By Aiko Hill

Looking Back, Moving Forward

In the early 1900s, when land developers were enticing people to buy in Los Altos, they employed a “Wheel of Fortune” concept. When potential buyers visited the area, they could take a free spin. On one segment of the wheel was the offer “set of dishes or parcel of land.”

What seems amazing now is the number of people who opted for the dishes. Of course, it is unlikely that those dishes are worth more than the million dollars that the land now brings!

Through the 1950s and 1960s, many new ranch-style homes were constructed. A number of these homes had three bedrooms and two baths, and sold for between $20,000 and $30,000.

What’s more, there was little competition for these homes. A sale mostly required the buyer to sign a one-page contract (no disclosures) and then call the bank to secure a 3 percent loan, the going rate in those days.

Well, things certainly changed through the 1990s. Three years ago, those 3-bedroom, 2-bath homes were selling for more than $800,000. Last summer it was worse (or better - if you were selling). It was a “no holds barred” environment. Multiple offers, combined incomes, the extensive use of stock options, baked cakes for the seller or even vacations and cars were all part of the offer.

As we get deeper into the spring season, we see the blooming of “For Sale” signs along with the blooming of flowers. This is the time of year when many people consider both selling and buying. According to one recent count, there are close to 130 Los Altos homes on the market.

Where there were once multiple offers on homes that were sold within a matter of hours, that is a little less common. Yet, even today, as the market cools down considerably, a little bungalow is fetching well over a million dollars!

And the one-page contract? Forget it. It’s now 12 to 15 pages - with plenty of disclosures.

So, if you are heading into the market this spring, be prepared and be patient. The homes are pricey, the contracts are complex and the ingenuity required to close the deal is considerable.

If you’re a buyer, there’s a good chance that you’ll find the home you want. If not, you can always find a great set of dishes!

Send comments and suggestions to aikohill@aol.com.