Yesterday I got a phone call from a woman looking to find a lease option to buy property in the San Jose area.  “I’m tired of wasting money on the rent”, she explained.  Hoping to locate one, she was phoning the agents of San Jose houses for sale – maybe one of them would do a lease option?  Not likely.

Why are lease options hard to find in Silicon Valley?

It is a challenge to find a lease option in the greater San Jose area for a number of reasons, most of them related to the extra risks involved as opposed to simply renting or selling the real estate outright.

1 – Cash needed at close of escrow: An overwhelming majority of the home sellers here want their cash at close of escrow, so the buyers can be all cash or part cash and part loan (20% down, for instance).  Most real estate sellers want to take the cash from the property being sold and do something with it immediately – and the majority of the time that means putting it into another home in which to live.

2 – Don’t want to be a landlord: Doing a lease option means that not only will the owners of the property not get their cash right away, but they also have to become landlords in the meantime.  If they pay a professional property manager, that may cost 8% per month in overhead, too, so it cuts into any profit.

3 – Lease options are risky: With lease options, there is far more risk for the seller, of course, but also for the buyer!  (And by extension, real estate licensees who get involved with lease options.)

• The seller risks a default by the buyer/tenant and then having to go through the trouble of evicting him/her/them.
• Pricing risks for both seller and buyer:  the purchase price is decided upfront, but the sale isn’t finalized for a year or more.  During that time, the real estate market could appreciate like crazy (leaving the seller to feel that the house is sold for too little, less than market value) or the prices could fall (with the buyer unable to complete the sale since the property wouldn’t appraise – thus losing all of the downpayment in the process).  Either way, buyer or seller could feel unhappy and cheated.
• Bad pricing could lead to a lawsuit:  Those who feel unfairly treated sometimes bring lawsuits – which are scary and expensive.

4 – Lease options are not very affordable for most consumers. Lease options cost more, per month, than a regular rental.  For those who want to rent, they need affordability!  Very few want to pay more than the rental market value for a home, especially knowing that the overage is going toward a down payment.

Who are the most likely property owners to offer a lease option?

The odds are better that a lease option will be available from a non-owner occupied home, that is, investment property.  The lease option is possibly a way for a seller to get a good return on the investment (rental property).  The seller must be willing to not get the cash immediately, though – and most won’t fall into that category.

Buying and renting homes in Santa Clara County are both pretty straight forward.  Rent-to-buy, or lease options, though, are a bit murky.  While they may work easily for some, that’s not always the case.  So real estate firms, which tend to be risk adverse, prefer to avoid them.  Most would suggest that home buyers interested in lease options consider the possibility of purchasing a home with the backing of FHA financing instead, which enables a fairly small cash down payment to be used.

If you’ve had your San Jose home listed for sale with a real estate professional but after several months on the market it didn’t sell, you are probably tired, discouraged, and maybe even angry.  What went wrong?

Everyone likes “easy answers”, and the most common easy answer to the question of why the house is now an expired listing is price.  Most homes that don’t sell are overpriced. This is true but an oversimplification.

Often, price isn’t the only factor, or is not even the biggest obstacle in the home’s not selling. (Sometimes it’s not a problem at all.)  Frequently, it’s a little more complicated than that.

When selling a house, townhouse, or condominium in San Jose or Silicon Valley, the best starting point is to try to see things as the buyer does and to make your property competitive enough that the buyer will see it and be interested.  That’s Job # 1: make the buyer want to see it.

It’s not price so much as value: The buyer is looking not for the cheapest property, but for the best value for the money.  The buyer wants the best house, in the best location, with the best terms that he or she can buy.

Sellers, of course, want to sell the home for top dollar with the least hassle (meaning a smooth escrow and no surprises). Sometimes, in the effort to sell for the highest possible price, the sellers simply aim too high – and it’s out of the buyer’s line of vision.  I wrote about this last year and invite you to read more about pricing in this post:
What’s My Silicon Valley Home Worth? Estimating the Probable Buyer’s Value.

A good Realtor can help with realistic and competitive pricing but only if your agent has your permission to be totally honest with you.  Sometimes sellers hire the “yes man” who agrees with a wrong price, a wrong condition of the property, and wrong access for buyers and their agents.  Everyone ends up unhappy that way because the house won’t sell unless it’s a bizarre fluke.  Better to hire a great agent, work together and encourage honesty (even if it’s not what you want to hear).

It’s often easier to increase perceived value than you might think. Agents around the globe will tell you, rightly, that a good price can fix any problem.  But most sellers would like to know that lowering the price isn’t the only way to improve the home’s ability to sell.

How else can the home be seen as the better value?  Here we need to take homes on a case-by-case basis.  Here are a few of the areas I’ve seen that can be tweaked in order to make the property more appealing to home buyers:

• lots and lots of good quality photos that convey your home and yard in the best possible light – when the photograph is taken, the house and yard should be immaculate: no cars in the driveway, no junk on the kitchen counters, toilet lids closed – it needs to look like you care!
• decluttering, depersonalizing and staging the home – it needs to be a neutral, clean palette so the buyers can envision themselves moving in
• the front yard needs to be perfect and perfectly inviting – no bushes growing over the sidewalk or front walkway, no chain link fences in the front yard (white picket is ok, chain link is not!), colorful annuals and more
• inside, the house should be light, bright and airy – curtains open, lights on, no stuffiness but instead fresh air and a clean and uncluttered house are all imperative
• sellers need to be GONE during showings – lurking is creepy
• home in good repair – have presale inspections and take care of the repairs!
• improve the wording in the MLS comments
• improve the commission or compensation offered to the buyer’s agent
• improve the visibility on the web

Several times I’ve been the 2nd, 3rd or 4th agent and been able to get the house sold without doing a drastic price reduction by instead implementing some of the items listed above or others.

If I were meeting with a homeowner whose house was listed on the MLS but did not sell, I would have a lot of questions to ask in order to help them assess what needs fixing:

• how many showings were there each week? (it’s one thing if the house is being shown but not getting any offers and of course a bigger problem if it’s not being shown at all)
• how was the listing price established? was it adjusted after a few weeks?
• what were the showing instructions – appointment only, appointment only through the listing agent, 48 hours notice required or any other “strict” showing instructions?
• what was the feedback like from the agents who showed the property to their buyers? what were the buyer objections?
• were there a lot of photos for the MLS and websites? (were they professionally taken?) Video tours don’t matter that much to buyers but good still photographs matter a lot….
• did the seller interview several Realtors? how was the last agent chosen? (sometimes the seller picks the agent who suggests the highest price)
• what was the commission rate offered to the buyer’s agent? how competitive was it?

If your home becomes an “expired listing”, you can be sure that agents will be phoning and dropping by, many hoping that by being persistent they will display their enthusiasm and tenacity and win an interview with you that way.  (They have also all read that typically it takes hearing “no” 7 to 10 times before they’ll hear a “yes”.)

Many agents whose primary business plan is “working expireds” will focus almost exclusively on price.  I sat in on a real estate training class where the instructor lectured that the only element of marketing that mattered was price – photos, fliers, mls comments – all of them were not important, only price mattered.  So beware of that angle.  (Many sellers have the opposite approach and tend to believe that if the home didn’t sell, it was not advertised enough in the paper.  Paper ads or magazine ads don’t sell houses, so forget that idea.)

If your home is now off market as a canceled or expired listing, you may grow weary of the calls, mailings and “pop bys” from all the agents who want your business. If you re list your home, with either the prior agent or a new one, the calls will stop.  But in the meantime, unless you want to talk with a lot of these folks, you might just let all calls roll to voice mail until the flurry dies down in a few weeks.

If you would like to interview me (I’m assertive but not pushy) for your property in Santa Clara County, please call or email me.  I will have a look at your property and give you a copy of my book to keep (whether you and I decide to work together or not), “Get The Best Deal When Selling Your Home in Silicon Valley”.

For more reading:

See Selling Your Home in Silicon Valley

Pull up the pdf of my 60 page pre-listing packet (no registration required) from this page on my Valley of Hearts Delight website

If you are looking for a new or newer home in Cambrian Park or Almaden Valley, look no furter!  This exquisite house features an amazing kitchen at the heart of the home.  It  has been updated with slab granite, stainless steel dishwasher & fridge, gas range, a sunny garden window & recessed lights.  It’s open to the breakfast nook and family room on one side and adjacent to the dining & living areas on the other.

You’ll love the open floorplan and the fact that there’s  1 bed and one bath downstairs. More wonderful plusses: inside laundry, AC, dual pane windows. Big master suite offers a walk in closet, soaking tub, separeate shower, big vanity and dual sinks.

Fabulous younger home in the Almaden Winery neighborhood!

• Four bedrooms, three bathrooms (one bed/bath downstairs)
• Living room features high ceilings, hardwood floors and elegant fireplace & is open to formal dining area
• Updated kitchen featuring slab granite & stainless steel
• Kitchen includes breakfast nook & is open to family room
• Family room enjoys fireplace & back yard access
• Master bedroom suite with walk in closet, spacious bathroom boasting large soaking tub and separate stall shower plus large vanity with dual sinks
• Inside laundry room
• Attached 2 car garage
• Dual pane windows
• Central air conditioning
• Washer, Dryer and Fridge included
• Hardwood floor and tile – no carpets in this home!
• Private, landscaped back yard
• Appx one block to Almaden Winery Park and playground
• A couple of blocks from fantastic, new San Jose Vineland Library
• Reglar sale!
• MLS # 81045200

This lovely home is part of the Tresor development and has an $83 per month HOA fee. The HOA takes care of all front yard landcaping. Please see floorplan below (actual floorplan is “mirror image” of this).

Open House Sat/Sun Oct 2-3, 2010 2-4pm. Please stop by!
Related Post:
Almaden Winery Neighborhood

We're sorry, but we couldn't find MLS # 81045200 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

The Almaden Winery neighborhood, just off Blossom Hill Road in San Jose, has a rich and interesting past, dating back to the mid 1850s when the site was first planted with grape vines.  It was the first winery in Almaden Valley and one of the oldest in the state of California.  (It survived the prohibition period by getting licensed to make sacramental wine and by bottling grape juice.)

In this post I’ll share some photos of the neighborhood with you, explain about the three different builders/developers and show you where to find each one.

With a bit more than 300 houses, the Almaden Winery area is quite popular, with its homes selling quickly.   The community centers around a lovely park, and additionally there’s a newer library adjacent to it – the Vineland Branch of the San Jose public library system.

There are three developments within the Almaden Winery neighborhood:

What are homes like in the Almaden Winery?

The design is primarily Mediterranean, lots of windows and natural light, smaller lots generally, mostly two story homes with two car garages.

View Almaden Winery Neighborhood in a larger map

Tresor:  home sizes vary from about 1570 square feet to 2300 square feet (on lots of less than 4000 SF).  The front yard landscaping is handled by the HOA, there are private roads and a small HOA fee of about $85 per month as of this writing.  These are on zero lot lines (so are “patio homes”) and of the three neighborhoods, these tend to be the most affordable.

Vineland: homes are a bit larger and so are the lots.  Also zero lot lines in most cases.  Properties here may enjoy 2300 to 2800 square feet on lots of 4000 to 6000 square feet.

Vintage: houses range from 1500 to 2600 square feet, and the lots range from about 5000 SF to 7000 SF. A few even have pools. These are not patio homes or zero lot line properties. Many homes, perhaps half, have 3 car garages. Some streets are particularly “tight knit”. I heard from a colleague that the residents on Chaumont have a block party each year, for instance.

Where is the Almaden Winery neighborhood?

Located off of Blossom Hill Road and close to Dartmouth Middle School, the neighborhood is at the mouth of the Almaden Valley but is now technically considered a part of Cambrian Park and has a Cambrian zip code, 95118.  The Guadalupe Creek and some percolation ponds are the back boundary (homes on just the other side of the water are considered officially part of Almaden Valley).  A number of homes enjoy a beautiful waterfront view and unobstructed vista of the mountains.  Some of them are on larger lots, too, and sell for a premium.

Interested in seeing one of these great homes? I just listed one at 5641 Le Fevre Drive, San Jose 95118 (MLS # 81045200). Want to see what else is currently available? Below I have an IDX feed that should show every listed home in the Vineland, Tresor and Vintage subdivisions within the Almaden Winery neighborhood.

Almaden Winery Neighborhood Homes Listed for Sale

Want to buy a house in the Almaden Winery area? Here’s what is currently available. Please contact me for information on these homes, or to hear about others coming on the market soon! (As of Sept 28, 2010, I’m aware of two other homes in the area of these 3 subdivisions which are coming on the market within the next seven days. One will be a short sale, the other a “regular sale”. Call me if interested in knowing more!)

The Streets in the Old Almaden Winery Neighborhood

Bellagio Dr
Bergamo Ct
Bergerac Dr
Bordelais Dr
Bouchard Dr
Brionne Dr
Chambertin Av
Chambertin Dr
Chaumont Dr
Domaine Dr
Le Franc Dr
Le Fevre Dr
Mireille Dr
Ravenna Ct
Touraine Dr
Treviso Av
Treviso Dr

Want to buy or sell a home in this beautiful part of San Jose along the Almaden – Cambrian border? Please contact me and we can talk about the area, local real estate, its variables and how to work on getting your next house bought or sold!
Mary Pope-Handy
mary (at) popehandy.com 408 204-7673

870 Brevins Loop: Beautiful, Elegant Willow Glen Home for Sale!

New Listing, Please Stop By!  Open Sat/Sun, June 26-27, 2010 from 2-4pm

Last night I put this new Willow Glen listing of mine on the MLS and I look forward to holding it open this weekend for the first time. If you are in the area, please swing by and have a look! I always enjoy meeting the readers of my blog & this is a home you will enjoy seeing!

The house & yard are full of amenities that Silicon Valley home buyers will appreciate:
hardwood floors, built-in bookcases and media niches, slab granite, gas cooking, stainless steel appliances, lots of windows & natural light, a luxurious master sweet with 2 walk-in closets and a spacious bathroom with big soaking tub, separate shower and two separate vanities. Central air conditioning.   The lush backyard boasts two trellises, sandstone hardscape & custom lighting. The front yard is easy-care: the HOA takes care of the maintenance!

More Details on 870 Brevins Loop, San Jose (Willow Glen)

As of today, there are ten houses on the market in “the Willows”.  What makes one home better or more desirable than another? It’s all about the details!

By the numbers:

MLS # 81031327

3 bedrooms + loft (4 bedroom plan/option)
2 full baths, 1 half bath
2292 square feet of living space (approximately)
3920 square foot lot (appx)
2 car garage
Living-Dining Room
Family Room
Laundry Room
Master Suite includes 2 walk in closets, large bathroom with big tub, separate stall shower and two sinks with vanites.

Special amenities:
Air conditioning
Water softener (owned, not leased)
Reverse osmosis water purification system

Stunning Gourmet Kitchen at 870 Brevins Loop in The Willows of San Jose (Willow Glen)

The Gourmet Chef’s Kitchen

slab granite counters
maple cabinets
beautiful tile backsplash
newer stainless steel appliances
stainless sink & amazing faucet
tile floors
recessed & drop down lights
under the cabinet lighting
large island with breakfast bar
nook with access to rear yard &
open to family room

The kitchen is located at the rear of the home and is open to the nook, family room and elegant back yard.  It’s just steps away from the formal dining area, too, so is ideally located in the home.

The Use of Wood: Hardwood Floors, Wood Cabinets & Niches

Loft bookcase and media center

The kitchen, of course, displays a great deal of maple cabinetry.  But wood is found throughout this home.

Beautiful hardwood flooring is found in the family room, living and dining rooms as well as on the first few steps of the stair case and the landing by the half bath.  (The kitchen and baths all have tile floors.)

The family room enjoys a lovely wooden media niche near the fireplace, and the loft upstairs has a beautiful and useful wooden bookcase/media niche as well.

All interior doors are white, raised panel doors (except for the two walk in closet doors in the master bedroom suite).

The wood found throughout the house makes it feel traditional & contemporary at the same time – “warm & homey” as well as personalized.

The Exquisite Backyard – Showpiece of The Willows

Sandstone patios, walkways and walls meander through the yard, with trellises at one end and also in the middle

Step into the backyard at 870 Brevins Loop and you will find an uncommonly elegant yard, beautifully designed using sandstone patios, walkways, walls and seating areas.

Focal points include two trellises, one just opposite the sliding glass door and featuring a cascade of Morning Glories and the other at the far right side of the yard, with a bench for taking in the scenery.

Mature plants, bushes and trees ring the yard: birch, Japanese Maple, annuals, vines and more.  By day it can feel like a retreat.  By night, though, it is also beautiful, thanks to dramatic lighting. Some small, automatic lighting is built along the walls. There are also two posts with lamps at the far right and far left of the yard. And, of course, there are two more lights by the slider into the kitchen.

Links for More Information & More Photos of this Willow Glen Home

If you would like even more details on this fine home, please visit a page on one of my websites with even more details:  870 Brevins Loop, San Jose CA 95125

Or if you’d just like to see more photos, visit the virtual tour, which has about 65 photograhs of this property.

To learn more about The Willows community, Rubino Park and the area generally, please read this post on my Valley of Hearts Delight blog:
Introducing a Beautiful Willow Glen Neighborhood, “The Willows”

Browse real estate listings and find homes for sale in San Jose & Willow Glen:
www.HousesForSaleInSanJose.com

A Realtor friend of mine here in Silicon Valley, Ann O’Farrell of Luxor Real Estate Group, has a lovely listing in Saratoga which I am presenting today (with permission, of course!). As readers of this blog know, I don’t usually post about homes for sale, but this house has some neat features so I wanted to help Ann with the marketing. (This is not a paid post, btw.)

The property is 18803 Mcfarland Avenue, Saratoga, which is just a couple of blocks from Quito Market, close to bus stops and major road acess with Saratoga Avenue, Lawrence Expressway and Highway 85 close by.

The centerpiece of this fine home is the gourmet kitchen, which features an oversized island topped with slab granite, abundant custom cabintry made from Brazilian Cherrywood, stainless steel appliances, a good-sized pantry, recessed lights, 6 burner gas range, two ovens plus a microwave oven, and beautiful hardwood floors.  Although it truly must be seen to be appreciated, here are some hints in the way of photos:

And the view to the right:

The spacious living room includes built in cabinets (not shown) plus a stone fireplace, loads of windows and two “window seats”, recessed lighting and fan, and plenty of room for relaxing or entertaining. It is open to the formal entryway, dining room nearby and the kitchen beyond.

The master bedroom suite enjoys spa-like amenities: a private fireplace & outdoor acess, fan, luxurious bath with large jetted tub, dual vanity, and stall shower.

What about the numbers?

The home has 3 bedrooms plus 2 bonus rooms – so you could use this as a 5 bedroom home if need be.  There are 2 full bathrooms.  The house is approximately 2000 SF, and the lot size is about 10,000 SF.   The list price is $1,195,000. 

Want more? Check out the virtual tour of this propery:
Virtual tour for 18803 McFarland Avenue, Saratoga, CA 95070

If you’d like to see it in person, this home will be open during the following days & times:

Saturday, May 1: 11:00am – 2:30pm
Sunday, May 2: 1:00-4:00 pm
Saturday, May 8:  1:00 – 4:00pm

If you’d like more info on this fine Saratoga home, please contact Ann O’Farrell at ann (at) annofarrell.com or 408 838-3613.

Sale Pending!  Under Contract in 24 Days!

I am delighted to have a new listing – wonderful clients, wonderful house! 

Please stop by…

Open This Weekend! Sat/Sun,  Jan 31 and Feb 1  1:30 – 4:00

16125 Francesca Court, Monte Sereno, CA        MLS # 80901346

Offered at $1,865,000

Wonderfully updated home – exquisite blend of traditional/Victorian with contemporary and open style!

4 bed, 3.5 baths (3 bed, 2.5 bath home plus studio apt with full kitchen and full bath) 

Quality craftsmanship in this custom-built home throughout!  Fine features such as hardwood floors, leaded glass windows, tall & classic baseboard, equisite crown moulding, many built-in bookshelves and cabints, and much more!

The kitchen alone is a masterpiece with a huge island, Thermador, Bosch and Sub-Zero appliances, Kohler sinks, cherry cabinets, and slab granite countertops. But that’s not all! The kitchen also includes a bay window, hardwood floors, recessed lights, a lazy Susan, some pullouts, and hardwood floors.

Light dapples through prisms in the leaded, beveled glass in the entryway and Master Bedroom. It is both elegant and understated, refined and warm! The effect, particularly in the master bedroom, is simply breathtaking!

More Information on this Classic Monte Sereno Home

LINKS

1. Virtual Tour Link: http://tours.tourfactory.com/tours/tour.asp?t=474389
2. Map Link: http://www.mapquest.com/maps?address=16125+Francesca+Court%2C+Monte+Sereno%2C+Ca”>Map to 16125 Francesca Court, Monte Sereno
3. Link to More Photos of 16125 Francesca Court

SCHOOLS
Highly regarded Los Gatos Schools

OPEN HOUSE
Open This Weekend

Sat  Jan 24  1:30 – 4:00   &   Sun Jan 25  1:30 – 4:00

For more information, please see www.16125FrancescaCourt.com