dr. Brent is not only a dear friend, but he is a giant in the world of community service in the East Bay.  He was standing in the middle of the walkway passing out coupons for the Taste Of Danville Event coming up next week.  I promised him that I would assist him in passing out the fliers to the real estate community.  And, I promised him that I would give the event a plug on my blog site.  So, here are the details.  It is the 14th Annual Spring Restaurant Walk in Danville - 6PM to 9PM.  It is the only “Progressive Dinner” in the East Bay;  The Peasant & The Pear; Tower Grille; Primo’s Pizza; Beverages & More; Starbuck’s Coffee; Sideboard; La Ultima New Mexican Food; Bridges Restaurant; Amber Bistro; Basil Leaf Cafe; China Paradise; FAZ; Masala Indian Fusion; and Taqueria El Balazo!  Can you believe the ticket price is ONLY $25!!!  Call (925) 275-1990 for tickets!  It is always a sellout, so call TODAY!  Your East Bay real estate detective continues to explore all of the events you will ever want to know about!!!

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I just got the confirmation…Keller William-Danville is moving to the Rose Garden Village!

So, my commercial Realtor friend, Gary Riele has finally confirmed to me that Keller Williams - Danville is moving from the Theater Arts Building on La Gonda Way to the Rose Garden Village at the corner of 680 and Sycamore Valley Road around August 1st.  As I mentioned last week, their lease was up and they decided not to renew it because of the building owner being unwilling to be their advocate to the Town Of Danville in securing signage on the building.  KW-Danville has been in their present location for five years without any public signage letting people know they are located in that office building.  Apparently enough was enough. 

With this move it will allow KW-Danville to consolidate all of their office space on one floor - over 7,200 square feet, have a location that puts them right in the middle of the newest retails center in Danville, and get signage on the building in several areas allowing anyone driving by or driving into the Rose Garden Village that a dynamic and growing real estate company is standing ready to meet all of their real estate needs.

Keller Williams Realty is the fourth largest real estate company in North America with over 90,000 Realtors serving customers from all over Canada and the United States.  It is a company who lives by value statements that they refer to as the WI4C2TS;

• Win - Win - Or no deal.
• Integrity - Always do the right thing.  ( What one does when no one is looking.)
• Customers - Always come first.
• Commitment - In all things
• Communication - Seek first to understand
• Creativity - Ideas before results
• Teamwork - Together everyone achieves more
• Trust - Begins with honesty
• Success - Results through people
• To an industry of traditional values Keller Williams Realty brings a new pinnacle of inter-dependent beliefs and values that their Realtors follow.  I know this to be true because I have experienced for over three years.  Let me know if would like to find out more about this amazing company with a specific business model for Realtors to follow everyday.  Until next time…

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So, Jim Walberg was snopping around today at the Rose Garden Retail Center In Danville In order to see which businesses were moving in.  And….

I ran into Gary Riele, the partner in the commercial real estate company, Straface Riele.  I asked Gary what he was doing there and did he know who some of the other business tenants were that may be moving in.  After some significant proding, he said that one of the companies about to sign a lease was the Danville office of Keller Williams Realty - the 4th largets real estate company in North America with over 90,000 Realtors.)  Currently, the KW Danville office is located on the corner of El Cerro and the 680 freeway in the Theater Arts Financial Center.  ( This was the building that was intended to be the arts center for the Town of Danville that ended up being a front for a financial scam which caused one or more of the principles to eventually be sentenced to jail.)

Gary said the problem KW Danville was having with the owners of their current office space is the Town Of Danville was unwilling to have any signage for their company, even though they were one of the largest tenants in the building.  The Town of Danville’s position is the building was approved as a theater arts center, not a commercial center for businesses.  Unfortunately for the owners of the building, KW Danville has apparently had enough after five years of no one knowing Keller Williams Realty is in that building, so they started investigating other alternative since their lease is up next month.  They want the community to know where they are and it appears they are going to pull it off at the Rose Garden Retail Center - the newest retail center in Danville at the corner of the 680 freeway and Sycamore Valley Road.

Beverly Steiner is the one of the three owners of this Keller Williams office and she was not available for comment about what I had learned from Gary Riele.  Kristin White is the Market Center leader and she was also vague about what seems to be unfolding.  I tagged along with Gary Riele as he was walking through the office space, and it appears the KW Danville is going BIG with this move.  They are taking on 7,200+ square feet of the second floor of the building in the Rose Garden Center which has the big deck on San Ramon Valley Boulevard.  As I walked through the open space of the their future office - no walls or ceilings are in yet, I was VERY impressed!  Apparently, KW Danville is preparing for over 250 Realtors to be a part of this real estate center!

What I know about the KW business model is that they lead with revenue, and because of this model, they are not being impacted by the current adjustments happening with home sales in the East Bay.  They only spend money they actually have.  This is allowing them to make this move with the full understanding that no other real estate company in the East Bay is in the expansion mode - they are generall downsizing and/or consolidating their office locations.  Since KW Danville is expanding against the trend of companies downsizing, they are committed to fill the void that is being created by those who are creating the “open space” within the real estate industry because of closing and/or sub-leasing their office spaces.

If I was going to make a prediction, I would say that KW Danville is the company that is poised to take over the lion’s share of the real estate market because they are coming from a place of support and belief in the health of the real estate market for Realtors who still want to have this business as their career.  The KW motto is, “Building careers worth having, businesses worth owning, and lives worth living.”  How in the world could any Realtor not find that appealing as a place to grow their real estate practices.

Your East Bay real estate detective is on duty and will update you as to what I find out about this rumor.  If it is true, I will let you know immediately.  Contact me anytime for any of your real estate needs.  Until next time…

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