We are back in full action. Inventory is growing as fast as expected in the spring. The “for Sale” signs are springing up like mushrooms after the rain. If you drive through the neighborhood during the afternoon time you’ll see ‘open house’ signs pointing in all directions. Homes are being sold fairly fast, especially in desirable areas with good schools.  Some homes in the most attractive areas in Sunnyvale, close to Helena and Wright Ave, were sold under or at the asking price. The agents told me that they were very surprised. Other homes, near Ortega Park in Sunnyvale, were sold with multiple offers way above (18%) asking price. All these homes in both areas needed a lot of work (what we call TLC “tender love and care”).

People always ask me “how much do you think this house will sell for?” or “how much this property is worth?” I run the comps (homes that were sold lately in that neighborhood) and even though I really know all these homes, it’s hard to predict. Who knows how desperate the other bidders are, how many homes they lost out on by trying to offer just enough to get the house and not too much. Who knows what other motivations the buyers have. Some are being vacated from their rentals and are sick of moving, some want to invest their savings in real estate instead of a rocky stock market.  Sometimes we have the chance to raise our bid and win the house but the buyers are not ready to pay so much more than the asking price. Buying a house is not just mathematics. Feelings and emotions play a crucial part in the decision to buy and pay the outrageous sum of money for a hut in the Silicon Valley.

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...

.

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

.

So you have decided to sell your home and chose your favorite agent. You are working on preparing your home for sale and beautifying it but in the back of your mind there is always the nagging question, how much shall I ask for it in order to get a good strong offer?

Pricing the house is the marketing strategic. In different times you would use different marketing styles.

In a seller’s market you can comfortably price it low knowing that you’ll generate many offers and get wonderful offers, well beyond  your asking price, but in a transition market like now, you can dream about the good old times and hope for many offers.  Price your house as close to what you think you can get for it realistically. You do not have the luxury of pricing low and get $100k over the asking price with 2 month free rent back and ‘as is’ sale.

For example, Sunnyvale real estate conditions can vary from one neighborhood to another. In Homestead high school area you can still play with the low pricing. Everything sells there. In North Sunnyvale it can’t be done. Together with your agent you can weigh and analyze the local market and set the list price. Cupertino also varies from one neighborhood to another. Monta Vista High school area is still hot while other areas with less desired schools take longer to sell. Price your house as close to the market price but not too high. If the house is priced too high agents and buyers lose interest, the property becomes “stale” and you’ll end up getting less money for your property.