Barb

Those of us who work and live in the San Ramon area though are not surprised to see Gale Ranch's situation improving over that of Windemere. Windemere has a significantly higher tax rate that Gale Ranch or the rest of the valley, and the inventory is much higher due to the large number of homes that sold in a short period of time during the big boom, so the percentage of people in financial trouble there is higher than that of the Gale Ranch area. - Sat Aug 9 2008, 10:03

In general I would say it is not very useful at all. It is a look backward, and doesn't take into account current market trends, mortgage rates, amount of inventory in the area, how desperate are the current sellers, etc. In a market trending downward, the Zillow price may be too high, in a market trending upward, the Zillow price is often too low. It also doesn't take into account the condition of the home, location (backing to a freeway gets no reduction in Zillow, as far as I can tell)and other amenties or features about your home that may make it more or less desirable.
The market determines the price - what are people willing to pay when your home is on the market, how many people know that your home is for sale, and what else can those buyers buy with the same amount of money. A Realtor can help you determine the marketing price for your home, based on the current market situation and your current competition for those buyer's dollars. - Sat Aug 9 2008, 09:58

Richmond is a difficult area, and maybe an agent from that area should answer. My usual answer to people asking about appreciation is to buy a home so you can live in it and have pride in it; to get the mortgagte deduction, and hopefully, over time, to gain some appreciation. In Richmond, the areas that do have appreciation are the waterfront, and the view homes. The image of crime (because they say "richmond" on the news, and do not specify areas) will probably be a drawback, and given the same amount of money, the dollars spent in Richmond vs the dollars spent in El Cerrito or Berkeley, it is my opinion that the appreciation will be greater in El Cerrito or Berkeley. But a view home in Richmond vs a flatlands home in El Cerrito? Probably a toss-up. But owning is usually better than renting; and Richmond, being closer to people's jobs, is probably better than some other choices. That said, I think it depends upon the amount of money (all of your savings? a gamble? Left-overs from an inheritance?), the area (ready for gentrification? ability to rent it and have a positive cash flow?) and your purpose (rent, live in, or flip.) Think about your goals, and broaden your horizons. There are loans out there (CAL- HFA for one) with little or no down.... - Fri Aug 8 2008, 17:00

I show the homes to my clients that are in neighborhoods they want at pricepoints they are willing to pay. If the noise is a factor, you will find that the prices will reflect it - the noisy home may have a larger yard and larger square feet for the same price as a smaller home without the noise. It all depends on what is important to you - size, or location You really have to make the decision yourself - but the homes that sell first are those that are in the most generally desirable locations - close to the freeway, but not so close you can hear it; backing to open space, on a cul-de-sac, in good school districts, larger homes on larger lots, or at least a yard with privacy. If the home has offsetting factors - a great backyard, a larger yard than the average in the neighborhood, a fabulous kitchen, more square feet, a view, then you won't have problems having the home shown in the slower markets. - Mon Jul 28 2008, 17:15

I guess I am an optimist, because I believe there is a good life no matter where you live, and I bet it is a very nice life in the midwest. I was raised in the Chicago area and Minnesota, have lived in the bay area for over 20 years, spent some tiime in Houston and back to the bay area. It's great to be near family, but I think your money goes farther outside of California (and life seems less stressful and hurried), because less of your income is spent on housing. So use the savings to visit your family more, or fly them out to see you. Our state right now is not in the best shape, either, with huge spending, no one willing in the government to slash it, and with property tax revenue going down (people saying my home is not worth what is was two years ago, so I get to pay lower taxes, and then all the bank-owned property and short sales - a $300,000 house from a few years ago is selling closer to $175,000, so the state ends up with way less money). The state government will have some issues for awhile.

That said, if you are committed to eventually coming back, then now is as good a time as there ever has been, because the housing market in many areas (like Brentwood, Dublin, and a few others) appears to really have hit bottom - great time to buy and invest! - Mon Jul 28 2008, 14:00

It sounds like you had a bad agent. I think it may be a case of live and learn, and that you should have fired him before you let him write the offer for you. Once you signed the agency agreement, you agreed to let him represent you in the purchase of that property. I think there is little you can do about getting some of his pay for his work, but I would complain to the managing broker at his office, so that he can either be better trained, or not be allowed to so poorly represent the company he is working for. - Mon Jul 28 2008, 10:50