Some Silicon Valley home buyers do not want to have their own buyers agent, but instead expect that they can find properties in the San Jose area that they want to see and request that the listing agent show it to them in a private appointment.  These same potential buyers may be surprised that the listing agent may refuse to show them the listing outside of a regularly scheduled open house – that is, if the seller is permitting open houses.

What’s going on?

In earlier articles we’ve discussed the need for a buyer broker agreement (verbal at the least, but possibly in writing) and why you, as a buyer, ought to have your own representation at the negotiation table.  (If you missed these, see the links under “related reading” below.)   Today I want to dispel the myth that the listing agent is required to open up and show condos or houses for sale to anyone who calls and requests seeing them and explain why that’s the case.

Showings of homes for sale are determined by the listing agreement or contract between the home seller, the listing agent or Realtor and the broker

The most important thing for buyers to understand is that the accessibility of the home for viewings depends upon the agreement, verbally or in writing, between the owner of the property and the agent/brokerage hired to market, negotiate, and sell the real estate.   It’s not an “on demand” situation where an interested buyer can insist on seeing the property as desired. Here are some of the expected scenarios and reasons why showings are somewhat restricted most of the time: (more…)

Early in my career, I had the pleasure of working with a wonderful young woman (let’s call her Ann) who was preparing to buy her first house in San Jose.  Ann was all of about 23 or 24 years old, but she had been saving since she was 16 or 17 years old. So much discipline!  This Silicon Valley native had a clear idea of what she wanted (a house in a good part of Santa Clara County), what she expected (a bigger place that probably would need some work) and her long term goals (get a house and rent bedrooms out to friends and relatives later).

Together, we got her into a 4 bedroom Blossom Valley house with lots of potential.  Ann rented the other 3 rooms out to friends and relatives.  She worked to save the money to buy the property and has labored to make it better over the years.  This was not an impulse buy at all – instead, it was part of a big plan she had since she was a teenager.  I did and do respect her so much: she had a very clear idea both of what she wanted, and what she needed to do to attain it.

How many of us can say the same or have so much discipline and planning?

I have a ton of respect for people who carefully save and plan.  At the other extreme, I worry tremendously about those who make spur of the moment, highly impulsive and seemingly unrealistic decisions.  When or if they ask me for advice, they don’t always like what I have to say, because as a friend or as their Realtor, I need to try to help them to make better decisions. (more…)

Buying or selling a Silicon Valley home? Be prepared for an onslought of paperwork.  There will be many questions you’ll be required to answer carefully (if selling) or to read and understand thoroughly (if buying) plus many other documents such as  inspections, reports, and boilerplate (templated or generic) disclosures.  Sometimes the language used will be technical or complicated, so you may need to do a little research as you see the questions.  Here’s a list of some of what you’ll be reading or responsible for completing or ordering, not necessarily in this order:

• the purchase agreement, any addenda & contract disclosures (appx 12 -20 pages in most cases)
• a preliminary title report and possibly CC & Rs (Covenants, Conditions and Restrictions)
• if the home is a condo, townhouse or PUD, docs pertaining to the home owner’s association (can run hundreds of pages)
• the standard disclosures common in our area which require the seller to answer questions about the home, yard and area (appx 15-25 pages)
• a natural hazard report (stating whether the home’s in an earthquake zone, flood plain etc.), environmental hazard report (whether there are leaking underground storage tanks and such), tax report (any extra bonds or assessments that will show up on your property tax bill) and other area disclosures ordered by the seller and provided by a company such as JCP, Property ID and other firms (appx 80 pages)
• inspections: usually pest and home are ordered, often also chimney, roof, possibly others such as pool or other specific components of the home (varies but often at least 40 or 50 pages, frequently more)
• for buyers: disclosures on their loan
• for sellers: the listing agreement and disclosures related to it
• at the time of signing the final papers: escrow instructions and lots of forms for transferring title – you will also see the reports seen previously too
• additionally, some real estate brokerages have a lot of their own disclosure forms too
• if the sale is a relocation, there will be a lot of relo papers to complete as well
• if it is a short sale or bank owned home, you will have extra paperwork for that also

By the time it’s all said and done, you will have reviewed several hundred pages of paperwork that are several inches high if stacked. All of this can make consumers a little bit crazy, particularly when there forms which are very nearly duplicates. (It may be a little less if it’s a trustee sale or probate, but only a little less.)

Why is there so much of it?
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Yesterday some clients of mine asked me about seniors selling their home and purchasing another residence while keeping the older, lower property tax rate. I did a little digging and thought I’d share what I found.

There are actually two propositions involved.  Prop 60 applies to moves within Santa Clara County, and Prop 90 relates to moves between counties which are participating in this benefit to seniors (only these few, as of the date of this posting: Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara, Ventura).

Some of the basics:

• Homeowners 55 and older at the time of sale of the original property.
• Homeowner must be on record both for the home that’s sold and the replacement property.
• The replacement residence must be equal to or lesser in value than the original residence.
• There are special rules for multi-family (duplex, triplex, fourplex) properties and for mobile homes.

In the most typical scenario, a senior homeowner would sell a house (or townhome or condo) and “downsize” to another, less expensive, smaller house or condo.  If the homeowner had been in the first property for a very long time, then the low tax rate would be hard to give up, but Props 60 and 90 enable that homeowner to go to another, less expensive home and carry the old tax rate along – one time, and either in the home county or in one of the participating counties. 

I have known seniors to sell a house in Los Gatos, Saratoga or San Jose and move to The Villages or to gated senior communities out of the area but closer to their grown kids and make use of these two propositions.

For more information and to get all the details, please click on the links above.

Something you can count on, when buying a home, is that you will be nervous – at times you will feel very stressed, perhaps even sleepless.  It is an immense move, to buy a home, and a big commitment. In terms of stress, it’s right up there with a new job, marriage, divorce and even death.

What can you do to keep the jitters from getting the best of you? Here are three points to follow

First of all, have a plan (and prioritize). If you have carefully thought out what you want and can afford, then if you actually find it and get into contract, you’re far less likely to be upset!  If you stumble into a home that’s open, fall in love and make a purely emotional decision to write an offer, you’re far more likely to freak out! Make sure that your plan includes doing your financing decisions before you ever go house-hunting.
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Visiting Silicon Valley and San Jose area open homes is a great way to get to know neighborhoods, architectural styles and the market overall. I encourage people thinking of buying or selling to visit the opens nearby to get a pulse on the market and what’s “out there”.  Normally it’s low pressure*.

*In terms of “pressure” at open houses, most Realtors and other realty professionals will let you go through the home at your own pace. Some will require a sign-in (often claiming that the seller requests this, but most often it is so that the agent can follow up with you later).  Once in awhile, though, you may bump into a “quantum” tour situation. With these, the agents are somewhat oppressive and require not only a log in by you but also insist that you only go through the home personally accompanied by one of their sales associates. The reason, of course, is “lead generation & conversion”. They want to increase the chances of getting clients out of the open home. The spin is personal attention.

Of course, the other extreme you may see is not high pressure, but nearly asleep. Some agents (maybe one in 20?) will not get up from the couch or table to even shake your hand and welcome you to the home. Hopefully you don’t run into this much!

A few open house tips, in terms of what to be aware of:

• feel the floor as you walk through the condo or house: is it level?
• smell the various rooms – are there candles or other scents intended to mask odors?
• note the light and time of day, as well as the direction the home and windows face and ask your self if the home gets adequate light for your taste
• is the layout good?
• is there enough storage?
• if there are problems with the home, can they be fixed?
• what needs updating or remodeling, or will need it soon?

The best homes will have presale inspections and disclosures completed which you can view prior to writing an offer.  It can be very helpful to familiarize yourself with the various reports, inspections, and disclosures so that you understand the range of normal. Older homes will not be defect free, and sellers will not make them perfect either – so get a feel for what to expect by perusing some of these if the binders are available during your open house. (Do understand that the agent is likely going to read it as a “buying signal” so explain that you just want to understand how the paperwork looks.)

For more tips on what to include when viewing Santa Clara County homes for sale, please see:
Viewing An Open Houseop  on my main website.