Home buyers in Silicon Valley are getting frustrated, discouraged and disheartened as they write offer after offer, only to lose out in multiple bid situations. It’s not just the poor FHA home buyer either – this is happening to those with 20% down and more too.

What can be done to improve the odds of success?

Sometimes the buyer’s agent either does or doesn’t do certain things which can impact how your real estate purchase offer is viewed by the listing agent and seller(s).  Here are 5 important things that the buyer’s Realtor or sales person can do which will help the odds of success:

1. The agent should read the MLS printout carefully to see if there are any instructions regarding offers.  This one may seem obvious. but too many buyer’s agents just draft the offer and send it in, ignoring information that will probably be useful (such as offer deadline, preferred form - CAR or PRDS contracts, availability of disclosures, the request to call before writing the contract etc.).
2. The buyer’s agent should call or email the listing agent before writing the offer (and after reading the MLS!).  Sometimes there are requirements or just preferences that won’t be known unless contact is made.  Additionally, though, the listing agent will simply want to know about the level of interest and not have any surprises – it’s a courtesy call.
3. The agent should ask if it is possible to present the offer in person…and be willing to do it, of course.  Many seller’s agents won’t want a live presentation (most would email), however the fact that your agent is willing to spend the time and make the effort to present in person usually speaks volumes about his or her professionalism. It’s also a hint that the agent is a cut above most.  In my real estate practice, several times I beat out other offers by asking if I could meet with the listing agent and sellers to discuss my clients’ offer, and then doing it.
   
4. Ideally, the offer package should be comprehensive and come with as much documentation as possible, including an offer summary (by the buyer’s agent), pre-approval letter, copy of the initial deposit check, contract with all initials and signatures and all mandatory spaces completed.  A good buyer’s agent will also run comps and coach the clients on offer price and terms and may encourage the buyers to write a letter to the sellers.  Depending on the circumstances, “proof of funds” may be wise to include too.  Each situation is a little different but the more comprehensive the buyer’s offer package is, the better the odds.  Many agents send over only partial documentation. Don’t let this happen to you!
5. Finally, the buyer’s agent needs to behave with professionalism and courtesy.  This is another point that might seem obvious, but sometimes buyer’s agents say things which are not polite to either the listing agent or, worse, directly to the seller.  When in the presence of the seller, the listing agent and the public especially, a buyer’s agent should not loudly or harshly criticize the property.  That’s just plain hostile and it won’t make the listing agent want to work with that agent (now or later).  Realistic assessment of a home’s flaws is totally fair, but doesn’t need to be done with a bullhorn.  Discretion is appreciated.

It doesn’t happen often, but sometimes agents just don’t slow down long enough to get the process and the offer package “just right”.  It matters because frequently there are several equally good bids on a property, and the one that stands out as better, even by a small margin, will either win the deal or at least win a counter offer.

For more reading:

Silicon Valley real estate bidding wars
Is your lender keeping your offer from getting accepted?
Home buyer tips

Right now I’m working with a number of very frustrated home buyers.  Silicon Valley real estate inventory is painfully low, and in the lower price ranges especially, that means multiple offers are fairly common.  FHA home buyers, in particular, are getting out bid and out negotiated by all cash buyers, many of whom are investors.

How low is the inventory?  Let’s have a look at January’s inventory for houses & duet homes (“class 1″ or single family homes) over the last ten years in Santa Clara County (San Jose, Los Gatos, Campbell, etc.):

2012  1,382
2011  2,007
2010  2,426
2009  4,759
2008  4,872
2007  2,698
2006  2,202
2005  1,285
2004  1,612
2003  3,119

The average January inventory of available houses over the last 10 years is 2,636.  At 1,382, January 2012′s available inventory of houses for sale in the San Jose area was just 52% of normal.  It’s not really much different now, in early February (just did a quick check on the MLS and it’s  1509 houses now – 630 have sold & closed in the last 30 days so that’s 2.4 months of inventory – a hot seller’s market).  This is what constitutes a very severe inventory shortage.

Demand hasn’t slackened, but supply has.  You know what that means – it will push prices up, it will make buyers crazy feeling.

Why is inventory so low?

A common question is this: why is inventory so low?  I believe that there are a few drivers.  First, many home owners who would like to move really need more equity to do so.  They are waiting for the market to recover.  Some may be waiting for prices to return to their previous highs (they could be waiting awhile). Others just need a little more to make the move possible at all.

Many owners of higher priced homes are holding on until the second half of 2012, when it is expected that there will be more people with buying power due to recent and upcoming IPOs.  Economists are now predicting a bit of a frenzy the second half of this year with prices in more expensive homes getting pushed up due to competition from employees of various high tech firms.  Smart buyers are trying to get in before that hits – a real challenge given the inventory situation.

Reality check: not every house is selling!

The best properties are selling well – those which are newer or nicely remodeled, in turn key condition, easy to see, great marketing with multiple photos, appropriate MLS exposure and priced aggressively.  This is what every buyer wants, the perfect house.  Most of my clients tell me that they are willing to replace carpet and repaint, but they don’t want to do anything big, such as kitchen or bathroom remodels, removing a pool, foundation or drainage repairs, etc.  No one does!

One of the easiest ways of improving your odds on being able to purchase a house is to move away from the new or fully remodeled vision of your ideal house.  Lower your budget a little, decide to prefer homes that have been sitting on the market not due to location issues, but rather to pricing or condition issues – both of which can be fixed.

For instance, many home buyers will take a pass on properties which have a pool in the backyard.  A few months back, I did some research and found that houses with pools are harder to sell right now.  Appraisers count a pool as an improvement, but many consumers view it as a liability – an ongoing monthly expense to heat and maintain and a risk if there are small children.  Many think that it will be overwhelmingly difficult to remove and relandscape a pool, so will not even consider writing an offer if the property includes an in ground pool.

Truth is, it’s not that hard to hire a company to redo a backyard; it is not invasive the way a kitchen remodel is.  You could have it done before even moving in!  The cost varies on whether you want the pool fully removed or partially as well as how to relandscape afterwards.  I have seen bids for pool demolition work under $10,000 (relandscaping extra) with more bids between $10,000 and $25,000.  Lawn and sprinklers are not so expensive to add!

The pool issue is just one example – there are many other properties for sale which are passed over due to the condition not being ideal.  Remodeling can feel a little scary but when inventory is so tight, it can be the ticket to home ownership.

Likewise with over priced properties.  Although most homes sell within a couple of percent of list price, there are exceptions.  Sometimes real estate is badly overpriced, and in those cases you may get a seller to agree to a larger price reduction – 10% may even fly.  (This is unusual, I would note. Usually if a house is not worth within 5% of list price, the seller is unreasonable and won’t accept an offer which is less. But sometimes it can work.)

Here’s to the over priced ugly duckling.  It could be your best friend when inventory is rock bottom!

Median List price for San Jose 95129

Average Days on Market for 95129

Inventory of houses for sale in San Jose 95129

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 5/24/2012)

1. $539,888 : 14345 Saratoga Av #28, Saratoga
   
   2 beds, 2 full baths

   Home size: 1,347 sq ft

   Lot size: 1,344 sqft
   
2. $410,000 : 18944 Sara Park Ci, Saratoga
   
   2 beds, 2 full baths

   Home size: 1,100 sq ft

   Lot size: 1,364 sqft
   
3. $413,000 : 14345 Saratoga Av #25, Saratoga
   
   2 beds, 1 full bath

   Home size: 1,100 sq ft

   Lot size: 1,344 sqft
   

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 5/24/2012)

1. $939,000 : 14593 Big Basin Wy, Saratoga
   
   3 beds, 2 full, 1 part baths

   Home size: 1,854 sq ft

   Lot size: 759 sqft
   
2. $728,000 : 14607 Oak St, Saratoga
   
   2 beds, 2 full, 1 part baths

   Home size: 1,556 sq ft

   Lot size: 920 sqft
   
3. $839,000 : 20580 Oak Creek Ln, Saratoga
   
   3 beds, 2 full, 1 part baths

   Home size: 1,807 sq ft

   Lot size: 1,512 sqft
   
4. $859,000 : 14611 Oak St, Saratoga
   
   3 beds, 2 full, 1 part baths

   Home size: 1,556 sq ft

   Lot size: 920 sqft
   

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 83. See more city of Saratoga real estate.
(all data current as of 5/24/2012)

1. $674,000 : 16240 Wood Acres Rd, Saratoga
   
   2 beds, 1 full bath

   Home size: 712 sq ft

   Lot size: 1.24 ac
   
2. $699,000 : 13489 Chalet Clothilde Rd, Saratoga
   
   1 bed, 1 full bath

   Home size: 641 sq ft

   Lot size: 15,404 sqft
   
3. $999,999 : 0 Skyline Bl, Saratoga
   
   3 beds, 1 full, 1 part baths

   Home size: 1,300 sq ft

   Lot size: 11.16 ac
   
4. $1,095,000 : 12695 Saratoga Creek Dr, Saratoga
   
   3 beds, 2 full, 1 part baths

   Home size: 1,964 sq ft

   Lot size: 8,320 sqft
   
5. $1,108,000 : 18701 Wood Dell Ct, Saratoga
   
   4 beds, 2 full baths

   Home size: 2,018 sq ft

   Lot size: 9,000 sqft
   

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

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:

• Some properties are tenant occupied and it may be the case that you cannot even see the house or condo until after your offer is accepted. Most often it will be challenging to see homes with renters in them, but it is possible, usually, to see them prior to purchasing. (This is less true with duplexes, triplexes and four plexes. Apartment buildings are always sold “subject to inspection”.)
• Other times there may be a restriction such as 24 or 48 hours notice required for showings when homes are owner occupied.
• Most of the time, the seller has requested that any private showings, by appointment, involve ONLY pre-approved buyers. The sellers don’t want to waste their time with tire-kickers.  They want serious buyers.
• Most of the time, a seller will not want the listing agent to also represent the buyer and will expect serious home buyers to have a buyer’s agent.  If you are working with your own agent, that’s who should show the home to you.  If you have your own buyer agent, he or she can see what is involved in showing the property to you by looking at the agent version of the MLS (which includes showing instruction information and restrictions)
• Some sellers want open houses, some don’t.  For those selling a home during the holidays, often the for sale sign and lock box are removed and it becomes harder to get into these properties.
• Safety is a HUGE concern, both for home owners selling on their own and for realty professionals. Each year, Realtors and other real estate professionals are injured or killed in their line of work. If this surprises you, ask yourself how smart is it to meet total strangers at an empty house? It’s not.  If you want the listing agent to show you the house, expect to be asked a lot of questions (are you preapproved? if so, with who? how can we verify that?) and usually expect to meet the agent at the office first. Many Realtors will ask to photo copy your driver’s license prior to taking you to the home – this is for personal safety reasons. We realize that you will feel uncomfortable but please remember that real estate is risky for us and we absolutely must be cautious.

Related reading:

Do You Need a Buyer’s Agent? Or Should You Find a Home, Then Use the Listing Agent?

Silicon Valley Home Buyers: Should You Use a Buyer Broker Agreement?

What should you look for when buying a luxury home in Silicon Valley? Whether it’s a move-up purchase or a first home, there are a few tips which will be helpful for you to know going into it that will make the whole home buying experience smoother and easier.  We’ll hit on 3 areas: first geography & construction, second hyper local factors that impact market value, and finally qualities or features of the property or house itself.

It’s hard to assign an exact price tag on what constitutes an estate or luxury property, but in and near Silicon Valley, in most regions it’s the $2,000,000 and up price point (it will be less in Morgan Hill, Coyote and Gilroy – and likely more in Hillsborough).

1. Geography and Bay Area Construction: it’s different here!

The first and most important thing to understand is that real estate and housing construction vary from one region of the country (or the world) to the next.  This is true for all types of homes, actually, but perhaps more obvious in the priciest homes. Luxury real estate in Silicon Valley is a little different from similarly expensive homes in other parts of the country due to our climate, soil conditions, and natural hazards, such as earthquakes. What seems mandatory for a high end home (and might be ideal to have elsewhere) could be a problem here, so it’s helpful to literally understand the lay of the land before you get too far along the home buying path. A couple of quick examples:

• A fabulous home in Boston or anywhere in New England may be built of brick.
• Here, a brick house is seldom seen because of earthquakes – we need our houses to move and bricks are not usually too good at that!

I mention these two upfront because well intentioned friends and relatives may want to stress the importance of this or that in a property – and it may simply not apply here. (Please see article: Qualify The Advice You’ll Accept When Buying or Selling a Home in Silicon Valley)  If you are non-native to the San Francisco Bay Area, you may have assumptions about construction or architecture that may not work here. Please just be aware of that possibility.

2. Understand the importance of hyper local factors on the market value of a property

Schools can be a main driver for home values in the luxury market as all other segments.  Home buyers may not know that the town or city boundaries are usually irrelevant to school district boundaries. Here are a few examples:

• In Saratoga  there are 3 high school districts and 4 elementary school districts.  Before buying anywhere in Saratoga, then, you’ll want to know which district is which and where you’re buying.  If you want to utilize private schools, you may be delighted to find that you can buy more house for your money in one area of this lovely city than another.  Or you may want one school area over another for any number of reasons.
• In Los Gatos there are 2 high school districts and 3 elementary school districts.
• In the Almaden Valley area of San Jose, there are 3 high school districts and 3 elementary school districts

Often the lesser public school districts will have a lower lid on pricing than the very top districts or schools, so it’s important, when analyzing the pricing of an estate home, to factor in the weight of the school.

Geography can be surprisingly important.  Sometimes being on one side or the other of a major road or landmark can swing value 3% – even if it’s the same city, same zip code, same schools!  I see this in Los Gatos along both Blossom Hill Road and again at Los Gatos-Almaden Road: people prefer to be closer to the foothills and prices jump noticeably just for being on one side of these roads than the other.

Walkability is key for many Silicon Valley home buyers, though perhaps less so for some luxury buyers since the larger parcels that often come with them preclude much walkability.  Not always, though – in Palo Alto, Los Altos, Saratoga, Los Gatos and other Bay Area spots like Burlingame or San Mateo, some of the premier homes are not on acre lots but are “in town”.

3. What to look for in the estate property or high end home itself

At this point it’s a little trickier as each home buyer may have different priorities, likes/dislikes and tastes – so these are general guidelines only.

1.  Buy with selling in mind – you may have this property for 2 years, for 20 or more, but if you purchase an expensive home that is just too bizarre for the general consumption, you may be stuck with it when you are ready to sell it.
2. Location, location, location is so overstated that it’s nearly effete, but it bears repeating anyway.  Do you want to buy a $3 million house in a $1 million neighborhood? No, you probably don’t because it will really kill your resale value later.   So too if you buy raw land or a “dozer” – don’t overbuild for the neighborhood.  Try to be mid-range but don’t find yourself in the top 25% for home values in your area.  (NB: in some areas, like Menlo Park, neighborhoods are fairly irregular or non-conforming and you find little houses that need work next to McMansions.  It may not be possible to find conforming neighborhoods.  If you love the area anyway – go for it – but realize the risks.)
3. Quality construction and laoyout or floorplan matter.  Many home buyers care about Feng Shui and the orientation of the home and its elements.  But beyond that there are certain things that most buyers want or don’t want, and if your property violates these “rules” it can be harder to sell later.  Here are a few:
• It’s considered poor to be able to see a toilet from the front door
• The layout is less desirable  to have to go through a room to get to another room or to part of the house (such as going through the family room to get to the bedrooms)
• It is better to have a formal entry than to come straight into a living room, especially in a high end home
• The master bedroom should have its own private en-suite bath (this might seem obvious but you’d be surprised how many expensive houses have 2 bathrooms but neither dedicated to the master bedroom)
• Best to have the master bedroom face the back  yard and not the street
• Better to have more land in back than in the front yard
• If you like to entertain, look for a large kitchen that includes 2 dishwashers, at least 2 regular ovens plus a microwave, a vegetable sink as well as the regular ones, and if possible, also a “butler’s pantry” between the kitchen and formal dining room.
• If the house has 2 stories, look for at least one bedroom and full bathroom on the first floor (and possibly a half bath as well so the guest bath is private)
• The nicest luxury homes may have 2 laundry areas: one on the first floor and one on the main floor, if it’s a 2 story home.
• Most home buyers looking at properties over $1.5 million want to find the master bathroom equipped with a large soaking tub, separate shower, and dual vanities. Jetted tubs are not as popular as a few years back due to concerns over bacteria lingering in the plumbing, so more often the tubs are “soaking” and not “jacuzzi” types.
• The master suite often includes a small wet bar or coffee bar as well as a fireplace, walk in closet(s) and private deck or balcony.  In recent years these rooms have gotten bigger (and sillier – how much time do people spend there?) – a trend I believe will change over time.
• Luxury homes or estates usually have a minimum of a 3 car garage. (I’ve seen properties with as many as 10.)
• For the ultra luxury estates, usually there are guest or servant quarters (and likewise, in 2 story homes, a back staircase too).
• Pools tend to be found among high end homes, but sometimes also tennis courts, game rooms, indoor bowling alleys or other sports outlets (indoor golf driving or rifle shooting ranges too).
• Other rooms: libraries, offices, media rooms, hobby rooms may be included. Sometimes the home office or library may have a full bath nearby – a hint that it can double as a guest room.
• Green building: a growing trend is toward making high end homes eco-friendly or green.  This may include the types of materials used in construction (a percentage recycled or of easily renewable sources), heating & cooling systems that can close off or turn on various parts of the house so it doesn’t all need to be heated or cooled, high levels of insulation to make the home “tight” and not have energy losses. Possibly solar panels to warm the water in the home or pool.
• Years ago there was a lot of focus on wiring for computers in estate properties.  This is still the case but with the advent of wireless for everything, it’s not so critical. However, wiring for TV or movie viewing as well as musical entertainment throughout the home is very common with luxury properties – many owners want to be able to begin watching in one room and seamlessly move to another if so desired.
• In the luxury market it is very common to find security systems which include cameras at various locations.  In the ultra high end houses, there may be “safe rooms” too.

At the end of the day, much of what is included should reflect your values and the way you want to live.  Some luxury homes will have a private bath for every bedroom – but I’ve had clients say “why do I want that? I don’t want to spoil my kids or have more bathrooms to be cleaned”. How do you want to live?

There’s a balancing act between buying the home you want to enjoy and either overspending on a house or area or making a poor choice on an expensive ticket item that could be a great asset instead. It will help a lot to get good, local guidance from a trusted resource who’s got your back.  Looking for that helpful real estate adviser? Give me a call or email me and we can chat at my office, yours, a coffee shop, park, or anywhere convenient.

As an aside…this is the 500th article on this site, the Valley Of Hearts Delight blog or www.SanJoseRealEstateLosGatosHomes.com. ….  Thank you for reading!

 For more reading:

Cracked Foundations, Adobe Clay Soils and Water in Silicon Valley

What To Consider When Buying a Hillside Home in Silicon Valley

Where are Santa Clara County’s Earthquake Faults and Flood Plains?

The Silicon Valley Luxury Home Market (view a list of homes for sale, read more on criteria for location, amenities etc.)

When I show homes in and around San Jose, often I will see things that my buyers don’t recognize and I will take that as an opportunity to educate them on some of the components of a house, townhouse or condo.  (The strangest question along these lines I ever got was when a Silicon Valley first time home buyer had never noticed or recognized antennae on houses before and wondered what they were!)

A whole house fan is a more affordable way to cool down a residence. How does it work?  In the evening, when the outside air temperature is lower than the indoors temps, windows are opened and the whole house fan is turned on for about 15 minutes.  The fan sucks all of the hot air out of the house and discharges it outside.  Since the windows, and maybe doors, are open, this vacuum sucks in the cooler night air.

This is a lot cheaper than air conditioning to install and also to run. According to one whole house fan installation website “installing a Whole House Fan is approximately 25% the cost of installing an air conditioning system and approximately 10% the cost to run.”

Alternatively, of course, if you do not want to have A/C, or if you don’t want to run the air conditioning every time it’s a little too warm, you can pull out fans for the windows and doors in your home and run them in the evenings to pull in the cooler night air.  But the whole house fan is easy and convenient – you simply turn a switch on and off – and is considered a very nice home improvement.

Whole house fans have been gaining in popularity across all types of markets, even among luxury homes, since they are more energy efficient and eco-friendly than air conditioning.  The only thing you might not know that’s important to understand upfront is that when it’s running, the noise is very loud.  Luckily it only goes for a few minutes – a perfect opportunity to step out onto your back porch and enjoy the cool evening air while it runs.

Our fall weather here in Silicon Valley is acting like spring weather – bouncing back and forth between warm, dry days and cold, wet ones.  Should this impact the way you present your home to the real estate market if it’s for sale?  Absolutely.

If you want to make the best impression on potential home buyers, your house, townhouse or condo needs to be inviting no matter what the weather may be doing.  In the heat of summer, sellers are tempted to close up all the curtains to keep out the sun and heat – it’s a mistake because buyers typically don’t respond well to dark, cave like homes.  The wet weather brings different challenges that also must be handled appropriately if you are to snag that best buyer!  Here are a few tips to make your listing the one that appeals to Silicon Valley home buyers who come out to see it:

1. Make sure that your downspouts are directing rain water away from your house or any structures (often 6′ or more is suggested); it is imperative that there be no “pooling” of water, especially near the home – this will cause buyers to worry about water in the crawl space and what it may be doing (foundation cracks, mold, etc.)
2. Trim bushes and vegetation back from walkways and sidewalks.  When it’s wet outside, these lovely bunches of greenery collect water and as visitors go past them, they can spill water onto the passers by. Not pleasant.  Look at your sidewalks, driveway, and walkway and make sure that wet bushes and branches won’t be hitting anyone coming up to your front door.
3. If your gutters leak, they’ll be noticed and will indicate that your property hasn’t been properly maintained, so repair or replace them.
4. Indoors, keep the heat on if the temperature would be below the comfortable range – cold buyers don’t linger, and buyers who don’t linger don’t buy! I suggest at least 66-67 degrees.
5. Open up the curtains and turn the lights on.  Cloudy, rainy weather can make any house look dark and you want to chase the darkness away with good lighting and access to natural light.
6. Many home buyers will want to remove their shoes if it’s wet out. If you can provide a bench on the front porch or entryway, that would be very welcoming.
7. Keep the air fresh. In the damp days, we sometimes keep homes a little too closed up and that can be unappealing. Baking cookies or bread can help, but there are other things that work too, such as fresh flowers.  I don’t recommend scented candles or sprays since these often make buyers wonder what you’re hiding.  It’s a matter of degree – you want to make the air pleasant without overwhelming visitors.

When home buyers and their real estate agents venture out on a rainy, wet day to see properties in San Jose, Los Gatos, or anywhere in the Bay Area, you know that they are serious and highly motivated.  It may seem like a hassle to take these extra steps for showings of your house or condominium, but it’s well worth it because these are exactly the home buyers you’d like to impress.

For further reading on home selling in Silicon Valley:

Home selling posts on this website

Selling your home in Silicon Valley on popehandy.com

Home seller resources on ValleyOfHeartsDelight.com (sister site to this one)

A real estate contingency is a provision that something must be overcome or approved to consummate a transaction.  In other words, it’s a condition, such as “I will buy this house IF (fill in the blank)”.

Silicon Valley real estate consumers are well aware that home buyers normally have a few contingencies during escrow.  The major ones are for property condition or inspection and loan or finance (to include appraisal).  But there are others too, such as approving the preliminary title report, obtaining and accepting disclosures etc. (On rare occasions, such as some tenant occupied properties, the buyer may have to make an offer first and then, after it’s accepted, view the home or apartment building. In that case it’s “write offer subject to inspection” – a contingency that you’ll accept it after you get into escrow! This is how apartment buildings and some multi-family dwellings are sold.)

What about seller contingencies?

Sellers, too, may be able to back out of the contract if certain conditions are not met.  The two we see most common are these:

1. In the case of a short sale, the sellers have a contingency for bank approval and for their acceptance of the bank’s terms.  If the bank doesn’t approve the short payoff, the seller does not have to sell the house to the buyer.
2. Sometimes sellers only want to sell their home if they can find another one which they wish to purchase.  This can be a contingency also: “sale subject to sellers’ finding a replacement property within X number of days“.

Some homes are part of a co-op (cooperative) and in a few areas around the country, I think mainly in New York City, a board must approve whomever wants to purchase the home or unit.  In those cases, there would be a seller contingency for board approval.  I have never run into it in the San Jose, Los Gatos, or Saratoga area but it is possible that you could see it somewhere in California.

How does a seller’s contingency impact value and desirability?

Seller contingencies usually make it difficult to attract buyers since there is a giant unknown in terms of the ability to close escrow and it’s not in the buyer’s control to fix it.  With short sales, that contingency must be in place for the seller, but not so for the “replacement property” clause.  When sellers invoke that contingency (which must be listed in the MLS), it will usually cut down on showings, offers, and ultimately the probable buyer’s value for the home – so normally this is not advisable.

What’s your home buying style?  Impulsive? Cautious? Analytic?  Deep bargain hunter?

A few times in my real estate career, I’ve worked with Silicon Valley home buyers who were so anxious to purchase a home that I was concerned that their impulsivity might be a cause for buyer’s remorse later.  When that happens, I try to slow them down a little – I’ll suggest “let’s look at least a few homes” if it happens that they want to buy the very first home they saw. Part of my fiduciary duty is to look out for my clients’ best interests, and sometimes that means putting the brakes on just a little (or telling them what they don’t want to hear).

More commonly, it’s the other extreme that I see in our very well educated, extremely analytic population: paralysis by analysis or an overabundance of caution. (Sometimes it’s overabundance of bargain hunting.)

The vast majority of successful Silicon Valley home buyers are somewhere in between: they set up their priorities and goals (“I want to buy in the next 4 months at this price with this location or school and this type of property and size of home”). The clearer they are on their goals, wants and needs, the easier it is to help them get it – as long as they have realistic expections. That is key!

Once – only once – I sold a Los Gatos house in which the husband purchased without the wife’s physically seeing it.  This is rare!  They had moved so many times that he understood precisely what mattered to her, and if the house met that list, he was good to go.

The national average for the number of homes seen before buying is about 10, but it is more than that here in my experience.  If buyers know what they can afford and what they want, often they and I can narrow what’s seen online to 10-20 homes we visit in person and from those, one or two should be a best fit.  For highly motivated, determined, realistic and organized buyers, and this can usually happen in 2-3 weeks.  (If you are selling one house and immediately buying another, this is really the only way you can swing it without having to rent in the interim.)

What are the odds of successfully buying a Silicon Valley home this year?

How likely is someone to buy a house or condo?  It varies, of course.  As a Realtor who is not in it for one transaction but instead for a long term relationship, I want to help consumers to make good choices.  It is usually easier to slow down the impulsive home buyer (note: not all real estate licensees will do this, some just want to make a quick sale) and harder to move someone who’s bogged down by unrealistic expectations or exaggerated fears to the middle zone where they are able to write a successful purchase offer on a home.

Most of the time, capable buyers who don’t write the offer after months of looking are either overly cautious (afraid of overpaying, usually) and unrealistic about market values (often wanting something for 10-20% than it’s worth in the current market), although sometimes it’s another issue entirely, such as husband and wife not agreeing on either the priorities or the budget.

If you’ve been looking at homes for more than a couple of months, or have seen more than 20 homes and not found yourself able to write a purchase contract with your Realtor, it’s time to evaluate the process and what the stumbling blocks might be.  Are you hoping to find a perfect house at a perfect price in the perfect location?

Waiting for perfect….

This situation of “waiting for the right house to come on the market” is not so unlike the seller of the overpriced house waiting for “the right buyer to come along”.  If all of the other home buyers have seen and rejected that listing, it’s not very likely that another home buyer will come along and decide it’s just perfect or that the price is right.  We speak of the “probable buyer’s value” and try to determine what the odds are that a buyer will pay what the seller expects. For a sale to happen, the buyer and seller expectations have to line up.  So too for home buyers – if you have seen everything over many months, it is extremely unlikely that any new listings will fill the bill any better.

How your Realtor can help

If you find yourself unsuccessful in home buying and it’s been a few months, and you’ve seen plenty of properties, talk with your Realtor.  It is very difficult to be objective about oneself  and where one might be on the spectrum.  If you’ve hired a good real estate agent or Realtor whom you trust and who is presenting you with homes to see that match your basic list, ask him or her what the issue seems to be and what needs to happen for you to be a successful home buyer.  Please be open to hearing what your realty professional has to say and suggestions being made.

Over the last few years, I’ve helped many San Jose area renters to become home buyers.  Sometimes they did have to write a few contracts before being able to buy (if there were multiple offers it can be very challenging!).  Sometimes they had to change their expectations, order of priorities, location or budget for it to work for them.

If you really want to buy – and not just look – now’s a great time. Interest rates are fantastic. In many areas of Santa Clara County it’s a buyer’s market.  If you can line up your expectations with the market realities of today, you can be a homeowner too.

For further reading:

How To Increase The Odds That Your Purchase Offer Will Be Rejected

Home buying

Multiple offers have returned to many segments of the Silicon Valley real estate market.  We are hearing about them in Palo Alto, Cupertino, Mountain View – areas where newly minted IPO money is having an impact – but also in more modest, middle class areas such as San Jose’s Cambrian neighborhood. The trend appears to be spreading.

What Silicon Valley home sellers need to know and do to attract multiple offers

If you’re a Silicon Valley home seller, what do you need to know to try to get multiples on your home?  What should you beware of?  In short, here’s what needs to happen if you want to attract multiple offers on your home for sale:

1. The home must be turnkey, either fully remodeled or close to it – it must look like there’s nothing or very little for a buyer to do.  In addition to being turnkey, it must be squeaky clean and well staged! It needs to be comfortable – not too hot, not too cold. You want buyers and their agent to linger longer.
   
2. The price must be at or even under market value.  That is, you must be willing to price it aggressively.  Think it’s worth $1,050,000?  You might list it at $999,999 to get in under a major price threshold and to be the very best, most attractive property for the money. Yes, it might be under priced.  Over priced listings get either one offer at best or, more likely, none at all.
3. The property must be highly accessible. If it is hard to see, you probably won’t get multiple offers (and may get none at all).  (Please see articles on accessibility and on open houses.)
4. Finally, the property must be well marketed.  This includes a wide range of factors ranging from photographs, text, fliers, signs, and even the commission rate offered to the buyer’s side.

What Silicon Valley home buyers need to know and do to compete with multiple offers

If you’re a Silicon Valley home buyer, how do you win out in multiples without giving away all of your rights or overpaying for your house/home?

Over the last few years, I’ve written a number of articles about multiple offers and tips for buyers when competing (concepts to beware of, issues around contingencies, financing and more).  This is a bit like a multi-chapter ebook on how to work with multiple offers.  I hope it’s helpful!

By way of quick summary: you must cover a few areas very, very well:

1. You must be pre-approved by a reputable lender (fully pre-approved)
2. You must have a strong down payment (20% or more)
3. You must be willing to put 3% down for your initial deposit (also called a good faith deposit)
4. You must have a good agent helping you – he or she must do a good job completing the paperwork (it needs to be thorough and without any major mistakes), must communicate well with the listing agent and represent you and himself/herself as a great team with which the listing agent and sellers will want to work
5. You must have an excellent sense of pricing.  Your Realtor should “run the comps” for you, or may even prepare a competitive or comparative market analysis on the home you wish to purchase.  Pay attention to where the value  lies – sometimes that has little to do with the list price!
6. Be prepared to balance out the price and terms offered so that you do not feel like you are giving away all your rights.  Some real estate agents may push consumers to write contracts with no contingencies for home inspection, property condition, appraisal or finance.  I believe that this is a risky and unwarranted practice – but learn about it since your competitors may be doing this.
7. Read all of the articles below – they are here to help you!

Tips for Writing a Competitive Offer  Part One

Writing an Offer in a Multiples Situation? Financing Tips Part 2

Writing Strong Offers: More Financing Tips Part 3

Tips for Home Buyers Competing Against Multiple Offers – More Financing Tips Part 4

Competing Against Multiple Offers: Contingencies and Timeframes Part 5

Real Estate Purchase Offer Terms to Consider When Competing in Multiple Offers  Part 6

Sometimes the List Price Isn’t the Expected Sales Price, So Run Comps!

The Advantages of Presenting and Receiving Offers In Person

Interested in working with an agent who’s highly experienced with multiple offers?  Call or email me today!

If you are planning to purchase a home in Silicon Valley, most likely you’ll be working with a real estate professional and together you will use either the California Association of Realtors (CAR) purchase agreement form or the Peninsula Regional Data Source contract (PRDS). Both of them begin with the same basics: who is making the offer, what property is involved, how much is being offered to the home owner and how much is being put down or put into escrow as an initial deposit or good faith deposit.

What is the initial deposit in real estate contracts?

The initial deposit, or good faith deposit, is the amount of money which the buyer puts into the escrow account at the beginning of the transaction. It is usually given in a personal check, which is cashed within a day or two of being brought to the escrow holder (in our area, that’s a title company – in southern California, they tend to use escrow companies or even one of the real estate brokers).

How much is the initial deposit?

In Santa Clara County, or the San Jose area, often the initial deposit is anywhere from 1% to 3%.  I have occasionally seen offers with as little as $1,000 on them but have not seen sellers want to take those offers.  They want to know that the buyer they get into contract with “has a little skin in the game”.

Typically in the west valley areas, where I work, 3% upfront is the norm.

Some real estate trainers encourage aggressive buyers (or those in multiple offer situations) to put more than 3% down to make the point that they are serious enough to tie up more money in escrow – even if the liquidated damages clause keeps anything over 3% from ever being at risk in case of a default.  It does get the seller’s attention!

Is the initial deposit handled differently if it’s a short sale?

Usually buyers will not put any money into escrow until there’s bank approval for the short sale (and it’s a sure thing that they CAN buy the house).  But some listing agents are now demanding money in escrow – and also that the buyer have inspections done – prior to bank approval.

My personal opinion is that paying for inspections and appraisals without the lender approval puts the buyer in a terrible position of putting everything at risk (money on inspections, appraisal etc.) without the assurance that the seller will be able to close escrow.  So I would advise against this practice if I were representing the buyer since it’s a potential waste of money.

That said, I completely understand that many short sale sellers have been burned in the past by buyers who put offers on multiple houses at once, which of course is unethical since they were incapable of buying all of them.  The idea was that they’d tie up several homes and the first one with an approval would win.  But by keeping the others knotted up, they literally moved those other sellers closer to foreclosure. Terrible.  So I understand and support putting some money in escrow with short sales.  Often suggested: 1% upfront, 2% more when they get bank approval.  Each sale is different though, so talk with your Realtor about it.

Did you buy your house at the peak of the market?

Recently I met with some of my past clients, who purchased their San Jose house close to the height of the market (2005-2007).  In those days it was a hot seller’s market (not unlike many parts of the Silicon Valley real estate landscape today, actually), and buyers routinely purchased their homes “As Is“, meaning no repairs provided by the sellers.  Desperate to get in when prices were appreciating fast, it seemed that most home buyers said “we’ll take care of it after we own it“.

But they forgot.

Actually this didn’t just happen during the peak of the market here in Santa Clara County – there’s always a percentage of consumers who buy As Is to get a better price.  They have good intentions about taking care of the mold, the termites, the roof and whatever else might not be either in good working order or free of infestation.  But once they move in, the “to do list” doesn’t seem to have those items as a high priority, and over time they completely fall through the cracks.

Pull out your old file, find your inspection reports and review them, especially if you are preparing to sell your home

Today I want to encourage you to dig out your old home inspection and pest reports, dust them off, and have a look.  Did you need to address a problem with termites, electrical issues, leaks?  Is there something to take care of with the roof, gutters, dry rot or fungus?  All of those things do not self-correct, but instead grow worse over time. 

If your reports are more than three or five years old, you might consider getting new ones done since in all likelihood there’s more work, possibly in new areas, now. Just make sure you hire a reputable company which won’t gloss over problems, leaving them latent and waiting to cost you more in the end.  Don’t toss your old inspections out – have a look and see if everything that used to be called out is covered.  If you are planning to stay put, is best to correct everything so that your home is kept in good condition for the long haul. If you are planning to sell your home, it’s important to fix it up first if you want to get the most for your sale.  The market is very different from the peak, and having the home improvement work done is more important than ever now.

Are you buying a distressed property (short sale, bank owned, or pre-foreclosure) in Silicon Valley?

If you are purchasing a short sale, pre-foreclosure or bank owned home – let alone one at auction – please be aware that these properties are most often neglected and have more than a normal share of deferred maintenance.

You or your Realtor can look up the sales history for the home.  If it was purchased between 2005 and 2008, there’s a good chance that it was sold As Is and that if any repairs were needed, they weren’t done.

With pre-foreclosures or short sales, sometimes the sellers are well organized and will still have their old reports.  The agent may not be aware that these are available, but they can provide at least some information since pre-sale inspections are usually not provided with distressed sales.

For more reading on this topic:

How often should you get a termite inspection?

Would you recognize signs of subterranean termites if you saw them?

Watch for Dampwood Termites in Silicon Valley!

Do pools enhance property value in Silicon Valley back yards?  Do they make homes easier or more difficult to sell in Santa Clara County? What’s the impact on resale value?  The common wisdom is that it depends on the amount of yard or lot size, the price point and the location of the residence. When a pool takes up the majority (or virtually all) of the back yard, most often it makes the property undesirable to buyers – at least to most home buyers – and that, in turn, causes the sales price to slip a bit. It used to be that pools were almost a given on more expensive residential real estate, particularly if there is a lot of land.  Today I ran the numbers, though, and it appears that things have changed.  Below please find the “months of inventory” for homes with and without pools and note that it is very consistent, in the fields I checked, that it’s now harder to sell a home with a pool than without

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Pools appear to make it harder to sell a home in Santa Clara County right now.

Truthfully, this came as a bit of a surprise to me since many of the luxury properties in Almaden, Los Gatos, Saratoga, Monte Sereno and nearby areas do include pools, especially if they’re on a half acre lot or more.  In the past, I remember high-end buyers not wanting to purchase a larger, estate home if there wasn’t already a pool in place since it’s such a mess (and noisy, and expensive) to go through the construction of one. Lately, though, my high-end buyers (properties upwards of a million dollars) are fairly adamant that they do not want a swimming pool. Many of them don’t want the upkeep costs or chores and have told me that they would not use it enough to make it worthwhile.

What about luxury home buyers and pools in Silicon Valley?

I wanted to see if it changed when the data was viewed in light of pricing and not just acreage or lot size, so to finish up this study, I looked at regular sales of houses listed at over $2,000,000 in Santa Clara County (the San Jose area) – these are considered luxury homes here.  For houses without pools, the months of inventory was 5.4 (not terrible, still less than the 6 months which NAR calls a balanced market) but for homes with pools, it was up to 6.8 months of inventory. That’s a significant difference and is in line with what we saw when the question was put with the amount of land involved.  Generally speaking, buyers would prefer to not have a pool, even in the higher priced subsets of the market.  (My advice: run the numbers for your own home’s micro market and see. It’s possible that this may not apply in your case.)

This still didn’t sit quite right with me since I’ve known the most expensive homes to all have pools, so I spent some time looking at homes in Los Gatos, Monte Sereno and Saratoga. I was interested to know if homes with pools were still harder to sell and had a lower resale value, as appears to be the case in more normally price houses.

First I looked again at larger lots – half an acre to about an acre and a half – in all three areas combined.  It was inconclusive but basically there were 102 of them for sale now and 12 which have closed in the last month (so 8.5 months of inventory).  Of those on the market, 56 had pools and 46 didn’t. This was too broad given the variety of zip codes and school districts, so I narrowed it to just Saratoga with only Saratoga schools.  For those in this area, just 3 have sold and closed in the last month with no pool (averaging about $1,850,000) but 9 have closed with a swimming pool (averageing about $2,735,000).  The average square footage of a house without a pool was 3482, but the average house size of places with a pool was 4309. It does appear that homes with pools do sell for more, but also that in general, these are larger homes.  Since 3/4 of those sold in this segment of the Saratoga market do have pools, it would be hard to say that buyers are rejecting homes with pools.  Of course, a 4300 SF house in Saratoga with Saratoga Schools is much different than a house in Willow Glen with San Jose schools – just underlines the fact that the real estate market is comprised of many micro markets.  What is true for the county as a whole may not be the case for luxury properties in Los Altos, Saratoga, or Almaden Valley.

Why do pools hurt the odds of selling for most houses in the San Jose area?

Bigger studies would need to be done to thoroughly address the question of why swimming pools appear to hurt saleability for most residential real estate (the very high end excluded).  But I will venture a couple of guesses.  First, there are weather issues.  Last summer was cool and this winter doesn’t seem to want to end. Pools are probably a lot more appealing when there’s significant doses of hot weather.  Second, we are still recovering from a very tough recession, so the new frugality which is currently fashionable and which has become a way of life for so many of us may be impacting the perceived value of in ground pools, too.  This may change as we move more into the recovery and when our unemployment isn’t just over 10%.

Selling a home with a swimming pool

Home owners, it’s important to realize that although you may have enjoyed and treasured your pool, for buyers it may be viewed as a liability – an expense to have it removed or to maintained. To get the best deal for your home, you’ll want to try to mitigate the buyer’s concerns since worried buyers will pay less and confident buyers will pay more for your property. Solar panels make it less expensive to maintain, and therefore more acceptable to consumers worried about power bills.  Families with small children may be concerned about safety issues, so having a great child-proof fencing system may provide them peace of mind.  You could, as a negotiation strategy or selling bonus, throw in one year of pool service from your favorite provider too, since they may feel ill-equipped to take on the maintenance of a pool as soon as they move in.  A home warranty with pool coverage will also provide peace of mind and a sense of a safety net should things go wrong.

Selling a house with a pool? Make sure it's clean!

Pools, like every other element of the house and yard, need to be in pristine, sparkling condition if you want to maximize the sales price of your property.   When home buyers, especially first time home buyers, see missing tiles, obvious rust stains, rampant algae, leaking pool equipment or other problems, they see both work to be done and dollar signs.  This is even more true if there are no pre-sale inspections.  Don’t provide reasons for your home’s buyer to be worried – buying a home at all is worrisome enough!

Should you remove the pool before putting your house on the market?

Filled pool: what not to do

Some home sellers may opt to get rid of the pool before selling. That can be a good idea, especially if the back yard is really small, but it needs to be done correctly. Recently I was house-hunting with some clients in the Almaden Valley area of San Jose and we saw a backyard where the pool was left completely in place, but filled with dirt and planted with grass. I assure you, that was a terrible idea because now buyers see it as twice as much trouble (and cost) to rectify. Home buyers, if you are neutral on buying with or without a pool, you may find it far easier to purchase property that has a pool as it seems that there will be less competition for it. If you want a pool, you are in luck right now!  Market conditions change and three or four years from now, when we are in a more recovered economic status, pools may again be the hot ticket.  This is a great opportunity to buy a house with a pool while there’s less competition! Want to talk about buying or selling a home with a pool?  Call or email me today!

Sometimes the differences are not what’s outside, but what’s inside.  When Silicon Valley home buyers are looking at real estate around the south bay, they tend to care a lot about the rooms which are most expensive to remodel: the kitchen and the bathrooms.

But sometimes they don’t look closely enough, or ask questions, when they ought to.

If you only look at the cabinetry from the outside, for instance, you won’t know:

• whether the cabinets have been refaced or replaced – but if you open up a door, you can tell!
• whether the vent seems to blow air back into the kitchen or if it’s more likely to vent outside
• whether the cabinet’s interiors are shelves, pullouts or include other special features such as a lazy Susan, deep pantry or spice shelves, recycling tubs, or other goodies!
• on a simple level, whether or not the drawers and cabinet doors operate smoothly or not

While it’s not OK to open up drawers of furniture (such as dresser drawers), since they don’t get sold with the house, you should inspect carefully any of the attached features which are part of the real estate transaction.

Some San Jose, Los Gatos or Saratoga kitchens and baths look good from the outside, but not so impressive if you look “under the hood” as it were.  Slow down and make sure you check these things out before you draft that offer!