Piedmont Market Update - May 2024

Your Trusted Piedmont Real Estate Team – Buy or Sell with Confidence

Thinking of buying or selling a home in Piedmont? At Calia Homes, we specialize in guiding East Bay clients through the unique Piedmont real estate market with care and confidence. Whether you're searching for your dream home on a quiet tree-lined street or preparing to sell a legacy property near Piedmont Park or Crocker Highlands, our experienced Piedmont Realtors provide trusted advice, deep local insight, and a people-first approach. With decades of experience and a reputation built on referrals, we’re here to help you make smart, successful real estate decisions in Piedmont and the surrounding East Bay communities.

The Insurance Dilemma It has been almost a year since we wrote about the issue of home insurance cancellations and what to do if it happens to you. As we write this month's newsletter, we have personally experienced the turmoil of cancellations and have friends and clients who have received notices. We have also helped a number of clients buying homes in our rolling hills coordinate their insurance through California's FAIR Plan; a syndicated fire insurance pool m a d e u p of all insurers w h o are licensed to conduct property/casualty business in California. "As of December 2023, the FAIR Plan's total exposure is $311.64 billion, reflecting a 27% year-over-year increase since 2019." (www.cfpnet.com) If you receive a cancellation from your insurer or are considering selling (or buying) a home, you should be aware of the FAIR Plan as well as the "Four Point Inspections" that some insurers are now requiring. These can be required when renewing a policy or applying for a new one. They originated in Florida in the 1990s after the hurricanes , and are becoming more common in California. Four-point inspections are not full home inspections and only cover roofing, plumbing, electrical, and HVAC. These are the four main systems that insurance companies concentrate on when determining  the viability of insuring a property. They are primarily looking for the age, type, and materials used in each system. For planning purposes, it is good to know that the insurance companies are not fans of knob and tube wiring, galvanized steel pipes, old furnaces, or shake roofs. Of course, they are also not keen on insuring homes in high-fire zones . Another Topic on our Mind...Self-Directed IRAS Did you know that a self-directed IRA can invest in real estate, private companies, promissory notes, and precious metals? If you have a 401k or IRA from a former employer, you may be eligible to convert your account into a self-directed IRA that enables you to invest in alternative assets, including real estate, with these funds. These conversions can be completed through self-directed plan custodians. Of course, we are Realtors and not financial advisors. If you would like a referral to a custodian, we would be happy to connect you with companies that can assist you with a conversion and tell you more about the ins and outs of self-directed plans. We are excited about self-directed IRAs because they permit us to invest money in an asset type that we understand better than stocks and bonds... investment real estate! We also recommend picking up a copy of "The Self Directed IRA Handbook" by Attorney Matt Sorensen. Below is a picture of Carrie at a Keller Williams Wealth event with her colleagues Sara Min Zhao and Kristin Struzyna in Scottdale last week. There, she met with Greg Herlean, the founder of Horizon Trust Company, a self-directed IRA Custodian. We 'd be happy to make an introduction. Next Month, we will discuss the concept of "Inflation Induced Debt Reduction" (try saying that three times fast!). It will help explain why buying makes more sense than renting, especially in an inflationary environment.