Silicon Valley home buyers often “want a deal“, so they may consider purchasing a house, condominium or townhouse which is listed as a “short sale”.  What should you look for if you’re viewing one?

First, it is helpful to realize that the sellers cannot make any money at all from the sale, so often Los Gatos or San Jose area short sale sellers are unmotivated or depressed.  Sometimes they don’t even move themselves out of the way for showings.  A few months ago I saw one in which during a noontime previewing appointment in Willow Glen, two of the occupants were in bed (in two different rooms)!  Needless to say, I felt like I was imposing and left fast.  And I did not return with my buyer clients!

Second, with short sales, most often the sellers are truly distressed financially and the property may have been neglected or have deferred maintenance. Additionally, some sellers in this sad situation are emotionally upset or sad and they may not even keep the property clean. (When you go to see residential real estate, most often the sellers leave unless they are elderly or infirm.) (more…)

There are two sets of forms in use in the greater San Jose area (Los Gatos, Saratoga, Campbell, Santa Clara, etc.) for residential real estate sales:

CAR or California Association of Realtors forms and
PRDS or Peninsula Regional Data Systems forms

Although the two contracts or purchase agreements are very similar in some ways, they are also unique in others. Depending on the property in question and your wants, needs and goals, as well as whether you are a buyer or seller in Silicon Valley, you may prefer one of these over the other.

If you are involved in a investor seller or distressed property transaction in Silicon Valley (such as a short sale or banked owned home), you may be required to use the CAR contract by the lender since it’s a strictly “as is” agreement. The banks may also force the purchaser to use a long addendum – best if that’s the case to read it very carefully and possibly even consult a real estate attorney to make sure you understand what you’re being asked to sign.

What is the benefit to a homebuyer in knowing that the home sold recently? There are really two advantages: first, if it’s a normal sale (not distress), you can get an idea of the sellers’ equity.  More importantlyly, though, if the current owners bought the home not too long ago, you may be able to read the prior inspections and disclosures.

Sometimes sellers are reluctant to admit that they saved this type of information. But if they hired the same  Realtor who assisted them in purchasing this property (also reported on the MLS), that agent would have access to all of the disclosures and reports. California state law demands that brokers save all transaction records for three years. Homeowners and their agents usually save them for many more years than that, though. (Sometimes agents move brokerages and this can make it more challenging to get full and complete records.)

So back to your Silicon Valley real estate issue. Let’s say you have found a nice bit of real estate in San Jose (a house, condo, townhouse) which you want to buy, and perhaps there are recent improvements, updating or remodeling, “permits unknown”.  The best way to get clarity on the situation is to then ask for the prior disclosures, inspections and reports. It is imperative to get everything because clues may turn up in any of these documents. Often the current owner will not recall the story if the work was done by prior owners, and will not think to check the original paperwork. But by reading through it, you may learn what the status really is – whether there are permits and finals or not, for instance.

Particularly when buying a home that sold in recent years, you can leverage your knowledge to improve your ability to purchase wisely.

Please call or email me if you’d like to discuss buying (or selling) a home in Los Gatos, Campbell, Saratoga, Cambrian Park, Almaden Valley, or anywhere in San Jose – Santa Clara County.  Or browse homes for sale here:

www.housesforsaleinsanjose.com

Do you want to buy a Silicon Valley home? If so, there are lots of things to consider and to weigh. You’ll need to decide your budget (get help: hire a good lender), choose your preferred Silicon Valley locations, decide on what type of Silicon Valley home and size you want to purchase.

Let’s say you’ve spoken to a lender, have more than $100,000 saved for a downpayment and closing costs and can afford approximately a $500,000 purchase price. That half a million dollars can purchase you a very decent townhome in a nice area like Campbell, West San Jose or Cambrian Park, or an entry level house in various parts of San Jose such as South San Jose, Blossom Valley, or Santa Teresa (among other areas in Santa Clara County).

Buying Silicon Valley real estate is a huge undertaking and I have loads of information to offer you as a buyer. Another of my websites, DelightHomes.com (PopeHandy.com), has a wide assortment of information helpful to Silicon Valley buyers. I invite you to browse this list and click on some or all of the links. There’s no signing up for any of it – have a look and enjoy.

Here’s a list of some of what you can find there, and each item is a LINK too:

How May I Assist You in Purchasing a Silicon Valley home?
Why buy a home?
Why be pre-approved?
Pre-qualification form

Looking for a home
Evaluating your priorities
Seller abbreviations
Viewing an open house
Home inspection

Making your Silicon Valley home purchase
Loan Do’s & Don’ts
The financing process
Escrow
Contingencies

The moving timetable
Checklist for moving

Tips for Buyers in Silicon Valley

Of course, please contact me for personalized assistance with your home buying and selling needs in Santa Clara County!

Whether you are looking to buy a condo, townhome, patio home, or single family home in Silicon Valley, it’s imperative that you revisit the neighborhood multiple times before deciding to buy (or to complete the purchase). This is an important part of your “due diligance” as a home buyer.

Why revisit so many times? Because certain key things may differ from hour to hour or workday to weekend day:

• - noise levels
• - the number of parked cars on the street (few is good, many suggests overcrowding)
• - neighborhood activity (good or bad: people strolling, walking dogs is a good sign – too many yard sales or other activity may not be a plus)

If you visit on a weekday morning or afternoon, the street could be relatively free of cars and other vehicles, but it might be entirely different on a Friday night or Saturday afternoon.

Conversely, if the neighborhood appears consistently appealing, quiet, well kept, and not overcrowded or loud, that’s something to appreciate as you factor in which home to buy. You can usually remodel your own home, but it’s very difficult to do a makeover on the street where you live – so investigate throroughly before you buy, whether it’s in San Jose, Campbell, Saratoga, or Los Gatos. You will be more sure of your decision and happier with the results if you do your neighborhood homework upfront.