SANTA CLARA COUNTY ASSOCIATION OF REALTORS – Demand for housing in Santa Clara County (Silicon Valley) continued to rise in August, with the sale prices for both single family homes and condos exceeding the listing price in an average purchase, according to statistics compiled by MLSListings.
For single family homes, in nine of Silicon Valley’s 17 submarkets, the average seller sold the home for more than he or she asked for, with sellers in Mountain View, Los Altos, and Sunnyvale pocketing, 104.84 percent, 104.23 percent, and 104.02 percent respectively, of the listing prices.
The other six submarkets include Cupertino (103.42 percent), Palo Alto (102.63 percent), Santa Clara (102.92 percent), Milpitas (101.81 percent), Campbell (101.83 percent) and San Jose (101.11 percent).
For condos, in 10 out of 13 submarkets, the average seller netted a sale price higher than the listing price, with sellers in Milpitas receiving 106.59 percent of the asking price.
The other nine submarkets include Mountain View (104.66 percent), Santa Clara (104.51 percent), Sunnyvale (103.43 percent), Cupertino (103.01 percent), Palo Alto (102.32 percent), Campbell (102.04 percent), Los Altos (101.24 percent), San Jose (101.22 percent), and Saratoga (100.87 percent).
“We are seeing a lot of multiple offers and overbidding in this market,” said John Pinto, spokesperson of the Santa Clara County Association of Realtors and a past president.
“Buyers are motivated because of a combination of factors: high rents, low interest rates, high tax brackets, and expectation of future inflation,” said Pinto, also broker/owner of Realty World – John V. Pinto & Associates, Inc.
Sellers and buyers need to adopt the right strategies to take advantage of the market, Pinto said.
If you are a seller, price your home conservatively, fully and properly expose your property on the multiple listing service (MLS) and the Internet with videos and a photo gallery, and let the market forces take over.
Be sure to hire a licensed agent or broker who can manage the dynamics of helping you get top dollar, Pinto said.
If you are a buyer, know your target market first. Get the statistics from your licensed real estate agent and be familiar with them.
To better your chances, provide proof of funds and a meaningful pre-approval letter, connect your loan agent with the listing agent, and minimize your contingencies, Pinto said.
If you don’t get the house, ask the listing agent to keep you as a backup buyer.
If you are a cash investor buyer in the condo market, do not expect the “cash investor discount” to be as deep as you’d like to be, because there may be other investor buyers offering a higher price with a down pay far higher than the traditional 20 percent.
If you are an FHA buyer looking to buy a condo, make an aggressive offer on price, but at the same time keep the appraisal contingency intact, which offers you protection if the home is overpriced, Pinto said.