Sometimes it’s not too hard to find the likely market value of a property: it might be a San Jose tract home where several similar homes, in similar conditions, on similar lot sizes, has sold recently.  Or, if not such a cookie-cutter property, it could be a “typical” type of house for a given part of Silicon Valley – a typical Cambrian area 3 bedroom, 2 bath house, for instance.

But sometimes, you have residential real estate that really is not too similar to others nearby.  It may have been custom built or remodeled to an extreme.  It might have an exceptional location or view.  Or perhaps it’s in a region where there is very low turnover, so no recent sales.

Estimating the probable buyer’s value with a unique home for sale in Silicon Valley is tricky but not impossible.  There may be no “good comps” within a mile, but there are homes that fill similar needs and that’s where you look.  We must put ourselves into the buyer’s shoes as much as possible. (more…)

What kind of residential lots will hold value the best in Silicon Valley? There are corner lots, flag lots, cul-de-sac lots, other irregularly shaped lots and standard lots. If you are concerned about resale value and appreciation, it’s helpful to know what most of the buyers will ordinarily prefer.

While some people prefer a corner lot (more light, fewer adjacent neighbors), for most, the extra traffic and noise outweighs the plusses. The most-desired lot for homebuyers, generally, is a normal, interior, standard lot.

Cul-de-sac lots are also highly valued among many buyers, though not all. With the court location comes a lack of street parking, especially at the end, and a lack of exit routes. Recently I held a listing open in Los Gatos that was on a cul-de-sac and the idea of only one way in or out spooked one buyer who otherwise really liked the location, which was close to Los Gatos schools. Homes at the end of the court also have irregularly shaped lots, and they tend to be harder to utilize as well but offer large backyards. So there are plusses and minuses, especially at the end of the court.

The key or flag lot is usually considered the least desireable location for the majority of homebuyers in Silicon Valley, because those lots are fairly “hemmed in” by other lots all around them. If you aren’t familiar with a flag lot, you can visualize a lot shaped like a flag on the flagpole – the flag itself is the lot, and the pole is the driveway.

All of these generalizations, of course, are dependent on all other things being equal. A flag lot with a great view will be far more desireable than a standard lot with neighbors who don’t keep up their yards! Keep this tidbit of information as just one of many in your arsenal for determining what adds up to the best investment you can make in today’s Silicon Valley real estate market.