Must Sell in Silicon Valley? Here’s How

By Alicia Lanier, REALTOR

Two or three years ago most of us would have been hardpressed to believe there would ever again be home sellers in the Silicon Valley feeling desperate about finding a buyer for their home. And, candidly, even today there are cities and neighborhoods (yes, most of them with high-performing schools) where sellers still have the advantage. But in most Silicon Valley communities, we have entered a buyers market with plenty of inventory and prices that have stopped skyrocketing, even dropping substantially in some areas.

Which brings me to this point: Some sellers still haven’t caught up to the realities of 2008 when it comes to pricing and selling their homes. The Wall Street Journal’s David Crook has tackled this subject brilliantly in his recent article, “How to Sell a House, When You Have To Sell It Now.” And, he points out wryly: “It could be worse … You could be selling a Hummer.”

The entire article is worth a read if you already have a home on the market or want to sell now or in the near future. But I’d like to highlight a couple of points and make them relevant to our Silicon Valley conditions:

First, says Crook, “Don’t wait around.” Or, to use a well-known iconic phase, Just do it! The truth is there are countless sellers who have discovered that buyers are taking far longer than in the past to make up their minds and plunk down a purchase offer. In June, the average continuous days that a home stayed for sell in Santa Clara County was 73 days. Ranges were as extreme as 20 days in Los Altos and 381 in the Los Gatos Mountains. San Jose homes took an average of 87 days to sell.  And I agree with Crook’s assessment that this is not a “momentary lull” before a market uptick. Most observers believe that “what you see is what you get” (or worse) for the foreseeable future.

Second, price your home for the bargain-hunting mentality of today’s buyers. This is not the time to “test” a higher price in the belief that a buyer will make a realistic, if lower, offer. “Cheap” is the word heard most frequently when buyers are talking price. And selling prices are down by about 10% in Santa Clara County – and could go lower because of heavy inventory of bank-owned and short sale properties – so be prepared to adjust the price of your home appropriately if you want to sell in today’s environment. 

Thirdly, don’t dismiss an offer that is appropriate, even if under the list price. In fact, it’s the rare home today that sells for an initial asking price … most are reduced several times before even receiving a first offer. Market value today is largely set by the buyers and, in my experience, the first offer frequently reflects a price range that probably would be offered in any follow-up offers.

And, finally, remember the tried and true:

• Hire an aggressive real estate professional to market and sell your home (this is no time to go it alone!).
• De-clutter and freshen up your property to showcase it to buyers (you probably won’t recoup the expense if you decide on an expensive remodel).
• If absolutely necessary, play the banker by offering seller financing; in a worst case scenario, the buyer defaults and you can sell it again. 
• Help promote your home to your own network. Ask your REALTOR for the property’s e-flyer, print flyer, and link to the listing online (complete with photos and virtual tour) and then make sure your friends, family and business colleagues are aware that your home is move-in ready!

Happy selling!

Alicia Lanier is a REALTOR, e-PRO, and member of the Coldwell Banker Sterling Society, the top 11% of agents internationally    www.AliciaLanier.com  408-491-1634