What does it take to be a successful move-up buyer in Silicon Valley right now? How hard is that to do? What does it take for a move up scenario in the San Jose area to be a possibility?(1) Buyers are extremely picky – most want a turnkey, perfect home.
(2) Homes that need work (updating, remodeling) are selling at deep discounts, if they sell at all.
(3) Loans are harder to come by then they used to be. If your credit is not perfect, clean it up! Save for a bigger downpayment, especially in the arena of jumbo loans.
If you must sell the current home to buy the next home, you’ll need to get your house or condo into ideal condition. If you can buy the next home without selling the current one, it’s a great rental market! You may want to investigate the possibility of investing by holding your current home and renting it out. Talk to your tax professional about the ramifications of doing this before you decide.
Although it is a buyer’s market everywhere, from Mountain View to Monte Sereno to Morgan Hill, the degree of it varies from one area and price point to the next. You may do very well if you are selling in an area that’s more desireable and moving to an area which is experiencing a deeper buyers market. A couple of examples would be selling a home in Cupertino, Saratoga, Monte Sereno, or Los Gatos (where the schools are highly regarded and the commute is shorter) and buying the next property in the south county areas such as Gilroy, Morgan Hill or San Martin (where it is a deeper buyers market).
Another strategy that should be very effective in the current market is to suffer through the updating that your current home needs, and then buy a home that needs that also needs remodeling or updating. The homes that need to be updated or remodeled throughout appear to be selling at incredibly low prices, whereas some houses which are completely turnkey are getting multiple offers when priced right. Last week I saw an investment property which had been bought as a banked owned home, remodeled quickly and put back on the market (as a “flipped” home if it sells). So sell something that everyone will want, and buy something that no one wants now because of the effort involved in updating. Just make sure that the location is ideal!
This is, of course, “general information” and is not intended to replace a consultation with me or other real estate professionals who can assist you with specific information that pertains to you, your home, your wants & needs, and the current market conditions. Please contact me today for a private consultation.
