Perhaps one of the most important concepts that Silicon Valley home buyers need to appreciate is that someday, they’re going to be Silicon Valley home sellers.

It is true that there’s no such thing as a “perfect house” anywhere in Silicon Valley. No matter what your budget, there is always a change you might want in any home. (Often buyers want about 20% more than their budget allows, in my experience. This is equally true of first time homebuyers as it is for move up or even luxury home buyers.)

So it comes down to which compromises you’re willing to make. There will always be compromises - but which ones are acceptable, and which ones aren’t?

It is extremely helpful if you can prioritize, in order, what you must have or strongly prefer to have, in your next home. Sometimes couples have some, but not all, of the same preferences, wants and needs. Where they get into trouble in homebuying is when they have different priorities. In fact, that can make it almost impossible to buy a home and have everyone happy at the end.

I would like to suggest that one of your top priorities ought to be “resale value” and “resale ability”. Some may object, “I am never going to sell this home!” but in truth, we don’t know the future. If you buy a home with a problem that makes it hard to sell generally, and you get stuck having to sell it in a bad market, it will be brutal and possibly even risky if you later are selling due to any financial hardship.
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Buying & selling a home is usually stressful for consumers, and some circumstances can heighten the anxiety further (being in multiple offers, buying a distressed home, or anything out of the ordinary).  Once you write an offer or receive one on your property, you may feel like a nervous wreck as you navigate the escrow period. In some cases, you may come down with a bad case of buyer’s remorse or seller’s remorse.

We’re In Escrow: Now What?

You will want insights and advice so that you’re sure that you are doing the right thing each step of the way.  Even if you have a great Realtor who thoroughly understands Silicon Valley real estate and is a fantastic communicator, perhaps you want some assurance from an outside source (who’s not being paid for closing the deal) that you really are making good choices in the home sale.

There are a bunch of bad ways to do this but also some good alternatives.

What not to do:

1. Don’t call all of your local Realtor friends whom you didn’t hire and ask for their input.  First, it’s not fair to them as businesspeople that you want their professional input but not for compensation.  Second, they aren’t supposed to meddle and it puts them in an akward position of “implied agency” in which they take on some risk (being your expert upon whose advice they rely) without the benefit of ever getting paid.
2. Beware the well-intentioned advice of non-professionals who may not be up to speed with the current market conditions, construction, your purchase agreement, etc.  Sometimes the “over the cubicle wall” advice can be very, very upsetting as these folks get a homebuyer or home seller freaked out - often over nothing or over a misunderstanding of the situation due to a lack of information.   Most often, this “advice” is from completely unqualified people and will compound problems rather than help to solve them.

How about some good alternatives?

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Now is a great time to buy a home in Silicon Valley: interest rates are incredibly low (and clearly will not stay that way forever - they never do!).  Depending on your desired or required price range and area, the market varies in terms of how much of a bargain you can get. Please understand that buyers are not 100% in charge, though, and sellers are not “giving away” their homes.

Recently I saw a buyer request for a Cambrian Park home. The buyer in question wanted a 3 bed, 2 bath home in the 95124 area with the very best schools. So far, so good. The buyer expected to pay between $200,000 and $500,000 for this home - and unfortunately, that is just not terribly realistic. What he or she wants may be close to $550,000 but if the home is on a standard lot (not a patio home) in good shape, and has no issues (no high voltage lines, no busy road, no converted garage), it wil not be less than $500,000, even if it’s a bank owned property.

In Los Gatos, it is very unlikely to get a good 3 or 4 bedroom, 2 bath home “in the schools” for less than $1,350,000 unless there are issues such as deferred maintenance, bad neighbors, weird floorplan, remodeling needed, busy road, backs to something undesireable, etc.   A really fixed up, turnkey home will probably cost close to 1.4 or 1.5  million if it’s “in the schools”.

In Saratoga, it’s unlikely to get that same home for less than $1,400,000.
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If you’re a Silicon Valley homeowner, you will sometimes need to replace elements of your home, such as the roof or water heater, or do repairs or remodeling to keep the home functional, comfortable, and efficient. Kitchens and bathrooms need to be updated from time to time, and sometimes remodeled. These repairs and remodeling projects often (if not always) require permits and finals.

Will you apply and pay for the required permits and finals?

What difference does it make if you do or do not get them?

Will it matter when you sell your home?

If you’re a Silicon Valley homebuyer, the whole idea of buying a home without all the necessary permits is a bit spooky.  My buyer clients often hear or read something like “garage conversion done - permits unknown” or “kitchen remodel done by contractor but without permits”.  They worry about the consequences of buying homes with non-permitted work, so let’s talk about the issues involved.
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Cambrian Park is a highly desirable district of San Jose. With close proximity to Los Gatos, Campbell, Willow Glen and Blossom Valley, there’s lots to do within Cambrian itself or very nearby.  Cambrian also enjoys good schools, low crime,  two new libraries, two Farmer’s Markets, and a fabulous rec center, the Camden Community Center.

How do you decide where in Cambrian to live?   Many aspects of home buying will likely come into play, from schools desired and budget available to the ambiance and practical things you desire such as RV parking, an extra large garage, family room, guest suite, ommute issues (proximity to freeways),  etc.

I. School District

Your decision might be influenced by the school district you want; Cambrian Park has three elementary school districts. All are good - Cambrian Park truly has no bad schools - but some are exceptionally high. Some districts may have more offerings for special needs kids or gifted kids - if you have children and are looking at placing them in the local public schools, do your research before you househunt!

1. The north side of Cambrian Park (going into Campbell and Willow Glen) has schools belonging to the Cambrian School District (see map).
2. The east side of Cambrian Park (going toward Blossom Valley) is part of the territory of the San Jose Unified School District.  Schools for all of San Jose are beautifully mapped out by the district - you have to zoom in to see the boundaries around Cambrian but it includes all three local districts so is worth the extra steps!
3. The southwest side of Cambrian (and east Los Gatos) is within the boundaries of the Union School District, which also has a helpful map of the borders. The map is a pdf you’ll download and it is very detailed.
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Most homes in Silicon Valley come with some type of parking space for cars beyond street parking.  Home buyers want to know that there will be a place for their vehicles (and often their “stuff” too).   Garages and parking are sometimes under-appreciated aspects of evaluating real estate, so it will be the focus of today’s topic. 

Because a real estate purchase is a big ticket item, it is always important to consider the ability to sell it later.  (Always buy with selling in mind!)  Will it be hard to sell it in the future if it is not a red-hot sellers market?  Parking can greatly impact “resale value” and overall desireability to a large portion of consumers.   If you are evaluating a condominium, townhouse, or planned unit development home with private roads and parking, there will be some special concerns that may be a little different than if you were purchasing a single family home. We’ll consider both.

General principle:  In all types of housing in the San Jose area, usually the most highly desired type of parking arrangement is an attached garage.  This is not true in all cases but is generally true.  You would not find homebuyers interested in historic homes (Victorian, Spanish, Craftsman) wanting a prominent two car garage at the front of the house, commanding the lion’s share of the view from the street. (So don’t expect to see that in Japantown, Naglee Park, or the the Rose Garden.)  But for the typical buyer of the more common ranch style home, the attached garage is expected and appreciated, and if it’s missing it’s a challenge to sell the property later because as sellers you’ll be appealling to a far smaller pool of buyers.
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Recently I put together a Los Gatos Homebuyers Starter Kit page on my main website and thought I’d share it with you. There’s nothing to download, nothing to register for - just a page with an abundance of information offered by links tailored specifically to Los Gatos home buyers: Los Gatos real estate, Los Gatosneighborhoods, Los Gatos homes for sale, Los Gatos real estate market information, Los Gatos schools, Los Gatos parks, you name it. If you are thinking of buying a home in or near Los Gatos, please have a look & bookmark the page!