Real estate agents who want to be successful in this business can’t hide in their shell or be a “wilting lily” - at least not in Silicon Valley.  Being able to get out there and find new clients with whom to work, encourage offers on listings, and negotiate well for buyers and sellers all require a level of assertiveness.  We may need to work outside of our comfort zone if the situation requires it.

But sometimes real estate sales people can go too far and venture into aggression instead of assertiveness.  The words “pushy” and “salesperson” almost seem to go together at times, don’t they?  (Personally, I hate buying cars because I loathe being on the other end of what feels like pushy sales tactics.)

A few years back, someone I met at an open house said that he didn’t need to like his agent because the agent wasn’t someone he’d want for a friend – it was someone who would push through what needed to be pushed and he didn’t need to be likable.  I found that a really interesting idea, but fundamentally, I disagree with the guy’s premise that successful Realtors basically have to be jerks.  It just isn’t true; in fact, the opposite is the case.

The most successful real estate agents share a few recognizable traits, at least most of the time.  I will list them off as I see them – not every top Realtor will possess all of these habits, skills or traits, but as a group, they emerge as a commonality found among most of them.

Top Silicon Valley real estate agents share these traits (at least most of the time):

1. Prospect or market themselves continuously to attract new business (they cannot simply work on today’s business or tomorrow they will be unemployed).
2. Have systems in place for how to work with buyers, sellers, sales in contract, prospects who are long term, follow up etc. Good systems are crucial.
3. Work well with other agents and consumers – they play fair, communicate well, respond in a timely manner.  They are usually well liked by their colleagues. (This helps you to sell or buy a home – agents want to work with others they can trust to work well and fairly.)
4. Know the contracts and forms and use them appropriately. They explain the contract to their clients so that expectations are in line.  Surprises are bad most of the time and can be avoided if everyone understands exactly what they are agreeing to.  And the contracts we use are clear: if it’s not in writing and agreed to by all parties, it is not a part of the transaction. (more…)

Months of Inventory or Absorption Rate for Cupertino Real Estate

Cupertino is a red hot sellers’ market, but primarily or the most in the lower price ranges.  The higher the price of the home goes, generally speaking, the cooler the market gets.  Part of this is because Cupertino is not considered a luxury market.  Luxury homes are far more likely to be found in Los Altos and Saratoga than in Cupertino. Even so, there are areas, primarily in the foothills and west of Foothill Blvd., where high end homes can be found.

Yesterday afternoon I ran the “months of inventory” by price point in the city of Cupertino.  The absorption rate, or MOI, will tell us how long it would take for the current inventory to be totally absorbed by the market of buyers if no other homes came on the market.  The shorter the MOI is, the hotter the market is.  (Houses and duet homes only, not condos or town houses.)Have a look:

Houses up to $500,000: n/a (there aren’t any)
$500,000 to $999,999:    .2 Month of Inventory or MOI (2/10 of a month)
$1 million to $1,499,999: . 61 MOI
$1,500,000 to $1,999,999:   2.75 MOI
$2 million to $2,499,999:  infinite (3 homes for sale, none closed in last 30 days)
$2.5 million to $2,999,999: 1 MOI
$3 million and up:  n/a

It’s a little bit of a fluke that the 2.5—3 million group was “1”. There was one sale and it was just barely over the line – it sold for $2,505,000.  Had it slipped just a little bit, the group prior would have had 3 months of inventory (1 closing for 3 listings currently active). The trend is pretty clear: the higher the price, the longer homes take to be absorbed into the market.  We can fairly think of this segment as 3 months of inventory, which isn’t bad at all but is not “red hot”.

Hottest of the hot are houses listed for sale at under $1,000,000 in the city of Cupertino – they are flying off the market at .2 months of inventory, or about 1 week!  It cools as prices rise.

Cupertino Median List Prices Compared to Neighboring Saratoga, Sunnyvale and Los Altos

We know that the median sales price in Cupertino has been climbing steadily since March 1st (reflecting sales beginning in early February). How does it compare to nearby areas?

Los Altos is selling for the most of these 4 areas, but list prices are now falling. Saratoga was dippping but now rising again. Sunnyvale has been somewhat flat recently but improving. But Cupertino’s prices are making the steepest improvement. Perhaps these low prices are the drivers for the crazy hot market activity. (more…)

San Jose’s Cambrian, or Cambrian Park, area is a very hot seller’s market.  Multiple offers are not uncommon, especially in the Union School District, where schools are trending upward.  My Cambrian Park Real Estate Report has just been published with the updated numbers from the closed sales in April. Please click on the link to see much more information there.

Prices are up nicely year over year! Inventory is crazy low – just 35 homes for sale in April compared to 57 in March and 84 in April 2011. Days on market is far lower too. All around, it is a deepening seller’s market.

Even stronger is the Cambrian condo market, which is skyrocketing!!!  Please see the Cambrian Condominium & Townhouse Real Estate Report for all of the numbers, but I’ll include a quick summary below.

Here again, notice the ratio of active to pending homes, the sale vs list price (over 100%), and most of all, the tremendous rise in both the average and median sales price.  Few homes closed escrow in February, so it is possible that these numbers are a little exaggerated.  We will know more in a month – if it’s a trend or if this is a fluke.

Now let’s work with Altos Research’s graphs and get a feel for the Cambrian realty market in “real time”.  These use list prices, whereas my REReport uses sold data.

First, the statistics by quartile for houses in San Jose 95118:

Next, the stats and trends by price quartile for houses in San Jose 95124: (more…)

How is the Monte Sereno real estate market? Because the city is small, with just about 4000 residents, there usually are few homes listed for sale or selling, and with small numbers we can get seeming volatility.  Here are the quick statistics for the closed sales in the last 4-7 weeks to give a sense of how things are going. Sales data for April comes from my Monte Sereno Real Estate Report  and data for the last 30 days comes from me via the MLS (I crunched them this morning).

Median sales price of houses sold in Monte Sereno in April was $1,415,000.  For the last 30 days, it was $2,169,857.

Average Days on Market of houses sold in April was 97.  But for the last 30 days, it’s 78.

The sales price to list price ratio in April was 95%.  The last 30 days it’s up to 97%.

The market is better all around for home sales in Monte Sereno than it was just a couple of months ago. Next, let’s look at the live charts from Altos to see how active listings reflect the market as seen from viewing the solds.

Live Altos Charts for the Monte Sereno Real Estate Market

The median list price of all homes listed on the MLS in Monte Sereno and in San Jose – an interesting comparison!  San Jose has far fewer dips and jumps than Monte Sereno….Good improvement showing recently, though.

(more…)

What is an exclusion in a real estate contract? What is an inclusion? Both of these refer to fixtures at the property which is for sale.

Generally speaking, a fixture is any item affixed or attached to the house, townhouse, condo or property which is installed with the intention that it be there permanently. For example, cabinets in the bathroom, kitchen or elsewhere are fixtures. So are lights mounted from the ceiling, built-in ovens, in-ground (not potted) rose bushes.  The exception to the rule is anything attached solely for earthquake safety.  This would be the case if you have a large hutch which you have bolted to the wall so that it doesn’t topple in the case of a big quake. In Silicon Valley, fixtures are normally included with the sale of the home.

Exclusions refer to fixtures which the seller does not want to include with the sale of the real property (real estate).  For instance, there may be a light fixture in the dining room which is a family heirloom and the seller does not want to leave it with the house.  It would be noted either in the MLS, with a note at the property or mentioned when the buyer’s agent calls the listing agent to ask about offer instructions. Other examples could be a special fireplace screen, curtains in one or more rooms (may match a bedspread or other decor), or even a rose bush in the garden that has sentimental value.

Inclusions refer to personal property (property which is not affixed) which the seller will leave even though it is not required since it’s not attached.  Commonly we see refrigerators, washers and dryers included, even when they are not attached.  Sometimes furniture may be negotiated also, such as patio dining set, a sofa or perhaps a very large dining table that won’t fit into the seller’s new house, but fits where it is perfectly.

It is important to note that if an inclusion is mentioned in the MLS, it still should be written into the purchase agreement if the buyer wants it (and this is written into the contract form as a reminder). Otherwise the seller is free to donate, share or sell those items.

When in doubt as to whether or not something is included or excluded from the sale, always ask before writing or accepting a contract to avoid unhappy surprises or conflicts later!

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.
   (more…)

Real estate professionals are becoming increasingly aware of the need for caution in their line of work.  It is good for our Silicon Valley buyers and sellers to be aware of some of these issues, since it may not be obvious to everyone:

1. Don’t have your first meeting with a stranger at a home for sale, especially if it’s vacant.  It is best for consumers and Realtors to initially meet in a public place, such as the realty office or a coffee house, and for others to know where you are during that meeting.




2. For sellers who are marketing their home for sale without professional representation, be very careful about showing your property to people who call you from an ad or otherwise learn that your home is for sale. A few years back, an elderly woman showing her condo as a “for sale by owner” was attacked and killed in her northwest home by a pretend buyer.  (Real estate licensees know that agents are murdered around the country when alone or sometimes even in pairs, but home buyers and sellers are not usually aware of this risk to our safety.)  Homes which are shown by real estate licensees will usually be on a lock box – you can be gone when the home is shown, and each agent who accesses the key using the box will have his or her information recorded.  Safety is greatly increased. (I have looked but cannot find the link to that story about the older home seller. If any of my readers remember the city or town and can share that info, I’d be most grateful. I think it was in the greater Seattle area where that crime happened.)




3. Similarly, if you have listed your San Jose area home for sale with a broker or agent, buyers should come to view your house through the proper channels (i.e., during an open house or with their agent, who called ahead of time).  Do not open your door and allow entry in by people who simply “pop by” when they saw the sign, whether they are buyers or agents.  If agents, they can pull up your property’s information on the MLS, call and make an appointment.  If you have a lock box, you can perhaps let them enter if the agent is willing to use his or her display key to open the lock box – officially recording the visit with the agent’s ID now known.




4. For buyers who see signs on properties: do not presume that the house is empty and that you can peer into windows or walk around into the back yard of the house. (I have seen people do this and it is creepy at best.)  You don’t know the situation – the house could be for sale but not viewable.  Some homes are offered with the instructions that the home can only be seen once an offer is accepted (“write offer subject to inspection”).  The home could be tenant occupied.  A resident could be ill.  Children could be in the house and if they look up and see a stranger at the window it will scare them badly. Don’t do it.  (Most buyers won’t do this, but I have seen it often enough that it warrants saying.) If you need more information, call your own agent to pull it up.  If you aren’t working with a Realtor, call the listing agent. In all cases, don’t go onto the property except to grab a flier from the box on the sign post.




5. When entering a home that you have scheduled to see, be cautious and enter slowly to avoid surprising anyone or being surprised yourself.  Sometimes sellers forget that you’re coming, have the time mixed up, or someone in the house failed to tell someone else about the appointment.  When I go into a property with my clients or alone, while previewing, I do so slowly.  First I knock and/or ring the doorbell.  I wait. Sometimes people are in the bathroom, have stepped into the yard or can’t respond fast.  Give it a minute.  Then I’ll use the lockbox, and while opening the door and stepping in I’ll call out loudly, “hello! Real estate!” so that anyone in the far reaches of the house can hear me.This is where you’re most likely to encounter a surprise – when you first enter the home.  I’ve seen just about everything, including unclothed people running for cover, couples who were occupied with each other (they knew we were coming right at that moment!), all kinds of things.  Once I had a small child with a baby snake come running at me, pushing his pet into my face.  (Good thing I like animals and didn’t freak out.)   Sometimes sellers are home but don’t answer the door, so as you go through the house you may find them. (I hate that!  They should at least hollar for us to use the lock box.)  I’ve stumbled onto sellers sleeping on a couch, showering (we leave fast) etc.  It’s not good to either suprise sellers or to have them surprise you!




6. Be cautious when trying to locate the correct house, especially in the foothills or mountains where it can be hard to find some addresses due to private roads, unmarked houses etc.  Once I went down the wrong driveway and had a man emerge from his house holding a rifle.  Another time I went down a wrong driveway – should have been the one next door – and the owner drove up behind me and blocked me in such that I had no exit, came over and started hollaring at me in  a very threatening way.  Turns out I needed to be at his sister’s house next door, but the homes were not well marked and I simply had the wrong leg of the road.  He apologised but it was harrowing.  Both of those experiences have made me appreciate cell phones and GPS (both happened in the early to mid 90s). (The listings agents for these homes should have directional arrows and alert the neighbors about properties for sale nearby.)

It’s very important, when buying or selling homes, to keep your wits about you.  Crazy things can happen so pay attention and follow some basic rules of caution for your safety and that of those around you.