All a Matter of Perspective

So I’m pretty much used to the mid Peninsula area and, obviously, Foster City so the escalation in prices this year (last year wasn’t anything to sneeze at either) is pretty amazing to me. By most standards anywhere this area is shockingly wild when it comes to values. My brother in law from Peoria, Illinois was out visiting last week and you can only imagine his expression when I took him to see a few houses. His 3 bedroom, 2 bath house there is worth about $85,000. Just for fun I took him to the listings at 676 Matsonia, 921 Haddock and 843 Grenada (Matsonia and Grenada have sold since) and of course he was appalled. I really think the new median price for a 3 or 4 bedroom rancher is $1,300,000 right now in Foster City.

Well, I have some clients who are looking in Los Altos and we’ve written a couple of offers down there and I have to say it makes Foster City seem like Peoria by comparison. Seriously. The last place was a 4 bedroom, 2 bath rancher in almost original condition that was listed for $1,995,000. It’s original kitchen had those nice dark brown cabinets and tile counter tops. It has brown shag carpet in the living room and large patterned brown and black rings on a white background for wallpaper in the entry foyer. It did have a big 11,000 sq ft lot though…typical for Los Altos. I think you could put $200,000 into it without batting an eye…just to make it look like 676 Matsonia did! Matsonia was listed for $1,098,000 and got a bunch of offers.

We offered $2,370,000 for this place…and finished 4th out of 8. It sold for more than $2,500,000. Here’s a link:

http://matrix.mlslistings.com/Matrix/Public/PhotoPopup.aspx?n=12&i=0&L=1&tid=1&key=12969608&mtid=1&View=G

These pics actually make it look a bit more updated than it is too. This place handed out 19 disclosures. As long as there’s this kind of interest in areas like Los Altos and Palo Alto and Menlo Park, Foster City will maintain it’s values. It represents a DISCOUNT versus what’s down there. Plus the schools are equally great. Paying $1,300,000 for a rancher seems like a bargain to me now.

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