What’s Happening in the Silicon Valley Market This Quarter?

I’ll discuss some important statistics from Silicon Valley’s third quarter so that you know what to expect moving into the fourth quarter.

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Since we’ve just finished the third quarter, I’d like to go over some numbers from the Santa Clara County market so that you know what’s going on in Silicon Valley real estate moving into the fourth quarter.

There are a little over 1,700 homes on the market right now, including single-family homes, townhomes, and condos. Of these homes, the median list price is $980,000 while the median sales price is about $902,000.

For homes that are active on the market, the average days on market is about 59 days in the entire county. For the homes that did sell, the average days on market was about 30 days. The total sales for the last month of the quarter was a little over 1,200 sales, which is down by about 4% from the previous month.

What do all of these statistics mean to you as a home buyer or seller?

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If you find a home that meets your needs, jump on it now.

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If you’re a buyer, you have a little bit more inventory to choose from and interest rates are still historically low. We’re also not seeing quite as much competition on the market, so your odds of getting into a bidding war are much less likely than they would have been earlier this year. So if you find a home you like that fits your needs and is in a great location, jump on it and make an offer.

On the flip side, if you’re thinking about selling your home, don’t worry; homes are still selling. Homes are sitting on the market a bit longer in some areas, which may call for a more aggressive pricing and marketing strategy. Overall, we need to adjust our expectations a bit, especially as we approach the winter months. For this reason, you should be sure to plan your sale accordingly. In any case, if it’s time to sell your home, you can definitely do so and get a great price for it.

This is just a brief overview of what we’ve seen in the market this past quarter, so if you have any other questions about whether it’s the right time to buy or sell a home in Santa Clara County, give me a call or send me an email. I’d be happy to help you!

The Difference Between Listing Agents and Buyer’s Agents

What is the difference between a listing agent and a buyer’s agent? Here is what you need to know about the duties and responsibilities of each job.

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What’s the difference between a buyer’s agent and a listing agent? Obviously, the listing agent deals more with listings and home sellers and the buyer’s agent focuses more on home buyers, but the duties of each agent are actually very different.

The primary focus for a listing agent is to assist the home seller in marketing their home. Their job is to ensure that the home that they are selling shines in the best possible light, to put the home on the MLS, get buyers to see the home, and negotiate offers with those buyers.

A buyer’s agent's primary duty is to take buyers to see homes, find them homes from the MLS, and help them identify what they’re looking for in their next home while being knowledgeable in all aspects of the market.

Because the duties of these two types of agents differ drastically, certain personality types tend to work better for each job. Listing agents tend to be more aggressive and focused on marketing while buyer’s agents tend to be geared more toward customer service and be consulting-oriented.

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One agent can’t protect the best interests of both the buyer and seller.

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Each agent has a fiduciary duty to their respective clients as well. The listing agent has a responsibility to the home seller to get the most money possible and the best terms for their home, while the responsibility of the buyer’s agent is to get the home buyer the best home for the best price on the best terms.

Why is this important information for you to have? If you’re considering buying a home, you may be tempted to call the listing agent for a property you like and work with them to complete the purchase. This is a bad idea because since the listing agent has a duty to the seller to get them the highest price on their home, it is not likely that they will keep your interests in mind during the transaction.

I definitely recommend hiring an individual agent to represent your side of the transaction. If you’re selling your home, hire a listing agent that has experience with listings and project management. On the other side, if you’re buying a home, be sure to hire an agent that deals exclusively with buyers. Hiring an agent to represent both sides may set you up for a potential disaster and a lot of conflicts of interest down the line.

If you have any questions about the duties of buyer’s agents and listing agents or would like to know how to choose the agent that best fits your needs, give me a call or send me an email. I’d be happy to help you!

We’ve Made Home Searching Easy

Our new home search website has everything you need. It is instantly updated with the latest information on homes for sale.

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I just wanted to talk to you for a minute about a new website that we just launched. This site is going to allow you to search for homes for sale as soon as they are listed on the market.

This site is updated instantly with our local MLS and provides a ton of different information about each home on the market. We’ll let you know the nearby schools and provide you with video tours of properties when they are available. This is in addition to all the other information you typically get on listings like bedroom/bathroom count, square footage, etc.

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Let us know what you think!

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You can check the site out at www.buysellprg.com. Go ahead and check out the site when you get a moment. Let us know what you think. If you have any questions for us, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.

Top 3 Tips for Silicon Valley Home Buyers

I have tips that I give to all of my buyers, and these three tips are some of the most important. They'll help you learn everything you need to know about a home you're thinking of buying.

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Today I wanted to give you three tips to help find the right home for you. Some may seem like common sense, but some are tips that you may have never thought of.

1. Do your research. What I mean by this is check out the neighborhood, see what the other homes in the neighborhood look like, and check out the school district (even if you don't have kids, schools will affect resale value) on greatschools.org. You also want to drive around the neighborhood and see what amenities the home has to offer. Are there parks and shopping centers nearby? How close is it to the freeway? Also figure out what your commute would be if you lived there.
2. Visit the home at different times. When you view a home, you'll probably go with your agent or see it during an open house, both of which typically happen during the day. What you want to do is drive around the neighborhood at nighttime to get a sense for the neighbors and how the neighborhood is at night. During open house times, people will see the open house sign and be on their best behavior, but come nighttime on a Friday or Saturday, you'll really be able to get a sense of what the neighborhood is like. Is it quiet? Is there partying? Are there nuisances nearby?
3. Ask for the reports. Most sellers these days are doing reports like termite reports, property inspections, and roof inspections, which are usually available to buyers. Your real estate agent is not a property report expert; they may have some general knowledge, but not as much as an inspector. For that reason, you want to look at those reports and consult with an expert in the area. If you don't understand something in a report, you can also call the inspecting company with questions. You can ask for the specific inspector who checked the home out and ask them questions to shed more light on the report.

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Viewing the neighborhood at night can shed new light on what it's truly like.

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These tips are handy for anyone buying a home, and I always tell them to my buyers. If you have questions about this topic or about Silicon Valley real estate in general, give me a call or send me an email. I'd love to help you out.

What's the Deal with Home Inspections?

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Today I'm joined by Bruce Howe from House Master, who we've been working with for a number of years, to talk about inspections. Bruce has been in the business with House Master for 24 years, and they've done 79,000 inspections.

According to Bruce, the two most common inspections that homeowners should be aware of are termite inspections and home inspections, which have some similarities and differences. Both will point out things like earth-wood contact, wood damage, moisture content, and ventilation issues, but differ in that the home inspector can't do any work on the home or solicit business on it. The termite inspector is supposed to create estimates in the report.

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The seller should expect that there will be issues from the inspection that will need to be worked out.

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As a seller, it's important to make the inspection go smoothly by providing access to the crawl space (if the home has one), the attic, and the electrical panel. The seller should also expect that there will be issues from the inspection that will need to be worked out with the buyer. On the buyer side, they should make a point to read the inspection report from front to back - don't rely solely on the verbal comments from the inspector. Buyers should also vet the inspector before choosing one. Home inspectors are only licensed in two-thirds of states so they may or may not be regulated. They should be trained and they should be insured.

What I like about House Master is that Bruce comes around the office twice a month, and they're always up on the latest technology with a great website. They also provide reports that are really nice, easy to read and understand, and just makes it easier on the consumer. If you have questions or are looking for an inspection, feel free to reach out to either one of us and we'll be in touch!

Price to Sell this Summer in The Valley

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If you're thinking about selling your home this summer in The Valley, you want to be sure you're aware of how to price your home to sell. There needs to be a strategy, because there's a difference between the price you're trying to accomplish and the list price. Homes have a peak interest level in the first 30 days on the market, so it's important to price correctly from the get-go to capture buzz in the first couple weeks.

There are three scenarios of pricing a home.

Group A: Priced too high because they think it's worth more, and get less interest and fewer offers.

Group B: Priced right in the middle, and the home doesn't necessarily stand out. Buyers compare your home to other similarly priced homes.

Group C: Homes priced a little less than what we expect to get. We feel this strategy works the best. If we price slightly less, it shows well, you have good marketing, and you have a great agent on your side, so you're creating the perfect recipe for a bidding war.

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Homes have peak interest level in the first 30 days.

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You'll get more people coming through, and more offers, which drives the price up. There are more details that come into play of course. If you have questions, please feel free to reach out to us.

2nd Quarter Silicon Valley Market Update

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We're onto the second quarter in the Santa Clara County real estate market, so I wanted to give you a quick update.

When we last checked on the market, inventory was just over 1,000 homes, average price was around $860,000, average days on market sat about 69, and the interest rates were sitting around 3.75%. So what's happened since then? Well, we're entering a presidential election, and the Federal Reserve increased interest rates. People thought this would increase mortgage interest rates, but they actually came down a little bit.

Starting in the second quarter, homes on the market have gone up by 700, price is up to $931,000, and the average days on market has fallen to 41, and of course, interest rates are down around the 3.625% range for 30-year fixed mortgages. This means we're still in a seller's market, but there is some more inventory. In some areas, we're starting to see homes get fewer offers, but it's still very competitive and sellers are still getting top dollar quickly.

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Don't give up hope!

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If you're looking to sell, it's still a good time, and if you're looking to buy, there's more inventory for you. Don't give up hope! You just need to partner with the right agent.

Thanks again for your support. If you have any questions, please feel free to get in touch and we'll talk soon.

Can Zillow Give You an Accurate Home Value?

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We’ve been getting the question “Is Zillow an accurate place to find my home’s value?” a lot, and today we are going to explain how it works and what it is useful for.

Here’s what Zillow is good for. Number one, it’s probably the most widely-used commercially marketed real estate search engine. Studies have shown that 70-75% of buyers visit the site. Zillow also offers an automated home value feature that they call a Zestimate. Zestimates are good jumping off points, but they’re just estimates.

Zestimates do not take into account your property’s condition, or all the recent sales in your area. The algorithm can’t determine any updates or renovations you have done, and oftentimes it uses sold data that’s over a year old.

When a professional agent like one of us comes to your home, we are going to take notice of every detail, and assess your home on the current market using the latest sold data and up-to-date information. This will give us the best indication of where to price your home to sell for top dollar.

These are all things that should be taken into account when trying to pinpoint your value. Zillow is a great starting point, but if you’re looking to make a certain amount of money on your sale, you definitely want to contact a professional. If you have any questions at all, feel free to reach out to us via phone or email. We are always here to help.

How Can Security Systems Help Sell Your Silicon Valley Home?

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Today I have Angel Orozco from Skyline Security and he’s going to be talking about home security systems and how they can actually help your home sell in Silicon Valley. Skyline Security has been around for fifteen years and they specialize in all of the newer and more advanced security systems. Many of these are controlled via smartphones and they can be used commercially or residentially.

Technology is huge in security and Skyline offers fully automated technology. Using your phone to set your alarm is extremely convenient, and you can even lock doors with their app. You can secure your entire home from your phone. Motion sensors can detect movement and they also have sensors to detect glass breaking.

 
We have just formed a partnership with Skyline Security and anyone who buys a home from us will get a free installation from Skyline Security. If you have any questions, please don’t hesitate to reach out to Angel.

We look forward to hearing from you!

Four Tips for First-Time Silicon Valley Home Buyers

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Today, we’ll be discussing four valuable tips for first-time home buyers in the surrounding Silicon Valley area. Blanca Medellin, a real estate buying agent on our team, joins us to discuss important advice for first-time home buyers. If you’re looking to purchase a home this spring, this is especially relevant to you!

1. Save up for your down payment. In today’s conditions, most lenders require anywhere from 3% to 30% in a down payment. Be prepared to pay more than you initially anticipate.
   
2. Consider any home improvement or other expenses. The total cost is not only your mortgage payment, but utility, landscaping, maintenance, and other monthly bills.
   
3. Shop around for a mortgage. Find someone you’re comfortable with. Review your finances and share your goals to obtain a prequalification letter.
   
4. Get educated on the home buying process. Sit down with us for a one-on-one consultation, free of charge and obligation. We’ll walk you through every step and what you should expect.

If you’re thinking about buying or selling a home in the area, give me a call or send me an email today. We look forward to hearing from you!

Should You Sell Your Home Before Buying a New One?

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If you plan on selling your current house and buying a new one, there are a few things you need to take into consideration.

The first question to ask is whether you need the equity from your current property in order to purchase a new property. If the answer is yes, we suggest you list the property you’re living in first, in order to have the purchasing power necessary to buy your next home.

If you have the cash in the bank to buy your next home without having to sell, it’s a great position to be in. In that case, you can go ahead and start looking at properties before you even list. However, you should be aware of the possibility that you might have two mortgages at the same time.

Regardless of what you end up doing, it’s crucial to be aware of market conditions. Here in Silicon Valley, it’s a very competitive market; there is a lot of inventory and there are a lot of buyers. In this situation, putting an offer on a home that is contingent on you selling your current home is not going to make you look as powerful as someone else who has already sold their home and has some money in the bank.

In this market, sellers need to be aware of something called rent-backs. Basically, a rent-back is a situation in which the seller asks the buyer to rent back the property from the new buyers. This agreement extends the closing so that sellers can remain in their house, while paying rent to the buyer, as they finalize their new living situation. Many sellers have found this to be a great way to purchase a new home without having to move more than once.

If you have questions about how you can make your move as smooth as possible, or if you have any questions about our local market, please don’t hesitate to reach out to us. We would love to give you a hand! 

Is Your Silicon Valley Home Ready to Sell This Spring?

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The busiest selling season is approaching quickly. Today, we’ll go over five ways to prepare your home to sell this spring. These tips will help your property make the best first impression on potential buyers.

1. Paint the walls a neutral color and replace the carpet. Stick to beige and grays to appeal to the masses. Stay away from loud and bright colors.

2. Remove clutter. Depersonalize the property. Take down family photos and get rid of personal belongings. You’re going to have to pack them anyway, and with them put away, buyers can envision themselves living in the home.

3. Stage your home. If you’re still living in the property, we can do partial staging. If the home is vacant, we can fully stage the property. Staging will give the property a clean, cohesive design and create a nice flow for people walking through the property.

4. Add exterior curb appeal. The grass should be trimmed and shrubs should be pruned. Add fresh flowers and plants. Repaint the front facade, trim, and front door. This will do wonders for how your property shows online and what buyers see when they pull up to your home.

5. Get a home inspection. A home inspection will tell you if anything is wrong with the property. Then you can decide if you want to address those issues up front or make adjustments in the price before listing your home. It’s better to know what’s wrong with the home rather than finding out during negotiations with the buyer, which can save you thousands of dollars.

If you have any questions, give us a call or send us an email. We would be happy to help you! 

5 Questions to Ask an Agent Before Hiring Them

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When it comes time for you to hire a real estate agent, you have almost too many options. Today we are going to discuss the top 5 questions you should be asking any real estate agent before you hire them, so you can filter through the plethora of agents out there in order to find the right one for you. 

1. Are you a full-time agent? 
There are a lot of part-time agents out there; unfortunately, they don't have the necessary time or experience to provide good service. Here at PRG Real Estate, we are all full-time agents, and we are always working our hardest to give you the best service possible.

2. What kind of operation do you run?
A lot of agents attempt to do everything themselves. This is not an efficient process, which is why many solo agents aren't able to give their clients the service they deserve. We have a team of specialized individuals that is designed to make your transaction one smooth process. Our support staff is in place to free up time for our agents so they can spend that time helping you buy or sell a home.

3. Do you have client testimonials?
We survey all of our clients each year and ask their honest opinions about working with us. We appreciate all the feedback that we get, positive or negative, and use it to improve our business. Any agent you hire should be doing the same.

4. Do you have a marketing plan?
Marketing listings is crucial in our market, and we know that. That's why we have our own personalized marketing plan which details our proven strategies and cutting edge marketing techniques that will net top dollar for your home.

5. What percentage of your business comes from referrals?
A good agent should have happy customers that want to come back and do business again, or refer their friends and family members. About 30-40% of our business comes from referrals and previous clients, and we take great pride in that.

Thanks for joining me today. If you have any questions about this topic, or are looking to buy or sell in Silicon Valley, give us a call or send us an email. We would love to hear from you!

What's Happening with Santa Clara County Real Estate?

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What does the real estate market look like in Santa Clara County? Currently, there are just over 1,000 active homes on the market. The average sales price is $860,000, and homes spend an average of 69 days on the market. In more desirable areas, homes are on the market for one or two weeks!

Inventory is extremely low right now, with about one month of inventory on the market. Since there is a shortage of inventory, home values are going up. Many sellers are receiving multiple offers, especially in desirable areas with good schools and great amenities nearby.

Interest rates remain at all-time lows, hovering in the high threes and low fours for a 30-year fixed mortgage. Buyers have a lot more purchasing power right now, so take advantage of these low rates.

What does this mean for you? If you're looking to sell, you can get top dollar for your home so long as you are priced correctly and have an aggressive marketing plan.

For buyers, the market is quite competitive. It might take a little while to get you into a home, but we can come up with a plan to get you to the closing table. Plus, those interest rates are fantastic!

If you have any questions, give us a call or send us an email. We look forward to hearing from you!