Cinnabar winery sign (Big Basin Way, Saratoga)

In many communities such as Saratoga, Los Gatos, Los Altos, Willow Glen, Campbell and Palo Alto, there is a high premium placed on homes which are close to the downtown area.  Many real estate agents advertise these as “walk to town” but the idea is simple: it’s nearby, you can stroll, skate, ride or bike, wheel yourself and forget the car.

Downtown Saratoga, also called Saratoga Village, welcomes residents and visitors to a charming, scenic area with fabulous shops, spas, wine tasting venues, restaurants and more.  This part of the city boasts top scoring schools as well as lovely older and historic buildings and a gorgeous park alongside Saratoga Creek. Whether you spend an afternoon or a lifetime in Saratoga, this part of town will call you back again and again!

What do you need to know about buying a house, townhouse or condo in downtown Saratoga?

There are a few points which you are well served to know when purchasing residential real estate in this upscale community. We’ll touch on a few of them here: historic homes, traffic & noise, natural hazards, parking, and special issues with condos, townhouses and PUDs (planned unit developments).

First, this downtown Saratoga Village zone is historic; while not every property is deemed historic, many are and that means that there will be restrictions on remodeling and expansion of single family homes or houses. For instance, original glass in windows may need to remain if you’ve got a Victorian house dating from the 1890s, and expansions may need to be off the back of the home so that the facade keeps its initial look and feel (just examples).  This can be frustrating if you buy a luxury home that “needs work” and you are surprised later. If the house was built before 1950 or so, double check the rules!

Second, traffic and noise can be an issue and vary from day to day as well as from one time of day to another; there are a variety of traffic related concerns.  Big Basin Way is an alternate route to Highway 17 for access to Skyline Boulevard and the coast.  Cars and motorcycles may be thick on Saratoga Avenue, Saratoga-Sunnyvale Road and Saratoga-Los Gatos Road when the weather is good.  Motorcycles can be especially loud when large groups go on a road trip together!  Of course there will be extra cars when a concert is featured at The Mountain Winery (off Big Basin Way) or Montalvo (off Saratoga-Los Gatos Road).  If you have a serene view property it might surprise you how much motorcycle noise can carry – so be sure to visit the property on a warm weekend afternoon or two to check it out.

Additionally, because Big Basin is an alternate route to Highway 17, it can also get a lot of traffic if there’s a problem on 17 in winter due to weather such as with downed trees, mudslides, car accidents with severe backups, etc. So when weather is good and when weather is bad, Big Basin and nearby roads can get very congested and move slowly.

Commuters who live in the mountains as well as others choke Saratoga Avenue at rush hour.  This is slowed further by having to pass two schools (Sacred Heart and St. Andrews) before getting to Highway 85.  Saratoga Avenue has just one lane in each direction through the historic zone, but after the freeway it’s much better.  (Saratoga-Sunnyvale isn’t bad as there are 2 lanes but remember to slow down at Saratoga High – the road is wide so the temptation is to go too fast.)

Natural hazards:  Depending on the location of the home in relation to the village, you could be in a wildland fire zone, in an unstable soils zone, a seismic zone or other “natural hazard” areas.  Also, if you are closer in to the hills or near a creek (and there are 2 in downtown Saratoga), there will of course be an increased contact with wild life, such as deer – but potentially also mountain lions, bobcats, racoons, possum, skunks, etc.  Most people love seeing the deer but others find it upsetting that their beloved garden is viewed as a buffet!

Finally, as with many downtown areas, parking can be a little tricky at times.  Valet parking can be a big help but no matter what, do pay attention to how long you’re in a spot and what the limit is – it can be expensive if you forget!

Are there special issues with Condos, Townhomes or PUDs in downtown Saratoga, CA?

In some cases, yes, PUDs, condominiums and townhouse communities may have special issues due to any of the items listed above.  In 2010 I had a great listing at Saratoga Oaks, a lovely and luxurious townhouse resort community.  Because of their proximity to the hills, the home owner’s association had earthquake insurance and that was quite costly.  The HOA dues covered not just the multiple pools, tennis courts, pool house, roads etc. but also fairly expensive blanket and earthquake  insurance as well. (That listing of mine on Placida Court is sold and closed but you can check the photos out here to get an idea of the area.)

A problem throughout Silicon Valley is condo, PUD and townhouse home owners defaulting on their monthly dues (and any special assessments).  Whenever you purchase one of these types of homes it is very important to know how financially sound the community is.  If there are many defaults, it is possible that the reserve account will run too low, resulting in either deferred maintenance, raised dues or special assessments  for those who are paying.  (With a short sale, some of the owed monies may be forgiven, and with a foreclosure there may be no recouping of debts owed at all.)

There are very few distressed sales in Saratoga, relative to the rest of Silicon Valley, so this risk should be lower in downtown Saratoga or anywhere in that city, but do check the situation out so that yo aren’t later handed a big bill to pay!  Here are a couple of related articles that you might find helpful:

Why are those Silicon Valley HOA dues so high?

Does your HOA have enough in reserves?

Want to learn more about living in this piece of paradise?  Browse listings below – no need to register, just have a look!  And if you want to buy or sell real estate in Saratoga, please contact me.  I grew up there (graduate of Saratoga HS), I sell there, and I’m happy to assist you in making it your home!

Find a home for sale in Saratoga, CA (all of Saratoga, not just downtown):

Saratoga California condominiums or condos for sale

Showing properties 1 - 3 of 3. See more city of Saratoga real estate.
(all data current as of 2/9/2012)

1. $625,000 : 14660 Big Basin Wy #C, Saratoga
   
   3 beds, 2 full baths

   Home size: 1,408 sq ft

   Lot size: 1,496 sq ft
   
2. $585,000 : 14654 Big Basin Wy #A, Saratoga
   
   2 beds, 2 full baths

   Home size: 1,276 sq ft

   Lot size: 1,276 sq ft
   
3. $439,999 : 20800 4th St #10, Saratoga
   
   2 beds, 1 full bath

   Home size: 876 sq ft

   Lot size: 871 sq ft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Saratoga California townhouses or townhomes for sale

Showing properties 1 - 4 of 4. See more city of Saratoga real estate.
(all data current as of 2/9/2012)

1. $574,950 : 19714 Vineyard Ln, Saratoga
   
   2 beds, 2 full, 1 part baths

   Home size: 1,511 sq ft

   Lot size: 2,000 sq ft
   
2. $525,000 : 19415 Vineyard Ln, Saratoga
   
   3 beds, 2 full, 1 part baths

   Home size: 1,612 sq ft

   Lot size: 968 sq ft
   
3. $775,000 : 12630 Biarritz Ln, Saratoga
   
   3 beds, 3 full baths

   Home size: 1,991 sq ft

   Lot size: 3,192 sq ft
   
4. $948,000 : 14679 Springer Av, Saratoga
   
   2 beds, 2 full, 1 part baths

   Home size: 2,163 sq ft

   Lot size: 1,377 sq ft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Saratoga CA houses for sale – single family homes for sale in Saratoga California

Showing properties 1 - 5 of 59. See more city of Saratoga real estate.
(all data current as of 2/9/2012)

1. $798,000 : 14403 Oka Ln, Saratoga
   
   3 beds, 1 full bath

   Home size: 1,273 sq ft

   Lot size: 11,000 sq ft
   
2. $825,000 : 18253 Swarthmore Dr, Saratoga
   
   3 beds, 2 full baths

   Home size: 1,400 sq ft

   Lot size: 8,260 sq ft
   
3. $850,000 : 14656 6th St, Saratoga
   
   1 bed, 1 full bath

   Home size: 592 sq ft

   Lot size: 4,500 sq ft
   
4. $869,950 : 19061 Dagmar Dr, Saratoga
   
   3 beds, 1 full bath

   Home size: 918 sq ft

   Lot size: 8,424 sq ft
   
5. $890,000 : 14451 Oak Pl, Saratoga
   
   2 beds, 2 full baths

   Home size: 913 sq ft

   Lot size: 8,925 sq ft
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Homeowner Associations (HOAs) are created to oversee condominium complexes, townhome communities and planned unit developments on behalf of their members. These are non-profit organizations whose purpose is to manage common areas, enforce neighborhood rules and standards, and often, unofficially, to foster community unity too. In most cases, they collect fees from members and have local authority. In other words, if you do not pay your homeowner association dues, or abide by one of its rules*, the HOA can and usually will fine you or even foreclose on you!

There are loads of HOAs in Silicon Valley. As with all organizations, some are better run than others. Its a little different than owning real estate outside of a homeowners association.

What are the pros and cons?

At their best, Silicon Valley HOAs keep the communities they manage beautifully landscaped and maintained, they hire good providers for needed improvements, and minimize risk to all the members. By having reasonable rules and community buy-in, the neighborhood can look inviting and property values can be better maintained.

At their worst, HOAs can be unresponsive to members needs, erratic, arbitrary and irresponsible. They may, by poor planning, cause huge assessments to be necessary or raise HOA dues so that they are very high – to the point where they make homes hard to sell. Not only are those an unhappy occasion, they can also make it hard to sell a home with a special assessment looming. Fortunately, this is seldom the case in most areas – but if the HOA has a high number of defaults due to owner bankruptcy or inability to keep up with mortgage, property insurance etc. it can cost all of the members eventually.

Is it less expensive to buy a house in a PUD? Maybe. You will have monthly fees that may cover your front landscaping, exterior of your structure, and roof. But perhaps not. Its possible that the fees will only cover the street paving – you have to read through the documents to see whats included.

What are some of the issues to be aware of surrounding HOAs in the San Jose area? What are some questions to ask if you are thinking of buying a property with a HOA?

1. HOAs may be big or small and may be professionally managed or may be run by volunteer homeowners. Many small HOAs are run by volunteers, while larger complexes or subdivisions may have ˜professional management (paid). First, youll want to know which it is.
2. HOAs tend to have a lot of rules – and they are not all intuitive – so if youre buying a home in Silicon Valley with a Homeowners Association, be sure to read the HOA packet throroughly. This will include the last years worth of minutes (great for understanding what the homeowners consider ˜issues), the bylaws, the budget, the current financial statement (very important for grasping whether a special assessment may be coming your way in the future), and more. This tends to be dry reading but is vitally important for you to understand before you remove your property condition contingency!
3. HOAs have the power to levy assessments to pay for needed improvements such as repaving, replastering the pool, replacing the roofs, refencing, etc. Most HOAs are underfunded and periodically have these ˜special assessments, so beware!
4. Some HOAs have planned assessments several times a year, so dont be fooled when you see the monthly HOA fee. It may not be reflective of the true cost. For example, Saratoga Oaks, a stunningly beautiful townhome community in Saratoga, has assessments for both blanket insurance and for earthquake insurance which are ˜extra payments occurring during the year. By splitting these out, the monthly HOA looks less imposing than it is in reality.
5. New construction often has unrealistically low monthly dues or HOA fees. The builders want the properties to be attractive to buyers so put the monthly cost on the low side. Eventually the homeowners realize that they are underfunded and then must either raise the monthly charges, do an assessment, or both. Its not fun when that happens.

Selling a home governed by a HOA?

If you are selling your San Jose area condominium, townhome, or single family home governed by a HOA, plan ahead! You (not the HOA) will be required to give the buyer the HOA packet and will need to ask your Homeowners Association to provide the documents that compose it. Your HOA will do so, but will need some time and there will be a fee for this service. It is a good idea to have the HOA package ready to deliver to the buyer once your home goes on the market. (If it takes a long time before your property sells, you may need to update it.)

Your HOA may have rules about for sale signs and open house signs, so check before you get your home on the market. Gated Communities (while fairly small in number here in Santa Clara County) may have rules about hours for open houses, access, too, so find out ahead of time.

If you dont like authority, dont buy in a HOA community.

*The story is told that a HOA had a rule that each condo owner needed to allow the HOA in once every 6 or 12 months to test the smoke detector. The thinking was that if one condo caught on fire, theyd all be at risk because of the nature of the complex. One homeowner didnt want to allow the HOA in, so refused. What did the HOA do? It took the owner to court, ran up a lot of legal fees, and eventually the homeowner was made to not only let the HOA in to check the smoke detector, but was forced to pay a large sum of legal fees too.

Most folks who live in areas governed by a HOA are happy with the association and its work. Many of these neighborhoods, such as La Rinconada in Los Gatos or The Villas of Almaden in Almaden Valley, are impeccably maintained and its clear that the owners appreciate the value of real estate thats well managed. There is often an easier lifestyle associated with living in a HOA because someone else does much of the landscaping, or there may be common areas to enjoy such as a garden, park or pool. And in senior communities, such as along Alberto Way in Los Gatos or The Villages in San Jose, there also can be more affordable and quieter housing made available. As long as its well managed, being in a HOA can be not only a good experience, but good for your homes value.