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Silicon Valley Living Highest & Lowest sold real estate
Silicon Valley Living Highest & Lowest sold real estate
🔴[LIVE] Tuesday Highs & Lows When Should You Lower Your Home’s Listing Price?
Inventory is still Dangerously LOW
Tuesdays are fun because we get to see last week's Highs and Lows of Santa Clara Home Sales.
Let's take a look!
Vito Scarnecchia Realtor®, Broker, Veteran, Dad DRE#: 01407676
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Good morning. It's May 23rd Tuesday. Today we're talking about Santa Clara County's highest and lowest. So sit back, we have a great bunch of things to look at. The, first one's amazing. First, we're going to talk about a few things, three things you need to know.
The first one is Santa Clara's Highs and lows, which we'll get to in a minute. The second one is when you should lower your homes. Listing price. And the next one is inventory is dangerously low. And third, the last one is we have a special treat. It's a home buyer's workshop. I wanna promote that a little bit, but let's get into this real quick.
I want to talk to you about No Realty Times. It's mostly for realtors. There are some consumer-based articles, right? There's consumer advice, and the whole thing is, when we talk about listing up the house, it's not the final price, right? It's not the price that we say we want to have the final price at because sellers do not determine the final sales price buyers do.
I can tell you this, until I'm blue in the face you can listen to me or not. And if you listen to me, things go smoothly. And if not, then you think I'm a fool and I'm an idiot. And that's not really how we do things here. And it's not the way the industry works because we have a blind bid system, which tends to get more for the sellers.
And historically, both the buyer's agent and the seller's agent work for the seller. Now, These days when you hire a buyer's agent and you sign a buyer's broker agreement, their job is to get you the best deal possible. Same thing with the listing agreement. The listing agreement. You hire us to help you not only get the highest price possible but the best terms, and the quickest close.
Try to make it as smooth as possible through negotiation, strategy, and tactics, and when you allow us to. Talk to you, and co-counsel you on what sales price we think will sell the fastest and the best and get you the most numbers. It's not because we're trying to discount your house, it's the fact that we want to attract more buyers for you.
So we get more people at the open house and we get more disclosure downloads, and we get more offers. And when we have more than two offers, we have some leverage. And when we have leverage, that means you're going to get better terms, better conditions, and better pricing. If you come at me and say, the house is worth 1.6, we need to list it at 1.6, we're just going to sit there on the market for a very long time, and that's what this thing, this article is about.
When you have your house listed too high, you have to sit there. And figure out what's going on. And then you have to see really what the market's telling you. And I'll tell you straight up before we list, I can tell you if you're at where the market should be if you're saying, my house is worth 1.6 and I can only have 1.6 people come and look at that and say, okay, I'm not going to bid over for that.
And that's definitely not worth 1.6. I'm just going to sit and wait on that one. So you're going to have dismal results on showings in open houses. You're not going to have as many disclosure downloads, and you might get an offer, and I'm telling you this through a story that happened earlier this year. When your house sits on the market for a very long time, 95% of the time is because of price, because you've priced it too high and you're not listening to what the market is telling you. And the market is very loud. And then I can tell you straight up, the market's active. I had 19 offers on the house I just sold, right?
We have buyers out there. There are a lot of buyers out there. And if you strategically price your house correctly, you're going to get your house sold quickly. Price is usually the problem. It's the truth. If you happen to list your house too high and after two or three weeks you get zero results or poor results, or not the results you're expecting, maybe you have a con conversation with your agent about lowering the price.
Now, here's the thing. You set the bar, right? When you set the bar, let's say 1.6, that's what I need. First of all, you're coming from a mindset of lack and not of abundance. Two, you're controlling the market. That's not controllable, right? And three, you're setting saying, this is the bar. And then the next thing you do is lower your price down to 1 55 or five.
And all of a sudden the buyers are like, I'm still not interested. And then you're going down to 1 54 or 1 45, 1 4, and then 1 4, 1 35. You keep dropping it down. We call that biting your arm off one inch at a time, and that's the worst thing you could do. It's the worst thing you can do when you're selling your house because now you're looking desperate.
Now you're looking like I am not listening to my agent. I'm going to do whatever I want and my agent's an idiot. When you list it under the market, let's say, we go in at three, and then we have an amazing open house. Tons of people come through. We have tons of showings, so many showings that it's like aggravating you because you have to jump out of the house for 30 minutes, come back, clean it up do it again, Sometimes you have to leave the house for three hours. In the evenings. That's actually good because we try to minimize it and get it done in seven to 10 days instead of three months. When you lower the price, you do it incrementally and it's going to wind up hurting you. Even worse, when you do that, it shows the market that.
You you, are not listening to what the market's telling you. You're an outlier. And we have houses that are on the market. We talk about it 40 days on the market every Thursday, I think, and we talk about it. Those homes are just outliers. Now, sometimes it's a condition, sometimes it's location. Sometimes you're saying, I have this house that I wanna live by out in the mountains, and not very many people wanna live out in the mountains.
And you have a price too high, or the condition is just not the same as other houses that are similarly sized, same bedroom count, but yours has maintenance issues dated kitchen. The paint doesn't look great. You're not staged, so you're not in, you don't have an inviting house. So the price has a lot to do with it.
Okay, enough of that. Let's go to inventory is still dangerously low. I can show you these graphs all day long. There's a gentleman an appraiser up in Sacramento that I get these ideas from, and I love sharing these because I think it's very telling and I'm, I appreciate Ryan Lundquist, the appraiser.
He talks about these graphs all the time. If you see these graphs that I'm showing you, it's from him. I just take his data. From Sacramento. I take that out and I put Santa Clara in, or I put the 10 counties in so that I can be a little more descriptive and I really appreciate Ryan Lunquist for doing that.
This was for March now we have May. So we have two extra months on it. Obviously, we have far more inventory. Over the months, over the last two months than we had before. And Santa Clara back in March, we only had 2000. Now we're at 3,600. However, if you look at it historically, our inventory is so low right now, and quite frankly it's a good thing.
It's not, I'm sorry, I shouldn't move this up so you can see it. It's when you have this low inventory. You have less supply and demand. Even though demand has come down it's still at a point where it's, there's more competition now, unless the house is overpriced or in poor condition or in the wrong location, right?
So houses will sell. Houses will tend to sell. And that's a great segue to look at. The next thing we're talking about is our highs and lows. Now, let's take a look at this one in Palo Alto, which sold for 18 million. You're like, wow, 18 million. It sold for 80% of the original list price. And guess what?
It took 323 days to sell. I'm not in a hurry. I'll just wait. I'll just wait until I see the right buyer to come along and blah, blah, blah. While a year later you're frustrated and you're, thinking your agent's not doing the right thing, and then you get a lowball offer and you get to the point of desperation and you sell it.
Now look at this house. It's gorgeous. It's incredibly gorgeous. Look at this thing. It's colonial, right? Dressed up beautifully and impeccably. I would love to live in a house like this. There ain't no way I'm paying 18 million for it though. Look at that. Just gorgeous.
This house is designed for show, right? I mean everything about it. Gorgeous house. Now what I would've done is I would've probably suggested that we listed at 18 million and see what happens. Yes, you're going to get lowball offers, but you're also going to get serious buyers right away. And the other part of this is when you list it too high, you cannot dictate the tempo.
What you need of, the terms of everything. When you list it lower than the price, and you have a lot of buyers wanting to buy that house, the seller gets to dictate the tempo. You get to dictate the terms. You get to dictate everything as well as the price, right? You don't know what the highest price is, and that's really my job.
I come in and negotiate for you. Now, let's take this one right here. This is the lowest price sold. House in Santa Clara County this last week in San Jose, 24th Street, originally listed six 50, went down to 500 and sold for six 30 after seven days. So they went in and tricked the market. Going back to that article, they tricked the market.
This, they originally listed at six 50. Right away they dropped it to 500. They're like, what's going on? I don't understand. And then the conversation is, that's the expectation of the seller. You're bringing in a ton of business. You're Brent buyers are coming in and saying, I want this house and this is where you're going to get, you're not going to get to that point.
And it's dangerous because you are setting the bar and it's going to be really hard to get over that bar. So it's a tactic. It's a strategy. It's not one that I would use I'm not here to fault anybody. I'm telling you though, this is a nice house. It's not in the best condition.
It's older. It's a hundred years old. You got the wall heater. There's probably no air conditioning. The agent took their own, obviously, they took their own pictures, so you know, the marketing goes a long way too. Now let's talk about Scenic Boulevard in Cupertino. And this is over by Monte Vista. My old I wanna say, Alma Mater.
Wanted to show you real quick. Hello. It's not coming up. For some reason, it's not coming up. Other than it is. Okay, so that's DeAnza, is that right? Yes, that's DeAnza.
Oh that's, Monte Vista. That's Monte Vista. That's DeAnza right there. That's Monte Vista. That's Kennedy Junior. Junior High. These are the schools I went to. This is, oh, I never went to this one. My sister did. But it's an elementary school. So you would go here, then go here, then you go here.
And this is all of where I grew up. We used to go hang out in this creek right here before 85 was in fun times, good times.
This is Lin Steam Creek Golf Course. Linda Vista Park. We would hang out. Actually, Linda Vista Park's over here. This is Deep Cliff. And then I don't even know what that, oh, that's black Blackberry Farm. And this is up the hill. McClellan goes down right here. There's a big. A big valley right here and then up here.
This is the upper echelon of Cupertino bordering Palo Alto. It's a beautiful house. Look at this thing. This is the same kind of house you would find in Willow Glen, larger ranch style. Beautiful, larger lot. This is a very well-kept house. Look at that floor plan. Oh, I love it.
Everything about this. Now it's older, so you're not going to have the high ceilings. You'll have this one that has the new upgraded wood inlaid. Yay. Gotta sell that. Now the original Oak wood kitchen is fine. But 2,700 square feet, five bedrooms, two and a half bath. Built-in 1989. So there you go. That one had the highest list price over the sales price ratio.
Jefferson Street and Santa Clara had the lowest. Let's take a look at that one. 800 or 650 square feet. One bedroom, one bath. I tell you, I don't know how people did that back then. 1899. It's 123 years old. It's probably older than that. I think that's as far back as it'll go. The original list price is 800.
I'm sorry. The original list price was 7 99 or 7 79. List price. 7 99. And then it went down to, oh geez, 7 0 5, which is 70%. 72%. All right. That's it. Now one last thing. We just. We just did a workshop. It's a little webinar and if you're thinking about buying a house it's free to attend. It's really easy to go through.
It takes 45 minutes or so to walk through this and talk about all the things, all the pitfalls, the different types of loans, and what we're doing now to help people get into houses. So if you're interested in doing that, there's a link. Available for you on all the channels, and all the platforms that I'm talking about.
And there you go. All right. That was three things you need to know. Tuesday's High and Lows in Santa Clara County. I'm Vito Scarnecchia with Abitano, we'll see you out there.