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:

Median list price of homes for sale in 95124 and 95118 (all quartiles combined):

Very interesting that the 95124 pricing appears to be swinging upward while the 95118 pricing continues to go down.  I believe that this is mainly because the schools in 95124 have been trending upward strongly with the API scores.  Prices are also at a higher level, and those are less impacted by short sales and REOs countywide.  So it may be the result of multiple factors.  (95124 is about 2/3 of the Cambrian real estate market.)

Inventory in Cambrian area of San Jose 95124, 95118:

Surprising, isn’t it, to see how differently these two San Jose zip codes are behaving from each other?

Average days on Market in San Jose’s Cambrian area

And again, really different trends on these neighboring zips, both in Cambrian!

Another anecdotal story to share: Recently I closed the sale on my listing at 5114 Nerissa Way in Cambrian with Union Schools and Alta Vista in particular. We were listed at $579,000 and received 4 offers and sold at $585,000. Interestingly, we received 2 nearly identical “best” offers, both at $585,000. One was completely As Is and the other was almost As Is (they wanted a fumigation and pest clearance provided).  That is usually a pretty good affirmation of market value, and the property did appraise at the sales price.  The other two offers we got were below list price.  One was all cash and it was extremely low.  Buyers who are purchasing without financing sometimes misunderstand the type of discount that their all-cash status will get for them, so sometimes the worst offers are all cash and that was the case this time.

Want more info on your neighborhood, your house, or your target home to buy? Please call me!

Showing properties 1 - 5 of 34. See more 95124 zip code real estate.
(all data current as of 5/25/2012)

1. $699,000 : 2757 Theresa Ln, San Jose
   
   3 beds, 2 full baths

   Home size: 1,563 sq ft

   Lot size: 8,580 sqft
   
2. $699,000 : 1898 Kay Dr, San Jose
   
   3 beds, 2 full baths

   Home size: 1,331 sq ft

   Lot size: 7,062 sqft
   
3. $1,299,999 : 14904 Leigh Av, San Jose
   
   4 beds, 3 full, 1 part baths

   Home size: 3,340 sq ft

   Lot size: 10,125 sqft
   
4. $682,950 : 3591 Gavota Av, San Jose
   
   3 beds, 2 full baths

   Home size: 1,600 sq ft

   Lot size: 7,500 sqft
   
5. $1,180,000 : 1777 Kirkmont Dr, San Jose
   
   4 beds, 2 full, 1 part baths

   Home size: 2,306 sq ft

   Lot size: 8,249 sqft
   

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

Showing properties 1 - 5 of 22. See more 95118 zip code real estate.
(all data current as of 5/25/2012)

1. $829,950 : 1259 Bryan Av, San Jose
   
   5 beds, 3 full baths

   Home size: 2,238 sq ft

   Lot size: 8,050 sqft
   
2. $670,000 : 4241 Ranwick Ct, San Jose
   
   4 beds, 3 full baths

   Home size: 2,199 sq ft

   Lot size: 5,000 sqft
   
3. $785,000 : 3339 Beacon Ln, San Jose
   
   3 beds, 2 full, 1 part baths

   Home size: 1,952 sq ft

   Lot size: 6,784 sqft
   
4. $998,000 : 5715 Mireille Dr, San Jose
   
   4 beds, 2 full, 1 part baths

   Home size: 2,000 sq ft

   Lot size: 6,566 sqft
   
5. $649,000 : 1373 Adobe Ct, San Jose
   
   4 beds, 2 full baths

   Home size: 1,966 sq ft

   Lot size: 8,800 sqft
   

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

Browse lists of Cambrian & Cambrian Park homes for sale:
Houses for sale in the 95118 part of Cambrian
Cambrian Park Houses for Sale in 95124

Mary Pope-Handy, Realtor, CRS, ABR, e-PRO, SRES, ASP, CNHS, ACRE
Helping Nice Folks to Buy & Sell Homes Since 1993
Co-Author: “Get The Best Deal When Selling Your Home In Silicon Valley”
408 204-7673 (Cell)
emailto: Mary (at) PopeHandy.com
Blog: www.LiveInLosGatos.com & www.ValleyOfHeartsDelight.com

Silicon Valley home buyers often state that they want to purchase a house, townhouse or condo which includes these attributes:

• inviting
• spacious, not cramped
• open (open floor plan)
• light, bright & airy – lots of natural sunlight inside
• has a good floor plan
• includes enough storage space
• well cared for (ideally, unless buying distressed)

In a nutshell, buyers want sunny, open, clean, uncluttered feeling spaces.

Rarely do they request cozy (implies small) or private (suggests flag lot or large hedges in the front, blocking view of the street), though most love a private back yard and some buyers really do want privacy in front as well as back (hence the great appeal to those who prefer an Eichler or other mid-century modern style house).  To get you the most money for your real estate sale, though, we don’t want to appeal to the few buyers who want one style; instead, to maximize your return we need to aim the staging at what the majority of buyers (or the most probable buyer for your property) will want.

How can you transform the home you live in to the house or condo you’re selling so that it appeals to these majority of buyers who want “sunny, open, and uncluttered” interiors and un-scary houses or homes?  Here are a few quick tips:

1. First, understand that you are moving from “your home” to a house or townhouse you’re selling – it is an item for sale and the main goal is to maximize what it will sell for. This is an attitude shift but is critical for getting you the best deal for your Silicon Valley property.
2. De-clutter: Anywhere from 1/4 to 1/2 of your belongings will probably need to go, whether to storage, to charity, to a garage sale, to a recycling plant or, all else failing, to the garbage.  A storage pod is a great help – they can take your stuff away and usually deliver it to your new place, if you are not moving too far away.  Most Americans have too much stuff in their homes. It’s fine to live that way but not so good to sell that way. (“The way you live in your home is not the way you sell it.”) Most of the “stuff” will come out of closets, hutches and cabinets but sometimes even walls need to be decluttered too. (Very smart to hire your Realtor BEFORE you do this so that you don’t get rid of the items you need the most and can get good advice on this action.)
3. Light, light and more light!  It’s so important to do everything you can to let the sunshine in from windows (pull curtains back, trim outside landscaping), have extra good interior lighting (add it if need be) and make sure that no room, hallway or area is dark.  Dark homes will truly cost you money!  Whether you need to increase the wattage of your light bulb or add a sun tunnel or two, look at every area of your house or home critically to see if it’s sunny and bright. If not, fix it!
4. Clean and scrub til it’s all shiny, including places where you never really look, like the sliding glass door or window tracks. Dirty homes cause buyers to worry about what is neglected, and worried buyers pay far less for homes.
5. Fix whatever doesn’t work well or is broken. Noisy fan – but it works? It’s usually inexpensive to replace it, so do! Loud fans and small things amiss tell buyers that you are deferring repairs, and they will wonder what else you’re not fixing that they’ll get stuck with, or worse, surprised with! That worry translates into lower offer prices.
6. Do pre-sale inspections. Confident, happy buyers write stronger, higher priced offers and back out of the deal far less often! Their happiness is contagious – you will sell for more and be happy too!
7. Offer and pay for a home warranty for the buyer. The buyers will feel better about paying top dollar when some fear is removed about expenses the first year after closing.
8. Don’t be there during showings. Buyers think it’s creepy if you’re there (sorry, but true) – they cannot talk freely and feel rushed to quit imposing and get out of your house. Plan to be gone!

If you hire a great Realtor to help you with pricing, marketing and negotiating your San Jose or Santa Clara County home for sale, you will have good help in making your property appeal to the largest pool of buyers and thus sell for more. Agents are not all alike, so hire carefully!

I’d love to be your first choice, so please call me, Mary Pope-Handy, for a no pressure, no obligation consultation on selling your home in Los Gatos, Saratoga, Campbell, San Jose are nearby: 408 204-7673 or email me at mary (at) popehandy (dot) com.

Are you thinking of selling your Cambrian Park home? If you live in San Jose’s Cambrian neighborhood (primarily zip codes 95124 and 95118), I have a resource for you: a page I created with TONS of information and links specifically for Cambrian home sellers. 

The page is Cambrian Home Sale (www.CambrianHomeSale.com). There you’ll find:

• current Cambrian real estate market activity
• Cambrian homes for sale
• recent sales of homes in Cambrian Park
• information on finding out your home’s current market value
• Cambrian real estate market trends & statistics
• FAQs by Cambrian home sellers
• links to relevant posts on the Cambrian market
• downloadable (pdf) pre-listing packet
• and tons more!

Please visit Cambrian Home Sale for loads of helpful information specifically provided for Cambrian Park home sellers.

You keep reading that it’s a “seller’s market” in Silicon Valley real estate.  You hear about multiple offers and home prices getting pushed up.  There are tax credits which cause buyers to fight to buy homes.

Should you jump in as a San Jose area seller now? 

Maybe, but if you do it, do it right!  The dirty little secret that no one talks about is that most Santa Clara County homes for sale are not selling.  They sit on the market, popping up on MLS searches for month after month.

There are quite a few common myths that home owners believe about selling their property. Believe these, and act accordingly, and your chances of selling are dramatically damaged:

• my price is high, but buyers can always “make an offer”
• it’s a seller’s market, my home does not have to be perfect
• if I fix up the home to sell, the buyer may not like the changes
• it was like this when I bought it, so I don’t have to improve it now
• I have lived with (fill in the blank) forever, there’s nothing wrong with it

Getting the staging and pricing right matter tremendously.  Today let’s just focus on staging.

Buyers often spend everything they have to get into a new home, and usually they can’t afford to improve it once they move it.  So the first thing to understand, if you are selling your home in Los Gatos, Saratoga or San Jose, is that your home needs to look “turnkey”.  This is what 90% of the buyers need.  If your home isn’t move-in ready, you will automatically eliminate most of your home buying audience!

Let’s look at some photos to drive the point home.  I won’t say where these were taken, only that it’s a Santa Clara County home for sale right now.

When buyers and their Realtors first arrive at your home, they get a first impression of what kind of shape your house is in.  What does the landscaping say? What does the driveway say?

This driveway has a lot of cracks.  Buyers view it as money they’ll have to spend to make it look right.  Real estate agents know that this is a “red flag” that the foundation may also be damaged and cracked.   Either first experience of your home is not positive.  If they’re doing a drive by, they may or may not come back to see what’s inside.  Usually a cracked driveway alone won’t kill showings, but if the rest of the front of the home is bad, that may be enough to stop traffic.  If they don’t see your home, they won’t buy your home – so getting good, qualified traffic is top priority.

The next impression isn’t better.  Here are the windows which also face the street on the same home. Are they dirty?  Has the seal on the dual pane windows failed?  No matter what – it’s a horrible “first impression”. 

Sure enough, when I went inside, it was consistent: the inside what just as bad as the outside.  The kitchen was “beat up” looking.  It had been cheaply remodeled and was treated badly by its owners.  Whoever buys this house probably will have to gut and replace the current kitchen. Below is a large, closeup of a kitchen drawer that exemplifies what’s seen in the home. 

What to do?  A seller could have refaced the cabinets (and replaced the countertop with an attractive formica or Corian countertop) to clean it up.  Few buyers worry about the inside of the cabinets – it’s the outside that they care about.

The back yard is the least important of all the areas to worry about, since buyers are braver about tackling a part of the property that isn’t visible to the world and that they can avoid going through for awhile if needed.  Even so, it’s best to at least cut down the tall weeds!

Most homes are not this bad, of course, and it doesn’t take nearly so much effort or money to really get a home in shape to sell.

Are there any general “rules of thumb” for preparing your home to sell? Yes! The vast majority of times, these items are needed to be done to maximize your home selling price:

1. Decutter – often we live with too much stuff in our homes, in our garages, in our bookshelves, closets and cabinets.  How much? Usually, to sell, about 1/3 of everything must go!  (Donate it, sell it, store it, but get it out of the home!)
2. Repair – if your door sticks, your bathroom fan’s too noisy, your faucet drips, get them fixed.  Small annoyances add up to a bad impression.
3. Clean – this is no time for dirt, rust, streaks or mildew!
4. Make it light – trim back bushes that grow in front of windows, pull back curtains (or perhaps eliminate them), add lights to dark rooms. Whatever the need is, make sure it’s handled so your home is light. Dark homes are a turnoff to buyers.  They often cannot imagine what it will take to lighten up the house.
5. Focus on an inviting front of the home, add color, make the pathways clear of hoses, debris, etc.   Declutter.  Add colorful annuals near the front door.  Make sure your front door is impeccably clean (it may need refinishing, repainting or replacing). 

I co-authored a book, “Get The Best Deal When Selling Your Home in Silicon Valley“, and would be happy to give you a copy of it when we meet to discuss selling your home (no obligation).  Or you can find it online or in local bookstores.  The book contains many more ways to get top dollar when you sell your Silicon Valley house or condo.  Please email or call me today to discuss selling your home in Los Gatos, San Jose, or Saratoga.

If you’re out to buy a Silicon Valley home this year, you may be tempted to look at real estate priced far above your ability to pay and hope that you can write a low offer that the seller will accept.

Don’t count on it.

Lowball offers are contracts written substantially below the list price (and often well below market price).  How low is too low? It really depends on the micro-market of the home you’re interested in (the neighborhood, price range, school district, etc.).  In most of Silicon Valley, houses, condos and townhouses sell within 5% of list price most of the time. The average list price to sales price ratio is usually closer to 1 – 3% of list price. 

My usuall advice to buyers is this: if you don’t think that the home is worth within 5% of list price, then keep looking until you find a home that is.  Most of the time, sellers aren’t prepared to come down more than a few percent. 

Once in awhile, of course, a million dollar home will sell for nine hundred thousand. But it is very rare that a home will go for 10% or more off of list price.  Most often, in fact, the seller will be angry about an offer that far off the mark and will simply write a high priced counter offer.  For example, let’s say a home’s listed at 1 million dollars (to use round numbers) and a buyer writes an offer for eight hundred ninety thousand dollars.  Most likely, the seller will volley back at something like nine hundred eighty thousand.    The best listing agents will tell the seller, “rather than take an offer more than 10% below list, let’s reduce your home’s price 4-6% and see if we cannot sell it for more than that”.  And usually, they can.

Buyers: if your budget is appx $500,000 or less, please don’t waste everyone’s time by looking at homes priced at $600,000.  Look at $500,000 or less – maybe a tad higher than five hundred, but not much.  Look within 5% over your budget, tops.

Sellers: if you are getting lowball offers but no “close” offers, the buyers are telling you something about the market conditions. Consider reducing your price so that your sales price can be reasonably close to list price.  Ask your agent for his or her unbiased opinion of your home’s probable sales price. (Some sellers browbeat their agents on price, feeling that if they can convince the agent the home is worth more, it will sell for more.  Give your agent the permission to be honest with you – that will be your best help.)

Many Silicon Valley home sellers want to sell their homes As Is. In the case of short sales, it is likely that the sale will be As Is, and with foreclosed or bank-owned properties, you can be fairly sure that it will be an As Is sale.

But what does that mean, exactly?

As Is means that the home will be conveyed to the buyer at the end of the transaction in the same general condition it was in on the day that the buyers wrote the offer. If the roof has leaks, the crawl space is full of termites, and the appliances do not work, that is how it will be on the day escrow closes.

What it does not mean is that the seller can let the property condition deteriorate. The seller must continue to maintain the home and land in the same general condition. So if the lawn was green and well trimmed, the seller cannot suddenly let the grass die and neglect to mow it. If a baseball breaks a window after the buyer and seller have a ratified contract, the seller must repair it. The condition will not have to be better, but it should not be worse, either, than on the day the buyer and seller agreed on the price and terms of the sale.

What do Silicon Valley home buyers and sellers think of the As Is clause? Ask and you will usually get very different impressions.

Silicon Valley home sellers may feel that the home is in good enough condition and they do not want to have to run around doing repairs in order to close escrow at the end of the sale period. They want guarantees going into the deal that they are not going to be surprised with a lot of demands to improve the home. They view that as coming straight out of their proceeds.

In other words, they know that if there are surprises, their net will be less, not more. Buyers never investigate the property and say, ˜gee, its in such great shape I will pay more than I initially promised! No, the sales price is usually the most the sellers will be able to get, and any further negotiations are going to be downward from there.

Silicon Valley home buyers will not be thrilled with a seller’s request for an As Is sale when there are no pre-sale inspections or if those inspections revealed a lot of problems, or even a lot of unknown further inspections. However, if the seller did the inspections and then made needed repairs, buyers will usually accept an As Is Sale. Buyers do not like surprises either. In fact, surprises are what usually kill home sales!

An As Is sale can work in Silicon Valley real estate sales as long as there is transparency and the sense of risk is minimized. It is crucial for sellers to have good pre-sale inspections before selling As Is. And it is just as important for buyers to be fully pre-approved so that sellers know they are not wasting their time with a buyer who may not really be qualified.

When both buyers and sellers do their work upfront and come to the negotiations truly prepared, the chances for a completed transaction rise, and so do the odds of everyone feeling like it was a ‘win win’ situation in the end.