FAQ
I am a Home Buyer
What is my first step in my home buying journey?
The first place to start is setting up your personalized "listing alert" that is called a Collection. This creates a daily email sent to you with all available homes for sale in the communities you are considering. It will include Compass off market homes, Coming Soon homes and all active MLS homes for sale. Your search criteria can be modified any time you want. Read more about Collections here.
What credit score do I need to buy a house in California?
In California you generally need a credit score of 620 or higher if you are applying for a conventional mortgage loan. However, FHA loans can have a score as low as 500 depending on your downpayment. In addition, Veterans Administration home loans may have very flexible credit score requirements. Let us know if you need a contact to a mortage lender.
What are contingencies in a purchase agreement?
Contingencies that are part of a home purchase agreement are the exit doors which allow a buyer to cancel their offer without any financial harm. For example, today there are four possible contingencies in a purchase agreement; Inspections; Appraisal; Loan Qualification; and Insurance. Contingencies always have a time frame attached to them. For example, an inspection contingency may state that the buyer has 10 days to inspect all aspects of the property. If the buyer is not satisfied with what has been discovered they can exit their offer without any financial penalty.
What should I do before I start house hunting?
Before you start house hunting, it is important to understand what you can realistically afford. If you need a lender, we are happy to make an introduction for you. You should also make a list with your must-haves and nice-to-haves. These are just a few of the “to do” items. Reach out to us to understand how to buy a house and what your specific journey may look like.
What does "pre-approval" actually mean?
Pre-approval does not mean you have an obligation to buy a home, nor is it a contract. Preapproval is when a lender takes a look at your basic financial information and offers you a realistic budget range so that you can begin house hunting with confidence. Reach out to us if you’d like to be connected to a trusted lender.
I am a Home Seller
How long does it take to sell a home?
The time it takes to sell a home depends entirely on four factors: condition, price, location, and timing. In addition, the time it takes a home to sell is also based on the level of seller motivation. In today’s current market, homes that are well-prepared and priced right are the ones that typically sell quickest.
How does pricing strategy affect the final sale price?
Pricing your home is both a science and an understanding of the current local real estate market. We recommend our home sellers price their home at its current market value. That is determined by reviewing the last four to six months of local homes that have sold that are like yours. How timing affects the final sale depends on the time of the year you publicly launch your home for sale. The first two quarters of the year is when you may get multiple offers and a sold price above your asking price. The second two quarters of the year are when inventory of homes for sale is at their highest and it is common to not get multiple offers for your home during those months. Read these 5 things every seller should know.
Should I sell before buying my next home?
It depends. If you have enough financial qualifications to purchase your next home, then selling your current home is not necessary. If you need the proceeds from the sale of your current home to buy your next home you will need to sell it before you are able to buy. Reach out to us to discuss your options.
What is my first step in my home selling journey?
The place to start is to contact us so we can better understand your objectives and timing. Every home seller has a story that is motivating them to consider selling their home. We want to learn what your story is. Click here for more home seller resources.
What home improvements have the best ROI?
Believe it or not, the home improvement item that has the highest ROI is a garage door replacement. Minor kitchen updates, curb appeal/exterior improvements, and deck or patio additions are some others. Read about more improvements here.
I am a First-Time Home Buyer
What costs surprise first-time buyers?
Some costs that may surprise first-time home buyers are inspection costs such as home and wood destroying pest inspections during escrow, closing costs such as lender/title and escrow fees, insurance costs, property tax, and home maintenance items for repairs/updates. Read more here to learn how to avoid making the most common mistakes as an east bay home buyer.
What mistakes do first time home buyers make?
There are mainly 5 common mistakes we see first time home buyers make.
They are: Not getting pre-approved early in the process, underestimating the true cost of homeownership, skipping home inspections, letting emotions override logic, and ignoring long-term value and location
What matters more: the house or the location?
Location matters more. A phrase used in real estate is, Location, Location, Location. You can always change the condition of the home, but you can never change it’s location. Find out why location is so important here.
Should I wait for interest rates to drop?
It is risky to wait for interest rates to drop to purchase a home that meets your needs and budget. When mortgage rates start to drop it often drives up buyer demand for homes which then drives up the prices. When you find that home which meets your needs it is better to purchase it and then refinance it later. Home values in California rarely drop, especially here in the East Bay, so waiting may not benefit you financially. Read more here about how to buy a house.
Is buying a first home different than buying again?
No, buying a first home is no different than buying again. While there are some programs offered to first time home buyers to assist them financially, the process of buying a home remains the same.
How early should I talk to a lender before buying in the East Bay?
Ideally before you tour homes. Early conversations help you understand your real budget and strengthen your offer when timing matters.
Market & Timing Questions
What is the best time of year to sell a home?
While many homeowners assume spring or summer is the best time to sell home, data from East Bay markets the past 36 years shows the strongest price-per-square-foot results occur in the first quarter of each year - January through June
Early in the year, inventory is typically at its lowest while serious, pre-approved buyers are actively searching—creating stronger competition and upward pressure on prices. We’ve written a full breakdown of the data, trends, and what this means for sellers planning ahead. Read more here →
How seasonal is the real estate market in the East Bay?
The real estate market in the East Bay is seasonal. The first two quarters of the year are when you may get multiple offers and a sold price above your asking price, depending on the home’s condition. The second two quarters of the year are when inventory of homes for sale is at their highest and it is common to not get multiple offers for your home during those months.
How does the Bay Area market differ from the rest of the U.S.?
The Bay Area market differs from the rest of the U.S for a few reasons. One is that there are high-income job centers, especially in the San Francisco Bay Area with the AI boom, Bay Area markets have been skyrocketing. Another reason is there is limited land with strict zoning, which keeps inventory tight, supporting higher prices and long-term value. Also, the Bay Area weather is close to unbeatable. The Bay Area is packed with trails and activities offering endless opportunities to gather with family and friends throughout the year. Read more about why families are moving to the East Bay.
What do homes for sale with low inventory actually mean?
A low inventory of homes for sale in the East Bay means buyers will likely face higher competition with other home buyers. This means there is an urgency for buyers to act quickly, often getting into bidding wars and paying more for the home than the listed price. It means that the supply for homes for sale is lower than buyer demand. This is referred to as “sellers’ market." Read The Bay Area 2026 Real Estate Outlook here.
What is the “Great Stay” and how does it affect buyers?
The “Great Stay” is a term used to describe Bay Area homeowners staying in their homes for decades, not because they can’t move, but because it makes more financial sense to stay. Some of the reasons homeowners are staying longer in their homes is due to significant home appreciation, ultra-low mortgage rates, and Proposition 13. Read more about The Great Stay here.
Financing & Costs
What expenses should I budget for after buying?
It is important that as a homeowner you have a home maintenance budget set up. It is common for unexpected surprises and costs to emerge as a homeowner. Not only is it important to have a budget set aside for surprises, like repairs, but also for maintenance items like yearly inspections. Having a maintenance budget set up after buying your house may save you time and hassle later.
What is the difference between pre-qualification and per-approval?
Prequalification for a mortgage is a quick, general estimate of what you might be able to afford for your home purchase, based on self-reported info, while preapproval is a lender's conditional commitment to lend you a specific amount funds for your home purchase after verifying your finances (income, assets, credit) with documentation and a credit check, making you a much stronger, serious home buyer in a competitive market. Prequalification is a simple first step for budgeting, but preapproval shows sellers you're truly ready to buy, making your purchase offer more attractive.
Because of decades in our industry, we have reputable and trustworthy contacts in all of the major banks for mortgages, along with independent loan brokers. Let us know if you need a referral.
What is the property tax rate in California?
The property tax rate in California is typically $1.00 per thousand of dollar value of the home. It can be higher depending on what local bonds a community has passed. In the East Bay the property tax rate is generally $1.25 per thousand of the dollar value of the home. For example, if you purchased a home for $1.5 million in the East Bay, your property tax would be $18,750. There are additional exceptions to this typical property tax rate. There are communities that have been built where the developer has borrowed using a bond for the community’s infrastructure that allows for a higher property tax rate until that developer’s bond is paid off.
What is Proposition 13 and why should I know about it?
Proposition 13 was a dramatic shift in how local governments in California were funded. Before Prop 13, the property tax value for properties were reassessed annually. As property values went up, so would the property tax. This created situations where someone who owned a property for a very long time often could not pay their property taxes because they were so high. June 6, 1978, the rules changed with a constitutional amendment – Prop 13. It capped property taxes at 1% of the property’s assessed value, and it limited any annual increases to a maximum of 2%. The reassessment of a property only changed when a property is sold, or if construction improvements happened.
What is PMI and can I avoid it?
PMI stands for Private Mortgage Insurance. It is a monthly fee on conventional loans when the downpayment on a home is less than 20%. PMI is in place to protect the lender if the homeowner defaults. The cost is generally 0.5 - 2.25% of the total loan amount annually. To avoid a PMI, the standard method is to put down at least 20%. To learn more about PMI, reach out to us and we will connect you with a lender to discuss your options and other ways to avoid this payment.
Inherited Properties & Life Transitions
What professionals should I talk to first?
In terms of inheriting property, there are a few professionals you can contact to help you. You can contact an estate planner, probate attorney, tax advisor/CPA, or a financial advisor. Your dedicated real estate advisor will be able to assist you with the sale of the home as well.
How is an inherited home valued?
An inherited is reassessed for tax purposes at its fair market value at the date of death of the owner. This is referred to as the “stepped up basis”. This value can be determined by an appraiser or a qualified real estate professional. This allows for the cost basis of the home to be reset, which often reduces the capital gains tax if it is sold. However, it could allow a property tax reassessment under Prop 19. Read more about stepped up basis here.
What happens when I inherit a home in California?
When you inherit a home in California, you typically go through probate, unless home you are inheriting was in a trust, become responsible for debts and maintenance, and face significant property tax changes due to Proposition 19, which often triggers reassessment unless you move into the home within a year and claim an exclusion as your primary residence. Key steps involve securing the property, handling mortgage/liens, understanding the "stepped up basis" rules for capital gains tax, and deciding whether to sell, rent, or live in the home, all while navigating new tax rules.
It is important for you to seek professional tax and legal advice when making decisions on what to do with inherited real estate.
Should I sell or keep an inherited property?
Before you make a decision to keep the home or sell it, seek the advice of a qualified California real estate attorney. The answer to keeping it will depend on if you decide to live in the property as your primary residence. This will likely allow you to take advantage of the property tax benefits of Prop 19. Another reason to keep it is because it is an important property to your family as a legacy property. A third reason to keep it is because it has long-term investment potential, or because it will secure high rental income. There are three reasons why an inherited property is sold; there are multiple heirs and the proceeds need to be distributed to them; you don’t want hassle and costs of managing and maintaining the property; or, you can’t afford the higher property taxes. Read about inherited property here.
What is a stepped-up basis and how does it work?
Stepped-up basis of home values occur when someone inherits a home after the death of the owner. The IRS often allows a reset of the home’s value at the time of the owner’s death. This essentially allows the home to be sold without paying the capital gains tax on the gained value over the many years it was owned. Read all about stepped-up basis here.
Living In The East Bay
Why do people move to the East Bay?
There are a few main reasons families continue choosing the East Bay as their home. The first is the quality of education. In the East Bay, schools have rockstar status. Children do not need to attend private school to have an exceptional education. Second is the affordability. Believe it or not, the East Bay is rather addorable compared to other regions in Northern California such as the Peninsula, Silicon Valley, and San Jose. The third reason is the quality of life. The East Bay has over 200 miles of outdoor trails, numerous state and regional parks, and a wonderful climate. Click here to read more about why families love the East Bay.
What neighborhoods have the most demand?
The neighborhoods in the East Bay that have the most demand are ones that are located in close proximity to highly ranked Blue Ribbon school districts. In addition, neighborhoods that are conveniently located close to town are highly sought after. In the San Ramon Valley it is very desirable to live near the Iron Horse Trail. Check out our Communities page to learn more about the neighborhoods in the East Bay.
How long do people typically stay in their homes here?
Fifteen years ago, the answer would have been less than ten years. Today in the East Bay it is 17 years. This has evolved because of the increase in home values during that time period allowing homeowners to be locked into their property tax rate because of Prop 13. We now refer to this as the “Great Stay”. Another factor is having a mortgage rate in the 3% interest rate range which makes it advantageous to hold on to your home for much longer. Read more about the "Great Stay" here.
How are East Bay schools rated?
It depends on which community one is considering living in. The highest rated “Blue Ribbon” schools are in the San Ramon Valley Unified School District, which includes, Danville, San Ramon and Alamo, in the Orinda, Moraga and Lafayette communities, and parts of south Walnut Creek.
How do Alamo, Danville, San Ramon, and Walnut Creek compare?
Alamo, Danville, San Ramon, and Walnut Creek all offer exceptional living with top schools and are extremely safe. Danville just got rated #1 safest town in all of California by SafeWise Report. The town is also very charming, with many restaurants and weekend activities. Alamo was listed recently as one of the Top 100 cities in the U.S. for quality of life within a semi-rural, low-density residential area. San Ramon has a plethora of business and employment opportunities, while still offering access to exceptional education and public services. Walnut Creek is known for its entertainment hub of the East Bay, with hundreds of shops and restaurants to explore. Read more about communities in the East Bay here.
Working With A Real Estate Advisor
Do I need a real estate agent to buy a home in California?
No, you are not legally required to have a real estate agent to buy a home in California. However, it's highly recommended for most home buyers due to the complexity of contracts, negotiations, and disclosures, with over 90% of home buyers using one for guidance. While you can represent yourself, agents provide crucial expertise in finding homes, understanding complex paperwork like contingency clauses, negotiating price and repairs, and navigating local market specifics, preventing costly mistakes. Connect with us for a free consultation.
What questions should I ask before hiring an agent?
A place to start when interviewing a real estate professional to represent you as a home seller or home buyer is to discover their years of local market expertise. For example, our core competency is from Orinda to Livermore. Other questions for you to consider are;
- What are their marketing strategies when representing a seller, and for buyers, what are their winning strategies for finding the perfect home and negotiating a fair price for it?
- What is their professional fee structure?
- What is their communication system? This topic is one of the more challenging aspects of most agents’ interaction with their clients. Make sure you know how to best communicate with them.
- How many families have they served in our region in the past year?
- How do they successfully manage multiple offers for a home?
- Do they have the capacity to take on new clients?
- If they are part of a real estate team, who will I be working with?
- What services are included in your professional fee? This will be different for home sellers and home buyers.
How do real estate agents get paid?
Real estate professionals are independent contractors and are paid a professional fee at the successful close of escrow while representing a home seller or home buyer. The professional fee is typically paid by the home seller which is shared between the listing agent and the buyer’s agent. The agents then split this fee with the brokerage they are associated with. In California, an agent's professional fee is negotiable, however it is between 5% and 6% in California.
How does The Bay Area Team generally serve their clients?
Throughout your real estate journey, your professional advisor is committed to delivering an elevated real estate experience which includes clear communication. Your real estate advisor is supported by an entire team of fellow real estate professionals and a vetted group of industry vendors. Your agent, alongside the team working hard behind the scenes, provides a hands-on concierge level of services and strategic marketing.
Is it better to work with a local agent?
It is absolutely better to work with a local agent rather than an out-of-area agent. It is important that your real estate advisor have an exceptional understanding of the nearby market and neighborhoods, as this allows them to best assist you with your home selling or buying journey. A local agent is also critical because of their relationships with fellow colleagues in the region. Each member of The Bay Area Team is local to the East Bay and have lived here for decades. We don’t just work here, we live here too.
Why Compass?
What is the benefit of working with a Compass agent as a buyer?
As a buyer, when you work with a Compass advisor you are automatically at an advantage to your competition. Your advisor has access to off-market properties called Compass Private Exclusives. This means that you have access to homes that are not even on the market yet. They can not be viewed on Zillow, Homes.com, other third party websites, etc.
Another tool you have access to as a Compass buyer is Collections. Your agent will set the criteria you are searching for and the Compass platform will automatically compile all the homes that match the criteria you are looking for. When a new home matches, you’ll be notified immediately (including the off-market ones).
What is the Compass 3-Phased Marketing Strategy?
Here are the three phases of Compass’ marketing strategy:
- Private Exclusive: It allows you to test price, gain critical insights, generate early demand, and extend your marketing runway — all before going public. It soft-launches your home to a nationwide network of more than 35,000 Compass agents and their millions of clients.
- Compass Coming Soon: This publicly launches your home on Compass.com, showcasing it to all agents in all brokerages and consumers on the internet without displaying days on market or price drop history. It signals to the market that increased competition for the listing will be coming soon when it’s launched on all other sites.
- Go Live on All Platforms: Go ‘Active’ on MLS & third-party sites with benefit of price discovery from Phases 1 & 2
What is Compass’s market share in the Diablo Valley?
Compass’ market share in the Diablo Valley is 21%, with the closest brokerage being Coldwell Banker at 11.7%
What is the benefit of working with a Compass agent as a seller?
As a seller, when you work with a Compass advisor you have access to many tools that will assist you in the sale of your home in many ways. Below are just a few.
The first is Compass Concierge. With this program, Compass will front up to $50,000 of costs accrued while preparing your home for sale. 0% interest with the balance paid at closing.
The second is the Compass 3-Phased Marketing Strategy, allowing for a launch of your home in three phases while having the ability to test market demand, price, and gain valuable feedback:
- Private Exclusive (shared with internal Compass agents only to test price & demand without accumulating days on market)
- Compass Coming Soon (shared with all agents)
- Go Live on MLS (shared on all sites officially on the market)
A third is Reverse Prospecting. We have the largest network of agents among any other brokerage, and with this network can reach out to agents that may have clients looking for your home. We have access to this tool through the Compass platform and can easily contact these agents who may have potential buyers.
These are just a few of the tools in our back pocket that will be utilized in every home sale, in addition to many others. If you’d like to hear more about what we offer as Compass agents, reach out.
Why work with a Compass real estate advisor?
Compass is a preferred choice for many home buyers and sellers due to its tech-driven, ene-to-end platform that offers integrated client tools, data-driven marketing, and unparalleled national and global network, allowing agents to provide streamlined and stress free experiences, while its private listing network (Compass Private Exclusives) gives home sellers early, discreet exposure, appealing to buyers who want an edge in competitive real estate markets.
In addition, in our region of the San Francisco Bay Area, Compass has a market share of almost 25% with home sellers and home buyers.