Right now I’m working with a number of very frustrated home buyers.  Silicon Valley real estate inventory is painfully low, and in the lower price ranges especially, that means multiple offers are fairly common.  FHA home buyers, in particular, are getting out bid and out negotiated by all cash buyers, many of whom are investors.

How low is the inventory?  Let’s have a look at January’s inventory for houses & duet homes (“class 1″ or single family homes) over the last ten years in Santa Clara County (San Jose, Los Gatos, Campbell, etc.):

2012  1,382
2011  2,007
2010  2,426
2009  4,759
2008  4,872
2007  2,698
2006  2,202
2005  1,285
2004  1,612
2003  3,119

The average January inventory of available houses over the last 10 years is 2,636.  At 1,382, January 2012′s available inventory of houses for sale in the San Jose area was just 52% of normal.  It’s not really much different now, in early February (just did a quick check on the MLS and it’s  1509 houses now – 630 have sold & closed in the last 30 days so that’s 2.4 months of inventory – a hot seller’s market).  This is what constitutes a very severe inventory shortage.

Demand hasn’t slackened, but supply has.  You know what that means – it will push prices up, it will make buyers crazy feeling.

Why is inventory so low?

A common question is this: why is inventory so low?  I believe that there are a few drivers.  First, many home owners who would like to move really need more equity to do so.  They are waiting for the market to recover.  Some may be waiting for prices to return to their previous highs (they could be waiting awhile). Others just need a little more to make the move possible at all.

Many owners of higher priced homes are holding on until the second half of 2012, when it is expected that there will be more people with buying power due to recent and upcoming IPOs.  Economists are now predicting a bit of a frenzy the second half of this year with prices in more expensive homes getting pushed up due to competition from employees of various high tech firms.  Smart buyers are trying to get in before that hits – a real challenge given the inventory situation.

Reality check: not every house is selling!

The best properties are selling well – those which are newer or nicely remodeled, in turn key condition, easy to see, great marketing with multiple photos, appropriate MLS exposure and priced aggressively.  This is what every buyer wants, the perfect house.  Most of my clients tell me that they are willing to replace carpet and repaint, but they don’t want to do anything big, such as kitchen or bathroom remodels, removing a pool, foundation or drainage repairs, etc.  No one does!

One of the easiest ways of improving your odds on being able to purchase a house is to move away from the new or fully remodeled vision of your ideal house.  Lower your budget a little, decide to prefer homes that have been sitting on the market not due to location issues, but rather to pricing or condition issues – both of which can be fixed.

For instance, many home buyers will take a pass on properties which have a pool in the backyard.  A few months back, I did some research and found that houses with pools are harder to sell right now.  Appraisers count a pool as an improvement, but many consumers view it as a liability – an ongoing monthly expense to heat and maintain and a risk if there are small children.  Many think that it will be overwhelmingly difficult to remove and relandscape a pool, so will not even consider writing an offer if the property includes an in ground pool.

Truth is, it’s not that hard to hire a company to redo a backyard; it is not invasive the way a kitchen remodel is.  You could have it done before even moving in!  The cost varies on whether you want the pool fully removed or partially as well as how to relandscape afterwards.  I have seen bids for pool demolition work under $10,000 (relandscaping extra) with more bids between $10,000 and $25,000.  Lawn and sprinklers are not so expensive to add!

The pool issue is just one example – there are many other properties for sale which are passed over due to the condition not being ideal.  Remodeling can feel a little scary but when inventory is so tight, it can be the ticket to home ownership.

Likewise with over priced properties.  Although most homes sell within a couple of percent of list price, there are exceptions.  Sometimes real estate is badly overpriced, and in those cases you may get a seller to agree to a larger price reduction – 10% may even fly.  (This is unusual, I would note. Usually if a house is not worth within 5% of list price, the seller is unreasonable and won’t accept an offer which is less. But sometimes it can work.)

Here’s to the over priced ugly duckling.  It could be your best friend when inventory is rock bottom!

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 68. See more city of Saratoga real estate.
(all data current as of 2/10/2012)

1. $3,285,000 : 14982 Sobey Rd, Saratoga
   
   6 beds, 5 full, 1 part baths

   Home size: 4,895 sq ft

   Lot size: 1.04 ac
   
2. $915,000 : 18775 Mcfarland Av, Saratoga
   
   4 beds, 2 full baths

   Home size: 1,894 sq ft

   Lot size: 10,000 sq ft
   
3. $2,495,000 : 12888 Chiquita Ct, Saratoga
   
   4 beds, 3 full, 1 part baths

   Home size: 4,400 sq ft

   Lot size: 1.01 ac
   
4. $890,000 : 14451 Oak Pl, Saratoga
   
   2 beds, 2 full baths

   Home size: 913 sq ft

   Lot size: 8,925 sq ft
   
5. $625,000 : 14660 Big Basin Wy #C, Saratoga
   
   3 beds, 2 full baths

   Home size: 1,408 sq ft

   Lot size: 1,496 sq ft
   

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

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 - 3 of 3. See more city of Saratoga real estate.
(all data current as of 2/10/2012)

1. $625,000 : 14660 Big Basin Wy #C, Saratoga
   
   3 beds, 2 full baths

   Home size: 1,408 sq ft

   Lot size: 1,496 sq ft
   
2. $585,000 : 14654 Big Basin Wy #A, Saratoga
   
   2 beds, 2 full baths

   Home size: 1,276 sq ft

   Lot size: 1,276 sq ft
   
3. $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 - 4 of 4. See more city of Saratoga real estate.
(all data current as of 2/10/2012)

1. $574,950 : 19714 Vineyard Ln, Saratoga
   
   2 beds, 2 full, 1 part baths

   Home size: 1,511 sq ft

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

   Home size: 1,612 sq ft

   Lot size: 968 sq ft
   
3. $775,000 : 12630 Biarritz Ln, Saratoga
   
   3 beds, 3 full baths

   Home size: 1,991 sq ft

   Lot size: 3,192 sq ft
   
4. $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 61. See more city of Saratoga real estate.
(all data current as of 2/10/2012)

1. $798,000 : 14403 Oka Ln, Saratoga
   
   3 beds, 1 full bath

   Home size: 1,273 sq ft

   Lot size: 11,000 sq ft
   
2. $825,000 : 18253 Swarthmore Dr, Saratoga
   
   3 beds, 2 full baths

   Home size: 1,400 sq ft

   Lot size: 8,260 sq ft
   
3. $850,000 : 14656 6th St, Saratoga
   
   1 bed, 1 full bath

   Home size: 592 sq ft

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

   Home size: 918 sq ft

   Lot size: 8,424 sq ft
   
5. $890,000 : 14451 Oak Pl, Saratoga
   
   2 beds, 2 full baths

   Home size: 913 sq ft

   Lot size: 8,925 sq ft
   

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

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?

Both buyers and sellers in Silicon Valley find themselves having to compromise in order to purchase or sell homes in today’s market. In a red hot seller’s market, the buyer usually makes most of the concessions. In a deep buyer’s market, that can be said of the sellers. Right now, though, it is fairly balanced in the sense that homes are selling fast – but only if they are priced aggressively. In some areas, such as the Cambrian Park area of San Jose, prices continue to inch downward.  Sellers often feel as though they are compromising left and right before they even get their property on the market! What kind of compromises might you expect when buying or selling a home in Santa Clara County now?

Silicon Valley Home Seller Compromises

Most sellers want to sell for full price and to not have to do any repairs – that is, they want to sell “As Is”.  Unless they get multiple offers, though, often that’s not the case.  Often sellers must compromise on both price and terms, and may find themselves providing a pest clearance or do other repairs in order for the property to sell.  In some cases, though, the compromises are larger still: they may need to pay points for the buyer’s loan, provide credits, re-roof or do other work to make the transaction work. A suggestion for most sellers is to do pre-sale inspections. One of my clients this last year objected, asking why they needed to spend money (the cost of the inspections) to find out that they needed to spend money (the cost of the repairs)?  But in truth, by doing this, the seller can take care of some items up front, create a more secure feeling for the buyers and then maximize the sales price in most cases. It is a compromise, though, to do these inspections upfront. That said, it’s a worthwhile one because normally it will net the sellers more money in the end! A word to the wise: selling As Is often means not getting top dollar for the property (most sellers want Top Dollar with NO WORK – it doesn’t work that way).  To get the most money out of the sale, usually a hoe owner will need to make the property worry proof: do repairs upfront, before a buyer ever even sees it.

Silicon Valley Home Buyer Compromises

Most San Jose area home buyers want to purchase a home for 10-20% less than what the sellers think it’s worth.  The main compromise is on price!  It’s sticker shock every time, but especially for real estate purchasers who are coming from out of the area. Additionally, buyers tend to want homes in turnkey, perfect condition.  That is, they don’t want issues with permits, repairs, health and safety hazards, termites, and so on. They want to move in and “not have to worry” for a few years. So moving from this position to a purchase where they take on some responsibility for repairs or updating is a major concession or compromise right there. A word to the wise for buyers: demanding every little repair and home perfection will not usually work UNLESS you pay “top dollar” for a property. If you want the best price, be prepared to take on some of the responsibility upfront. For buyers and sellers to agree on price and terms it’s going to involve compromises on both sides. With proper planning, though, these compromises will result in a win-win for all.

Homes which are dark inside, or which feel dark to potential buyers, are much more difficult to sell, and virtually always sell for less money than those which are perceived as “light, bright and airy”.  While a property’s owner might love the cozy feeling of dark paneling, deep overhangs and low lighting, it’s not what most buyers want today.  To maximize the amount a house, condo or townhouse in Silicon Valley will sell for, it’s imperative to make it as attractive to buyers as possible.  In many cases, that means it needs to be lightened and brightened to sell for top dollar.

How can a home owner make a house or home be – or seem – more bright?  One of the biggest “offenders” in this area involves windows! Here are a few window-related problems that can make a home feel significantly darker than necessary, together with some potential solutions:

• an interior room with no windows (seen with additions sometimes) or dark hallway

**consider adding a sun tunnel or skylight (as well as ceiling & other lights)

• tinted windows

**remove film, if applicable, or replace with non-tinted windows

• curtains/blinds which obstruct part of the window

**pull back so that 100%, or close to it, of window is visible

• shrubs, and trees covering some of the window

**trim back so the window’s glass panes are 100% visible, if at all possible, to let maximum light in

• deep roof overhang which prevents sunlight from directly entering the home for much of the day

**look into adding skylights over the porch – keep the overhang but allow more light in!

Once you’ve done as much as possible to allow the maximum amount of natural light into the home through the windows, it’s time to tackle other areas where light is either absent, minimal, or otherwise obstructed.

• heavily landscaped yards, especially with many thick, deep trees and/or hillside adjacent

**being close to a hill will cut down on light and can’t be mitigated, but a heavy canopy of shade from thick, tall trees can be addressed with trimming and thinning (possibly topping) the trees. Don’t remove or severely trim – many areas have laws against damaging trees or removing larger ones so check before you do anything.

• lack of ceiling lights inside: many houses lack high lighting and instead rely upon lamps at the coffee table level.  These will not be able to make a room as bright as lights on the ceiling or high on the wall (sconces)

**Adding recessed or other lighting up high can make a huge difference in the amount of light there.

• dark floor coverings and wall coverings – these don’t make a room darker per se but they make buyers feel that the room is heavy and dark

**best to remove dark paneling, wallpaper and carpet and substitute lighter colors instead to create the “light, bright and airy” feeling that buyers strongly prefer

Every home is unique, so hire a great Realtor who can assist you in making your Silicon Valley home as appealing as possible to the largest numbers of buyers so that you can get the best deal when selling your home.

More home selling tips & information

Home sellers: beware over improving your property when preparing to sell

Selling your home in rainy weather

Home selling tips (ValleyOfHeartsDelight.com site)

Free reports about selling (popehandy.com site)

Should you market your home for sale through the holidays?  It’s now mid November, and if your property has been listed for sale but not gotten an acceptable purchase offer, you may be thinking of taking your house or condo off the market until sometime in the new year. Is that a good idea?  Below, please find some considerations for you as you decide what to do. We’ll

Pricing: will the home sell for more now, or in the new year or spring?

No one can tell you whether prices will be better or worse in the first quarter of 2012 than they are now.  I just returned from the annual conference for the National Association of Realtors (of which I am a member), and quite honestly, I got conflicting information.  Some reports indicate that prices will be lower in the spring, others that they will be higher – or interest rates may be higher, which puts pressure on pricing since affordability is strained when that happens.   Pricing is local, though – so no matter what’s happening nationwide, it could be different in Silicon Valley, in Almaden, Cambrian, or Los Gatos, or in your subdivision or school area.  But bottom line: we really don’t know what pricing will do, we only know the probable buyer’s value – a range of likely sales prices – right now.

Being disturbed during the holidays

Many home owners really don’t want a lot of traffic coming through the home from Thanksgiving through the New Year due to visiting relatives, events planned such as parties at the home, the presence of gifts and concerns over theft, etc.  They may also be worried about rainy weather and carpets getting soiled.

At the same time, though, during the holidays many of us make our homes warm, bright and inviting, particularly if we decorate for Christmas, Thanksgiving, Hanukkah, etc.  Even the smells can do wonders: gingerbread cookies, Christmas trees, hot mulled wine…. With family and friends coming to visit, we tend to “deck the halls” and make our houses really feel like homes.  For many condos, townhouses and houses, during the holidays these homes really show at their best.

The potential to sell a home in December is actually a lot higher both because of the decor and ambiance, but also because so much of the competition is withdrawn from the market.  The odds shift much more in your favor if you keep your home on the market!

Market the home – but differently!

A great solution is to continue to market the home for sale, but to do it differently:

• remove the for sale sign & outside flyer box
• remove the lock box, showings by appointment only (by agent or seller)
• remove the seller’s phone number from the MLS – all appointments will be by appointment only
• flyer stand, disclosure binder and other marketing materials out of sight
• keep home listed for sale on MLSListings.com but more restricted hours

This sort of marketing will result in fewer showings but showings of more qualified, more motivated buyers.  It will be less intrusive to you and everyone in your household too.

Each year, Inman News sponsors a “people’s choice” voting for the most influential person in real estate.  Inman nominates 100 strong candidates but voters may also write in someone not listed.  This week, I was very deeply honored to have been included on such a prestigious list of real estate leaders nationwide, and I’d be thrilled if you would consider voting for me.

Where to vote:  follow this link and the fields for entering your desired winner’s name and info will be about 20% of the way down (midway through the article and just after a large ad) – deadline is Dec 1, 2011:

http://www.inman.com/news/2011/11/2/2011-peoples-choice-real-estates-most-influential

What is Inman looking for with this people’s choice voting?  I’ll quote a couple of passages and then comment.

“It’s time to vote for a leader who you believe has had the most substantial impact on the real estate industry in the past year. “  

“The Inman 100 list recognizes those whose voices and actions have the power to change the industry. Among them are individuals who embody strength, common sense, innovation, ingenuity, perseverance and progress. They include the industry’s brain trust and dealmakers, and those outside the industry who impact the business of buying and selling homes.”

So how did I, Mary Pope-Handy, a Silicon Valley Realtor with Sereno Group in Los Gatos and not a CEO of a big brokerage or large vendor, get named with realty’s best & brightest? It’s very humbling. But I think I have a few ideas as to why I’m getting the national spotlight. I’ll break it into a few bullet points, for those who may only know me from local blogging or home sales.

• In 2007, together with Frances Flynn Thorsen, I won the Project Blogger contest (sponsored by Inman and Active Rain) and have been a leader in blogging and web marketing circles ever since.
• In 2011 I was named “the best real estate agent in Silicon Valley” by the San Jose Mercury News. (Many of my clients now come to me from my blogs.)
• Speaking & training: In addition to residential real estate sales in the San Jose, Los Gatos, Saratoga and greater Silicon Valley area (Santa Clara County and nearby), I do speak at real estate meetings, trainings and classes on blogging, social media, real estate and related topics; to keep it short, I’ll post a link rather than list my involvement:
  Read more about my speaking & training on my Valley of Hearts Delight website.
• While blogging is the most important part of social media for me, I am engaged on Facebook, Twitter, Linkedn, YouTube and other venues too. Through these, I have a pretty good reach or impact on the web.  This is good for my realty business generally but also good for the owners of homes I list, as they get fantastic exposure when listed for sale with me.
• I don’t just have one website or one blog, but rather a network of them.  I may be a little crazy for embracing blogging to this extent (yes, it is time consuming), but I  hear time and again how much the info I put out there is helping people, both consumers and other real estate licensees alike (and not just folks buying & selling homes).  I’ve had agents at Sereno Group thank me for blogging, saying that it raises the bar in the industry, makes the company look good, and in one case, by association, apparently I helped a colleague to gain a listing (he told me that I make him look good because it shows the strength of our firm).  That’s a positive influence too.
• When I train, speak to or blog for a real estate agent audience, I try to provide helpful tips and encourage authenticity and transparency and to skip the games, the slick closing techniques or any smoke & mirrors. In other words, I really do try to raise the bar on our standard of practice.   I can be outspoken on what I believe is right or wrong with either the way the business is worked or, perhaps more of interest at the moment, the way social media is being employed to help agents to run their business. Sometimes I hold positions that aren’t popular but I hope that at a minimum, it helps agents to reconsider putting their values into action for the betterment of consumers as well as the real estate community.

Who, then, is a big real estate influencer?  I suspect that everyone on this highly esteemed list really is one.  Heads of brokerages directly impact how those companies work, their standards and requirements, how they hire and train and so on.  Real estate coaches (and there were several of them on this collection of super stars) directly impact their clients – agents and brokers – and help them to improve the way they work, suggest how those individuals can best use their time, etc.  I could go through the list and indicate why each category matters.

Only about a dozen of us on the list are simply Realtors, in the trenches, selling and networking and changing to meet the changing demands of the industry.   My hat is off to each person named, whether a real estate agent, vendor, CEO, manager coach or any other category.  And there are many other great people who weren’t there in writing who also deserve kudos as well.  I think it’s fair to say that everyone listed this year or in recent years past has been a highly influential force in the real estate landscape today.  We can’t vote for them all.  I do hope that you will vote for me!

What should you look for when buying a luxury home in Silicon Valley? Whether it’s a move-up purchase or a first home, there are a few tips which will be helpful for you to know going into it that will make the whole home buying experience smoother and easier.  We’ll hit on 3 areas: first geography & construction, second hyper local factors that impact market value, and finally qualities or features of the property or house itself.

It’s hard to assign an exact price tag on what constitutes an estate or luxury property, but in and near Silicon Valley, in most regions it’s the $2,000,000 and up price point (it will be less in Morgan Hill, Coyote and Gilroy – and likely more in Hillsborough).

1. Geography and Bay Area Construction: it’s different here!

The first and most important thing to understand is that real estate and housing construction vary from one region of the country (or the world) to the next.  This is true for all types of homes, actually, but perhaps more obvious in the priciest homes. Luxury real estate in Silicon Valley is a little different from similarly expensive homes in other parts of the country due to our climate, soil conditions, and natural hazards, such as earthquakes. What seems mandatory for a high end home (and might be ideal to have elsewhere) could be a problem here, so it’s helpful to literally understand the lay of the land before you get too far along the home buying path. A couple of quick examples:

• A fabulous home in Boston or anywhere in New England may be built of brick.
• Here, a brick house is seldom seen because of earthquakes – we need our houses to move and bricks are not usually too good at that!

I mention these two upfront because well intentioned friends and relatives may want to stress the importance of this or that in a property – and it may simply not apply here. (Please see article: Qualify The Advice You’ll Accept When Buying or Selling a Home in Silicon Valley)  If you are non-native to the San Francisco Bay Area, you may have assumptions about construction or architecture that may not work here. Please just be aware of that possibility.

2. Understand the importance of hyper local factors on the market value of a property

Schools can be a main driver for home values in the luxury market as all other segments.  Home buyers may not know that the town or city boundaries are usually irrelevant to school district boundaries. Here are a few examples:

• In Saratoga  there are 3 high school districts and 4 elementary school districts.  Before buying anywhere in Saratoga, then, you’ll want to know which district is which and where you’re buying.  If you want to utilize private schools, you may be delighted to find that you can buy more house for your money in one area of this lovely city than another.  Or you may want one school area over another for any number of reasons.
• In Los Gatos there are 2 high school districts and 3 elementary school districts.
• In the Almaden Valley area of San Jose, there are 3 high school districts and 3 elementary school districts

Often the lesser public school districts will have a lower lid on pricing than the very top districts or schools, so it’s important, when analyzing the pricing of an estate home, to factor in the weight of the school.

Geography can be surprisingly important.  Sometimes being on one side or the other of a major road or landmark can swing value 3% – even if it’s the same city, same zip code, same schools!  I see this in Los Gatos along both Blossom Hill Road and again at Los Gatos-Almaden Road: people prefer to be closer to the foothills and prices jump noticeably just for being on one side of these roads than the other.

Walkability is key for many Silicon Valley home buyers, though perhaps less so for some luxury buyers since the larger parcels that often come with them preclude much walkability.  Not always, though – in Palo Alto, Los Altos, Saratoga, Los Gatos and other Bay Area spots like Burlingame or San Mateo, some of the premier homes are not on acre lots but are “in town”.

3. What to look for in the estate property or high end home itself

At this point it’s a little trickier as each home buyer may have different priorities, likes/dislikes and tastes – so these are general guidelines only.

1.  Buy with selling in mind – you may have this property for 2 years, for 20 or more, but if you purchase an expensive home that is just too bizarre for the general consumption, you may be stuck with it when you are ready to sell it.
2. Location, location, location is so overstated that it’s nearly effete, but it bears repeating anyway.  Do you want to buy a $3 million house in a $1 million neighborhood? No, you probably don’t because it will really kill your resale value later.   So too if you buy raw land or a “dozer” – don’t overbuild for the neighborhood.  Try to be mid-range but don’t find yourself in the top 25% for home values in your area.  (NB: in some areas, like Menlo Park, neighborhoods are fairly irregular or non-conforming and you find little houses that need work next to McMansions.  It may not be possible to find conforming neighborhoods.  If you love the area anyway – go for it – but realize the risks.)
3. Quality construction and laoyout or floorplan matter.  Many home buyers care about Feng Shui and the orientation of the home and its elements.  But beyond that there are certain things that most buyers want or don’t want, and if your property violates these “rules” it can be harder to sell later.  Here are a few:
• It’s considered poor to be able to see a toilet from the front door
• The layout is less desirable  to have to go through a room to get to another room or to part of the house (such as going through the family room to get to the bedrooms)
• It is better to have a formal entry than to come straight into a living room, especially in a high end home
• The master bedroom should have its own private en-suite bath (this might seem obvious but you’d be surprised how many expensive houses have 2 bathrooms but neither dedicated to the master bedroom)
• Best to have the master bedroom face the back  yard and not the street
• Better to have more land in back than in the front yard
• If you like to entertain, look for a large kitchen that includes 2 dishwashers, at least 2 regular ovens plus a microwave, a vegetable sink as well as the regular ones, and if possible, also a “butler’s pantry” between the kitchen and formal dining room.
• If the house has 2 stories, look for at least one bedroom and full bathroom on the first floor (and possibly a half bath as well so the guest bath is private)
• The nicest luxury homes may have 2 laundry areas: one on the first floor and one on the main floor, if it’s a 2 story home.
• Most home buyers looking at properties over $1.5 million want to find the master bathroom equipped with a large soaking tub, separate shower, and dual vanities. Jetted tubs are not as popular as a few years back due to concerns over bacteria lingering in the plumbing, so more often the tubs are “soaking” and not “jacuzzi” types.
• The master suite often includes a small wet bar or coffee bar as well as a fireplace, walk in closet(s) and private deck or balcony.  In recent years these rooms have gotten bigger (and sillier – how much time do people spend there?) – a trend I believe will change over time.
• Luxury homes or estates usually have a minimum of a 3 car garage. (I’ve seen properties with as many as 10.)
• For the ultra luxury estates, usually there are guest or servant quarters (and likewise, in 2 story homes, a back staircase too).
• Pools tend to be found among high end homes, but sometimes also tennis courts, game rooms, indoor bowling alleys or other sports outlets (indoor golf driving or rifle shooting ranges too).
• Other rooms: libraries, offices, media rooms, hobby rooms may be included. Sometimes the home office or library may have a full bath nearby – a hint that it can double as a guest room.
• Green building: a growing trend is toward making high end homes eco-friendly or green.  This may include the types of materials used in construction (a percentage recycled or of easily renewable sources), heating & cooling systems that can close off or turn on various parts of the house so it doesn’t all need to be heated or cooled, high levels of insulation to make the home “tight” and not have energy losses. Possibly solar panels to warm the water in the home or pool.
• Years ago there was a lot of focus on wiring for computers in estate properties.  This is still the case but with the advent of wireless for everything, it’s not so critical. However, wiring for TV or movie viewing as well as musical entertainment throughout the home is very common with luxury properties – many owners want to be able to begin watching in one room and seamlessly move to another if so desired.
• In the luxury market it is very common to find security systems which include cameras at various locations.  In the ultra high end houses, there may be “safe rooms” too.

At the end of the day, much of what is included should reflect your values and the way you want to live.  Some luxury homes will have a private bath for every bedroom – but I’ve had clients say “why do I want that? I don’t want to spoil my kids or have more bathrooms to be cleaned”. How do you want to live?

There’s a balancing act between buying the home you want to enjoy and either overspending on a house or area or making a poor choice on an expensive ticket item that could be a great asset instead. It will help a lot to get good, local guidance from a trusted resource who’s got your back.  Looking for that helpful real estate adviser? Give me a call or email me and we can chat at my office, yours, a coffee shop, park, or anywhere convenient.

As an aside…this is the 500th article on this site, the Valley Of Hearts Delight blog or www.SanJoseRealEstateLosGatosHomes.com. ….  Thank you for reading!

 For more reading:

Cracked Foundations, Adobe Clay Soils and Water in Silicon Valley

What To Consider When Buying a Hillside Home in Silicon Valley

Where are Santa Clara County’s Earthquake Faults and Flood Plains?

The Silicon Valley Luxury Home Market (view a list of homes for sale, read more on criteria for location, amenities etc.)

When I show homes in and around San Jose, often I will see things that my buyers don’t recognize and I will take that as an opportunity to educate them on some of the components of a house, townhouse or condo.  (The strangest question along these lines I ever got was when a Silicon Valley first time home buyer had never noticed or recognized antennae on houses before and wondered what they were!)

A whole house fan is a more affordable way to cool down a residence. How does it work?  In the evening, when the outside air temperature is lower than the indoors temps, windows are opened and the whole house fan is turned on for about 15 minutes.  The fan sucks all of the hot air out of the house and discharges it outside.  Since the windows, and maybe doors, are open, this vacuum sucks in the cooler night air.

This is a lot cheaper than air conditioning to install and also to run. According to one whole house fan installation website “installing a Whole House Fan is approximately 25% the cost of installing an air conditioning system and approximately 10% the cost to run.”

Alternatively, of course, if you do not want to have A/C, or if you don’t want to run the air conditioning every time it’s a little too warm, you can pull out fans for the windows and doors in your home and run them in the evenings to pull in the cooler night air.  But the whole house fan is easy and convenient – you simply turn a switch on and off – and is considered a very nice home improvement.

Whole house fans have been gaining in popularity across all types of markets, even among luxury homes, since they are more energy efficient and eco-friendly than air conditioning.  The only thing you might not know that’s important to understand upfront is that when it’s running, the noise is very loud.  Luckily it only goes for a few minutes – a perfect opportunity to step out onto your back porch and enjoy the cool evening air while it runs.

Our fall weather here in Silicon Valley is acting like spring weather – bouncing back and forth between warm, dry days and cold, wet ones.  Should this impact the way you present your home to the real estate market if it’s for sale?  Absolutely.

If you want to make the best impression on potential home buyers, your house, townhouse or condo needs to be inviting no matter what the weather may be doing.  In the heat of summer, sellers are tempted to close up all the curtains to keep out the sun and heat – it’s a mistake because buyers typically don’t respond well to dark, cave like homes.  The wet weather brings different challenges that also must be handled appropriately if you are to snag that best buyer!  Here are a few tips to make your listing the one that appeals to Silicon Valley home buyers who come out to see it:

1. Make sure that your downspouts are directing rain water away from your house or any structures (often 6′ or more is suggested); it is imperative that there be no “pooling” of water, especially near the home – this will cause buyers to worry about water in the crawl space and what it may be doing (foundation cracks, mold, etc.)
2. Trim bushes and vegetation back from walkways and sidewalks.  When it’s wet outside, these lovely bunches of greenery collect water and as visitors go past them, they can spill water onto the passers by. Not pleasant.  Look at your sidewalks, driveway, and walkway and make sure that wet bushes and branches won’t be hitting anyone coming up to your front door.
3. If your gutters leak, they’ll be noticed and will indicate that your property hasn’t been properly maintained, so repair or replace them.
4. Indoors, keep the heat on if the temperature would be below the comfortable range – cold buyers don’t linger, and buyers who don’t linger don’t buy! I suggest at least 66-67 degrees.
5. Open up the curtains and turn the lights on.  Cloudy, rainy weather can make any house look dark and you want to chase the darkness away with good lighting and access to natural light.
6. Many home buyers will want to remove their shoes if it’s wet out. If you can provide a bench on the front porch or entryway, that would be very welcoming.
7. Keep the air fresh. In the damp days, we sometimes keep homes a little too closed up and that can be unappealing. Baking cookies or bread can help, but there are other things that work too, such as fresh flowers.  I don’t recommend scented candles or sprays since these often make buyers wonder what you’re hiding.  It’s a matter of degree – you want to make the air pleasant without overwhelming visitors.

When home buyers and their real estate agents venture out on a rainy, wet day to see properties in San Jose, Los Gatos, or anywhere in the Bay Area, you know that they are serious and highly motivated.  It may seem like a hassle to take these extra steps for showings of your house or condominium, but it’s well worth it because these are exactly the home buyers you’d like to impress.

For further reading on home selling in Silicon Valley:

Home selling posts on this website

Selling your home in Silicon Valley on popehandy.com

Home seller resources on ValleyOfHeartsDelight.com (sister site to this one)

How is the Monte Sereno real estate market? Because the city is small, with just about 4000 residents, there usually are few homes listed for sale or selling, and with small numbers we can get seeming volatility.  Here are the quick statistics for the closed sales in August  2011 – please see my Monte Sereno Real Estate Report for more details (September’s numbers will be out in early October):

Now the trends are a little easier to spot – it is more clear that overall, Monte Sereno home prices are slipping compared to a year ago.  It is a very “cold” buyer’s market right now, especially in the more high end markets such as Monte Sereno which are not too close to the hotbed of IPO activity on The Peninsula.  (A lower average or median sales price does not always indicate that any particular property is losing value, but it does show what is selling.)  Now let’s see the graph of the “market barometer”.

Live Altos Charts for the Monte Sereno Real Estate Market

The median list price of all homes listed on the MLS in Monte Sereno and in San Jose – an interesting comparison!  San Jose has far fewer dips and jumps than Monte Sereno….

Pricing in Monte Sereno, California, by price quartile – the high end is taking a nose dive on its list pricing! First just the numbers, then the graphs:

Average days on market in Monte Sereno, CA, by price point – these are all pretty similar:

Inventory for all Monte Sereno listings over the last few years (back to 2005) – quite a jump in homes on the market in 2010 compared to normal for this small city:

About Monte Sereno, CA

Monte Sereno is a lscenic, upscale residential community of about 4000 people. It’s located adjacent to the town of Los Gatos and the city of Saratoga, California. There are no businesses in Monte Sereno – just Daves Avenue School, homes, the post office, and the city office building along Highway 9.  It is semi-rural. Some folks mistakenly think that whatever is happening in Los Gatos with the housing market is also reflective of the Monte Sereno real estate market. They are sometimes quite different, particularly as prices are higher in Monte Sereno and about 1/3 of Los Gatos is served by the Campbell or Union School Districts (while only a tiny sliver of MS is in those districts). A couple of years ago, I listed and sold a lovely home on in this city.  You can check out the information on my popehandy.com website (link above).

More info on this city: Official Monte Sereno city website Wikipedia article on Monte Sereno

Monte Sereno Real Estate

With very few exceptions, Monte Sereno consists of houses and estates or luxury homes (there are a few townhouses). Most lots are larger, usually at least a quarter acre lot.  One neighborhood enjoys a shared stable and horseback riding trails (those homes are on about 1/2 acre lots). As of this writing, properties currently available (listed on our MLS) range from about $1,300,000 to more than $5,000,000.  This can vary tremendously.  A move-in ready house will not likely be found in Monte Sereno for less than one million dollars.  (Last year a fixer on a busy road did sell for $750,000, though.) It is not uncommon to spend upwards of $1.5 million in home buying there.

Find Homes for Sale in Monte Sereno, California

Showing properties 1 - 5 of 7. See more city of Monte Sereno real estate.
(all data current as of 2/10/2012)

1. $4,575,000 : 18325 Lexington Dr, Monte Sereno
   
   5 beds, 5 full, 1 part baths

   Home size: 4,640 sq ft

   Lot size: 43,560 sq ft
   
2. $3,899,999 : 15981 Grandview Av, Monte Sereno
   
   6 beds, 3 full, 1 part baths

   Home size: 5,300 sq ft

   Lot size: 43,560 sq ft
   
3. $2,595,000 : 16131 Viewfield Rd, Monte Sereno
   
   4 beds, 3 full, 2 part baths

   Home size: 4,890 sq ft

   Lot size: 18,837 sq ft
   
4. $980,000 : 18788 Withey Rd, Monte Sereno
   
   3 beds, 2 full baths

   Home size: 1,937 sq ft

   Lot size: 1.03 ac
   
5. $1,498,500 : 17436 Pleasant View Av, Monte Sereno
   
   4 beds, 2 full baths

   Home size: 1,740 sq ft

   Lot size: 11,253 sq ft
   

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

When you purchase a house on a corner lot, you may not realize that most likely there will be additional requirements of you regarding your landscaping compared to other properties which are not on the corner.  This is because corner lots need to provide a “line of sight” so drivers of cars can see what’s ahead should they round the corner.

In most parts of Silicon Valley (San Jose, Los Gatos and elsewhere), in the setback area of a corner lot you will not be allowed to have fences or landscaping that are more than 3′ tall – with the possible exception of a tree in which the branches really only fan out at a height of 7-8′ or more.

For properties which are not on a corner, drivers don’t really need to see through the property to get visibility on the road ahead, so the landscaping rules are much less restrictive.

These rules are not often or uniformly enforced from what I can tell, but you never know when a code compliance officer might show up with the requirement that you thin out or remove some landscaping or fencework, so keep that in mind if you buy a house on a corner lot that is heavily landscaped too close to the street.  Also, check with your own municipality (Campbell, Santa Clara, the county if not in an incorporated area, etc.) to see the residential real estate codes which apply in your specific property’s case.

Frequently I’m asked if I (or another real estate licensee or agent) can help a consumer to purchase a foreclosure.  There are some nuances to this answer, but in short, it depends.

There are several stages in the foreclosure related sales in California.  Often, homes somewhere in this quagmire are listed on our Silicon Valley area MLS or multiple listing service.  If a property is listed in the MLS, then yes, we Realtors can help home buyers with a distressed sale purchase.

1. Pre-foreclosure (where payments have been missed and a Notice of Default or NOD has been filed – often, but not always, these homes are on the market and included in the MLS.  If they’re in the MLS, I can help.  Often these are short sales (but short sales are not always in pre-foreclosure – they may not have missed any payments).
2. Trustee’s sale, or actual foreclosure on the courthouse steps.  No role for a real estate agent here.  There are some big caveats and warnings! First,  often what’s owed against the home is more than it’s worth and the only way to purchase a home here is to pay off all the debts (so it may not be much of a deal!).  Second, if you buy here, you get NO inspection contingency and must pay cash for the house.  End of story – no backing out.  Worse, you cannot inspect it ahead of time!
3. Bank owned or REO.  These are usually listed on the MLS and if so, I can help you with it.  Sometimes banks hold onto them between the trustee’s sale and prior to listing them with a broker.  Often this is only for a month or two but sometimes it’s longer.  If it’s not on the MLS, it’s very very hard, or maybe impossible, to buy it.

While it’s not hard to locate homes where owners have missed some payments, it should not be assumed that these houses are either for sale or that the owners have any intention of selling them.  In my opinion, it would be harassment if consumers showed up on their doorsteps trying to purchase a house where a payment has been missed.  Most, maybe all, of the residents there would be offended.  They may be trying to get a loan modification (a friend of mine got one approved last week!) or have family & friends helping them to get back on track. If it is not listed in the MLS (which you can find at www.MLSListings.com – the public portal of our agent multiple listing service), the odds are overwhelmingly against it being available to you.

One of the worst marketing efforts, in my opinion, is a rider attached to a “for sale” sign stating “I’m gorgeous inside!“  It’s as if to say “I know the exterior is really bad, but just wait ’til you get past the front door!”

A better approach than an apologetic rider sign is to tidy up the front of the home and yard so it gives a great first impression.

If you are a potential seller, drive through your area (zip code, subdivision etc.) and have a look at the outside of other properties for sale which are generally similar to your own for size, pricing and so on. How’s the competition doing with curb appeal?  Pretend that you’re a Saratoga, Almaden or Cambrian home buyer.  Take notes.  What do you see?  Be brutal in your assessment and then take your observations back to your own home and keep the same standards.

First, pay attention to these landscaping elements in the yard:

1. The lawn, if there is one: is it green?  Weedy? Healthy? Does it have bare or dead spots? Is it level or “bumpy”?  Is it fairly uniform, or are there patches of various types of grasses in other areas, making the lawn uneven in color, texture, or density? Putting in fresh sod may give you a super “bang for your buck” or return on investment.Why does this matter? Because if your lawn looks neglected, buyers may wonder what else is neglected, too.
2. Bushes and shrubs should not impede sidewalks, walkways or views of doors and windows.  Buyers will feel crowded if they sense that plants are blocking their passage or that of light!  The yard, like the home, needs to feel uncluttered. As you look at the other homes’ yards, do the bushes look appealing or unruly? Are they a help or a hindrance to the home’s curb appeal?  Many buyers do not like ivy or juniper, by the way, unless they are exceedingly neat and in small quantities.

1. Color:  bright annuals with colorful flowers make a home far more inviting.  Is the yard solidly green? (All lawn and bushes?)  It can be spiced up with flowering plants and bushes.  If room is an issue, at the very minimum sellers could add color spots by the front door. Luckily, in Silicon Valley we enjoy a sub-tropical climate and even in winter there are annuals that can pack a nice punch of color.
2. Stuff in the yard: what are homeowners doing with hoses, watering cans, front porch furniture or kids’ toys?  Ideally, hoses and other items not in use will be curled up or otherwise pretty much out of sight. (Worst case – laying across walkways, inviting disaster as home buyers trip!)  Yard gnomes etc.: don’t. Seriously.

Next, have a look at the building itself.  How well maintained and attractive is the house, townhouse or condo and garage?  If the view of the structure is unappealing, Silicon Valley home buyers may never cross your threshold to see how great the interior is!

Check these items:

1. Paint – is it in good condition?  Wood tends to need painting about every five years, stucco closer to ten.  If paint is peeling or looking faded, at the very least it should have some “touch up” work done.  If it’s just dusty or sports a few spider webs or the like, perhaps a power washing will do the trick.  Peeling paint screams that “this house has deferred maintenance and is neglected”.
2. Doors and windows:  should be fully visible without bushes or other objects obstructing passage or the view of light.  They should look impeccably clean and function easily.  The hardware should sparkle.  A clean doormat is helpful too.A few months back I saw an MLS comment for agents advising that the door knob sticks and if this happens to use the large rock nearby to make it open. Bad, bad, bad. Sellers need to make their doors open smoothly – again, buyers will worry about what else doesn’t work right if the obvious stuff doesn’t!
3. Gutters, downspouts & roof – first look to see if there are gutters and if there’s coverage over the doorways especially. These components age and can leak at the seams if not well maintained.  Do you see rust at the seams?  If there are screens to keep leaves out, are they in place or have they moved and look a little off?  Small things like that can again send a wrong signal that your home is not well cared for when in fact it may actually be in great shape.Do the downspouts have any issues? Does the water simply dump out at the foundation? (If so, is there moss to address?)  If there are extenders, do they create any tripping hazards?The roof can accumulate stuff – particularly leaves in the autumn.  View the roof and gutter for buildup of debris, moss, etc.  Sometimes there’s so much accumulation of organic material in the gutters and roof area that grass and weeds begin to spring up.  I have even seen this on a home for sale!
4. Front porch: if the property enjoys a front porch, it’s a good idea to play it up with appropriately sized and welcoming furniture, if possible.  Often porches in newer houses or homes are not super big, so bistro sized tables & chairs may be the best best. It may also be a good play for color spots – bowls with colorful annuals to welcome visitors in.

Once you’ve found several homes in your neighborhood which are your property’s competition and have noted their curb appeal, go back to your own residence and see how yours stacks up in all these areas.  Write a list of what needs to be done.  You may need to call in some outside help to get things in top shape, but this is normally both time and money well spent in getting you the best sales price for your home.  This is true whether you’re selling a luxury home or a distressed property – a home that appeals to buyers will have a much better chance of selling faster and for top dollar than one which looks a bit neglected.

Finally: many sellers make a huge effort to put their home in great condition prior to going on the market, but once there, they sometimes let it slip.  Bushes or hedges become overgrown, patches of the lawn are too dry and begin to brown, or the yards generally become a little neglected.  Don’t do this – every serious buyer who sees a neglected yard will wonder what else has been neglected too!  Nervous or worried buyers write lower offers than those who are confident – so keep the yards up so you have your best return on investment.