Median List price for San Jose 95129

Average Days on Market for 95129

Inventory of houses for sale in San Jose 95129

Silicon Valley home buyers want to understand time frames, expectations and requirements when signing a purchase offer on real estate.  One of the most important to fully grasp is when the initial deposit check will go to escrow and be cashed.

The quick answer to the question about when the Silicon Valley real estate purchase offer check will be cashed:

Your initial deposit check or good faith deposit check (or wire transfer or other means of conveyance) is due within 3 business days of acceptance (also called “contract formation”) unless the contract is changed by checking the box and filling in the blank for a different answer.  By the way, everywhere else in the contract, time is measured by “days”, not “business days”. This is the one exception!

Two sets of forms, almost the same regarding the initial deposit

In Silicon Valley, we have 2 sets of forms that we use for writing contracts, completing disclosures etc.  One is the PRDS or Peninsula Regional Data Source forms.  The other is the CAR or California Association of Realtors forms.  In many ways they are similar.  Regarding the good faith or initial deposit, they are nearly identical.

The PRDS Real Estate Purchase Contract is briefer & more streamlined, so let’s start there.

Let’s look closer at the area for the amount being deposited and have a better look at the words :

Once again, it’s 3 business days – though there are almost a myriad of other choices as to what’s happening with the check!

Bottom line: when you write an offer or contract on a house, condo, or townhouse that you wish to purchase in Silicon Valley, be prepared to have the check get cashed by escrow within (not after) 3 business days!

How’s the Cupertino real estate market right now? Let’s start with the most basic window into conditions: supply and demand. (This graph and more info comes from my Cupertino Real Estate Report. Please click on the link for much more data and information – with statistics and trends dating back many years. Also you will find reports which are monthly, quarterly and annually generated. Finally, there’s a “property analysis” tab which enables you to check sales – and see images – around any Cupertino address. Please allow the analysis tab to do its slow load – it’s worth it – enjoy!)

Cupertino Real Estate Supply and Demand

Cupertino Real Estate Market Barometer of Supply and Demand

The realty market barometer is going through the roof!  This implies that it’s very easy for Cupertino home sellers to get their properties into contract and to the closing table, that it is a hot seller’s market in Cupertino.  Please note the darkest line reflects housing inventory – and it’s been plummeting for months.  (Look at each year for October through December and you will note that the pattern is seasonal – but the actual number of homes available does vary considerably.)  Now please note the pale gray line, which indicates the number of homes selling and closing escrow.  The bigger the gap between these lines, the more choices buyers have, and the narrower the gap, the fewer.  Right now, for the first time covered by the chart above, these lines have met, meaning that homes are selling at the same rate that they are coming on the market.  When supply matches or outpaces demand, prices nearly always rise.

But what about home prices in Cupertino?

Here’s a look at the numbers, in brief, as reported with closed sales in December 2011.  Surprisingly, although the market appears to be very hot, prices don’t seem to reflect that – perhaps “yet”.  The median sales price of houses in Cupertino are off significantly from both the month prior and the year prior, and the average sales price is down a little. The number of sales is off a little and the list price to sales price is off some too (both year over year and month over month). Meanwhile, the days on market are growing pretty steadily.

What’s happening? Why this contradiction between the market barometer and pricing?   First, the days on market reflect the inventory which recently sold, not the inventory which is available today.  This tells us that many homes that have been on the market awhile are now being purchased. (Probably others went off the market for the holidays, which is typical for the season.)

With interest rates for conforming loans dipping below 4% (I believe this is an all time historic low), many buyers are deciding it’s time to get off the fence and purchase a house at last.  But there really isn’t much inventory – it’s about 34% lower than the month before and almost 38% lower than the year before!

I think that we will see prices beginning to move upwards with January’s closings.  The market this month in the west valley areas is much, much more active than a year ago.  This is anecdotal but I have been speaking with a lot of Realtors about how busy they are and everyone seems to be on overload with new buyers trying to get a home before prices or interest rates go up.  I expect to see the prices of houses being sold in Los Gatos, Saratoga, Cupertino – at least in the more affordable price points of these areas – to tick upwards this month.  We’ll know in early February if I’m correct!

Now let’s turn to another tool to see how the Cupertino market is faring for listed properties.  For this I will use graphs from Altos Research, to which I also have a subscription. These are LIVE CHARTS and will automatically update themselves weekly – so even if the article is older, this info is now!

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

We know that the median sales price in Cupertino has slipped. But what of the list price, and how does it compare to other areas nearby?

Los Altos is faring the best of these 4 areas. Saratoga was dippping but now rising again. Sunnyvale has been somewhat flat recently. But Cupertino’s prices are continuing to fall. Perhaps these low prices are the drivers for the crazy hot market activity.

Cupertino median list price of houses by price quartile

Focusing just on Cupertino, let’s see how the information looks if we break it down into the pricing tier. Often the entry level houses are a very different “market” than the luxury homes segment.

The last few months have had noticeable declines for the lowest three segments, but there’s been an uptick (until recently) for the most expensive properties in this city.

What if we look back more than a year? Combining the quartiles, the trends look pretty stark:

Here’s the same data just for the top quartile, the most expensive properties in Cupertino:

For the 2nd top tier (upper middle):

3rd level or lower middle:

And most affordable Cupertino houses or lowest quartile:

Cupertino Days on Market by Price Quartile: What’s Selling Fastest

Not surprisingly, the luxury market has had a harder time selling than entry level houses in Cupertino. This is true for most of the West Valley areas of Santa Clara County. Here’s a look at the days on market (DOM) for Cupertino by price point over the last year.

Remember, all real estate is local. For information on your exact area or price point, please contact me. I work with my clients to pinpoint the pricing.

What drives the Cupertino real estate market?

The residential real estate market in Cupertino, California, is driven in large part by the extremely high quality of its local public schools.  Many in Silicon Valley would state that for San Jose area home buyers, Cupertino offers the best “bang for the buck” when one lines up the cost of purchasing a home to the schools’ API scores. (Conversely, some residents are concerned that the very top schools – including but not limited to Cupertino – are so focused on academics that there may be too much pressure on kids and may lack balance for them.)

Other drivers are, of course, the local economy (such as the initial public offerings happening with some of the Silicon Valley tech giants), the availability of more affordable financing, and how the realty market in general is performing for any particular price point or particular school area. (Even within Cupertino, some schools are much more in demand than others.)  Comments in this article refer generally to this city of about 50,000 residents – real estate is local, though, so for precise information in any given area or tier of the market, please contact me!

Houses for sale in Cupertino California

Please browse houses for sale in Cupertino, listed from the lowest prices up to the highest.

Showing properties 1 - 5 of 17. See more city of Cupertino real estate.
(all data current as of 2/4/2012)

1. $649,900 : 10160 Calvert Dr, Cupertino
   
   3 beds, 2 full baths

   Home size: 1,562 sq ft

   Lot size: 5,643 sq ft
   
2. $748,800 : 18920 Tilson Av, Cupertino
   
   3 beds, 1 full bath

   Home size: 1,039 sq ft

   Lot size: 5,400 sq ft
   
3. $749,000 : 10335 Moretti Dr, Cupertino
   
   4 beds, 3 full baths

   Home size: 1,267 sq ft

   Lot size: 4,947 sq ft
   
4. $839,000 : 10240 Yoshino Pl, Cupertino
   
   3 beds, 2 full baths

   Home size: 1,688 sq ft

   Lot size: 3,168 sq ft
   
5. $894,000 : 7316 Rainbow Dr, Cupertino
   
   3 beds, 2 full, 1 part baths

   Home size: 1,788 sq ft

   Lot size: 1,864 sq ft
   

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

Which is better: buying or selling a home in “fixer upper” condition, or aiming at “turnkey”?   In Silicon Valley today we are experiencing a shortage of good inventory. Home sellers may be tempted to market their home without preparing it well.  Buyers may feel that they will get a better deal if they purchase something that needs some work. What is really in your best interests?

Silicon Valley home buyers decide: bargain price and do the work, or turnkey and pay a premium?

Often it’s not a black and white choice of extremes between a “total fixer” and a “completely remodeled” home, but often there’s a basic stance that Silicon Valley home buyers must take: am I searching for turnkey or something that needs work? And if it needs work, how much am I willing to do?

A deep discount will be had on properties which are “all original”.  The question, though, is whether or not it will be worth the effort and cost to go through the trouble of extensive repairs and thorough remodeling.  Often the biggest projects are more profitably taken over by contractors – and even then it may not be profitable in the long run. Last summer I sold an original condition home to a contractor who remodeled and sold it.  The contractor did a lot of remodeling and sold the property a few months later for about 18% more than he paid for it.  When you consider the costs of buying and selling (8-10%), the cost of the remodeling (probably another 8-10% of the purchase price if you include the value of his labor), I’m not sure he really make much money.  For his sake I hope so.  For consumers, though, not contractors, it’s even harder to break even with huge remodels if you want to sell anytime soon.  What you do, do for the long run and for yourself – not because it will make you money!

At the same time, buyers need to be careful of homes which have been flipped by investors for a quick profit: they may have simply done the most visible work, leaving undone items which still need addressing, such as pipes, foundations, or structural items.

A few questions to ask yourself if you want to do a massive remodeling job (and buy a fixer upper):

• Do I have the time to oversee the work?
• Am I knowledgeable about construction? Or do I have time to research and learn prior to doing it?
• Can I do what I need and still put aside an allowance of 20% for non budgeted surprises?

For most buyers, changing paint, carpet, windows, appliances or counter tops is a big enough assignment. Rearranging floor plans and expanding a house is going to be too much work, cost, liability and stress for most.

Repair and staging advice for Silicon Valley home sellers

For most people who are selling Silicon Valley real estate, the house, townhouse or condo they are about to put on the market is the single largest asset they own. For this reason, maximizing the return on investment is extremely important. Most sellers avow that they want top dollar for their home.  Many, in the next breath, say “I want to sell As Is and I don’t want to fix anything.” Those two, unfortunately, are mutually exclusive.

To get the best price for your property, it needs to be the most attractive to potential buyers for the money (even in a seller’s market).  Often that means not just making the home attractive, with things like fresh carpet and paint (if needed), but worry free.  First time home buyers are especially prone to worrying: worrying about hidden costs, how difficult it will be to fix problems, whether issues will come back once addressed, etc.   A great example of this is water damage.  If a bathroom has water damage, and the seller wants to sell the house As Is, the buyers will be concerned, naturally, that if they complete the sale without a pest clearance they will later find that the entire bathroom needs to be remodeled due to the previously unknown extent of the problem.

One of the most important things that sellers want to understand about home buyers is this: worried buyers pay much less for their homes than do confident buyers.   For this reason, it is often best to get presale inspections and possibly have work done before a buyer ever crosses the threshold.  A super clean, well presented home (appropriately priced) will attract buyers who are confident and in turn will pay more for the home.

For more reading on this topic, please also see these related articles:

Preparing Your Silicon Valley Home to Sell: What Will It Cost?

Should You Repair & Update Your Home to Sell? Or Sell “As Is”?

Preparing Your Silicon Valley Home to Sell and Return on Investment

Want more personalized advice? Call me for a no pressure, no obligation consultation:
Mary Pope-Handy
408 204-7673

Many Silicon Valley home buyers rely on PMI, or Private Mortgage Insurance, to purchase a house or condo. But what is it and who needs it?

Private mortgage insurance is usually required with loans in which the buyer has less than a 20% down payment.

PMI does not protect you, the residential real estate consumer. It protects your lender in case you default!

FHA loans don’t have PMI but instead there is a “government guarantee” and for that you pay a premium – so not called PMI but it works similarly. The cost may range from 1 – 2.5%.

FHA or Conventional with PMI?

If you have less than 5% down, FHA will be your only option. But between 5 and 20% down, you may choose.

If you are trying to decide between FHA and conventional loan products with PMI, talk to you mortgage broker or banker to see which one really costs more in the long run, factoring in the total package of interest rates, premium rate etc. (FHA loans may come at a lower interest rate but with other added costs – so don’t just compare interest rates.)  The result may depend on the loan to value of the property, your credit score, and other factors. There don’t seem to be any “easy answers” as to which one is necessarily better.  This decision will require a little research!

If you expect to be bidding in multiple offers, this is another consideration too – it can be very hard for home buyers in the South Bay to win out in multiples if they are using FHA financing (as opposed to conventional).

Finally, like HOA dues, PMI is not something you can usually deduct from your income taxes (unless the PMI cost was simply rolled into your interest rate).  Please talk to your lender and tax professional for more information on PMI and the tax ramifications.

Related reading:

Is your lender pushing you into an FHA loan?

The challenge of being an FHA home buyer in a seller’s market

First Time Home Buyer with FHA Financing? Make Sure That Your Offer is Well Drafted!

Silicon Valley home buyers (and sellers) are faced with a myriad of questions and choices when completing or reviewing residential real estate contracts to purchase the property.  One of them, early on, is whether or not a particular day is chosen for closing escrow or if instead it’s a number of days from contract formation (acceptance) to closing.

Which is better?

The are pros and cons to each approach, of course.  Many buyers want to be able to plan, without any ambiguity, when they will move in to their new home.  (For some this can be a matter of feng shui, astrology or a sense that some days are more fortuitous than others.)  This can work if negotiations are not protracted.

With distressed sales, though – bank owned properties (REOs) and short sales – and sometimes with multiple offers, the negotiations time frame can be hard to predict and if you pick one particular date, you may well have to change it later or find that you don’t really have enough time because a week or more gotten “eaten up” with counter offers, waiting for a bank or seller to respond or other delays. In those cases you may want to have the flexibility of writing in the length of escrow (number of days) rather than picking a certain date.

As always, talk with your professional real estate licensee for guidance as each case may be different.

The annual market report is out at popehandy.REReport.com and we can now learn how 2011 compared to 2010.  The median sales price for houses in Santa Clara County was off 5.3% overall.  But from one part of the valley to the next it varied wildly with 6 cities or areas finding themselves in positive territory while others were off by double digits.

In the image to the left, I’ve put into bold the cities where the median sales price of houses which sold and closed escrow in 2011 were ahead of 2010′s pricing.

What is it that makes Gilroy, Los Altos Hills, Los Gatos, Mountain View and Palo Alto “in the black”?

Most of these cities/towns are upscale, west valley communities.  But so are Saratoga, Cupertino, and Monte Sereno.

Gilroy was especially hard-hit with the housing downturn so perhaps in that case, it’s just coming back into more of a balance. (Then again, so was Morgan Hill and it’s still off by 12%.)

The LinkedIn IPO and others in the Palo Alto area drove prices up for some parts of the housing market nearby and it’s likely that this explains the positive growth for Palo Alto, Mountain View, and Los Altos Hills.  That said, it would seem that Los Altos, and perhaps even Sunnyvale would have seen stronger numbers on the same account.  Perhaps school scores are the key driver here.

Los Gatos, Saratoga and Monte Sereno often behave somewhat similarly as they are adjacent to one another and often attract similar home buyers who want good schools, a nice downtown area nearby and scenic beauty with the hills.  The annual numbers show Monte Sereno down 6.7%, Saratoga down 2% but Los Gatos up 6.4%.  With Monte Sereno, there are very few sales each month and each year (only about 4,000 residents), so there can be a wider swing without it necessarily being accurate. Saratoga and Los Gatos each have about 30,000 people who call these areas home, though, so the data is much more helpful.  Saratoga and Los Gatos both have multiple school districts, views, homes with better proximity to “downtown” and more variables – I think we’d have to dig a lot deeper to learn why these two neighboring markets are so diverse.  We might also have to look at multiple years of data to see if Saratoga spiked while LG slumped to explain the difference.

Coming in at last place: the Santa Cruz Mountains or Los Gatos Mountains area (zip code 95033), where the median list price of houses sold slipped 17% from the year before.  This beautifully scenic region covers a lot of territory and several quite different neighborhoods, some more convenient and others more remote.  It often takes much longer to sell a home in the mountains than on the valley floor but it can be a great “bang for your buck” for great schools, clean area, less crowding, etc.  The remoteness of some homes, the increased rain and other challenges generally make this part of the valley a more challenging real estate market most of the time, and in a down market that’s even more true.

Palo Alto, Mountain View and Los Altos each have regions which can be tracked in addition to the cities as a whole. If you’d like to see these numbers, please visit http://popehandy.rereport.com and then click on Yearly, then select the city, then the neighborhood and you can see how Baron Park or other areas are faring in particular (also for their monthly or quartly reports).

Areas within San Jose, like PA, MV and LA, can be tracked. Since I am very active in several of them (Almaden Valley, Cambrian Park, Willow Glen, Blossom Valley and others on the west side), I want to share those next.

The median sales price of houses which sold & closed in 2011 in the City of San Jose was down 5.9%, lower than the county as a whole.  Most of San Jose was worse off than the prior year – all except Alviso!

Alviso, which was a separate town until not so long ago, sold with a double digit increase in the median sales price – a whopping 10.6% higher than in 2010.  Affordability and investor activity are most likely the cause – more demand and less inventory than the year before. (I suspect either fewer distressed properties or that they were gobbled up quickly. Knowing would require more research.)

Downtown or central San Jose took a beating with the median sales price down 9.6%.  Why did it fall from grace?  Not everything in this area is affordable – consider that it includes Naglee Park, The Rosegarden, and a few other tony areas. I suspect it’s the number of foreclosures (REOs) and short sales but I don’t have that information at hand.  It would require a much closer look that our brief survey here to uncover what’s happening.  (We know that there are many unsold, new condos in downtown San Jose but those should not be impacting the sales of single family homes.)

In future articles or posts I hope to look at a few of these areas more carefully to see what is causing the great diversity between the areas showing improvement over 2010 such as Alviso, Palo Alto, Gilroy, Los Altos Hills, Los Gatos and Mountain View versus those which are really hurting: downtown San Jose, the Los Gatos Mountains, Evergreen, Morgan Hill, Milpitas.  Very likely it’s a combination of the distressed market activity in some areas, school scores, the pricing tier (i.e., homes between 1 and 2 million near Palo Alto) and more factors.  With real estate, it’s always local – and that’s just the starting point.

How’s the Saratoga California real estate market?

Annual Saratoga CA Real Estate Update:

Saratoga’s prices slipped a bit in 2011 over 2010.  Here are the basic numbers with the stats for the annual review, including median sales price and average sales price of houses sold (see the Saratoga Real Estate Report for even more data):

Median Sale Price 2011 = $1,480,000   2010 = $1,510,000 (-2.0%)

Average Sale Price 2011 = $1,636,300   2010 = $1,657,140 (-1.3%)

For condominiums and townhouses it was stronger (finally, they’ve taken a beating!):

Median Sale Price 2011 =  $660,000     2010 =  $612,500 (+7.8%)

Average Sale Price  2011 = $684,500    2010 =  $640,895 (+6.8%)

To see much more information please visit the full annual Real Estate Report for Saratoga condos and townhomes

Monthly Real Estate Update for Saratoga:

Sales of single family homes were up but prices were down month over month – but way, way up over December 2010! It’s taking much longer to sell houses compared to a year ago too – but look at the prices from a year ago – the low price went with a very brisk sale time (average 17 days on the market).  That was nuts both for low pricing and for speed!

What about Saratoga condos for sale and sold? There are very, very few of these which sell in any given month, so the numbers can very easily jump around like crazy – and therefore aren’t terribly helpful. 

Days on market are double a year ago and triple even a month ago (this IS helpful), prices are down from last month (but again, that can mean very little since a Saratoga Oaks townhouse with a view will sell for much more than a small condo with a less desirable location).

To really understand the condo and townhouse market it’s better to see actual sales and compare them quarter by quarter, using similar units.  If you are interested in buying or selling a condo or townhouse in Saratoga, don’t go it alone or rely on online stats – give me a call and we will crunch the numbers specifically for your home and pinpoint the pricing.

Median List Prices of Saratoga Homes for Sale

First, a graph displaying the overview of the median list prices for condominiums and single family homes in Saratoga – all price quartiles combined:

In general, the seller’s market is showing itself for houses in the fact that list prices are rising.  Not so with condo and townhouse pricing. That’s a much cooler market.

Next, the median list prices for single family homes with a breakdown by price quartile. (Please note that the info would be even more precise if broken down by school district, but this particular program doesn’t yet filter by schools.)

In most price points, the list prices are now rising slightly, but most of all in entry level homes. In the last few months we’ve seen the high end home sales start to pick up in Saratoga, with a good run up in late 2010 before sliding earlier.  Starting to improve now, though.

And now, list price of condos by price quartiles.

Interestingly, the condo market is not enjoying at all the decent seller’s market seen among houses in this city.  Every price point appears to be suffering, but the high end most of all.

Inventory of both houses & condos in Saratoga

It’s seasonally typical to have more inventory in summer than other times of the year. Going back a few more years (see below), please note where the peaks are found – always sometime in summer. (Single family homes only.)

It’s less clear, but still visible, with condominiums and townhouses in Saratoga:

Average Days on Market for Saratoga Homes for Sale

Houses by quartile is not much different – DOM was rising across all price points and has been since August until spring, when the bottom and two quartiles (blue and green) reversed the trend. These are the “hotter”or improving segments of the market right now.

It is strangely disjointed in the Saratoga Condo market, though. I can’t explain why this had been so “all over the board” based on just this data. But since August, all four groups appear to be following the same general trend.

My suspicion is that the homes with the better schools are faring the best, but that’s just a hunch based on how well homes usually sell – it’s not provable with this info at hand.

If you’re interested in buying or selling a Saratoga home, please contact me. I’ll be happy to meet with you for a no obligation initial consultation.

Saratoga Real Estate Listings – Saratoga Homes for Sale – Condos, Townhouses & Houses for Sale in Saratoga

If you’d like to browse Saratoga homes for sale, I invite you to have a look here! Below please find all properties currently listed as available on our local MLS.  Please be advised that there are a number of different property types and school districts listed here.  For more precise information on houses, condos or town houses on the market, please contact me via email or complete a form at SiliconValleyHomeHunt.com or on my popehandy.com website.  Either way it will come to me and I will personally set up your search for a Saratoga property. (If you are moving to the South Bay area from far away, please also see my Silicon Valley relocation website for helpful tips.)

Showing properties 1 - 5 of 61. See more city of Saratoga real estate.
(all data current as of 2/4/2012)

1. $869,950 : 19061 Dagmar Dr, Saratoga
   
   3 beds, 1 full bath

   Home size: 918 sq ft

   Lot size: 8,424 sq ft
   
2. $1,450,000 : 15145 El Quito Wy, Saratoga
   
   3 beds, 1 full, 1 part baths

   Home size: 1,510 sq ft

   Lot size: 43,560 sq ft
   
3. $1,650,000 : 12522 Palmtag Dr, Saratoga
   
   4 beds, 3 full, 1 part baths

   Home size: 3,398 sq ft

   Lot size: 9,652 sq ft
   
4. $825,000 : 18253 Swarthmore Dr, Saratoga
   
   3 beds, 2 full baths

   Home size: 1,400 sq ft

   Lot size: 8,260 sq ft
   
5. $2,449,000 : 19430 Valle Vista Dr, Saratoga
   
   4 beds, 4 full, 1 part baths

   Home size: 3,930 sq ft

   Lot size: 1.53 ac
   

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

For several years, we’ve seen declining residential real estate prices in much of Silicon Valley.  In many areas, though, prices are now either flat or bouncing up and down within a small range such that the probable buyer’s value or market value is very close to where it was a year or two ago.  Today’s San Jose Mercury News reports

“In a report to be released Monday, Clear Capital, a real estate valuations company in Truckee, predicts that prices will remain almost flat this year — compared with a 4.7 percent drop in 2011 — in the San Francisco-Oakland-Fremont metropolitan area, including Contra Costa County. Silicon Valley should see a 1.6 percent increase in home prices, compared with a 2.5 percent drop last year, the company said.” (Bolding mine.)

A small, modest increase in pricing is usually healthy for home sales as it gives buyers the confidence needed to finally take the plunge. It’s immensely challenging for people to buy when they believe any product – cards, home appliances or houses – will be cheaper in a day, a week or a month.

Home sellers who have wanted to move up from a starter home to the one they hope to spend decades in have felt somewhat trapped by lack of equity in many cases.  In others, the idea of selling for less than at the peak was so upsetting that they felt terrible about moving ahead prior to a full recovery.  Most now understand that getting back to prices at the peak of the realty market in San Jose and Santa Clara County will take many years.

Some of them are tired of waiting and are electing to forget about the profit they could have had if they’d sold at the peak.  These folks have decided to make the jump now to get on with their lives, despite less equity than hoped for initially, while at least interest rates are so favorable.  (It should be added that the move-up home will now cost less also!)  This can be a very wise decision since buying a house, townhouse or condo is usually not one purchase but two: you’re buying the loan product also and the total cost of home ownership should factor in both the costs over the lifetime of the loan as well as the purchase price.

Have you been “on hold” and “waiting for prices to recover” before moving up?  It could be a long wait.  What else is on hold with it?  Better schools for your kids?  More room for visiting friends & family?  The view you’ve always wanted?

A client of mine said to me the other day, “it’s time for us to ‘bite the bullet’ and make the move“.  They know that they won’t get the price they originally wanted, but instead only what the market will bear.  They want to get on with their lives and quit waiting on the market – which is completely out of their (and my) control.

On the positive side, though, two years ago interest rates were hovering at 5% for a 30 year fixed, conforming rate loan.  Today they are at 3.91%.  The home they want to buy is 3-5% less than it would have been 2-3 years ago.  Prices are lower for selling, but the cost of buying their next place and also the cost of a loan is lower too. The math may work out very much in their favor after all.

Recently I was speaking with a neighbor of mine in Los Gatos who’s a high powered lender with decades of experience all over Santa Clara County.  In the last year or two she’s been doing many more FHA backed loans, rather than conventional ones, as smart home buyers, especially first time home buyers, try to get into a house while both home prices and interest rates are at record lows.  This makes a lot of sense as it can take a long time to save 20% or more and in that time, both interest rates and real estate prices in Silicon Valley could go through the roof.  (If my kids were out of college and working, I’d be encouraging them to buy a home using FHA backed financing too.)

FHA backed mortgages do require a lot more work, though, so I extended my sympathy that she’s having to jump through so many hoops and that they are for much smaller sales prices (many areas of San Jose have dropped 35 – 40% since the market collapse).  Mortgage brokers often make about 1% of the value of the loan as their compensation, so I imagined this great loan officer spending twice as much time with FHA paperwork as on a normal loan, on a smaller priced property, resulting in “half the pay for twice the work”.

Apparently that’s not the case with FHA loans!

“It’s better for me when the buyer uses FHA”, she assured me.  Really?  “Instead of getting 1 point, we are often paid 2.5 points when we close an FHA loan.”   That didn’t seem unfair to me since there’s a lot more paperwork involved.  But consumers probably don’t realize that their banker or mortgage broker will be paid much more if the loan is FHA backed rather than conventional.

If you have saved enough money for a conventional loan product but your lender is pushing FHA, be doubly careful before deciding what to do. There are pros and cons to each loan product you buy (you are “buying” or “paying for” a loan).  Make sure that you aren’t getting FHA financing only because it is more profitable for your lender.

How’s the Almaden Valley real estate market?   Prices appear to  have been rising, but slipped some this last month. There’s not much inventory in this part of the valley so it remains a seller’s market, incredibly. A  fairly nice 4 bed, 2 bath house in most parts of the San Jose 95120 zip code will still cost about a million dollars (more if it’s in the best areas with best schools and best condition).  A smaller 3-4 bedroom townhouse with good schools will be about half that much unless it’s really young and highly upgraded.

Average Days on Market  & Sale to List Price Ratio for Almaden Valley (San Jose, CA 95120) houses in 2011:

Number of Homes For Sale vs Sold for Almaden Houses on the Market

Date is between Jan 2011 and Dec 2011

Property Sub Class is ‘Single Family Residential’

Area AreaIdName is ’13 Almaden Valley’

Results calculated from approximately 570 listings

Listings by Price Range

Date is between Feb 2011 and Jan 2012

Property Sub Class is ‘Single Family Residential’

Area AreaIdName is ’13 Almaden Valley’

Results calculated from approximately 470 listings

Sales by price range

Date is between Jan 2011 and Dec 2011

Property Sub Class is ‘Single Family Residential’

Area AreaIdName is ’13 Almaden Valley’

Results calculated from approximately 320 listings

For more info please see my Almaden Valley real estate report.

Houses, sales, pendings, prices in San Jose 95120 for November 2011 – note that they are down month over month and year over year BUT if you go back to October, they were way, way up (double digit). It’s helpful to have the “big picture” and not focus on just a small amount of data. Reviewing several months in a row we see some ups, some down – mostly down (in single or double digits) but when up, it was way up (20-40%). No easy answers here.

Trends At a Glance	Nov 2011	Previous Month	Year-over Year
Median Price	$935,000	$1,075,000 (-13.0%)	$950,000 (-1.6%)
Average Price	$1,007,750	$1,144,880 (-12.0%)	$1,123,800 (-10.3%)
No. of Sales	19	27 (-29.6%)	21 (-9.5%)
Pending Properties	31	35 (-11.4%)	45 (-31.1%)
Active	55	68 (-19.1%)	93 (-40.9%)
Sale vs. List Price	98.8%	97.0% (+1.9%)	97.5% (+1.3%)
Days on Market	47	52 (-8.7%)	40 (+18.2%)

Numbers for October – notice the big jump from September in pricing!

Trends At a Glance	Oct 2011	Previous Month	Year-over Year
Median Price	$1,075,000	$822,000 (+30.8%)	$885,000 (+21.5%)
Average Price	$1,144,880	$815,646 (+40.4%)	$910,012 (+25.8%)
No. of Sales	27	24 (+12.5%)	22 (+22.7%)
Pending Properties	35	42 (-16.7%)	41 (-14.6%)
Active	68	67 (+1.5%)	111 (-38.7%)
Sale vs. List Price	97.0%	95.6% (+1.4%)	97.4% (-0.5%)
Days on Market	52	46 (+13.6%)	36 (+42.2%)

The list price to sales price ratio moved up but days on market and number of pendings were off from the month prior – though not year over year. Compared to a year ago, prices are up and all is rosier except the days on market. Buyers may be having trouble adjusting to the rising prices in Almaden.

Trends At a Glance	Sep 2011	Previous Month	Year-over Year
Median Price	$822,000	$835,000 (-1.6%)	$931,000 (-11.7%)
Average Price	$815,646	$868,909 (-6.1%)	$967,599 (-15.7%)
No. of Sales	24	39 (-38.5%)	27 (-11.1%)
Pending Properties	42	37 (+13.5%)	34 (+23.5%)
Active	67	83 (-19.3%)	124 (-46.0%)
Sale vs. List Price	95.6%	97.1% (-1.6%)	98.3% (-2.8%)
Days on Market	46	62 (-26.4%)	37 (+24.1%)

And August:

Trends At a Glance	Aug 2011	Previous Month	Year-over Year
Median Price	$835,000	$926,000 (-9.8%)	$932,500 (-10.5%)
Average Price	$868,909	$1,038,120 (-16.3%)	$997,688 (-12.9%)
No. of Sales	39	20 (+95.0%)	32 (+21.9%)
Pending Properties	37	53 (-30.2%)	46 (-19.6%)
Active	83	93 (-10.8%)	121 (-31.4%)
Sale vs. List Price	97.1%	97.0% (+0.2%)	99.0% (-1.9%)
Days on Market	62	65 (-5.7%)	36 (+70.9%)

CONDOS

Next the Almaden Valley condo market.  It’s improved over last month!  Some quick stats:
Sales fell 0.0% from the month before, and were up 200.0% year-over-year.  Prices improved in Sep 2011 with the median price climbing 11.6% from the previous month, down 23% compared to last year. The average price rose 22.9%, a yearly loss of 15.7%.  Inventory fell 0.0% from last month, and was down 23.8% year-over-year.

Trends At a Glance	Nov 2011	Previous Month	Year-over Year
Median Price	$577,000	$495,000 (+16.6%)	$620,000 (-6.9%)
Average Price	$577,000	$498,333 (+15.8%)	$620,000 (-6.9%)
No. of Sales	2	3 (-33.3%)	2 (0.0%)
Pending Properties	3	3 (0.0%)	3 (0.0%)
Active	11	11 (0.0%)	16 (-31.3%)
Sale vs. List Price	97.5%	98.4% (-1.0%)	95.6% (+1.9%)
Days on Market	118	93 (+25.9%)	34 (+250.8%)

October:

Trends At a Glance	Oct 2011	Previous Month	Year-over Year
Median Price	$495,000	$512,000 (-3.3%)	$683,000 (-27.5%)
Average Price	$498,333	$560,667 (-11.1%)	$715,250 (-30.3%)
No. of Sales	3	3 (0.0%)	4 (-25.0%)
Pending Properties	3	4 (-25.0%)	2 (+50.0%)
Active	11	12 (-8.3%)	15 (-26.7%)
Sale vs. List Price	98.4%	98.0% (+0.4%)	95.4% (+3.2%)
Days on Market	93	67 (+40.0%)	40 (+134.8%)

September:

Trends At a Glance	Sep 2011	Previous Month	Year-over Year
Median Price	$512,000	$458,900 (+11.6%)	$665,000 (-23.0%)
Average Price	$560,667	$456,300 (+22.9%)	$665,000 (-15.7%)
No. of Sales	3	3 (0.0%)	1 (+200.0%)
Pending Properties	4	5 (-20.0%)	7 (-42.9%)
Active	12	11 (+9.1%)	14 (-14.3%)
Sale vs. List Price	98.0%	97.3% (+0.7%)	95.3% (+2.8%)
Days on Market	67	91 (-27.0%)	25 (+166.7%)

And for August:

Trends At a Glance	Aug 2011	Previous Month	Year-over Year
Median Price	$458,900	$565,000 (-18.8%)	$635,000 (-27.7%)
Average Price	$456,300	$555,200 (-17.8%)	$635,000 (-28.1%)
No. of Sales	3	5 (-40.0%)	2 (+50.0%)
Pending Properties	5	5 (0.0%)	3 (+66.7%)
Active	11	13 (-15.4%)	16 (-31.3%)
Sale vs. List Price	97.3%	98.1% (-0.9%)	98.4% (-1.1%)
Days on Market	91	103 (-11.7%)	7 (+1,121.0%)

Next let’s have a multi year look at the Almaden Valley real estate market.  Below please notice the supply & demand graph going back to late 2007. Although it’s been a “wild ride”, you can see a very clear pattern emerge that around December or January of eacy year, inventory falls (the dark gray line) and relative to the months just before or after, these tend to be “better” for sellers. What’s happening?  The available supply of homes tends to diminish over the holidays.  Prices are perhaps softer than at other times of the year.  Buyers who need to buy, do buy.  The odds of selling are actually higher, in many cases, during this time of year than others!

Here are a few quick stats from Altos Research (which will be automatically updated weekly and to which I have a subscription) – these are based on the list price of townhouses, condominiums and houses for sale in San Jose’s Almaden Valley 95120 area:

90-day stats for Single Family properties in SAN JOSE, CA95120 as of October 7, 2011
Median List Price:	$927,953	Average List Price:	$1,056,795
Total Inventory:	129	Price per Square Foot:	$405
Average Home Size:	2,414	Median Lot Size:	8,580
Average # Beds:	4.04	Average # Baths:	2.72
Homes Absorbed:	11	Newly Listed:	8
Days on Market:	113	Average Age:	36

90-day stats for Condo properties in SAN JOSE, CA95120 as of October 7, 2011
Median List Price:	$606,104	Average List Price:	$637,011
Total Inventory:	17	Price per Square Foot:	$365
Average Home Size:	1,674	Median Lot Size:	n/a
Average # Beds:	2.79	Average # Baths:	2.34
Homes Absorbed:	1	Newly Listed:	1
Days on Market:	178	Average Age:	26

The residential real estate market in San Jose’s Almaden Valley area was a “hot seller’s market” early this year due to more demand than supply but it is cooling slightly now, which will be a great relief to frustrated home buyers, but it has not been giving them the big influx of inventory they’d like to see.

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

1. $439,999 : 20800 4th St #10, Saratoga
   
   2 beds, 1 full bath

   Home size: 876 sq ft

   Lot size: 871 sq ft
   

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

Saratoga California townhouses or townhomes for sale

Showing properties 1 - 3 of 3. See more city of Saratoga real estate.
(all data current as of 2/4/2012)

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

   Home size: 1,612 sq ft

   Lot size: 968 sq ft
   
2. $799,500 : 12630 Biarritz Ln, Saratoga
   
   3 beds, 3 full baths

   Home size: 1,991 sq ft

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

   Home size: 2,163 sq ft

   Lot size: 1,377 sq ft
   

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

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

Showing properties 1 - 5 of 57. See more city of Saratoga real estate.
(all data current as of 2/4/2012)

1. $825,000 : 18253 Swarthmore Dr, Saratoga
   
   3 beds, 2 full baths

   Home size: 1,400 sq ft

   Lot size: 8,260 sq ft
   
2. $850,000 : 14656 6th St, Saratoga
   
   1 bed, 1 full bath

   Home size: 592 sq ft

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

   Home size: 918 sq ft

   Lot size: 8,424 sq ft
   
4. $885,000 : 19061 Dagmar Dr, Saratoga
   
   3 beds, 1 full bath

   Home size: 918 sq ft

   Lot size: 8,424 sq ft
   
5. $925,000 : 18710 Harleigh Dr, Saratoga
   
   3 beds, 2 full baths

   Home size: 1,670 sq ft

   Lot size: 7,930 sq ft
   

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

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.

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?

When house-hunting in Silicon Valley, it’s good to take note of how clear the windows are.  Sometimes when a dual pane window appears wet or foggy, it’s not just a matter of the sprinklers hitting it, but instead could be a failure of the vacuum seal. If that’s the case, the window may no longer be as energy efficient and certainly will not be as attractive as intended.

There are some window repair professionals who claim that they can de-fog windows with condensation (the common belief is that foggy windows must always be replaced).  What many consumers do not know when purchasing dual pane windows is that many of them will fail, unlike the single pane windows they are replacing. (The Old House Authority site says 30% of the time, a replacement window will be replaced within 10 years. It also advises that “More heat is typically lost though your roof and un-insulated walls than through your windows. Adding just 3 and 1/2 inches of insulation in your attic can save more energy than replacing your windows.”)

Seal failure of dual pane window

Many of my home buyer clients for Los Gatos, Almaden, Cambrian and San Jose insist upon having dual pane windows in their future house or townhouse.  Before assuming that any brand is OK, though, do some research to learn about the windows’ failure rate and how long the warranty on them will be.  Dual pane windows look great and do save a little energy, but if you have to replace one third of them within ten years, it won’t be a bargain at all.