Silicon Valley real estate: the importance of confidence in the most successful home buying and selling
Home buyers who feel confident about the market generally may buy, but when they have a lack of confidence that properties are holding their value, they don’t – even though a “buyer’s market” is often a great time to purchase real estate!
Silicon Valley home buyers who are confident about a particular property are more likely to pay more and to go into the bidding process with fewer contingencies and shorter contingencies, if any at all. When they lack confidence in a property, the seller’s truthfulness, the listing agent’s professionalism, in the neighborhood or in the real estate market itself, they either don’t bid or they bid low.
Home sellers who feel confident about a buyer and that buyer’s financial abilities are more likely to choose him or her over others. They want to feel that the buyer can perform, that the sale will close and there will be no “re-negotiation” are more likely to accept that offer than one which is riskier. Sellers know that when a home falls out of contract, it often sells for less the 2nd time – so they do not want the sale to fall apart. For that reason, most of them now want offers which are without any contingencies (or perhaps very short ones).
They also want the most money possible, of course, but if it’s neck and neck between the higher price with worse terms or slightly lower price with stronger terms, they will either counter the lower price up a little or they will outright accept the offer with more security of closing.
Often with multiiple offers, there will be a solid “band of pricing” where most home buyers seem to think the value lies. Then there will be one or two who are higher. Maybe one will “spike” the price. But if the spiked price comes with an appraisal contingency, it is really a mirage, an illusion, since the price will likely be renegotiated later. When listing agents see that kind of spread in prices offered, most of the time they’ll try to get the people with the best terms to move up in price. It may not go all the way to the spiked price which is laiden with contingencies, but it will probably move in that direction.
What can San Jose area buyers and sellers do to improve their odds of success? I would say the number one thing is to improve the sense of confidence on the other side of the bargaining table.
What can Silicon Valley home sellers to do enable buyers to feel confident (and to pay top dollar)?
Home sellers can increase the confidence levels of buyers by doing the following: (more…)