Real estate agents from Santa Clara and San Mateo Counties are relaying that although it’s still a strong seller’s market, they are seeing fewer numbers of offers. Where there used to be perhaps a dozen bids, now maybe there are 5. For properties that might have gleaned six offers in March, now there are 2 or 3. Even with just three offers, overbids are the norm and frequently, the successful bidders are the ones going in with few or no contingencies for loan, appraisal or inspection. (That’s not a safe practice and not recommended, but the reality is that sellers want to know that once’s it’s sold, it is going to close for sure – so they pick the buyers who will take on all the risk and who also bring in the best price.)
And, as before, not every home gets multiple offers. Some get no contracts at all.
There’s so much hype about the multiple offers and overbids and bidding wars that many Silicon Valley home owners have unrealistic expectations regarding the summer real estate market and find themselves very disappointed with the results of their labors in getting the property to market.
Unfortunately, our multiple listing service, MLSListings.com, does not track the numbers of offers, so we do not have an official way of measuring what’s happening with this particular factor. Networking with other agents, writing and receiving offers, though, Realtors are “boots on the ground” and can gauge the market with issues like this before the impact shows up in other measurable data such as the sale price to list price or days to sell.
Sellers, don’t worry – it is still a fine time to sell your San Jose, Los Gatos or nearby home. It is very important to work with a great realty professional who will guide you on pricing, staging, showings, and every other facet so that you maximize your net takeaway in this market. Some home owners will be unrealistically optimistic about the market conditions and will overprice their homes. Don’t be that seller who gets set up for failure in a market where success is probable. Understand that summer markets are usually cooler than spring and that getting things right is more important now that there is less buyer interest. One good offer is all it takes, but if you can get two or three, you should be set up for a happy ending.