Neighborhood values

Sue McAllister's blog called Square Feet about real estate in the Mercury News posted some interesting statistics that she gathered about sales activity from various neighborhoods in Santa Clara County. This confirms what I have been saying in the past about buying in neighborhoods with great schools being better buys because they will be easier to sell later. The statistics are a bit skewed, because she lumped many different areas together, but it gives the reader a general idea about the sales activity in different areas of the county. What she is trying to do is calculate absorption rates for different communities.

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Steve Mun, Silicon Valley Realtor
www.stevemun.com

Low Ball Offers.....

We all want a good deal in anything we purchase: this is a universal desire in all of us seek out value in whatever we set out to buy. I certainly understand; who doesn't want a good deal? I am just puzzled; however, by the way certain people attempt to achieve this value acquisition. I try to explain to my buyers, especially the first timers; the best way to negotiate for a house is not to low ball. See the photo above? You don't want to start the negotiation with that move.....

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Steve Mun, Silicon Valley Realtor
www.stevemun.com

Heard on the street......

I am like probably many people: I like to read about ridiculous and extreme things. These things keep me entertained, and helps me keep things in proper perspective. That is why I keep writing about these extreme items of over bidding.

Palo Alto has always been the bellwether for real estate industry in Silicon Valley. What happens in Palo Alto seems to trickle down to other areas. This always been - my senior colleagues tell me - and as far as I can see, will always be. Multiple offers is the norm in Palo Alto, period. Check out the graphs below and tell me if I you question my opinion.

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Steve Mun, Silicon Valley Realtor
www.stevemun.com

Campbell Market Conditions May 2007

Single Family Market

The sales related activity in Campbell seems to be following the county trend: almost a flat line. Inventory is increasing as we hit the summer months, while the sales related activity seems remain fairly flat for the past 15 months (except for a slight upwardly trend in the past 3 months). No significant ups and downs like the previous 15 months.

Continued......

Steve Mun, Silicon Valley Realtor
http://www.stevemun.com/

Santa Clara County Market Conditions May 07

Single Family Market

The Absorption Rate above shows that the inventory in Santa Clara County as a whole, is increasing. As we are hitting the summer months, the inventory for sale is increasing as expected. Kids will be out of school soon, so people are putting their homes on the market and will do so throughout the summer season; the momentum will typically carry into September.

What is a bit different is that the number of homes going into contract is not keeping pace with what was happening the same time the previous year. The comparison of the two sets of charts show that the sales related activity has been pretty flat for the past 15 months.

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Steve Mun, Silicon Valley Realtor
http://www.stevemun.com/

To inspect or not to inspect.....

"Who pays for the inspections?" My starry eyed first time homebuyer asked me.

"It depends on the customary practices of the area." I replied.

"In Sunnyvale, and other parts of Northern Santa Clara County and up the peninsula, sellers will typically pay to have: 1) termite, 2) property, 3) roof and 4) sometimes chimney reports ordered and made available so that the buyers will have the opportunity to see the condition of the home before making an offer."

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Steve Mun, Silicon Valley Realtor
www.stevemun.com

$8,000 lesson

Those damned late night infomercials..... They lead perfectly intelligent people to believe that with no money down or for a few thousand dollars, they can buy homes of people who defaulted on their mortgage payments.

I had a prospect who saw a late night infomercial from a "national figure", called up the number and got talked into signing up for a "coaching program" for some $8,000 which would reveal the secrets of buying real estate with no money down. Turned out they were talking about some variation of buying foreclosed properties at a trustee's sale (auction). This "coach" suggested financing the purchase by using credit card debt!

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Steve Mun, Silicon Valley Realtor
www.stevemun.com

Growing Pain.....

Ah, first time home buyers. I love them! I love them because they are starry eyed and full of excitement about getting into their first dream home. I get more pleasure out of getting them into their first home and living vicariously through them in their moments of joy. This is what gives me the most satisfaction and pleasure about my profession!

Because they are rookies in the game, I try to spare them some disappointment and pain by showing them the shortcut - so to speak - in their journey offering them advice which would serve them well. But, alas, they insist on making the full journey, including walking through the minefield of rejection on their own, when I was clearly standing there pointing them to the painless walkway that lay above the minefield. Most first time home buyers must experience growing pain.

Continued.....

Steve Mun, Silicon Valley Realtor
www.stevemun.com