A new home owner called Len Tillem on his Radio talk show today. He bought a house close to San Thomas Expressway for about $800k. The seller wrote in his disclosure that there was no traffic noise so he assumed that it was quiet. He claimed that he only saw the place during the weekend and it was quiet. Now that he moved in he hears the traffic all the time and he is angry at the sellers and the real estate agents. He thinks that he should have paid less for his property or not buy it.

He is rightfully just to be angry at them. It should have been disclosed to him. The agents should have warned him that being close to a freeway there will be noise.

An advice to any buyer who purchases a new property. Always visit the property at all hours of the day. You are going to live there and spend many hours at your new home. Listen to the noises in the area. Some people are sensitive to noises and smells and will be miserable if they hear water, or traffic, or airplanes, or trains, or even dogs barking. You are investing so much money. For many of you this is your largest expense, invest a little time, it doesn’t even cost money. Go there, get out of your car and stand there or walk around the place. Talk to the neighbors. There is always a nice neighbor who would love to tell you everything about the neighborhood. Drive to your work place from that house and drive back as though it was your home. This way you’ll avoid aggravation and live happier in your new home.

My client won the house, competing with 3 other buyers. The seller was so happy. The offer was:”as is”, no contingencies, 3 weeks free rent back, great price, all that for the luxury to own home in Sunnyvale. My client shopped around for the best loan. First he was going with a mortgage broker who promised him the best 30 year fixed conforming loan he could get. Then he found a B of A lender who was willing to get him 5 year arm for 5% (with 1 point). What a deal! The mortgage broker could not match that rate and my client was going to do the loan with B of A. 2 days later the original mortgage broker found a 30 year fixed  for 5.25% with a 1 point buy down. They locked that rate which disappeared that afternoon. The B of A lender could not match that loan and the buyer, being a conservative borrower preferred the 30 year fixed.

A diligent broker has to be on top of things, check the rates a few times a day and be in touch with many lenders.

Oakmont Market is a small grocery store in Cupertino, on the corner of Homestead Road and Blaney. It was opened about a year ago and it’s getting busier every day. Frederico, the owner, is very modest and not greedy. He goes to the Market at 4:00AM and buys fresh produce every day. He checks the merchandise himself to make sure it’s the best quality. He spends the whole day arranging the place and listening to what the buyers want. I used to drive to the Milk Pail every Friday after the agents’ tour in Los Altos and Palo Alto and buy wonderful fruit and vegetables, fresh bread that was so tasty I would eat half of it on the way home, and European cheeses. When Frederico told me that his brother managed the Milk Pail I told him that I would help him in any way to make his place successful so he can get the same exotic cheese and bread and fresh produce. My Pediatrician friend went there for the first time and told me that it took her an hour and a half to finish shopping because she kept meeting all her Israeli and other patients and talked to everyone. It feels like the neighborhood grocery shop back in Israel where you know everyone and we all give advice, what to cook and how to prepare that chicken soup with the celery root and the parsnip root and what spices to add...

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Frederico is happy to order anything you like, just ask him and you’ll see it on the shelf for the best possible price.

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Can you imagine? In the midst of a market downturn, 15 prospective eligible buyers compete for one home (Carniel). Another home (Richelieu Ct.) was sold for almost $200k more than asking price (with 14 offers) last week. It happened last week in Saratoga. About 6 homes that were priced under $2m were sold for more than 10% over the asking price. Some of them got sold just before the end of the year and some are still in contracts. The rain did not scare buyers away. The same thing is happening in Cupertino, where 12 families competed on one home, and in South Sunnyvale, the Homestead High area, low-end homes in Los Altos (under $2M) and in Palo Alto.Inventory is growing slowly but so is activity.These examples are not valid for every market and definitely not for the entire Silicon Valley. Even in the most attractive market there are homes that are not selling. If they are priced too high, over the market value, they will take a long time to sell and the sellers will end up getting a much lower price when they finally sell. A few examples are a house near Montclaire Elementary School in Los Altos (a highly desirable area) which has been on the market for more than 52 days, and a small house with a huge lot near Nimitz Elementary School in Sunnyvale.Smart buyers are not afraid of looking again at the same homes and offering lower prices. Now is a good chance to get A good deal