I recently had the pleasure of sitting down with Carole Rodoni, the expert on all economic and market dynamic issues around real estate, both here in Silicon Valley, and throughout the US. Take a listen, she’s always got such great info.
(quick note/correction on my early plug in the beginning: my radio interview on KDOW is next Tuesday the 19th, not the 18th as I mentioned).
Happy listening!
Podcast: Play in new window | Download
Helping to alleviate the low inventory problem, I’m happy to announce my new listing at 475 Upland Rd. in Redwood City, list price at $1,299,000. Expansive and updated throughout, this beautiful family home on an 18,000 sq. ft. lot boasts a flexible floor plan, with 4 bedrooms, 3.5 bathrooms, storage galore, and a detached garage complete with bonus room.
Nestled down a semi-private driveway, this exceptional home offers plenty of opportunities to enjoy your passions, featuring a large backyard with different fruit trees, flowers, room to play and an inviting outdoor eating area. The updated kitchen has all the necessities for both the casual and gourmet cook. With plentiful storage in the cherry cabinets, granite countertops, and new appliances, this welcoming kitchen opens up into the adjacent dining room and the expansive pantry, providing an extended amount of space to entertain. Skylights throughout the home ensure a bright and inviting ambience.
The bonus room in the garage is perfect as a home office, guest space, work out area, or playroom.
Shrinkage.
Yes, the inventory of homes for sale has been horrendously low the last couple months. Shrunken, like a frightened turtle.
It’s been a condition written about in many industry pubs and the local papers, but here’s the stark reality: with demand on the rise, and inventory staying precipitously low, many homes are selling for over asking price with multiple offers. Buyers are feeling like it’s 2005 all over again. And this low inventory problem is driving up the prices. In every city around Silicon Valley.
Every. City.
How low is it? Well, let’s take a look at the current inventory of homes for sale in some of the major cities here in Silicon Valley, and compare that to the amount of homes for sale exactly 12 months ago.
In no particular order, here we go:
| Right now | 12 mos. Ago | |
| Belmont | 16 | 41 |
| San Carlos | 14 | 46 |
| Redwood City | 41 | 127 |
| Redwood Shores | 3 | 13 |
| San Mateo | 31 | 139 |
| Foster City | 8 | 14 |
| San Bruno | 13 | 65 |
| Palo Alto | 23 | 34 |
| Los Altos | 19 | 36 |
| Menlo Park | 22 | 38 |
| San Jose | 343 | 1,598 |
| Santa Clara | 19 | 97 |
| Cupertino | 15 | 28 |
| Saratoga | 37 | 88 |
| Los Gatos | 54 | 87 |
Is there light at the end of the tunnel? Time will tell, especially come spring time, when inventory typically peaks a bit before the summer time. But is anything about our Silicon Valley market really typical?
Shrinkage.
Yes, the inventory of homes for sale has been horrendously low the last couple months. Shrunken, like a frightened turtle.
It’s been a condition written about in many industry pubs and the local papers, but here’s the stark reality: with demand on the rise, and inventory staying precipitously low, many homes are selling for over asking price with multiple offers. Buyers are feeling like it’s 2005 all over again. And this low inventory problem is driving up the prices. In every city around Silicon Valley.
Every. City.
How low is it? Well, let’s take a look at the current inventory of homes for sale in some of the major cities here in Silicon Valley, and compare that to the amount of homes for sale exactly 12 months ago.
In no particular order, here we go:
| Right now | 12 mos. Ago | |
| Belmont | 16 | 41 |
| San Carlos | 14 | 46 |
| Redwood City | 41 | 127 |
| Redwood Shores | 3 | 13 |
| San Mateo | 31 | 139 |
| Foster City | 8 | 14 |
| San Bruno | 13 | 65 |
| Palo Alto | 23 | 34 |
| Los Altos | 19 | 36 |
| Menlo Park | 22 | 38 |
| San Jose | 343 | 1,598 |
| Santa Clara | 19 | 97 |
| Cupertino | 15 | 28 |
| Saratoga | 37 | 88 |
| Los Gatos | 54 | 87 |
Is there light at the end of the tunnel? Time will tell, especially come spring time, when inventory typically peaks a bit before the summer time. But is anything about our Silicon Valley market really typical?
I’m happy to announce my new listing at 1414 Miravalle Avenue in Los Altos, list price at $2,450,000. Expansive & updated throughout, this beautiful family home on .45 acre boasts a flexible floor plan, with 5 BR/4 BA, 4 car garage, pool, and storage galore. Situated on a quiet cul-de-sac, this exceptional home features a large backyard with over 32 different fruit trees.
The updated kitchen provides all the necessities for both the casual and gourmet cook. With plentiful storage in the cherry cabinets, Brazilian soapstone countertops, and new appliances, this welcoming kitchen opens up into the adjacent breakfast nook and the expansive family room, providing an extended amount of space to entertain.
A 1BR/1BA guest cottage in the backyard is perfect for extended family, work/studio, or rental.
Pricing is going to be the single most important factor in getting your home sold. Pricing it correctly.
Zillow will tell you one thing. A “neighborhood expert” might tell you something else. This can sometimes be a delicate conversation, particularly if you think your home is worth X, and the rest of the world thinks it’s worth Y.
In its most basic form, here’s some guidelines:
The Market Value of Your Home is NOT:
1. What you have in it.
2. What you need out of it.
3. What you want.
4. What it appraised for.
5. What you heard your neighbor’s house sold for.
6. What the tax assessor says it is worth.
8. Based on memories and treasures.
The True Market Value of Your Home Is What a Buyer is Willing to Pay:
1. Based on today’s market.
2. Based on today’s competition.
3. Based on today’s financing.
4. Based on today’s economic condition.
5. Based on the buyer’s perception of the condition.
6. Based on location.
7. Based on normal marketing time.
8. Based on showing accessibility.
Properties That Sell in Today’s Market: On a Scale of 1 – 10, the “10’s” Are The Ones That Are Selling. How Can Your Property Be A “10”?
1. By improving the condition dramatically.
2. By offering good terms.
3. By improving the way the home shows.
4. By pricing it realistically.
As a Seller there are 3 things you control, and 3 things you can’t control:
1. The price you ask.
2. The condition of the property.
3. Access to the property.
As a Seller you do not control:
1. Market conditions.
2. The motivation of your competition.
3. Value
Yes, it’s back! The latest Gory Details Podcast features once again the immensely knowledgeable Carole Rodoni. She’s a highly regarded speaker, author and advisor in Bay Area real estate. Formerly president of Fox and Carskadon Realtors, COO of Cornish & Carey Real Estate, President & COO of Alain Pinel Realtors, and now president of her own consulting firm, Bamboo Consulting, she is..the one, and only, Carole Rodoni
Podcast: Play in new window | Download
PROMOTION
As mentioned in yesterday’s post, easily 80% of buyers look at Internet listings before they even contact a real estate agent
Now why is that?… it’s because of the availability and proliferation of MLS data to the general public makes it so much easier to just pull up your laptop, iPad, or real estate app and to narrow down your search from what’s available, to homes that buyers want to see.
Now there’s the obvious, tactile things that need to happen – well designed and professional looking brochures, professional photography, signage, and open houses. They’re a necessity, but they’re also table steaks – fundamental competencies.
The key is, for any seller, how well, and how quickly, is your agent getting your home promoted to the pool of potential buyers out there. And here quickly is my diatribe on print advertising (my opinion only, but I know I’m not alone in the realtor community with this) – print ads are just not worth the money. The primary beneficiary of an ad in the local weekly real estate rag, or in the weekly local newspaper, is not your home. It really primarily benefits the agent, and his branding, and the promotion of his name to the masses. That does really nothing for your bottom line.
Some of this is going to happen automatically – MLS data feeds its data (syndicates) to many of these websites that buyers use as resources – Zillow, Redfin, Trulia, and many others. Here’s my only warning with those websites….What I’ve found is that, even though they pull their data directly from the MLS, I can’t be so sure they do it on a regular (daily!) basis. I’ve gotten Zillow and Trulia inquiries about my listings that closed escrow 2 months prior – with the unfortunate requester of that info hopeful that they’ve actually found a home they like!
Other means of promoting your home: it can’t be overstated, but Social Media should be playing a big part of your agent’s promotional plan. And this does NOT mean just putting a post on Facebook or Twitter when the home comes on the market. The digital media that’s produced in support of your listing can be leveraged in vast many ways – virtual tours is one, address-specific domains is another, but most importantly, Search Engine Optimization (SEO). Part of it comes down to taking these things, and intelligently promoting them. It’s not about individual posts or tweets, but rather, it’s about promoting content. Hopefully your agent has at least their own website – again, table steaks. Even better, your agent has a blog (or two). Even even better, their own business page on Facebook. Bonus points for their own video channel on YouTube.
I recently had the pleasure of getting interviewed by Joe Cucciara for the RE360 radio show, on KDOW 1220 AM. If you haven’t checked them out on Facebook, look them up here.
In my segment, I spoke about the 3 key important things that sellers need to be on top of when they sell their home. It’s what I call the 3 P’s: Presentation, Promotion, and Pricing.
In today’s post, I’ll talk about the first P, Presentation (the other 2 P’s will follow in the subsequent 2 days).
Everyone knows the old adage that ‘you never get a second chance to make a first impression’. It holds so true when trying to sell your home as well. You as a seller may only have 90 seconds to get this right. Because most homebuyers need only 90 seconds to make their minds up on whether or not they will consider your home. And this is why “presentation” is so key.
Why concentrate on the “presentation” of your home? Let’s put it this way: you dress for success, don’t you? You dress up for a job interview, a first date, right? Well, shouldn’t you do the same for your home when you’re selling it? Because that’s essentially what we’re talking about here: dressing up your home – both inside and out – so that it goes from house for sale to house sold as quickly and profitably as possible.
But don’t just think that it’s the inside you need to worry about. We’re talking about the well held notion of ‘curb appeal’. When someone drives up, you as a seller want them to stop and get out and come in. You don’t want them to slow down, take a look, and then keep on driving.
So here’s the essential things you have to do – paint the house if it needs it – particularly if you’ve currently got it painted in a very personal or unique color. If it’s a home with a front yard, spruce it up! Add redwood bark, plant new plants, trim back excess branches and foliage, rake leaves, etc…..and, this is one thing some people forget, look at your neighbor’s houses. Is it an eyesore? Do they leave their garbage cans out all week? (my personal pet peeve) Does their front yard need raking? These are potentially things you might need to address – and sometimes very diplomatically.
There’s also the backyard to think about too, because you can’t necessarily spruce up the front of the house, and the inside, and blow off the backyard. A good agent will be able to help you figure out what needs to be done and where, to put your home in the best possible light.
So now, let’s get to staging.
Statistics show that houses for sale that are staged, sell faster and for more money than those that aren’t. And I know, everyone can argue statistics, but this goes to something you can’t quite measure, and that is basic human nature and behavior, and moreover, appealing to emotions. Because by staging a house, you’re transforming it into an object of desire! That’s why so many real estate agents work with professional home stagers, because it’s not about fixing a faulty faucet or regrouting your shower. It’s about taking that plain Jane house for sale and turning it into Miss America.
Some of the other good reasons to stage a house for sale include:
The Reader’s Digest version: Inventory is down, median prices are up. (wait, does anyone really still subscribe to Reader’s Digest anymore? Was that a seriously dated pop culture reference?)
Anyway, the latest housing market data report for August 2012 from our local MLS shows some interesting data points. Single family home inventory still is down double digits from the same time last year across all counties, and median home price is very healthy compared to 2011, with double-digit percentage increases in four of five counties.
Month-over-month comparisons tell us that compared to July 2012, sales varied across the counties – from a substantial increase in Santa Cruz County, and up slightly in both Monterey and San Benito Counties, to flat in Santa Clara County, and down slightly in San Mateo County. And, compared to July 2012, median prices started to feel some slight downward pressure in Santa Cruz County, San Mateo and Santa Clara counties, but increased substantially in San Benito County and Monterey County.
Single family home inventory still is down double digits from the same time last year ranging anywhere from 19 to 39 percent. Santa Clara and San Mateo counties shared the largest drop at 39 percent. This is more than the national average of 31.2 percent as reported by the National Association of REALTORS®. Compared to 2011, sales were up 20 percent in Santa Cruz County, 12 percent in San Benito County, 3 percent in Santa Clara County, but Monterey and San Mateo counties are down four and two percent respectively. Median home price is very healthy when compared to 2011. San Benito prices increased 38 percent, Monterey 27 percent, Santa Cruz 17 percent, Santa Clara 12 percent, and San Mateo just 4 percent.
Sales were up a healthy 26 percent in Santa Cruz County, 10 percent in both Monterey and San Benito Counties, flat in Santa Clara County, and down 8 percent in San Mateo County. In general, days on market decreased anywhere from 23 to 39 percent in all counties because of the low inventory numbers. Compared to July 2012, median prices started to feel some downward pressure and dropped 7 percent in Santa Cruz County, 3 percent in both San Mateo and Santa Clara counties, but increased 22 percent in San Benito County and up 14 percent in Monterey County.
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