patrick.net

Hi OnTheFence,

I am a Berkeley resident (since 1995), and I suggest the following before you buy:

1. Go to the Berkeley PD's Community Crime View website at: http://www.ci.berkeley.ca.us/ContentDisplay.aspx?id=7060. I have found it very helpful when I've considered moving to other neighborhoods in Berkeley. I think you'd have a better sense of what to expect in a given neighborhood, and to think about what might bring the price down.

2. Check out how many foreclosures are in that neighborhood. Having done some initial groundwork myself in 2008 in Berkeley, house prices have come down significantly since then, and the number of foreclosures contributes to the price decrease - especially in particular zip codes in Berkeley.

3. Drive around Berkeley neighborhoods, and especially drive by this property during the day AND at night. You don't know me from "Adam" or "Eve", but I pass through this neighborhood on my way to work, and I personally think $504,000 is NOT anywhere close to fair value for this property (I don't know where the HELL someone got that number from; that's just plain ridiculous or fabricated or both).

4. Check out the Alameda County records for home sales in this zip code for the last 6-9 months. You might be surprised at the purchase prices for this zip code/area (range of #'s, may help to analyze it by dividing the square footage into the purchase price to make things comparable across properties).

My second opinion is that $379,000 is too much for this property, too, especially with an easement for the driveway. $504K is a ridiculous amount for fair value, and I think the huge decrease to $379K is how the real estate agent is trying to attract buyers. The real estate agent should have started at $379K (if that) and should expect to go much lower in this economy. Yes, I know the agent will say, "But it's Berkeley!" And I say, "I know there are several foreclosures in this neighborhood that are bringing prices down (since I personally visited them a while ago) and I'd rather pay 1/3rd the mortgage (as my current rent) for now instead of a huge mortgage."

5. Is this sales price more than 3 times your salary? If it is, please be careful. I don't know where you work, but if it's for the state of CA, a county, or one of the state university systems, I recommend holding off on any property purchases in 2010. Furloughs and layoffs aren't ending in 2010, given the CA budget. I recommend keeping your assets liquid, and avoid tying them up in a house right now.

Note: I moved to a very large studio apt from a 2 bdrm in anticipation of a cut to salary (budget cuts) almost 6 months ago. It took me about 1 month and 40 visits to prospective apartments to find the right apartment. I don't regret the change, and sleep a little easier knowing that I am somewhat better able to weather a continued potential downturn in the economy. Now rents are down even further, so if anyone is looking to rent, this is a good time to do it.

Good luck!
Laugh Smarty
P.S. I don't know how to settle easement issues, sorry.

Hi,

Thanks for the response.

What's the best way to find foreclosures that have happend in that area, is there a particular website you recomend?

I looked at the crime map, doesn't seem to bad, but then again I agree with checking the place out multiple times in both day and night time.

I'm really curious to see if anyone has any experience dealing with easements and could offer some advice in this area.

Thanks,

SF